ERIC Number: ED157410
Record Type: Non-Journal
Publication Date: 1978-Mar-19
Reference Count: N/A
Resource Allocation Reforms: Zero-Base Budgeting and Marginal Utility Analysis in Higher Education.
Morgan, Anthony W.
Marginal utility analysis is described in this paper, with zero-base budgeting (ZBB) discussed as an applied example. Some of the theoretical and practical issues surrounding such models are assessed, and the movement for more scientific and rational resource allocation is placed in a larger methodological and philosophical context. The focus of the paper is resource allocation rather than institutional management and planning, even though some of the terms and concepts used could apply to these broader areas. An assessment of marginal utility models as a basis of resource allocation reform is undertaken for both practical administrative and theoretical reasons. Marginal utility analysis has three components: (1) dividing available resources into increments so that assessments and comparisons can be made about increments (or decrements) rather than total resources; (2) assessing the gains or benefits of each increment; and (3) comparing the relative benefits within and across functions. These are discussed, along with overall cost-benefit analysis, economic models, and zero-base budgeting and its alternatives. Sample zero-base budgeting formats used in the state of Georgia are appended. (Author/LBH)
Publication Type: Reports - Research
Education Level: N/A
Authoring Institution: N/A
Identifiers - Location: Georgia