The Campaign for the Future of Higher Education, of which the AAUP is a founding member, has released three working papers that address the problem of higher education funding. The papers explore different approaches to the issue, including funding sources, the possibility of free higher education, and the effects of recent cuts to higher education in California.
One paper, “How to Invest in Higher Education: A Financial Speculation Tax,” was written by AAUP president Rudy Fichtenbaum. He argues that the government, by taxing certain financial transactions, could raise between $176 billion and $353 billion each year—more than enough to fund higher education.
Read the papers at http://futureofhighered.org/workingpapers/.