Reference no: EM1370584

In the late 1980s and early 1900s, public universities found that they were no longer immune to the financial stress faced by their private sister institutions and corporate America. Budget cuts were in the air across the land. When the budget ax hit, the cuts often came without warning and their size was sometimes staggering. State support for some institutions dropped by 40% or more. Most university administrators had only experienced budget increases, never budget cuts. Also, the budget setbacks usually occurred at the most inopportune time - during the school year when contractual commitments with faculty and staff had been signed, programs had been planned, and students were enrolled and taking classes.

1. Should the administration be "fair" to all affected and institute a round of across-the-board cuts whenever the state announces another subsidy reduction?

2. If not across-the-board cutbacks in programs, then would you recommend more focused reductions, and if so, what priorities would you establish for bringing spending in line with revenues?

3. Since these usually are not one-time-only cutbacks, how would you manage continuous, long-term reductions in budgets extending over a period of years?

4. Should the decision-making process be top-down (centralized with top administrators) or bottom-up (participative)? Why?

5. How should issues such as protect-your-turf mentality, resistance to change, and consensus building be dealt with?