Ironically, I have been in several research heavy departments that have been looking enviously at the teaching-heavy, undergraduate centric departments with ste

Ironically, I have been in several research heavy departments that have been looking enviously at the teaching-heavy, undergraduate centric departments with steady and predictable funding streams. Two things to keep in mind: 1. Grants are difficult to get. The pay lines at both the NIH and NSF have been decreasing for quite some time, and even successful departments don't have the feeling of swimming in cash. 2. Overhead rates (the "tithes" you mention) do not necessarily cover the full administrative cost of a research-heavy department (especially things like capital construction). There are certainly institutions that have built a great deal of monetary success on their research programs, but not as many as one might think. This is why, for example, in my field we're seeing a proliferation of MPH programs - student tuition is a more reliable income stream.