Agency A had an appropriation of 10 million in 2015 and of 1

Agency A had an appropriation of $10 million in 2015 and of $11.5 million in 2016 (an increase of $1.5 million or 15%). According to the incrementalist view, what is the 2016 budget base for the agency?

a. $13 million ($11.5 million plus $1.5 million)

b. $13.225 million ($11.5 million plus 15%)

c, $10 million

d. $11.5 million

Solution

As per the agency appropriation budget preparation, the 2016 budget base for the agency would be the budget for 2016 plus the increase of $ 1.5 million that is $ 13 million