Bill > LD1521

This bill requires all state agencies in Maine to implement a zero-based budgeting (ZBB) process once every 10 years, starting with the fiscal years 2027-28 and 2028-29. Zero-based budgeting is a budgeting method where programs and activities must be completely justified for each budgetary period using cost-benefit analysis, without automatically assuming funding levels from previous years. The Department of Administrative and Financial Services is mandated to review budget provisions and submit legislation by January 15, 2026, to establish a comprehensive ZBB system. This system will include mechanisms for periodic agency review, alternative budgeting approaches during non-ZBB years, and require agencies to provide funding reduction proposals of 5% and 10% during those interim periods. The Joint Standing Committee on Appropriations and Financial Affairs is authorized to develop and propose a bill based on the department's submission, with the goal of creating a more rigorous and analytical approach to state agency budget planning that encourages ongoing efficiency and cost-effectiveness.

Budget and Finance

https://legislature.maine.gov/legis/bills/display_ps.asp?LD=1521&snum=132