This paper discusses the funding status of Canadian universities which are referred to as "creatures of the provinces" as their principal funding comes from the provincial governments. Their other main source of funds is tuition and academic fees which are themselves subject to government regulations. Together, 78 to 89 percent of university funds are controlled directly or indirectly by provincial governments. Thus they are expense driven institutions. Direct competition for funds with other public goals results in income uncertainty for universities as illustrated by the recent implementation of Ontario's "social contract" which targeted its universities for a $216 million cutback. When government responsibility to act in the public good conflicts with another public good, it courts economic and social damage. Given these problems, universities should start to exercise more of an entrepreneurial spirit to reshape their dependency on government funding. Universities must convince the private sector to become long-term financial contributors to the general operation of universities as a politically driven funding source can no longer serve as the primary source of university revenue. Successful tempering of the expense driven institution with these changes would create a more balanced support base. (Includes two tables on university revenues in 1992.) (JB)