This report by the president of Rutgers University (New Jersey) reviews past progress of New Jersey's commitment to economic and social progress through collaborative efforts with its State University, examines the impact of past and proposed budget reductions for fiscal year 1992, and discusses Rutgers' and New Jersey's future prospects into the 90's. Included among Rutgers' past accomplishments are: (1) its enrollment of over 47,000 students and its high percentage of minority enrollment; (2) its close ties with New Jersey industry; and (3) its employment of a high percentage of women and minority faculty. The report stresses, however, that future budget cuts may cause reductions in many academic areas including faculty. The report also notes that a fourth year of substantial budget cuts will have serious consequences on Rutgers' ability to maintain a high enrollment level as well as maintain the quality of its academic programs. It is argued that if New Jersey wishes to meet the challenges of the future with confidence, Rutgers must be a part of an active partnership with the state, and that adequate investment in Rutgers should be maintained. Appendices include a list of Rutgers' centers and institutes for research and science and academic support programs. (GLR)