When the academic year comes to an end, I look forward to a slightly slower pace, catching up on stacks of journals and books, putting the final edits on long overdue manuscripts, and thinking about new Institute and individual possibilities for the upcoming year. Spring and summer 2008, however, offered little in the way of rejuvenation. The University System of Georgia, comprised of 35 institutions, is experiencing a severe decline in state financial support due to a drop in state revenues; consequently, institutions of higher education are being asked to slash current-year expenditures and to adjust future budgets downward. The necessity for the cuts is highlighted daily in national and state news stories on job losses, home foreclosures, rising energy costs, and a sluggish economy. In Georgia, as in other states, revenue from taxes and fees is falling, and the state government is struggling to bridge a $1.6 million projected gap in revenues and expenditures. The only option is to reduce government spending as the constitution of the State of Georgia requires a balanced budget. In some agencies, employee furloughs are being considered or implemented to deal with the shortfalls. At the University of Georgia, we spent stressful days over the summer lowering FY09 budgets and projecting 6% and 8% permanent reductions in FY10. What makes this so painful is that the percentage to be cut is calculated on the entire budget for each unit— personnel and operating dollars. Unfortunately, in this case, for most units the overwhelming majority of the budgeted dollars is committed to faculty and staff salaries; and in many cases the required cuts will likely consume the entire operating budget. As the director of the Institute of Higher Education, I spent most of the summer thinking about higher education planning, priorities, and performance. Three questions guided my thinking regarding the reductions overall: