Facing financial distress: a case study of the University of Washington

This paper describes the processes used by the University of Washington to meet severe budget reductions mandated by the State in the 1980s. A planning philosophy of smaller size and higher quality was adopted, and program elimination was identified as the only way to achieve permanent cost reductions. Program elimination occurred consensually, with faculty and student participation. While a substantial number of programs were eliminated, faith was kept with faculty by retaining all tenured professors in eliminated programs, and with students by allowing them ample time to complete degrees. The strategies the University has developed as a result of its experience of fiscal distress emphasizes increasing university autonomy. The University is striving to acquire authority over its income, is comparing itself with peer institutions to demonstrate underfunding to the legislature, and stressing to the legislature the benefits that come to the state from having a strong research institution.