Why is it that "higher" education always needs to hire from outside the state? Do we have inferior schools? Most professors from outside of the state are higher at a premium because they are use to the cost of living from where they are from. On top of that, the new employee usually gets spousal accommodation, or in other words, a second job that could be filled with someone from Utah.
Tenure costs the state when a faculty decide they are to good to teach and their research is not innovative, but it is cheaper to keep them on rather than terminate their contract.
Furloughs only hurt professional and classified employees. This is a bad policy. First most faculty have a wife with a second job thus better able to with stand 2% - 4% cut in pay. Second with tenure, a university cannot trim deadwood because it takes a year plus to terminate a tenured faculty member.
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Part of the answer to "why out of state professors?" is that in academia the exchange and growth of ideas comes from picking people with different backgrounds and preparation. Thus, It is considered ill-advised for a university to hire its own PhD graduates. (Harvard is one of the few schools with enough ego to do this regularly.) If we're looking for national recognition/prestige (and it seems we are--I think you're asking if it's worth it, and that's a different question) then outside hiring is a must.
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