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Bill

LC 683

Generally revise state finance laws to provide zero base budgeting

2025 Regular Session

Montana bill requiring state agencies to justify all spending from zero baseline annually rather than incrementally, aiming to eliminate waste but increasing administrative complexity.

(LC) Draft Died in Process
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Bill Summary · LC 683

Legislative bill overview

LC 683 would revise Montana's state finance laws to implement zero-based budgeting (ZBB), a budgeting approach where agencies must justify all expenditures from scratch each cycle rather than building incrementally on previous budgets. The bill died in the legislative process in May 2025 without advancing to a floor vote.

Why is this important

Zero-based budgeting can potentially eliminate wasteful or outdated spending and force prioritization of limited resources, but it also requires significant administrative effort and can create budget uncertainty for agencies. The approach represents a fundamental shift from how most states—including Montana—currently allocate funds, with meaningful implications for state operations and program stability.

Potential points of contention

  • Implementation burden: ZBB requires extensive justification documentation and analysis, increasing workload for state agencies and the legislature, with uncertain cost-benefit returns
  • Program uncertainty: Agencies cannot assume continuation funding for existing programs, potentially destabilizing ongoing services and making long-term planning difficult
  • Political leverage: ZBB shifts budget decisions annually, potentially allowing politically motivated cuts to disfavored programs while protecting preferred ones through selective justification requirements

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

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