3: Do either of these funds include taxpayer or tuition dollars?
A: No taxpayer dollars, no student tuition or fees, and no donor funds will be used to fund the settlement. Funds will be sourced from other income generating activities within the University.
This is an irrational statement and violates the first rule of Finance, that being that the sourcing and use of money are independent- despite fund accounting rules made to appear that the two flows are related. The statement is made to appear that money is somehow created "freely "through the use of "other income generating activities", which if were the case, could easily be used to absolve all student loans and eliminate the use of budgetary constraints. Ultimately, that amount or (other amounts) can be indirectly charged to taxpayers or students or cuts in services through cost allocations and changes to future budgets (such as less subsidy for student tuition). The reasoning is similar to Louisiana politicians saying that if they don't raise taxes, they would have to eliminate LSU football.
A: No taxpayer dollars, no student tuition or fees, and no donor funds will be used to fund the settlement. Funds will be sourced from other income generating activities within the University.
This is an irrational statement and violates the first rule of Finance, that being that the sourcing and use of money are independent- despite fund accounting rules made to appear that the two flows are related. The statement is made to appear that money is somehow created "freely "through the use of "other income generating activities", which if were the case, could easily be used to absolve all student loans and eliminate the use of budgetary constraints. Ultimately, that amount or (other amounts) can be indirectly charged to taxpayers or students or cuts in services through cost allocations and changes to future budgets (such as less subsidy for student tuition). The reasoning is similar to Louisiana politicians saying that if they don't raise taxes, they would have to eliminate LSU football.
