Bill > SB474

This bill establishes a zero-based budgeting (ZBB) approach for Pennsylvania state government, which requires agencies to justify their entire budget from scratch, rather than simply incrementing previous years' funding. Specifically, the bill mandates that the Secretary of the Budget subject every state program to a comprehensive budget review at least once every five years, with approximately one-fifth of the budget reviewed annually starting in 2027. In 2026, the Governor must submit a zero-based budget for agencies representing at least 20% of the General Fund budget. Agencies must prepare detailed plans that include descriptions of their activities, legal justifications for their existence, potential impacts of discontinuing services, expenditure requirements at minimum and current service levels, and rankings of activities by their contribution to agency goals. The bill exempts certain educational services from review, such as class size, school curriculum, and direct student services provided by classroom teachers, though indirect services like administrative costs remain subject to the ZBB process. The motivation behind this approach is to ensure more rigorous fiscal accountability, eliminate obsolete programs, and prevent budget growth driven by inertia rather than clear, defensible purposes. The act will take effect 60 days after passage.

Budget and Finance

https://www.legis.state.pa.us/cfdocs/billinfo/bill_history.cfm?syear=2025&sind=0&body=S&type=B&bn=474