ahhhh - that’s different - if you are talking about publics.
Not sure your state - but an in-state school already costs less than for out of state students.
Schools have more in-state competition but they also like the out of state $$ these students bring.
But it is a competitive marketplace - so if school A is $50K a year out of state and school B is $60K per year, well school B might throw a carrot to get that student to come….because they want that $50K.
The instate cost might be $30K vs. $60K - so the merit is going to be less - because the price is less.