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SD 74

An Act relative to zero-based budgeting and budget transparency

194th Legislature (2025-2026) Introduced by Bruce Tarr

Establishes zero-based budgeting for state agencies, with a four-year cycle, public hearings, and budgets starting at zero to justify cost-effective tasks and boost transparency.

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Bill Summary · SD 74

Summary: An Act relative to zero-based budgeting and budget transparency (Senate Docket No. 74)

Purpose and intent

  • Establishes a formal process for developing and adopting zero-based budgets (ZBB) for all state agencies and departments.
  • Aims to increase budget transparency and accountability by grounding appropriations in cost-effective achievement of defined tasks and goals, rather than relying on prior-year appropriations.

Key provisions

  • Inserted provision: New Section 5I to Chapter 29 of the General Laws.
  • Quadrennial development: The Secretary of Administration and Finance, with the Governor’s approval, must every four years develop and submit a zero-based budget for each agency/department.
  • Content of a ZBB: Each agency/department’s budget must reflect the funding necessary to achieve cost-effective performance, accompanied by a narrative detailing tasks, goals, and objectives for up to four years. The budget base shall be zero, with no reliance on prior appropriations (though inflation adjustments may be considered).
  • Public process and evaluation:
    • The ZBB for each component is to be referred to the relevant committees of subject matter jurisdiction.
    • Committees must evaluate each component using all available information, including public testimony (oral and written).
  • Ways and Means review and public input:
    • The Senate and House Ways and Means committees must hold at least one public hearing on the ZBB and accept written/electronic testimony for at least 30 days.
    • The committees jointly (or individually) develop and submit to the Clerks a ZBB estimate within 60 days after receiving the agency’s ZBB.
  • Joint resolution and adoption:
    • The ZBB estimate is included in a joint resolution and presented to the General Court.
    • If adopted, the joint resolution serves as a framework for evaluating each annual budget for the four years following adoption.
  • Definition of zero-based budgeting:
    • ZBB means developing appropriations based on the cost-effective achievement of agency tasks/goals without regard to prior appropriations, subject to inflation adjustments.
    • Any ZBB appropriation should be accompanied, where possible, by a brief description of tasks/goals and performance measures.

Who and what is affected

  • State government scope: All agencies and departments of state government.
  • Key actors: Governor, Secretary of Administration and Finance, the Senate and House of Representatives, and their Ways and Means committees.
  • Public participation: Open hearings and opportunities for public testimony.

Procedural and timeline aspects

  • Frequency: ZBB developed every four years.
  • Submission deadlines: The Secretary must submit ZBBs for all agencies/ departments; Ways and Means must produce a joint ZBB estimate within 60 days of receipt.
  • Use of ZBB: The joint ZBB resolution informs subsequent annual budget evaluations for the next four years.

Context and status

  • Related work: Similar matter previously filed in 2023-2024 (Senate No. 2068).
  • Status: Introduced January 7, 2025; proposed bill in the 2025-2026 session.
  • Potential impact: If enacted, Massachusetts would shift to a zero-based approach for budget justification, increasing transparency and requiring explicit demonstration of cost-effectiveness for funded activities across the four-year horizon.

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

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