The higher education system in Israel is discussed, noting that tertiary education in that country makes a clear distinction between higher (university and academic) education and postsecondary education that is largely vocational. The Planning and Grants Committee (PGC) of the Council for Higher Education is responsible for the budgets of Israel's eight universities. Israel also has a group of specialized institutions of higher education which can only award the Bachelor's degree. They are under the aegis of the PGC. Six teacher training institutions are handled by a special permanent committee set up by the Council. Institutions that provide certain academic courses under the academic supervision of a university (e.g. regional colleges) are also found in Israel and financed by the Ministry of Education and Culture and regional authorities. About 30% of all research and development in Israel is carried out in the universities. The PGC has become the most powerful and central organization in higher education as a result of a gradual withdrawal of the government from its direct involvement. In recent years universities have questioned the validity of the allocation methods employed by the PGC and have even protested against its decisions. The outcomes of the present inherent tension between autonomy and control remain to be seen. Tables are included. Contains 20 references. (SM)