Maybe this is not a question relating to the usage of the English language. I struggle to find the explanation of "tax-derived finances".

Here is the context: "The principal reasons for this are that rich children stay longer in school, that a year in a university is disproportionately more expensive than a year in high school, and that most private universities depend—at least indirectly—on tax- derived finances"

My guess is that it is the money exempt from being taxed by the government.

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full text here: GRE Prep Course with Software 2003

This is a discussion of the financing higher education which depends in part on government funding. Tax-derived: it comes from the taxpayers.

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