During a period of deep financial distress, a president has many options to reduce the gap between revenue and expenses, while increasing cash reserves. The problem is that revenue options take too long to take effect to help the college. The quickest way to slow the rate financial decay is to cut expenses. Although it may take several months to put large scale expense strategies into operation, once they start, the college will see quick results in cutting the gap between revenue and expenses and the continued erosion of cash reserves.
Of course, any president is well aware of the turmoil that comes with cutting expenses, especially, when cuts involve terminating positions, reducing pay rates, and eliminating or slashing benefits. While presidents may recognize that cutting expenses is the fastest way to attack financial distress, many presidents, who have passed through the academic crucible of becoming a president, have been conditioned to avoid risk associated with making employees unhappy.
Nevertheless, presidents may be surprised to find that employees are already well acquainted with the parlous state of the college. As a result, while many grumble about the possible loss of employment and benefits, enough employees may recognize that given the financial state of the college, some will survive if substantial expense cuts are made, but all will lose their employment if the college closes.