Your essay does sort of answer the prompt, but your treatment of the topic seems a bit superficial. For instance, you mention that
It is easier for any country to expand its economy if it had an educated and efficient work force. Balancing act is the value of higher education for democracy. A healthy democracy requires civic engagement in both participation and leadership within government and civic organization.
You could easily talk about the economic benefits of providing education for all in its own paragraph. If university educated people earn more on average than non-university educated ones, and so pay more taxes when they start work, then can gov't subsidies in some sense be seen as a direct financial investment?
Likewise, you could easily talk about the civic value of gov't subsidized education in a paragraph of its own. Critical thinking is a vital skill for citizens of a democracy to possess, etc.
Finally, you should deal with the opposing view, which might center on the notion that, having ruined our primary and secondary public schools, the gov't ought not be allowed to get involved in running the universities, too, or people won't have anyplace to go to get truly educated.