The hope is usually that the publication will attract enough new members or donations to justify the costs of producing it. If that seems improbable, a new budget is called for. Recap the length and look of the publication, as it was described to you. Propose a model of the publication you think would fill the bill. Show the Division Director examples of similar products produced within her time frame and budget.
Most people have trouble imagining the unseen.
Once you begin putting the specifications down on paper, and envisioning what the finished product will look like, you should be able to propose alternatives and suggest ways to cut costs. After all, you're the publications expert. Don't be afraid to recommend revisions in research, writing, editing, illustrations, graphic design, printing, and elsewhere. Keep coming up with alternatives until you get a plan everyone can live with. Don't be discouraged.