This report provides an overview of legislative actions relating to higher education in New Mexico during fiscal year 1997-98. The governor signed into law approximately $485 million in appropriations from the state general fund for the operation of higher education institutions and programs in 1997-98, a decrease of 0.5 percent from the current fiscal year. The legislature supported the priority request of the New Mexico Commission on Higher Education for $2.6 million in additional appropriations to address the workload increases generated by two- and four-year institutional funding formulas, but then cut four-year instruction and general funding by 1 percent, or about $2.6 million. The governor also vetoed a compensation increase of 2 percent for higher education, public schools, and state government. State financial aid experienced some decreases, but on the whole this should not adversely affect students, since total aid expenditures were held flat to the current year. Appended are summaries of New Mexico House and Senate bills affecting higher education that passed or that did not passed.(MDM)