Why do state governments support colleges?

Because education is too important.

It also helps a state to become economically competitive. Here's an example: North Carolina has a nice little high-tech zone called "research triangle." A place like that needs a steady supply of highly educated engineers technicians and scientists. If there were no NC state universities, many NC kids would go out of state to college - for example, Berkeley and UCLA and Stanford and Cal Tech. Once these kids sample the lifestyle in California, how many do you think would return to the heat and humidity of NC? To prevent brain drain, to stay competitive, NC needs to educate locally.

Which leads me to the most important point: most states believe it's actually profitable to subsidize education. College educated people earn more and contribute much more to the economy and therefore generate much more business and personal taxes for the states to collect. I have no doubt that the taxes collected in Silicon Valley more than pay for the whole California State University system.

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It helps the states economy to have a base of college educated citizens.

Look at the impact an Ohio State University has had to that state or the effect of the University of Cincinnati to that City.

You can examples from all over the country of how the public universities have helped the local economies.

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