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To strengthen their states' capacity to graduate students and produce workers, governors should develop better measures of their public colleges' performance and productivity, use those measures to allocate state funds for the institutions, and free colleges and universities from overly restrictive regulations, the National Governors Association says in a new report. The report, released in conjunction with the association's annual meeting, is part of the Complete to Compete initiative of the group's chair, Governor Chris Gregoire of Washington.