Forty-seven of the fifty states had some form of state-level board for higher education in 1981. Critics have expressed concern that the level of those boards' involvement in institutional affairs has steadily increased, while others have observed that administrative costs at the institutional level have gradually risen. It is not known if there is a relationship between the cost of operation of state-level boards and their level of involvement in the affairs of the institutions under their purview; nor, is it known if there is a relationship between the cost of operation of state-level boards and the cost of administration at the institutional level. The purpose of this study was to investigate these relationships. The population for the study consisted of twenty state-level boards for higher education, eleven governing boards and nine coordinating boards. The population further consisted of 216 public, four-year bachelor degree and higher degree granting institutions located in twenty-three states, including Delaware, Vermont, and Wyoming which had no state-level board for higher education in 1980-1981. Seven variables were hypothesized as factors either influencing the cost of administration in public, four-year institutions, the cost of operation of state-level boards for higher education, or the relationship between the two. These variables were formulated with data obtained from a survey of State Higher Education Executive Officers (SHEEO) member agencies and from Higher Education General Information Survey (HEGIS) financial and enrollment tapes. Pearson product-moment correlation and one-way analysis of variance were used to test for significance of relationships between pairs of variables. An analysis of each of the research questions was presented in textural and tabular form. / Ed. D.