BUDGET REDUCTIONS: An administrative challenge

Abstract

Since before we were hit by the budget cuts that many of us faced in the last year or two, we have been suffering from reductions caused by inflation. In trying to confront inflation, we had already taken several of the obvious measures to reduce costs. At many institutions there have been few major equipment purchases for several years; the vehicles have been made to last another year; some telephone lines have been eliminated; duplicate subscriptions have been cancelled; Greater discipline has been requested from secretaries in the use of photocopying machines; etc.- Such economic measures have been effective when considered cumulatively, but once they have been put into effect, it is difficult to achieve even more savings without employing actions that directly affect the programs. One of the most important decisions that must be made at all levels of management, up to the project leader, is how much can be cut affecting everyone, without causing general mediocrity. At Michigan State University, accompanied by extensive press reporting, the decision was made to make limited cuts that affected everyone, followed by the complete elimination of certain programs. This has not been an easy or popular path, but I believe it has been the right one. One of the most effective short-term means of making mandatory cuts that affect everyone is to rely on staff resignations and use money saved from salaries to cover the items where cuts have been made. Unfortunately, the first vacancies that arise are often not those positions that would be selected for elimination based on program priority. Vacancies that are key must be filled eventually. Delaying the decision in such cases can have serious consequences on the programs. Often, significant portions of an external support unit are tied to a few individual programs. When deciding to eliminate a position, a unit must be prepared to reassign it. some essential functions and eventually eliminate others; The unit must be prepared to justify the decision to the clientele that is being affected and take responsibility for the decision.