Zero Based Budgeting

Date: August 9, 2008
Time: 11 PM
Place: Kitchen

The benefits of zero based budgeting outweigh the costs.
With zero based budgeting, you start out by saying "no function or program is necessary and no money needs to be spent." Whatever desires funding needs to be proven worthy, fiscally sound, and it has to fit in the big picture of the firm's revenues & spending.

Many organizations, particulary government agencies are shifting from a incremental budget- which is when you create a budget based on historical data (basically existing departments are preapproved), to a zero-based budget.

I've attached an article from Washington State that descibes how one city council is reaping the benefits of zero-based funding.

This particularly true for the government. Many times budgets are made by simply