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Bill

SB 2103

AN ACT RELATING TO PUBLIC FINANCE -- STATE BUDGET

2026 Regular Session Introduced by Elaine Morgan and 3 co-sponsors

Rhode Island would implement zero-based budgeting for the governor’s budget in a staged, multi-year rollout to justify every dollar and increase legislative oversight.

05/21/2026 Committee recommended measure be held for further study
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Bill Summary · SB 2103

Overview

SB 2103 is a Rhode Island bill introduced in the 2026 session that would reform the state’s budgeting process by requiring a zero-based budgeting approach for the governor’s budget, phased in over several years. The act would modify sections of the State Budget law (Rhode Island General Laws Chapters 35-3) to change how departmental budget requests are prepared, presented, and reviewed by the General Assembly.

Main purpose and intent

  • Establish a zero-based budgeting framework for the governor’s annual budget, with a staged, multi-year transition.
  • Increase scrutiny of state expenditures by requiring departments to justify every dollar from a zero base, rather than simply adjusting prior-year appropriations.
  • Involve the General Assembly and fiscal staff more deeply in the budget review process through a defined panel and enhanced review of department proposals.

Key provisions and changes

  • Estimates submitted by department heads (Section 35-3-4):
    • By October 1 each year, department heads must revise and prepare itemized budget estimates for the next fiscal year, including a detailed justification of requested appropriations.
    • A supplemental presentation for information resources and information technology must be provided, with copies to the relevant fiscal advisors and the Rhode Island Information Resources Management Board.
    • Beginning with FY 2027, department budgets must be justified on a zero-base basis, with documentation on functions, policies, plans, and supporting data.
    • A phased schedule for zero-base budgeting:
    • FY 2028: 20% of departments (those with the lowest requests) must submit zero-based budgets.
    • Each subsequent year, an additional 20% of departments (excluding those already under the requirement) would submit zero-based budgets, culminating in all remaining departments by FY 2031.
    • The budget officer must provide copies of all zero-based budgets to the house and senate fiscal advisors.
  • Submission of budget to the General Assembly (Section 35-3-7):
    • The governor must submit a full budget proposal by the traditional January deadline, including revenues, expenditures, personnel details, and an inventory.
    • The budget book may include transfers, financial statements, bonded indebtedness, and program funding changes.
    • A cap provision: proposed appropriations for the next year should not exceed 5.5% over total state appropriations from the prior year, excluding estimated supplemental appropriations (with specific exclusion for increased state-share funding for local school operations as per prior law).
    • Several historic or transitional exemptions for past fiscal years are retained, affecting certain late-budget submissions.
  • Budget process and hearings (Section 35-3-9):
    • Upon receipt of the budget, a budget panel (three members: Speaker, House minority leader, and Senate president) with budget-expertise reviews the plan, analyzes department activities, and considers alternatives.
    • The panel’s findings and recommendations are due within 30 days, after which the committee proceeds to consider the bill, holds hearings, and may summon the budget officer or department representatives.
  • Effective date: The act takes effect upon passage.

Who is affected

  • State departments and agencies (including divisions, boards, commissions, offices, institutions) will be required to prepare zero-based budget submissions starting with a phased timeline.
  • The Governor and state budget offices (budget officer, fiscal advisors) will implement and coordinate the zero-based budget process.
  • The Rhode Island General Assembly (House and Senate) will receive more detailed, justification-based budget proposals and participate in structured review via the budget panel and committee process.
  • Information technology and information resources projects/expenses are explicitly required to be detailed in the supplemental budget presentation.

Procedural and timeline aspects

  • Phased implementation of zero-based budgeting begins FY 2027 for baseline planning, with actual zero-base submissions for 20% of departments starting FY 2028, expanding annually to all departments by FY 2031.
  • Annual budget submission still follows a January timetable, but the overall burden on departments to justify expenditures increases significantly.
  • The 5.5% cap on year-over-year appropriations applies to proposed General Assembly appropriations in most cases, altering how the governor can present new spending.
  • A dedicated three-person budget panel is established to provide expert recommendations within 30 days of referral.

Bottom line

SB 2103 aims to modernize Rhode Island’s public finance by enforcing zero-based budgeting in a staged, incremental fashion, increasing accountability for every dollar spent, and strengthening legislative oversight in the budget process.

Compiled from official sources — confirm details with the bill’s official record.

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