Bill > H142

This bill mandates the implementation of zero-based budgeting (ZBB) for North Carolina's state budget, a budgeting approach where agencies must justify their entire budget from scratch each year, starting at zero dollars, rather than incrementally adjusting previous budgets. Specifically, the bill requires the Governor to begin implementing ZBB in fiscal year 2027, with a phased four-year approach starting in the executive branch. Each state agency will be required to develop budget requests as if they are being funded for the first time, accompanied by detailed explanations of their functions, policies, plans, and performance data. By fiscal year 2031-2032, the entire state budget for the 2031-2033 biennium must be prepared using zero-based budgeting. The goal of this approach is to promote more rigorous and transparent budget planning, forcing agencies to carefully evaluate and justify each aspect of their spending, potentially leading to more efficient use of state resources. The bill becomes effective immediately upon becoming law, setting in motion a systematic transformation of the state's budgeting process over the next several years.

Budget and Finance, Justice

https://www.ncleg.gov/BillLookUp/2025/H142