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 foreseeable 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.  

1. Give a dollar range of costs to reduce budgets (worst and best case analysis).

2. You need to cut $94,000 in cost. Prioritize those cuts that can be made without impacting the operation or quality care of the organization.

3. How would you advise Dr. White to prepare for reduced budgets? 

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Program Area Costs Administration Salaries: Administrator $60,000 Assistant $35,000 Two Secretaries $42,000 Supplies S35,000 Advertising and promotion $9,000 Professional meetings/dues S14,000 Purchased Services: Accounting and billing $15,000 Custodial S13,000 Security $12,000 Consulting S10,000 Community Mental Health Services Salaries (two social workers) $46,000 Transportation $10,000 Outpatient mental health treatment Salaries: Psychiatrist S86,000 S70,000 Two Social Workers