This report discusses the development of a rational process for making decisions about current operations and managing change to secure future goals. The first section describes the seven basic approaches to budgeting, distinguishes between them, and identifies the principal advantages and disadvantages. The section closes with an overview of a proposal for a comprehensive system of university budgeting that uses all seven of these approaches, but which is critically dependent upon Zero-base Budgeting and the techniques of objectives, strategies, and tactics. Section II presents a statistical report and evaluation of trends at Southern Methodist University. Emphasis is placed on enrollment figures and trends, a brief description of a co-operative program and the TAGER television system, and future prospects in graduate engineering. (MJM)