As Paul Caron notes over at TaxProf, there is an earthquake occurring at UNLV right now. The school's president, Neal Smatresk, announced that the school is planning for the possibility of a quasi-bankruptcy. By announcing a "financial emergency", the university would be better able to close departments and layoff tenured faculty.
Why the crisis? The state legislature is currently considering a proposal to cut 29% of the state's higher education budget over the next two years. By making explicit the implications of such a vote, Smatresk is presumably attempting to create some political pressure againt these dramatic cuts. This isn't a low stakes maneuver. In addition to having the potential to alienate some lawmakers, this announcement may scare the pants off prospective students. It'll certainly grind faculty recruiting to a halt.
The law school is not immune from the situation. In preparation for this financial emergency, the provost is asking each college to suggest large budget cuts. In the case of the Boyd School of Law, the U wants the dean to slice $2.26 million from its budget.
News stories like this may suggest the wisdom of Dean Paul Berman's controversial plans over at Arizona State Law.
Paul Caron has a good set of links to relevant articles and documents at the TaxProf link above.