Bill > S2221

This bill introduces a new approach to state budgeting called zero-based budgeting (ZBB), which requires the Secretary of Administration and Finance to develop a comprehensive budget for each state agency every four years, starting from zero dollars instead of using previous budget amounts as a baseline. Under this method, each agency must justify its entire budget by detailing specific tasks, goals, and objectives for a four-year period, with a focus on achieving the most cost-effective performance. The proposed process involves submitting the zero-based budget to the Senate and House of Representatives, where relevant committees will evaluate each component through public hearings and testimony. The Ways and Means Committees will then develop a joint resolution based on these evaluations, which, if adopted, will serve as a framework for evaluating annual budgets for the subsequent four years. The key innovation is that agencies must comprehensively explain and justify their funding needs, rather than incrementally adjusting previous budget allocations, promoting greater transparency, accountability, and potential cost savings in state government spending.

Government Affairs

https://malegislature.gov/Bills/194/S2221