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The successful efforts of an energetic director to improve conditions at the Colorado State Hospital lead to an unexpected consequence: legislative budget committee members, after a tour, take the view that the hospital, because it looked so clean and well-managed, must have more funds than it truly needed. As a result, the hospital is asked to absorb a $750,000 budget cut. Funds seem likely to be redirected to another institution which had failed to meet federal regulatory standards. This case allows for discussion of the dynamics of the budget process; specifically it poses the question of how the hospital''s management might deal strategically with the impending budget cut.