|Posted:||December 8, 2020 03:58 PM|
|From:||Senator Kristin Phillips-Hill and Sen. Mike Regan, Sen. Scott Martin, Sen. Daniel Laughlin, Sen. Cris Dush|
|To:||All Senate members|
|Subject:||Establishing Zero-Based Budgeting in Pennsylvania|
|In the near future, we will be reintroducing Senate Bill 649 from last session to establish zero-based budgeting (ZBB), which would require every state agency to justify each dollar of spending through intensive and recurring budget reviews.
ZBB is a proven form of budgeting that requires justification of every dollar starting at zero. Rather than starting budget discussions at the previous year’s funding levels, ZBB asks agencies to reevaluate what they will actually need in the coming year.
After Kellogg’s first fiscal cycle using ZBB in 2016, the $13 billion company projected a $500 million return. The success of ZBB at Kellogg’s, along with Kraft-Heinz, Coca-Cola, Unilever, Campbell Soup, Conagra, and other major corporations suggests this is one of the most effective ways to cut costs while maintaining a high level of service.
The National Association of State Budget Officers found that thirteen states use some form of ZBB in their budget process. Let’s make Pennsylvania the 14th.
Our bill will establish a five-year cycle by which twenty percent of all state programs will develop a zero-based budget every year. Each agency will be required to develop and submit a zero-base budget with the following components:
Previous co-sponsors of this legislation include Senators Hutchinson, DiSanto, J. Ward, White, Aument, and Stefano.
Introduced as SB39