During the past decade, institutional leaders and reforming bodies such as the Kellogg Commission on the Future of State and Land-Grant Universities have argued that institutional change is necessary in order to restore public confidence in higher education. The perception that higher education has been unresponsive to the needs of society has been accompanied by a continued and drastic slide in state support for higher education over the past twenty years. Given the significance of the state’s role in financing higher education, this article examines the characteristics of outreach programs that contribute to the maintenance and enhancement of state support for public universities. Case studies of three public research universities illustrate the importance of outreach structure, communication processes, and faculty rewards as essential elements contributing to stronger state-institutional relationships, and thus, expanded state funding opportunities for these types of institutions.