Even if you wholeheartedly endorse the "business model" of education, his claim makes no sense. If the UC system were privatised, he would make more money off of English majors than Nursing majors. Or Engineering majors. Or Physics majors. The cost of running your typical Humanities class is trivial, even with full-time faculty.
We joke about this where I work: when we're asked about our "equipment needs" in the liberal arts, it's hard for us to think of anything big. We need more dry-erase markers!
Miles