Under the auspices of the American Academy of Arts and Sciences, we have carried out a comprehensive study of the evolving situation for public higher education in the United States. Our focus has been primarily on public research universities like the UCs. We have been particularly interested in the questions of the role that these universities play in the U.S. and their ability to maintain both their excellence and their public character in the context of massive state disinvestment in public higher education across the country. We will discuss our findings and our recommended strategies for moving forward.