Dr. Stephanie White, the Chief Administrator of Uptown Clinic, a community mental health agency, is concerned about the dilemma of coping with reduced budgets next year and into the near future, but increasing demand for services. In order to plan for reduced budgets, she must first identify where costs can be cut or reduced and still keep the agency functioning. Below are some data from the past year.
You need to cut $94,000 in cost. Prioritize those cuts that can be made without affecting the operation or quality care of the organization.
Program Area Current Costs Proposed Cuts New Budget
Administration
Salaries:
Administrator $ 60,000.00 $ (20,000.00) $ 40,000.00
Assistant $ 35,000.00 $ (35,000.00) $ -
Two Secretaries $ 42,000.00 $ - $ 42,000.00
Supplies $ 35,000.00 $ (12,000.00) $ 23,000.00
Advertising and promotion $ 9,000.00 $ - $ 9,000.00
Professional meetings/dues $ 14,000.00 $ (14,000.00) $ -
Purchased Services: $ -
Accounting and billing $ 15,000.00 $ - $ 15,000.00
Custodial $ 13,000.00 $ (5,000.00) $ 8,000.00
Security $ 12,000.00 $ - $ 12,000.00
Consulting $ 10,000.00 $ (3,000.00) $ 7,000.00
Community Mental Health Services $ -
Salaries (two social workers) $ 46,000.00 $ - $ 46,000.00
Transportation $ 10,000.00 $ (5,000.00) $ 5,000.00
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