Budget model: Budget models are comprised of a budget allocation method that specifies the processes by which decisions about the budget are made, including discretionary elements such as the authority and values of relevant decision makers (Hanlon, 2008).

Budget model background

There are five commonly used types of budget models​. University budget models are not are usually pure; most are hybrid and reflect the uniqueness of the institutions they serve. 

The five types are 

• Incremental​
• Formula-based​
• Performance based​
• Zero-based​
• ​Activity-based/Responsibility Centered Management (RCM)

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