Zero-based budgeting

Zero-based budgeting starts from zero each year. No reference to previous year's budget, and each budget inclusion must be justified. The budget is prepared by dividing operations into decision units. Individual units are then aggregated to decision packages on basis of program activities, goals, organizational units, etc.

Pros

• Staff involved in selecting resource allocation. Fosters public confidence in budgeting process.
• Elimination of outdated efforts/expenditures and concentration of resources where most effective.
• Particularly useful when overall spending must be reduced.

Cons

• Most distritcs do not have the staff/time to adequately address the level of complexity required to administer.
• Requires great deal of staff time, planning, and paperwork.
• Limited implementation in schools thus far.

From Rennie Center for Education Research & Policy