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In my (albeit biased) experience, the CS department has super high demand (everyone is trying to switch into it or apply to it) but to the university, it's just 1 out of 100 different departments so it feels underfunded compared to the demand it has.

It's been that way since the beginning. I went to a small school in Northern Indiana in the mid/late 80s. The board refused to invest in any computer technology other than the DEC they had because they felt that computers were a passing fad.

There’s a lot of politics involved. All the students want to take CS classes because they understand it can be a path to a high lying career. This leaves other less popular departments scraping to justify their existence.

Basically the gap in demand is huge, but the gap in funding can never be proportionate because it would mean other departments barely get anything. So the CS department is perpetually underfunded, but e.g. the philosophy department probably has more money than it really needs based on natural demand (demand is artificially propped up by required courses)