PRINTER'S NO. 792
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No.
649
Session of
2019
INTRODUCED BY PHILLIPS-HILL, FOLMER, REGAN, MARTIN, LAUGHLIN,
HUTCHINSON, DiSANTO, J. WARD, WHITE, AUMENT AND STEFANO,
MAY 17, 2019
REFERRED TO APPROPRIATIONS, MAY 17, 2019
AN ACT
Providing for zero-based budgeting relating to the
Commonwealth's budget review.
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 Commonwealth
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
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programs were established so long ago that the original
statutory basis has either been forgotten or is out of date.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 way to manage
costs while maintaining a high level of service and to hold
the State accountable for each dollar it spends.
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 2021. In 2020,
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 agency and 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
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expenditures that would be required to maintain the activity
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. Educational services.
Notwithstanding section 3, the following shall not be subject
to zero-based budget review within the Department of Education:
(1) Class size.
(2) School curriculum.
(3) Direct services offered to students by classroom
teachers in the public schools. Examples of direct services
are teaching, coaching, library and media services and career
counseling services provided within the public school system.
Indirect services such as overhead costs, administrative
costs and support services shall be subject to zero-based
budget review.
Section 5. Effective date.
This act shall take effect in 60 days.
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