Not exactly. In WV, the legislature gives each college so many "tuition waivers" based on a complicated formula (as with most things WVU and WV State get way more than they really deserve). Each college can use these for whatever. "Affirmative action", children of professors, "diversity", work-study programs, graduate assistants, merit scholarships, lots more things. And athletics.
Look at the name. Its the "Big Green Scholarship Foundation". Key word is scholarship. The main function of the Big Green is to fund scholarships for athletes. However, MU still uses some of its allotted tuition waivers for athletic scholarships, because the Big Green has always fallen short of being able to fund 100% of the school's athletic scholarships. WVU, BTW, does not use any tuition waivers for athletics, but does receive direct state funding for certain athletic programs that no other school does, so it comes out to the same.
But at the state's small colleges? It has to be 99% tuition waivers. How many people in the entire world actually give one flying f*** about sports at Glenville, or Concord, or Fairmont, or wherever? Enough to dig into their pocket and give money? I think I know all 17 of Bluefield State's fans.