Abstract: Financing public universities is crucial for survival, attaining the stated objectives and the smooth management of university operations. However, public universities have undergone reduced state funding, resulting to negative impact on the part of students and as well as the quality of higher education. This concept paper starts with a review of the variables of financing public universities and quality of higher education, followed by theoretical framework. The ensuing sections discusses relationships between financing public universities and quality of education concepts, followed by summary of literature review and research gaps. The paper ends with a conceptual model and hypothesis generation.