Zero-base budgeting as it is used at Allegany College is described. Zero-based budgeting is defined as a budgeting and planning approach that requires the examination of every item in a budget request as if the request were being proposed for the first time. Budgets (decision packages) are first made up for decision units (i.e., a course for the instructional areas of the college) and a specific function or activity for the other areas. Each decision package is reviewed by a program budget manager who then recommends three budget levels (78 percent, 85 percent, and 92 or more percent) to the institutional dean. Although the dean has no limitation on the funding level of any particular program budget, he has an overall funding limitation for all of his programs of 85 percent of his current area budget. The next and highest level of review is the Budget Development Committee. The dean recommends to the Budget Development Committee his priorities for additional funds for each program. Although there is no limitation on the funding level of any particular program budget, the committee has an overall funding limitation for all institutional programs of 92 percent of the total institutional budget. The strengths and weaknesses of the zero-based system are summarized. (SPG)