In the past several weeks, we have heard how the state has made a decision to restructuring its higher ed system into a more efficient and more align to the new reality.  It started with WI, followed by CT, and more recently OK.  Should higher ed administrators in other states be nervous?  It should not, because restructuring will create a new system which LEAN, efficient and more effective.   The Association has discussed this issue many years ago in its BLOG.  Therefore, one should not be surprise–it is all about resources.  When they decline, then one should expect lay off, early retirement and for some, create anxiety what is going to happen to their future.  One important thing that differentiates what has happened in the manufacturing/service industry and that of in the higher ed.  Higher ed is classified as a non-profit industry, except for the-profit higher ed.  Therefore, they are not subject to pay taxes.  If one needs to consider this exemption into the analyses, the inefficiency that has occurred in higher ed is even larger i.e., incredibly less efficient, where valuable resources, i.e., tax payers money has been flushed to the …kitchen sinks and produced less output from the spending.  The  higher ed industry has blown out any possible golden opportunities given to them to manage thing right.  However, that public’s trust has been tainted, and it will take a long-time to recover, if there is any chance at all.  This shows past decision making process on budget allocation was less effective.  There is no other way other than to fully implement the Performance Base Funding to deal with declining resources, Fed policy changes and consumers’ perception on higher ed, college administrators and general public’s/society’s perceive value on college education.