Bill > SB406

This bill introduces zero-based budgeting (ZBB) as a new budgeting approach for Oregon state agencies, defining it as a method where initial funding for each budget component starts at zero and requires comprehensive justification for proposed expenditures. Under this bill, state agencies must include detailed information in their budget requests to the Department of Administrative Services, specifically: a description of agency activities and their legal basis, a quantitative estimate of potential adverse impacts if activities were discontinued, an itemized account of expenditures required to maintain minimum and current service levels, and a ranking of activities based on their contribution to the agency's overall goals. The bill mandates that these more rigorous budget requests will apply to biennial budget cycles beginning on or after July 1, 2027, giving agencies time to prepare for this new, more transparent budgeting process. The goal is to ensure that every expenditure is carefully examined, justified, and aligned with the agency's core mission and legal obligations.

https://olis.oregonlegislature.gov/liz/2025R1/Measures/Overview/SB406