Dean Jones says:

This is an issue where we can compromise: 

Year 1:  You get one graduate research assistant and you supervise one undergraduate research project.

Year 2:  You get one graduate research assistant and you supervise two undergraduate research projects.

Year 3:  You get two graduate research assistants and you supervise three undergraduate research projects.

How does this sound to you?

Your response:

1.    That sounds fine!  I accept your offer.

2.    If you can allocate an extra $434 for laboratory hardware, I will agree...Lab costs keep going up, and I have my long-term research interests to consider.