They are employees of the State of Iowa. The fact that athletic department revenues fund their salaries doesn't change that - because the revenue would otherwise be income to the University of Iowa - a subdivision of the State of Iowa. It's still State of Iowa money whether its from football operations or from taxpayers - and that makes it taxpayer money. However, I'm not arguing that this makes them beholden to citizens of the state, just saying that they are employees of the State.