In 2000-2003 state governments were cash-strapped as they suffered the aftermath of the stock

market tech bubble and 9/11. Did you know that 1 million jobs were lost in the U.S. in the month

after 9/11? Because of the states' budgeting crises, public universities found their budgets under

fire. When budget cuts/freezes were enacted in the early 1990s and in the 2000-2003 periods,

schools were shocked at the size of the changes in their budgets. Many of these budget cuts came

during the school year when contractual commitments with faculty and staff had been signed,

programs had been planned, and students were enrolled and taking classes.

While state budgets have recovered in most states, still in 2015 some state governments are faced

with potentially more draconian cuts to their budgets. Many states have already come to

Washington, DC to join the bailout line. Let's consider how universities may handle budget cuts.

5. Some states such as California seem to be in a state of budget urgency. California's

public university system (UC and Cal State) is the largest in the country. Evaluate

the moral obligation of a taxpayer in Maine (or any other state) to bail out

California to save their university system. What options are available?