Statewide coordinating agencies are examined concerning their role in determining whether or not to establish new institutions, branch campuses, or professional schools, as well as in deciding which institutions to reallocate or eliminate and which research and public service activities to institute. The historical background and purpose of statewide coordinating agencies is also described. The question is raised as to whose viewpoint the agency really represents, the institution's or the state government's, and it is suggested that if it is not to be merely a capricious and arbitrary decision making body, it could represent the best interest of both parties. The coordinating agency, it is argued, cannot afford to be just a rubber stamp organization that merely approves every new proposal for an institution that is proposed by the state government and higher education. Rather, by considering each proposal on its own merit, the statewide coordinating agency will assure each body involved that the decision it reaches will be both fair and unbiased. Contains 7 references. (GLR)