Research is impossible without graduate students to help teach and conduct research. The department has a large teaching load and graduate students are needed to instruct labs. There is that possibility and we need to explore it further. 3 or 4 more fellowships in order to be able to perform research as well as give high-quality instruction successfully. Everything, when it comes down to it, requires more money.
Graduate programs are essential for recruiting top faculty members.
Graduate students are essential for teaching lab courses. In many cases, graduate students do serve as mentors or tutors for undergraduates. The cost of equipment for this type of program forces universities to collaborate. Each faculty member needs 4 or 5 workers' worth of lab space. The department depends on faculty getting grant money to support this cost.