Project Increases/Decreases for Future Years After the first year budget has been developed, and assuming there will be continuing years of the project, individual budgets must be calculated for each subsequent year. One cannot simply increase or decrease subsequent years by a flat percentage since there are typically items to be purchased in the first year that will not be required in subsequent years. An example of this would be a one-time purchase of equipment. Conversely, the scope of the project may broaden in future years causing a proportionate increase in the supply budget and other categories.  For these reasons, each year’s budget must be calculated separately. Any such departures from an across-the-board increase from year-to-year should be explained in the budget justification. Individual institutions have the authority to establish rates of increase or decrease from year-to-year of a project based upon historical information and those policies set forth by the State government for all such institutions. An example would be salary, wage and benefits increases or decreases that are being projected for the future. Keep in mind that the ultimate responsibility for all cost estimates lies with the Principal Investigator, therefore, care should be taken to assure that the method used to arrive at these estimates is reasonable and that they are being applied campus-wide for all sponsored research projects. Back to Top