Office of Planning & Budgeting

Activity Based Budgeting

Introduction to ABB

Activity Based Budgeting (ABB) is a method of budgeting designed to provide greater transparency into the budget process. In its most basic form, ABB is a method of budgeting in which revenues generated from instructional and research activities are allocated directly to the unit responsible for the activity. ABB ’empowers’ greater local planning and accountability and creates incentives for units to more efficiently manage resources and expenditures. Further, direct control of resources generated from activities creates incentives to set priorities and develop new activities consistent with the overall mission and strategic goals of the institution.

The UW fully implemented an ABB system at the beginning of the 2013 fiscal year.