I do not believe that higher education is high on their agenda. I think it should be, because it's going to have one heck of a lot to do with the quality of every state economy. I've learned personally a good bit about the possible restructuring of faculty assignments. It has an institutional self protectiveness, or tradition-whichever way you want to describe it. The result is that many governors don't feel comfortable tinkering with higher education.
Many schools take their tax dollars and never look back.
But people are increasingly skeptical about the role of the institution and about the added value of a traditional degree. I think this is because we have not done enough hard thinking about how people learn. Businesses, because they often buy continuing education, have focused probably more effectively on how people learn. I've been told the Army does a pretty good job. I have observed private and proprietary colleges, like the University of Phoenix, and the market they serve.