This is the third annual report on Tennessee's progress toward meeting statewide higher education goals delineated in the 1989 "Tennessee Challenge 2000" program. The report outlines the six goals, specific benchmarks for each goal, and the progress toward such goals and benchmarks accomplished over the last several years. The goals stipulate that by the year 2000, Tennessee will: (1) be among the leading Southern states in providing college education to its citizens; (2) be a national leader in improving the quality of instructional programs; (3) have colleges and universities ranked among the nation's best in teacher preparation; (4) have improved both the quality and quantity of research and public service at higher education institutions; (5) have colleges and universities able to compete for the very best faculty and staff; and (6) allocate sufficient resources to higher education institutions to allow them to meet the goals of the Tennessee Challenge 2000 program. The bulk of the report consists of 22 appendixes, which present data relevant to the attainment of the program goals and benchmarks. The data includes tables and charts on enrollment trends, degrees awarded, persistence-to-graduation, transfers, admissions, standardized test scores, accreditation, job placement, and expenditures. (MDM)