The first presentation includes a checklist of questions that will help police officials determine if a budget crunch is affecting or is about to affect their department. Considerations basic to 'cutback' management are then outlined, followed by a listing of eight common characteristics of low organizational productivity, presented as a help to police officials attempting to assess the productivity of their departments. A checklist for the budget study process is also presented, along with an outline of fiscal options, critical questions relating to reduction management, and steps in analyzing the existing organization. The second presentation suggests that law enforcement look to the private sector for proven concepts in reducing costs to operate more effectively and efficiently. Some of these basic concepts are outlined. Performance reporting is recommended as an important management tool for evaluating and improving operational performance in police departments, lacking profit as a performance standard. Suggested items in an employee evaluation are listed. The final presentation suggests ways to cut spending under the following budget items: equipment purchase, maintenance and equipment, personnel, overtime, scheduling, telephone scope, and education and training.