The Oregon Board of Higher Education approved a revision of its existing budgeting procedure, the result of nearly two years' work. The effort was undertaken because of deeply held concern about both the adequacy of the resources provided and the equity of the distribution of the available funds to the several institutions. It was determined that reliance on a student-teacher ratio or a cost-per-student basis as an exclusive measure for allocating/acquiring funds does not assure equity and that a line-item budget neither assures equity nor permits the administrative flexibility essential to a dynamic institution. A Resource Allocation/Acquisition Model was proposed that considers separately the sums for each of seven functions: instruction, nonsponsored research, extension and public services, libraries and museums (academic support), student services, operation and maintenance of the physical plant, and general institutional support. Implementation of the model and further analysis needs related to it are described. (LBH)