Pennsylvania HB 1105: An Act providing for zero-based budgeting.

Bill Text

PRINTER'S NO. 1226
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 1105
Session of
2025
INTRODUCED BY GROVE, HAMM, GREINER, STAMBAUGH, KAUFFMAN, GILLEN,
ROWE, WARNER AND KUTZ, APRIL 3, 2025
REFERRED TO COMMITTEE ON APPROPRIATIONS, APRIL 3, 2025
AN ACT
Providing for zero-based budgeting.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Short title.
This act shall be known and may be cited as the Zero-Based
Budgeting Act.
Section 2. Findings.
The General Assembly finds and declares as follows:
(1) The traditional method of budget development, which
relies upon incremental adjustments to expenditures made in
the previous financial period, insulates governmental
activities from the thorough fiscal review expected by
taxpaying citizens.
(2) New and changing demands for public services are met
through excessive budget growth rather than by pruning
obsolete programs and redirecting existing funds. Some
programs were established so long ago that the original
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statutory basis has either been forgotten or is out of date.
In time, the budget is driven by inertia rather than by clear
and defensible purposes.
(3) Zero-based budgeting is an effective method to
counter the tendency toward perpetuation of outdated State
programs.
Section 3. Budget review.
(a) Review.--The Secretary of the Budget shall subject every
program in State government to zero-based budget review no less
often than once every five years. In order to implement this
schedule, approximately one-fifth of the budget shall be subject
to zero-based budgeting in each year beginning in 2026. In 2026,
the Governor shall submit a zero-based budget for agencies with
a cumulative total of expenditures of at least 20% of the
General Fund budget.
(b) Agency plan.--To accommodate zero-based budget review,
the Secretary of the Budget shall require agencies to prepare
and submit a zero-based budget plan in addition to any other
information that may be required by statute, rule or directive.
At a minimum, the plan shall contain the following information:
(1) A description of those discrete activities that
comprise the agency and a justification for the existence of
each activity by reference to statute or other legal
authority.
(2) For each activity, a quantitative estimate of any
adverse impacts that could reasonably be expected should the
activity be discontinued, together with a full description of
the methods by which the adverse impact is estimated.
(3) For each activity, an itemized account of
expenditures that would be required to maintain the activity
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at the minimum level of service required by the statutory
authority, together with a concise statement of the quantity
and quality of services required at that minimum level.
(4) For each activity, an itemized account of
expenditures required to maintain the activity at current
levels of service, together with a concise statement of the
quantity and quality of services being provided.
(5) A ranking of all activities that shows the relative
contribution of each activity to the overall goals and
purposes of the agency at current service levels.
Section 4. Effective date.
This act shall take effect in 60 days.
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