CU Denver has long used an incremental approach to resource allocation. This is a traditional, commonly used budget model in which budget proposals and allocations are based on the funding levels of the previous year. Under this model, new revenue results in equal percentage increases for all units; in hard times, budget cuts are typically across-the-board in reach.
This approach can be successful when revenue is steadily climbing. However, when a university (like ours) is financially dependent on enrollment and prone to swings in enrollment, an incremental budget can lead to financial uncertainty. Incremental budgeting typically does not encourage the type of action needed to create growth, properly reallocate financial resources or contain costs.