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This is not typically the case.

Typically, universities have a pretty hard and clear line between research funds and teaching funds. Teaching funds come from tuition, are under the purview of someone like a provost, and are distributed to the colleges. The colleges then pay tenure track/tenured faculty, associate faculty (teaching), and TAs with these funds. Typically, these TAs get a waiver for their studies -that also comes out of teaching funds.

Research funds come from granting agencies such as NIH, NSF, DoD, DoE, and to a much lesser degree, private partnerships. These funds go directly to the tenure track, or occasionally research-only faculty to pay for their research program. These funds can also be used for RAs (pay graduate students full time so they don't need to teach). TA and RA wages are usually the same, but graduate students working as a TA won't get as much done.

Usually a position such as Vice President of Research exists. That office takes IDCs (15-80% depending on the university negotiation with the granting agency). Both IDC funds (often called F&A funds) and teaching funds pay money to the colleges for some percentage of things like building costs, staff (janitors, safety folks, admin) etc. There are usually intense negotiations between the office of the provost, and office of research, over exactly who must contribute which funds.

Oftentimes, a successful and wise research office will realize that the more graduate students they have doing unencumbered research, the more federal grants they can bring in. So many research offices will sponsor RAs per department/college out of F&A funds. Additionally, they will often pay the tuition waiver to the graduate school out of F&A funds. This can lead to not enough TAs to teach classes though, so again, this is usually negotiated between the teaching and research sides.

Typically, teaching brings in most of the money at a university (outside of the biggest research universities), but teaching revenue is much more stable, so those funds are spoken for immediately, usually on fixed costs and union jobs.

Research funds are lower, and because they are brevet quite guaranteed, many folks that are paid from research funds are on contracts that must be renewed every fiscal year, etc.



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