Due to the recent financial difficulties, postsecondary institutions are experiencing a trickle-down effect of these problems and find itself in the midst of an ongoing debate regarding funding allocation. In negotiating necessary changes to address the budget shortfalls, the questions to consider are 1) How and if faculty are affected by budget decisions and 2) What is the impact of faculty governance on academic freedom? The purpose of this exploratory study is to measure the perception of faculty at one institution regarding how or if budget shortfalls impacted shared governance and academic freedom, in addition to possibly stifling or eliminating faculty voices in the decisionmaking process. Specifically, the research provides a brief definition of shared governance and its effect on academic freedom, the influence of scarce resources on budget decisions, and the importance of actively listening and respecting faculty and student voices in the budget process. A survey administered to faculty at Midwest University yielded a 31% response rate. Recommendations for university leadership and decision-makers are offered.