The “activities-based” budget approach works like this:

• Budget writers arrive at a list of goals and priorities for the state, such as improving education or raising per-capita income.

• They go through a “shopping list” of all existing state programs and how much each costs, trying to determine which are most likely to help achieve the state’s goals.

• Those best matched to goals receive a high ranking and are funded at an equal or greater level than before. Programs that don’t fit as well are cut back or eliminated.

• Sanford’s budget is expected to include an index of existing state programs and justifications for any proposed changes.