Abstract
Resource scarcity in the public sector is getting to be more of the rule than the exception as government entities are buffeted by the twin shocks of tax resistance and economic downturns. The environment of scarcity is a relatively new phenomenon, a reversal,of the conditions in the sixties when many of the seminal budgetary studies were conducted. The issue of whether or not conclusions about budgeting reached in an environment of growth can be applied to a period of scarcity needs to be explored. Evidence in this study indicates that budgetary behavior in New York and Cleveland was related to the abundance or scarcity of resources. This suggests that accepted models of budgeting such as incrementalism are less relevant to today's era of scarcity than to the previous era of growth when the model was developed.
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