You're right that state govs have definitely reduced funding in many places for public colleges. And although this started decades ago in some cases, it is significantly exacerbated by the size of loans that students can easily access (due directly to federal backing of such loans). Therefore, states can reduce spending on colleges with the knowledge that the colleges can easily increase tuition to make up the difference.
1. State govs have reduced funds to all public colleges. 2. Fed gov has refused to increase grants such as Pell on inflation basis.
And that is way before the other forces of price increases and demand increases.