Band is still important there, but its not the player on a university scale that it used to be.
They used to give full scholarships out. A band-only dorm and dining hall, etc. Now its just another organization on campus that receives funding based on number of students that are members. That has drastically cut down their scholarship money. A music major that is All-state first band might get 1/3-1/2 tuition while in the past, they got full tuition, books, room and board.
That was my sister's experience. She was a flag girl and a very good pianist. She majored in business, twirled a flag and played the marimba - and almost got her entire tuition paid for four years. But it was tough for her because she wasn't "all in"
Like Todd said, the uber band geeks that hated that band actually centered around football went to schools like this, while the I'm in band but I want to have a normal college experience go to MSU and get $500 a semester + the trips and SEC Football experience.
Now that Jax State is in the "We can make $700,000 by playing an SEC game" club, band isn't as important.