At my alum mater, the state cut support to the state universities to practically nothing. Voters saw how much money the big universities were making on college football. They consistently voted to cut the money to the university system.
Only problem? Most state supported universities did not have a football program.
My university:
* turned to Chinese/Indian nationals (no financial aid/full price)
* raised everyone's tuition (went from low-cost school to higher-end)
* raised other fees
My university is in a part of the US that has low cost of living. So at the very least, the profs are unlikely to be homeless - yes even at the wages specified.