I guess I get it now. In the example I cited, if the University cuts the budget of a department, it must take into account the reduction in services that department will be forced to make.

As for "knock off" in American slang, among other things it refers to price cutting by illegal competitors, who have copied the original using cheaper employees and with clothing, cheaper materials. I also am wearing a Casio watch that looks identical to a Rolex, but cost only fifty bucks. But I didn't know that until after I bought it, so I don't feel guilty.