The financial vice was tightening on the administration at the Ivy State University Business School (ISUBS). The state legislature had announced significant subsidy cuts, alumni were not making financial contributions at the same level as in Prior years, and corporate donors were dispensing fewer dollars in a more restricted fashion. ISUBS's budgeting process for the coming year had begun, and it appeared to Janice McAlister, vice president of finance, that it was not going to be a pleasant one. Unless revenues increased-from an unforeseen source, potentially painful cost reductions would have to be made. Indeed, McAlister had just instructed Jerry Franklin, the school's business manager, to develop a list of initial cost cuts.