The research used information from a literature review and discussions with law enforcement officials. The analysis focused on how reduced revenues will affect law enforcement's ability to provide service in the community, the criteria to be used to determine priorities for service delivery, and opportunities for government restructuring. A strategic plan was developed using the police department of Monterey, Calif. The analysis indicated the need for substantial planning and community good will to maintain critical programs and services. In addition, community needs must be continually evaluated, and innovative responses to the prospect of losing vital economic resources must be supported and implemented. To manage the change process, the city council, city manager, police chief, president of the police officer's association, and community residents must be involved. Tables; figure; and appended figures, study results, and reference notes are included