Reactions to college and university retrenchment (a significant decline in financial resources that results in a reduction in permanent staff and/or elimination of existing programs) and political influences are considered. Responses to retrenchment may include the following: protective reactions by individual faculty members and reduced collegiality due to protective fences established by departments and disciplines, and a restriction of opportunities for newer and younger faculty members. Ways in which retrenchment may have positive outcomes include pressure for non-producing individuals and marginal programs to improve. The central issue in retrenchment is resource allocation. External politics during a period of retrenchment is especially important, since most universities are state-funded and the loss of federal dollars jeopardizes funded projects, research teams, and support systems. The loss of government tax dollars may also result in restricted enrollments, elimination of vital programs, and reduced educational opportunities for young people. The creation of strong retrenchment committees that work directly for the solution of retrenchment problems is recommended. Individually and collectively, university faculty and administrators must more effectively disseminate information about the university and its programs. (SW)