Document Type

Article

Publication Date

10-1-2014

Academic Year

2015-2016

Topic

Budget Model

Abstract

Moving Beyond Incremental Budgeting

While most colleges and universities saw stable growth over the last several decades, many now face significant downward pressure on revenue. By one estimate, nearly one in ten institutions face significant financial stress from declining revenue or poor operating performance.

With limited potential for significant new revenue growth, academic and business leaders agree that spending on new initiatives must come from a reallocation of existing resources. However, actually reallocating resources from one area of campus to another remains difficult. In particular, the traditional model of incremental budgeting, which served institutions well in times of growth, is illsuited to meet today’s demands for smarter resource allocation.

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