As a new academic year begins, Higher Education Strategy Associates confronts hard truths in a new report: stagnant or declining domestic enrolments, stagnant or declining per-student funding, and total research funding at its lowest level in inflated-adjusted dollars in more than 25 years. Universities have responded in recent years by admitting more international students who are charged higher fees, but their freedom to do so is now checked by a cap on international student permits imposed by the federal government. Partnerships with the private sector have increased research budgets though recovery of only some of the indirect costs of this research means that universities subsidize them through other hard pressed revenue sources, principally tuition and operating budget dollars.