Hi Chris,
I did test this scenario out in my lab machine and was able to replicate what you have mentioned here.
The financial status of new projects are derived from the default value given in the Project Object - Financial Status.
Here is what I did
--> Navigated to Project object - Financial Status attr
--> Updated the default value of Financial Status as OPEN.
--> Created a project with its financial status as Closed
--> Marked the project as Template
--> From Projects List, Create from New Template and used the above template.
Result: The new project got created with the financial status as OPEN as opposed to the CLOSED status in template.
Changed the financial status attribute default value at project object to ON HOLD
Created a new project from the above template again and the newly created project had financial status as ON HOLD status.
So its the object level default value which overrides the template value.
Thanks,
Jerin