Yes, I do agree that state schools also need alum support. The large public universities I’m familiar with have plenty of buildings named after wealthy people and are facing budget crises that affect affordability, so they could use more money.

I could see trouble if a state school doesn’t effectively manage endowments and receives too much money to handle, but as long as proper governance exists elsewhere, I don’t see how concentrated donor influence could hurt the school more than the money would help, even if the money weren’t allocated as well as it could’ve been.