Oct 08, 2013 11:08 AM EDT By Staff Reporter, UniversityHerald Reporter

Is prestige or the public agenda better for a state university and its student body? 

An increasing number of state universities are negotiating the line between public and private by cutting deals with state lawmakers to break away from the state network. The results so far appear mostly positive for the schools and mixed for the public, The Huffington Post reported.

Schools leave the state system in search of greater autonomy, according to The Huffington Post. Though many lose some state funding, universities benefit from fewer restrictions via reduced state-mandated performance targets and more financial freedom, including the ability to raise tuition. With state funding decreasing anyway, the freedom to increase tuition can significantly help a university.

The most recent institutions to break away from their state systems are the University of Oregon, Portland State University and Oregon State University, according to The Huff Post. Schools in Texas, Florida, and Virginia achieved similar goals by receiving permission to raise tuition, reported The Huff Post.

Some involved in higher education worry that schools may lose sight of the public agenda.

"My fear is that if public flagships become so focused on revenue and prestige, and so focused on autonomy, they will minimize their commitment to the public agenda," Richard Novak, former director of public-sector programs at the Association of Governing Boards, told the Huffington Post. "They should be leading the public agenda. If they privatize too much, they're not going to be doing it for much longer."

Robert O'Neil, who used to head the University of Wisconsin system and is the former president of the University of Virginia, fears universities will focus too much on public rankings and may not manage their resources efficiently without public oversight, according to The Huff Post.

"I think there's a potential for confusion, unhealthy competition and misuse of resources," O'Neil said.

Though there isn't extensive research proving either side, some trends have emerged supporting the views of Novak and O'Neil. According to The Huff Post, universities with greater autonomy have seemed to increase tuition while offering big aid packages to coveted students. Pro Publica reported that such schools have given more aid to higher income students and less to students in need.

If you're a student at a college like the University of Virginia, which struck a deal for greater autonomy in 2005, you could be benefitting from the increased revenue via better funded programs, new tech centers, or nicer athletic facilities. James Garland, former president of Miami University who once supported the notion of privatization within public schools, doesn't agree. 

"Some of these flagships would like to make decisions that benefit their own financial future and give them the ability to build posh dining halls or giant stadiums or create new nanotechnology centers," Garland said. "When what really may be more needed than that is simply providing a high-quality rigorous college education for legions of students in the state who can't afford that now and have no place to go and get it."

"It's not an accident that you see this happening among big, well-funded publics," he added.

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