Provide the financial facts to all, including off-campus staff, technicians, clerical staff, and graduate assistants. E-mail allows rapid dissemination, but also schedule several open meetings, so any person can ask questions and hear explanations. Show dollar sources and dollar commitment for the current FY by budget unit and expense category. Show the size of the budget shortfall relative to the total budget or the categories. Be open, accurate, and credible.
People are more afraid of the unknown than of the known.
And the sooner they know the magnitude of the problem, the sooner they can think about solutions. Do the same with clientele, including students, if the instruction program is involved. That's not credible. If they know and believe the plight, they are more likely to support actions to solve it. Consult with key staff on organization-wide guidelines to be followed in making budget reductions.