Posted: | August 8, 2016 10:38 AM |
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From: | Representative Ryan Warner |
To: | All House members |
Subject: | Proposed Legislation - Zero-Based Budgeting Act |
In recent budget cycles, new and evolving demands for public services have been met through excessive budget growth rather than redirecting preexisting revenues or eliminating outdated programs which no longer meet the needs of Pennsylvania citizens. This "traditional" method of budget development, which relies upon incremental adjustments to expenditures made in previous fiscal years, insulates governmental activities from the thorough fiscal review expected by taxpayers. Many programs were established so long ago that the original statutory basis has either been forgotten or is out-of-date. Over time the budget is driven by inertia rather than by clear and defensible policy objectives. In the near future, I will be introducing legislation that would establish the "Zero-Based Budgeting Act". Zero-based budgeting (ZBB) is a method of budgeting in which all expenses must be justified for each new fiscal year. Zero-based budgeting starts from a "zero base," and every function within an organization is analyzed or both its needs and costs. Budgets are then built around what is needed for the upcoming period, regardless of whether the budget is higher or lower than the previous one. Specifically, my legislation will require certain state agencies (those with expenditures accounting for at least 20 percent of the General Fund budget) to prepare and submit a zero-based budget plan containing the following information:
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Introduced as HB2286