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The paper consists of a qualitative discussion of the potential benefits to be derived from the use of Planning-Programming-Budgeting Systems (PPBS) in public higher education. The discussion is divided into three primary sections. The first section briefly describes the existing classical techniques of planning and budgeting for public systems of higher education. The limitations inherent in these approaches are considered. The second section presents suggestions for the application of PPBS to public higher education systems. The problems of identifying the objectives of higher education, of developing satisfactory measures of effectiveness for evaluating the attainment of these objectives, and of structuring a program budgeting format that will assist decisionmaking with regard to resource allocation are described. The third section is concerned with the effect of PPBS on the relationships between the organizational units of the system, with particular emphasis being placed on questions of authority and power redistribution. (Author)