In principle and practice, Michigan's public universities are committed to the sustained improvement of educational and economic opportunities in the state. However, their place in the state's general fund budget makes them especially vulnerable to reductions, when resources are low. The remarkable impact that higher education has on every person in Michigan makes it critical to focus on a longer-range vision. The fragile condition of state and university finances today makes this more challenging than ever. This study was developed to answer questions regarding how public universities administrators respond to state appropriation cuts. The researcher examined how administrators in this type of public higher education institution respond to state cuts and the decision-making processes during state cuts. The goal was to develop a better understanding of how those public institutions make the proper decisions in response to these cuts. A mixed method study was conducted utilizing a survey e-mailed to higher education administrators and a one-on-one interview with five deans from State A University. The data gathered from the survey were analyzed using percentages and frequencies. The data gathered from the interviews were thematically coded. The study provided a clear picture of how universities administrators make decisions in response to state appropriation cuts. It also clarified how the decisions made within the institution in response to the state cuts. In addition, this study presented an integrative discussion of the major research findings for each of the major topics of state appropriation cuts as it relates to literature concerning rational choice theory and its relationship to the responses to state appropriation cuts. This would, in turn, provide important baseline data for researchers to conduct further studies to investigate in depth how administrators respond to state cuts. Further, this study could benefit higher education leaders, administrators, and policy-makers when faced with decisions on budget cuts in response to state appropriation cuts. [The dissertation citations contained here are published with the permission of ProQuest LLC. Further reproduction is prohibited without permission. Copies of dissertations may be obtained by Telephone (800) 1-800-521-0600. Web page: http://www.proquest.com/en-US/products/dissertations/individuals.shtml.]