Bill > S126

This bill introduces a comprehensive zero-based budgeting (ZBB) approach for North Carolina state agencies, requiring them to prepare detailed budget plans starting in 2025 on a rotating eight-year cycle. Under this approach, agencies must submit budget plans that start from zero dollars and provide extensive documentation, including descriptions of discrete activities, justifications for each activity's existence, potential adverse impacts if activities are discontinued, quantifiable program outcomes, itemized expenditure accounts at minimum and current service levels, and a ranking of activities by their contribution to the agency's overall goals. The Office of State Budget and Management (OSBM) will provide technical assistance and submit these plans alongside the Governor's budget recommendations. The bill establishes a specific schedule for different state agencies and divisions to complete their zero-based budget plans, beginning with certain divisions of the Department of Health and Human Services in 2025 and continuing with other departments in subsequent years. Statutory appropriations are excluded from these zero-based budgeting plans, and the goal is to create more transparent, efficient, and goal-oriented budgeting processes across state agencies.

https://www.ncleg.gov/BillLookUp/2025/S126