State laws actually play a lot into this.
Additionally, the concept of what the "student fee" is supposed to be also plays into this.
In Virginia, the state forces public universities to use the "student fee" to identify dollars used for athletics (and also things like marching band, etc) which are coming directly from the students. In other words, tuition dollars are not allowed, by VA state law, to be used for NCAA sports.
JMU also is currently in violation of the state law, as the percentage of athletic budget dollars coming from student fees is violating state law. They are being forced to lower that % by either lowering the athletic budget or finding more external dollars (this is actually one of the reasons the move to the American is so important for them).
Additionally, most Universities don't like using "student fees" for a couple of reasons:
- university dollars spent on NCAA sports is usually considered marketing by the administrations
- "student fees" are historically fees are used to fund services and activities for ALL students, not just a select few.
- additionally, most universities have student representation on the board of the body responsible to setting the "student fee."
PERSONALLY, I do think the Virgina model is more transparent. Esp since we know that when a university is spending "institutional dollars" on NCAA sports, it's almost always 100% from tuition (as govt funding and donations are almost always earmarked).
However, due to state laws & historic fews regarding what the "student fee" is for; I don't see many public universities adopting what happens with the Virginia public universities.