Bill > SB474

This bill introduces a comprehensive zero-based budgeting (ZBB) approach for Pennsylvania state government, requiring the Secretary of the Budget to review every state program at least once every five years, beginning in 2026. Under ZBB, which is different from traditional incremental budgeting, agencies must justify their entire budget from "zero" each year, rather than simply adjusting previous year's allocations. Starting in 2025, the Governor must submit a zero-based budget covering at least 20% of the General Fund budget. Agencies will be required to submit detailed plans for each of their activities, including descriptions of their legal basis, potential adverse impacts if discontinued, expenditure requirements at minimum and current service levels, and a ranking of activities by their contribution to the agency's overall goals. The bill specifically exempts certain educational services from review, such as class size, school curriculum, and direct student services provided by classroom teachers, though administrative and support services remain subject to zero-based budgeting. The legislation aims to increase government accountability, eliminate obsolete programs, and ensure more thoughtful allocation of taxpayer funds by forcing a comprehensive review of state spending. The act will take effect 60 days after its 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