Not only is there a shortage of instructors ... there is also a shortage of clinical sites. Not every place that has patients is a good teaching environment. Nursing students need particular types of experiences and those experiences are not as readily available as you might think.
For example, most people would like to see an increase in the number of evening and weekend programs. However, many clinical sites offer little for the students to see and do on evenings and weekends. The students who go to clinicals then just sit around and read charts. Assessments, labs, tests, procedures, teaching rounds, etc. all happen during "normal working hours" -- not in the evenings nor on the weekends. I work in a children's hospital. Most of the kids have visitors in the evenings and don't want to be bothered by a student doing unnecessary things. The parents help them get ready for bed. There is not much for the students to do in the evening.
Also, many cities with multiple nursing schools have already expanded to the point that the local clinical facilities can handle.
I think we would be better off focusing any expansion of nursing programs
into mid-sized communities with regional community hospitals. Such hospitals are large enough to provide sufficient clinical experiences for the students -- but are not now overstaturated with students falling all over each other. But such communities are exactly the kind of communities that are paying the worst salaries for faculty.
Until the community ("public") feels the pain of the shortage, I doubt they will be willing to spend the money needed to solve it.