An October report on the Law School Admission Tests showed a plunge in the number of students willing to take the time and incur the costs associated with a key step in law school entry.

With a decline in law school applicants heralding an similar loss in enrollments, one institution has begun the process of downsizing.

TaxProf Blog reports on the latest university to feel the sting of the higher-ed bubble:

Vermont Law School is offering voluntary buyouts to staff and may do so soon with faculty as it prepares for what its president and dean says are revolutions about to sweep both the legal profession and higher education.

A sharp drop in the numbers of Americans applying to law schools — triggered by a drop in the number of legal jobs open — already is being felt at the independent law school’s bucolic campus on the south bank of the White River.

The class due to graduate in the spring with juris doctor degrees numbers just over 200. The class that will follow it in 2014 numbers about 150.

“When our enrollment goes down, we have to downsize,” Marc Mihaly, the school’s president and dean, said in an interview. “No matter what, we’re going to see fewer on-campus JD students (traditional law students pursuing juris doctor degrees). And we have to adjust to that because we do not run deficits in this school.”