19mRNA levels are determined by the balance between mRNA synthesis and decay. tors that mediate both processes, including the 5' to 3' exonuclease Xrn1, are responsible for 21 the cross talk between the two processes in a manner that buffers steady-state mRNA lev-22 els. However, these proteins' roles in transcription remain elusive and controversial. Applying 23 NET-seq to yeast cells, we show that Xrn1 functions mainly as a transcriptional activator 24 and that its disruption manifests via the reduction of RNA polymerase II (Pol II) occupancy 25 downstream of transcription start sites. We combine our data and novel mathematical mod-26 eling of transcription to suggest that transcription initiation and elongation of targeted genes 27 is modulated by Xrn1. Furthermore, Pol II occupancy markedly increases near cleavage and 28 polyadenylation sites in xrn1∆ cells while its activity decreases, a characteristic feature of 29 backtracked Pol II. We also provide indirect evidence that Xrn1 is involved in transcription 30 termination downstream of polyadenylation sites. Two additional decay factors, Dhh1 and 31 Lsm1, seem to function similarly to Xrn1 in transcription, perhaps as a complex, while the 32 decay factors Ccr4 and Rpb4 also perturb transcription in other ways. Interestingly, DFs are 33 capable of differentiating between SAGA-and TFIID-dominated promoters. These two classes 34 of genes respond differently to XRN 1 deletion in mRNA synthesis and differentially utilize 35 mRNA decay pathways, raising the possibility that one distinction between the two types of 36 genes lies in the mechanism(s) that balance these processes. 37 Introduction 38 Steady-state mRNA levels are determined by the balance between synthesis and decay rates. 39 Once thought to function separately, recent studies have discovered that these two processes 40 are linked. In previous work we showed that the major cytoplasmic yeast mRNA degradation 41 pathway, consisting of the decapping enzyme Dcp1/2, the decapping activator Pat1/Lsm1-7, the 42 helicase Dhh1, and the 5'-3' exonuclease Xrn1, shuttles between the cytoplasm and the nucleus 43 to participate in both processes. Notably, the elements of this pathway were found to degrade 44 most mRNAs in the cytoplasm while stimulating transcription in the nucleus. The proteins 45 Dcp2, Lsm1, and Xrn1 were further shown to bind chromatin, probably as a complex, and to 46 stimulate transcription initiation and elongation (Haimovich et al. 2013). We also uncovered 47 a connection between how Xrn1 functions in transcription and mRNA decay by revealing the 48 2 correlation between the effects of Xrn1 disruption on mRNA synthesis and decay in the nucleus and 49 cytoplasm, respectively (Haimovich et al. 2013; Medina et al. 2014). We subsequently ranked genes 50 according to their responsiveness to Xrn1 disruption in optimally proliferating yeast cells; the most 51 responsive were dubbed the "Xrn1 synthegradon" and consisted of genes whose transcription and 52 decay rates exhibited the highest...