This description and discussion of the budgetary process at the University of Michigan is divided into three major sections. The first section deals with the structure of the process and includes discussions of budget organization and format, an overview of the process, the general fund budget cycle, capital outlay appropriations, general fund priorities, innovation and the budgetary process, and the potential for resource reallocation. The second section discusses the relationship of the university budget and the state, and the third and final section debates the pros and cons of centralization versus decentralization of budgetary decisionmaking. (HS)