Although the program-planning-budgeting system (PPBS) has been used in higher education to improve planning, budgeting, and decision making, examination had not been conducted to determine if the technique was consistent with planning, budgeting, and decision-making "theory." This paper reports the findings of such a theoretical examination. Models in the areas of "planning theory,""budgeting theory" and "decision-making theory" were analyzed to select appropriate models in each area. Examination was conducted to determine if PPBS was consistent with planning, budgeting, and decision-making models selected. PPBS was judged to be consistent with all the models. (Author)