has the University found funds to support a varsity team?
They're building a lacrosse facility on campus. So that should indicate yes.
Is there a process in play at the moment?
Not a fast moving one. They're still probably a few seasons away from making it happen. Potential Title IX implications. Just the fact that they're getting a facility should indicate to that, yes, there is a plan in the works.
Can the team schedule exhibition games against 'Cuse and UVA to test the water?
They could legally, as they've scheduled some minor D1 teams in the past. I'm not sure Syracuse or Virginia would schedule them.