Also, they describe global University changes and not those in individual schools. As detailed in the report, the result of these increments represents a considerable shift in the relative allocation of University resources. The cost of student aid to the schools, and the difference between allocated costs and subvention, are two indicators that show how the fraction of University resources available for support of academic programs has decreased since 1980. Of course student financial aid is a necessity if we are to continue to attract a diverse group of outstanding students. Also, it is likely that the need for student financial aid will increase.
Schools receive the bulk of the subvention funds and the assessments of allocated costs.
While subvention and allocated costs are independent of each other in an accounting sense and the budget figures for each are arrived at by a different process under different financial conditions and constraints, the difference between these two figures is important. It represents an expense in the school budgets above the direct costs of operating the schools. This has a direct impact on faculty. This is a statement about the lack of growth of the tenure track standing faculty, not faculty salary raises. Whether or not faculty raises have been adequate and competitive is not relevant to the substance of the report.