Genetic studies show that the Cdc68/Spt16 protein is a global yeast gene activator. A cdc68 mutation inhibits gene expression and alters transcription initiation at promoters harboring *delta*-element insertions (spt- phenotype). cdc68 mutations also allow expression of core promoters lacking UASs. At a genetic level, therefore, Cdc68 activates and represses gene expression. Altered histone gene expression, and resultant changes in histone stoichiometry, can also derepress core promoters and exert an spt- phenotype through effects on chromatin structure. A cdc68 mutation affects expression from the HTA1-HTB1 locus that encodes histones H2A and H2B, raising the possibility that repression of core promoters is a reflection of Cdc68 effects on histone expression. To test this we measured mRNA abundance in cdc68 mutant cells under conditions that preclude histone gene expression. We found that core-promoter derepression in cdc68 mutant cells, as least for the suc2*delta*UAS test promoter, can occur without altered histone gene expression. Thus Cdc68 may have a relatively direct role in chromatin-mediated repression at core promoters. These observations are consistent with our findings that Cdc68 N-terminal sequences are necessary for core-promoter repression but dispensable for gene activation and essential functions of Cdc68.