Which universities? All that gets anything from the state (like subsidies, etc)

Which people? Everybody that can pay for it. It should come out of the state budget. I.e. the same people who pays for the military, the roads, the politician's salaries.

Those subsidies have gone way, way down since at least 2008, for quite a few states. That's part of the reason tuition has been skyrocketing, to make up for the reduced subsidies. At one school that I know someone who works on the staff, the state was perpetually six months behind where it was supposed to be for payments and they had to go through a 40% reduction in their subsidy.

In Illinois, they even proposed a bill to privatize their public schools this year. I don't think it passed, but the fact that it was even proposed says something. Source: http://www.dailyeasternnews.com/2015/03/24/senator-proposes-...

Inexpensive? It costs $26K/year (tuition + room&board) to attend University of Massachusetts.