Financial difficulties in colleges and universities are discussed, with a focus on a paper by Frank M. Bowen and Lyman A. Glenny, who suggest that college administrators are facing up to their responsibilities regarding fiscal and other constraints. They offer suggestions to improve policies and procedures for institutions, for governing and coordinating agencies, and for state government. The human dimension in the politics of retrenchment and the potential role of trustees and regents in dealing with fiscal problems are addressed. Another paper that considers the role state higher education agencies and government can play in difficult financial times is "Trying To Do Better With Less" by Joseph C. Burke. Suggestions regarding institutional planning are that colleges and universities should: redefine their mission to be more consistent with strengths of the faculty, available resources, and student needs; reorganize their administrative structure to readjust from the 1960s and 1970s; plan for realistic enrollment expectations and quality of students; reallocate personnel; and streamline the governance process. In turn, the state should encourage institutions in these efforts, stimulate campus leadership in planning, and encourage faculty development programs. (SW)