[dragonwriter]

> Okay, taxpayers provide part of their funding, the remainder of which is through donations and student fees.

Taxpayers provide part (a declining share and declining real per-student amount) of the funding for in-state students. Why would this subsidy have any bearing on the number of out-of-state slots, which are fully (or more than) self-funded? If taxpayers want more in-state slots, then the taxpayers can fund more in-state slots.

> the remainder of which is through donations and student fees

And research contracts, IP and publishing revenue, etc.