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LD 1521

An Act To Require All State Agencies To Provide A Zero-Based Budget Once Every 10 Years

132nd Legislature (2025-2026) Introduced by Amy Arata and 7 co-sponsors

Requires all state agencies to submit a zero-based budget every 10 years, starting from zero and justifying every line item; Budget Bureau oversees, Appropriations reviews.

The Bill was in the possession of the Committee on Appropriations and Financial Affairs when the Legislature adjourned Sine Die and was placed in the Legislative Files. (DEAD)
#administrativeandfinancialsvcd #budgetbureau #zero-basedbudgeting
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Bill Summary · LD 1521

Summary of LD 1521 — An Act To Require All State Agencies To Provide A Zero-Based Budget Once Every 10 Years

Overview

LD 1521 proposes that every state agency produce and submit a zero-based budget (ZBB) at least once every ten years. The bill is currently carried over approved and in the process of ongoing consideration, with actions taken in the 132nd Legislature. The Budget Bureau and the Committee on Appropriations and Financial Affairs appear to be the primary administrative nexuses for implementing and reviewing the proposed budgeting approach.

What the bill would require

  • All state agencies would be required to provide a zero-based budget once every 10 years.
  • Zero-based budgeting means starting from a budget of zero and justifying every line item, rather than basing budgets on prior year allocations. Each program, activity, and expenditure would need to be validated for necessity, effectiveness, and alignment with state priorities.
  • The Budget Bureau (the bill’s subject area references suggest administration and financial services oversight) would administer and oversee the ZBB process, including any guidelines, timelines, and reporting requirements.
  • The Appropriations and Financial Affairs process would review and potentially authorize agency ZBB proposals as part of the regular budget cycle.

Scope and who is affected

  • Affects all state agencies that receive funding from the state budget.
  • Likely involves the Department of Administrative and Financial Services (Budget Bureau) and the Legislature’s Appropriations and Financial Affairs committee as oversight and approval bodies.

Procedural timeline and status

  • Introduced: April 8, 2025.
  • April 8, 2025: Referred to the Committee on Appropriations and Financial Affairs; sent for concurrence.
  • April 8, 2025: Referred in concurrence to Appropriations and Financial Affairs.
  • June 25, 2025: Carried over to any special or regular session of the 132nd Legislature per Joint Order SP 800.
  • June 25, 2025: Carry Over Approved.
  • Status: Carry Over Approved; the bill remains active and may be taken up in future sessions.

Potential impacts and considerations

  • Administrative workload: Implementing a decade-long ZBB cycle will require substantial upfront analysis, data collection, and program evaluation by agencies.
  • Budget discipline and prioritization: ZBB could lead to reallocation of resources toward higher-priority programs and demonstrably effective activities, potentially reducing funding for lower-priority items.
  • Transition and guidance: Clear guidelines, training, and timelines from the Budget Bureau would be essential to ensure consistent application across agencies.
  • Short-term costs: Initial implementation may incur costs for training, data systems, and supplementary evaluations.
  • Long-term benefits: Potential for improved efficiency, clearer justification for expenditures, and stronger alignment of spending with state goals.

Notes

  • This summary reflects the bill’s stated objective and the legislative actions recorded to date. The bill’s specific definitions, exemptions, compliance mechanisms, funding for implementing the ZBB process, and any penalties or enforcement provisions are not detailed in the available material and would be clarified in the bill’s text if enacted.

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

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