In this paper, we examine the role of e-learning enrolments in revenue functions for four-year public universities. Many universities have moved into e-learning as a resource to overcome the funding shortfall which has been an outcome of the recent economic climate. It is hypothesised that an e-learning presence will enhance revenues for universities in varying capacities. We use panel data from the Department of Education and the Southern Regional Education Board, covering the years 2006-2008. We estimate a fixed effects regression to control for unobserved heterogeneity across universities. Results indicate that e-learning enrolment decreases revenue derived from state appropriations. One possible explanation is that traditional universities have found a new revenue outlet in e-learning that decreases the need for state funding. Our results lend support for universities seeking to break away from being a public entity and towards a profit maximising firm. (Contains 5 tables.)