Line-item budgeting

"Historical" approach, using historical expenditure and revenue data. Level of expenditure detail is fund, function, or object and may be augmented with some supplemental program and performance information.

Pros

• Simplicity and ease of preparation.
• Budgets by organizational unit and object. Consistent with lines of authority and responsibility.
• Allows for accumulation of expenditure data by organizational unit for use in trend/historical analysis.

Cons

• Present little useful information to decision-makers on functions and activities of organizational units.
• Justifications for expenditures not explicit.
• Invites micromanagement by administrators without performance information.

From Rennie Center for Education Research & Policy