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Performance Based Budgeting

At a university, PBB is simply a budget model that allows units to experience the economic impact of financial decisions, and attempts to incentivize good financial decision making.

At Portland State today, in an environment of declining state support, continued pressure to improve efficiency, and the need to improve student outcomes, the development and implementation of PBB presents an opportunity to allocate resources in a logical, transparent, and efficient manner that rewards achievement of specific strategic initiatives. In June 2011 the Financial Futures Task Force, assigned to evaluate the opportunities and challenges associated with the various resource allocation methods, recommended that the university adopt a new budget model incorporating the general principles of PBB. The President accepted this report and created for the 2011-2012 academic year a working group and a steering committee tasked with development and implementation of PBB for PSU.