This document is an exploratory inquiry into the development of collaborative baccalaureate nursing programs in Ontario, Canada, identifying key policy issues and economic considerations. The introduction discusses the purpose of the project and its limitations and methodology, and compares the English and French language nursing programs. Part 1 of the paper, entitled "The Present Situation and Forces Contributing to Change," describes the present state of nursing education, the baccalaureate and diploma, the "legislation" and education route to entry to practice, and collaborative and articulated programs. Part 2, "Examining Major Policy Options from the Perspective of Impact on Costs and Funding," consists of two sections. Section A addresses impacts on cost, such as length of time for degree obtainment, parallel degree programs, integration and specialization of institutions, cost of resources, and articulated vs. integrated programs. Section B addresses funding issues like sectoral funding formulas, weighting factors, grant allocation, and proposals for funds and tuition fees. Concluding comments are provided. (Contains 33 references.) (YKH)