Zero-base budgeting is presented as the functional alternative to the community college funding crisis which may be precipitated by passage in June 1978 of the Jarvis Amendment (Proposition 13) in California. Defined as the management of scarce resources on a cost/benefit basis to achieve pre-determined goals, zero-base budgeting emphasizes program justification, resource allocation, objective setting, results measurement, and program evaluation. The process includes (1) defining budget units; (2) developing the decision package which includes program goals, description of planned actions, costs and benefits, workload and performance measures, alternatives for accomplishing objectives, and benefits derived from various levels of effort; and (3) ranking decision packages on the basis of priorities within each budget unit. Each higher level of administration has the authority to change the priority ranking of any lower level, to reflect the needs of the institution as a whole, which finally provides a ranking summary at the chief executive level. Examples and procedures for zero-base budgeting are included. (RT)