A) This is not caused by the recession; these schools were being mismanaged for many years years before the recession, but they always managed to plug the gaps, extend credit etc. Now that we are in recession, those options don’t exist anymore. Although it took tough economic times to bring these problems to light, they were there underneath the surface for a long time beforehand.
B)WIY- they still have rent or mortgage, utilities, other staff costs, and even if the teachers don’t make that much, when you employ let’s say 75 of them, it adds up. Dinners barely make up for the cost of happening in the first place; fundraising will only get you so far, especially these days; tuition does not cover the costs.