To examine the accuracy of myths of state higher education finance trends, this study used data from 50 states to explore recent patterns in funding allocation, state policies, and system characteristics. Data were gathered through development of a database on state system characteristics and trends and through two surveys sent to state higher education executive officers soliciting information on appropriations and budgeting, linkages affecting appropriations and tuition, cost containment strategies, policy goals and state financial aid policies. Findings included the following: (1) unmet student financial need has been increasing in all states; (2) most states mount no systematic effort to link appropriations for institutions and student aid to public tuition rates; (3) only 26.7 percent of respondent states have discussions underway to adopt market approaches to tuition; (4) states that spend more on subsidies for their public systems also spend more for financial aid appropriations; (5) in general, any direct link at the state level between state aid appropriations, state appropriations for public institutions and tuition levels for public higher education is a myth; and (6) few states have enacted policies to link tuition levels at state institutions to levels of state financial aid available. An appendix contains additional tables. (Contains 39 references.) (JB)