The explanation makes sense, but the system does not.
Instead of allotting x money for the yeshiva system based on the number of students, which will make for an outdated agreement about 5 minutes after it is signed, why not allot x money per student, with perhaps defining specific dates for official recounts, and then when new students graduate into or out of the yeshiva system, the total sum to be given is easily adjusted without requiring negotiating and bartering and playing politics?
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