That is a bit misleading. The vast majority of that $25 million will be the result of in-state students graduating and being replaced with both higher tuition paying in-state freshman AND a higher percentage of OOS freshman. This is sorta mentioned later in the paragraph, although they don’t mention the impact that the percentage of OOS students has on the math. When you combine the four year tuition difference with the four year change in OOS enrollment (and consider that most of that OOS enrollment is in the much more expensive Business and Engineering schools), it is easy to see why tuition revenue should be jumping.
With that said though, the COE is expanding to try to meet the massive demand (they seem to be putting up a new building every other year), but it will only be a small part of the $25 million mentioned.