See this article from the NCSL-- National Conference of State Legislatures. They are bipartisan and a great source of state policy information. We'll use their material frequently.
Reconstructing Higher Education: June 2011
Wisconsin is not the only state struggling with how public colleges and universities can have both flexibility and public oversight. This article gives one overview of some of the issues.
And for an eerie parallel to Wisconsin's recent issues, consider this from Oregon:
U. of Oregon’s President, Chided by State Board, Gets One-Year Contract Extension
June 17, 2011, 12:46 pm
Richard W. Lariviere, president of the University of Oregon, was offered just a one-year extension of his current contract by the State Board of Higher Education, on the condition that he become more of a team player and stop trying to win his university more independence from the state, The Oregonian reported. His effort is opposed by the Oregon University System, which is promoting its own plan to give more regulatory freedom to all of its institutions.