It is a way to allocate resources to achieve specific objectives based on program goals and measured results."
According to the more comprehensive definition of Segal and Summers,[3] performance budgeting comprises three elements: Segal and Summers point out that within this framework, a connection exists between the rationales for specific activities and the end results and the result is not excluded, while individual activities or outputs are.
In performance-based budgeting, first the goals and objectives of the organization or department are identified, then measurement tools are developed and the last step is reporting.
[9] Performance-based budgeting is an approach in which funding for an institution "depends on performing in certain ways and meeting certain expectations".
[10] "Historically, many colleges have received state funding based on how many full-time equivalent students are enrolled at the beginning of the semester".