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The purpose of this study was to examine the status of mandatory student activity fees within the state systems of higher education in Connecticut, Massachusetts, and New York. The case study research method was the technique used in this study. The research consisted of (1) determining the policies and expectations that the state system's central administration had for its institutions with regard to student activity fees and (2) studying the details involved in the financing, allocating, and spending of student activity funds at three selected institutions within each state system. Data were gathered through interviews and printed materials from both the state and institutional levels. For consistency purposes, only those institutions that fell under the Carnegie Foundation's classification of Masters (comprehensive) Universities and Colleges I were researched. The results were studied to see if the state's policies were consistent with the policies and activities at each institution, as well as to form comparisons between the policies of institutions within the same state system. A comparative analysis was then performed to study the possible similarities or differences across the three state systems. Detailed recommendations are provided for institutional policies relating to the financing, allocating, and spending of student activity funds. Finally, the researcher proposed recommendations for further study. The major conclusions are as follows: (1) mandatory student activity fees will remain a very popular method for financing student activities at institutions; (2) activity fees have increased significantly in recent years; (3) decisions involving the allocation of student activity funds remain the most difficult for institutions; (4) students continue to make most of the decisions involved in the financing, allocating, and spending of student activity fees; (5) administrators have the final decision making authority in student activity fee related issues.