Actually, no. If you look at the ratio of students per *real* faculty the students are being short changed. Universities use graduate students and adjunct faculty to fill teaching slots. Many undergraduates are lucky if they have a real professor for their large lecture classes.
OTOH staff is where the increase has occurred. Universities are under pressure to recruit certain kinds of students. A lot of money is spent on their recruitment efforts and subsequently the management of what every school needs to be competitive, e.g., financial aid, strong IT department, fancy dormitories, food courts.
Thanks for the clarification LJ.