Reduction planning is a rational process that requires a comprehensive program and a firm grasp on current operating practices and costs. It is planning for reducing personnel positions, lowering levels of service, and deferring maintenance. This paper explores three important issues in reduction planning: the basic concepts of reduction planning, the comprehensive actions necessary in preparation for reduction planning and the alternative actions for achieving reduction. Taken together these three issues set a basis for reduction planning in higher education. The effective use and management of physical resources is looked at from the view of an overall availability of resources for an institution. Specific references are made to activities at Syracuse University that are under the responsibility of the author. (Author/JMF)