In Ohio, as across the nation generally, states are challenged to serve more students, conduct more research, and train more workers with less state support. State policymakers and members of the media often question whether Ohio is over-invested in its higher education facilities. In response to these concerns, and to better understand Ohio's ability to meet current and projected educational needs of the state, Regents staff worked with representatives of Ohio's public colleges and universities to prepare this first-ever study of the capacity of state-funded colleges and universities to serve Ohio's students. The goal of the study is to evaluate the capacity of Ohio's higher education facilities to meet current and future needs. By providing state decision makers and citizens with this information, it is hoped that the report will clarify misunderstandings that may exist and contribute to the decision making process that governs the allocation of state capital resources. Three qualifications defined the scope of this study: (1) The study reports on four categories of space (Classrooms; Classroom Labs; Offices; Residence Halls); (1) Only credit activity is measured in the classroom and classroom lab capacity calculations (References to the number of students enrolled include only those students involved in courses taken for degree credit); and (3) Study includes only those facilities that are owned by the institution (Leased space is not included in the analysis.) Major study findings include: (1) At the state level, Ohio's public higher education system was operating almost at capacity in Fiscal Year 2003; (2) There is a serious shortage of classroom, lab, and office space that is in good condition; and (3) Ohio has a large bloc of aging facilities that present campuses with a number of issues (including challenging health and safety issues) that need to be addressed in the near future. The report recommends that campuses and universities be encouraged to reinvest in aging facilities or replace aging facilities with new facilities, but that major state capital investments will be required to address these issues. Two appendixes are included: (1) Calculations and Assumptions; and (1) Other Studies. (Contains 13 footnotes, 2 figures, and 7 tables.)