The findings of the Southern Regional Education Board (SREB) study of state funding levels and funding methods, covering the period of 1980 to 1987, are summarized. The study reveals that the rate of increased financial support for public colleges and universities from state and local governments in most SREB states has been below the rate of increase nationwide. Per-student state and local funding has not kept up with inflation in most of the states. Salary increases for full-time faculty have not kept pace with either the rates of increase nationwide nor with the rate of increase in per capita income in most states. The proportion of state budgets going to public higher education has declined in nearly all the states. Students are bearing a growing share of costs in most states, while tax funds cover less than before. Specific findings are reported in the following areas: actual financial support, relative priority of higher education funding, changes in public higher education funding strategies and methods, states' ability to pay, states' willingness to pay, and the demand for public higher education services. Charts illustrate findings in each area, and a table is appended showing state appropriations for public higher education for full-time-equivalent students, 1980 through 1987. (KM)