In the context of the increasing transfer of power from the federal government to state governments, this report analyzes existing data and offers critical information about state legislative higher education policy and insights into the values and attitudes legislators hold about higher education. The report's conclusions are based on a study that involved in-depth telephone interviews conducted in 1995 with 58 house and senate education committee chairs in 49 states. Section 1 describes the legislative and higher education environments which provide a context for legislative policy making. Sections 2 through 5 are organized around four general policy questions that emerged from the broad range of higher education issues and concerns addressed by state legislatures in 1995. These addressed: (1) new expectations and roles for higher education given its changing 'clientele' and emerging state priorities; (2) the organization and governance of higher education; (3) accommodating access to higher education with limited state resources; and (4) funding and accountability in higher education. Section 6, the conclusion, summarizes the findings on each of these issues and their implications. Appendixes contain a copy of the survey, information on the methodology, and a state data table. (Contains 14 references.) (JB)