State support for public higher education has been a primary concern for dec-ades. Online education has been identified previously as an alternative revenue source thatcan offer financial relief to colleges and universities. This study uses IPEDS data and afixed effects regression approach to examine whether public universities increase theirreliance on online education in response to decreases in state appropriations. Consistentwith resource dependence theory, we found a negative relationship between state appro-priations and online enrollment at public 4-year institutions. Our findings indicate thatpublic universities, particularly public doctoral institutions, appear to be responding todeclines in state appropriations by engaging in revenue diversification and increasing theircommitment to online education

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• An Examination of the Influence of Decreases in StateAppropriations on Online Enrollment at PublicUniversities