First, I don't think that increased funding should be granted without conditions. It's not just a matter of dumping buckets of cash into the system and hoping for the best, but rather about targeting investment of public resources into higher education to achieve specific goals.
Secondly, I don't think raising tuition would have the same effect. As prices rise, fewer students will have access to the resources required to attend at all, in which case the existing schools would be competing for a smaller group of buyers at that price. The schools would be competing with each other to provide the optimal experience those students desire in order to attract as many as possible. And this speculation isn't entirely academic (pun intended, maybe?) -- schools have been raising their prices for a few decades, and we have seen an escalating "arms race" to provide more and more "experience" benefits from public and private schools alike. Because as I mentioned before, enrollment numbers suggest that "academic rigor" and "long-term value to society" don't seem to be the driving concerns for college students.
Secondly, I don't think raising tuition would have the same effect. As prices rise, fewer students will have access to the resources required to attend at all, in which case the existing schools would be competing for a smaller group of buyers at that price. The schools would be competing with each other to provide the optimal experience those students desire in order to attract as many as possible. And this speculation isn't entirely academic (pun intended, maybe?) -- schools have been raising their prices for a few decades, and we have seen an escalating "arms race" to provide more and more "experience" benefits from public and private schools alike. Because as I mentioned before, enrollment numbers suggest that "academic rigor" and "long-term value to society" don't seem to be the driving concerns for college students.