Do they pocket it or give it to the the state government

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If public colleges are nonprofit then why is the cost of tuition constantly going up but college size and scale remains the same? Why are they using more and more graduate students to teach undergrad courses instead of hiring professors? It seems like they are operating like any private entity trying to minimize cost and maximize proft. If they have a surplus where does it go? Do they pocket it or give it to the the state government?

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