This paper presents 7 guidelines that may be used in situations where curtailment or elimination of programs may be necessary for reasons of financial exigency. The guidelines are: (1) administrators and faculty policy groups should consult widely with their colleagues, students, and others in the college community; (2) appropriate financial information, student-faculty ratios, qualitative program and course evaluations and other pertinent information should be used to support a case of financial exigency; (3) in cases where faculty appointments are to be terminated, timely notice of termination must be given for appropriate financial compensation to be made; (4) faculty members must have an opportunity to be heard by those who will make the staff reduction decisions; (5) if an appointment is terminated before the end of the period of appointment, the released faculty member's place must not be filled within a period of 2 years unless the released faculty member has been offered reappointment; (6) tenured members of the faculty should be retained in preference to probationary appointees; (7) early retirement and transfer from full- to part-time service may be acceptable alternatives to termination. (Author/HS)