For nearly 35 year's Burton Clark's triangle has been used as a paradigm for describing, assessing, and comparing systems of postsecondary education (Clark, 1998, 2004). Two major developments in the fiscal management of post-secondary education occurred more or less contemporaneously: incentive or performance funding on the part of the state and incentive-based budgeting on the part of institutions. Both developments are based on fiscal incentives. Despite several inherent and inter-connected similarities, incentive funding and incentive-based budgeting have been viewed and appraised on parallel tracks. Nor have they been viewed within a paradigmatic context. This study investigates their convergence with particular regard to effect on the relationship between the state, the college or university, and the market as foreseen by Clark's Triangle. The study concludes that, although incentive funding and incentive-based budgeting are sometimes at cross-purposes, they are functionally so inter-connected, whether intentionally or coincidentally, that they can alter the zero-sum balance between the state authority, market and academic legs of the triangle. The study also concludes that the interconnecting effects may be different for colleges, and may indicate a triangle with unequal legs.