Quote:
Originally Posted by White Pine
Will this be a problem given the international student situation?
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Not directly. University financing is very complicated. It functions with different envelopes and money often can not be transferred from one envelope to another.
Tuition, domestic and international. goes into the operating fund that meets daily expenses, such as paying staff. So does government funding earmarked for operating expenses. uOttawa has a $10 million deficit in its operating funds this year. Queen's has a $45 million dollar deficit. Both universities have endowment funds that are much larger than those deficits but they can not use the endowment funds to offset it.
If I donate $100,000 to endow a perpetual scholarship, that money must legally remain to do as I intended and not used to offset the operating deficit.
Money to build new infrastructure is similar. If I donate 100 million to build the new AMRC ,or a government does, then it must be used for that purpose and not diverted to operating funds. Otherwise I can take it back. Universities have to lobby governments and private interests to get the money for new infrastructure.
Sometimes they can borrow money against future revenue. This is common for students residences where the students are charged rent that can pay down the loan. The AMRC is expected to produce revenue and money has been borrowed.
I am sure it is all much more complicated than I can grasp.