Here are steps boards and presidents can take to stem a downward slide into a major financial crisis due to a depletion of cash reserves:

1. Identify why cash reserves are being depleted;
2. Are banks threatening to call loans due to violation of covenants?
3. Stop all non-essential cash purchases;
4. Freeze hiring, except for critical positions needed for ongoing operations, like the chief financial officer and the head of marketing;
5. If the endowment has a balance, contact the Attorney General to request state approval for a substantial loan on the endowment. If possible, use the proceeds to pay off loans carrying large payments;
6. List all unused or under-utilized properties that can be sold.;
7. Consolidate classrooms, faculty, staff, and administration in as few buildings as possible. If the empty buildings cannot be sold, mothball them to save operational and maintenance costs;
8. Run a ‘Save the College’ fundraising campaign.;
9. Eliminate programs or majors with more faculty than students pursuing a major;
10. Design new academic programs to generate larger enrollments;
11. Control net tuition by ending contracts for enrollment services that charge a hefty fee, as these services reduce cash produced by new students;
12. Put construction contracts on hold;
13. Hire an attorney with broad and successful experience in higher education. The attorney is needed to defend the college against lawsuits and to review contracts and changes in corporate documents;
14. Identify every source of cash, like uncollected receivables, loose cash stored in files, and expensive automobiles that could be replaced with less expensive vehicles. For example, safety patrol cars could be replaced with golf carts.