The article reports specific problems of some of the police departments that were interviewed in depth. To respond to cuts in funding and personnel as well as other types of fiscal stress, strategic management responses should be implemented. Strategic responses require (1) a significant realignment of department resources; (2) planning that uses multi-year time frames of three to five years; (3) changes in departmental structure and work force activity; and (4) a comprehensive assessment of the department's structure, mission, and problems. Ad hoc management should be avoided. The article presents models to demonstrate the kinds of choices that police departments have made to cope with the gap between community demands and available resources. To meet the needs of the 1980's, police departments are forging new alliances with community and private sector security groups. 18 footnotes.