> Because if it is a public state university then the in-state tuition rates are subsidized by the state. The state legislature can also adjust these rates, set caps or minimums for in-state students, and enforce other rules as they see fit -- they're paying the bills, after all.

GP's claim was that it is all recruiting is in the name of the diversity of the student body and future student demographics. That's trivially observably false.

Colleges and universities are concentrating their recruitment offers on the most profitable students, which are the international and out of state students because for every non-state student they get to charge more money.

That's why the TX university is interested in recruiting AZ students, rather than TX students: student with the same demographic from AZ will bring more revenue to TX university vs the TX student.