AB 556

This bill provides that the Department of Administration, beginning with the 2027−29 fiscal biennium, must require 20 percent of executive branch agencies to submit their biennial budget requests prepared using the principles of zero−based budgeting for each of their activities, units, and programs. In each subsequent fiscal biennium, DOA must require a different 20 percent of executive branch agencies to submit their budget requests prepared using zero−based budgeting principles, with each agency required to do so at least once during any five consecutive fiscal biennia. The bill defines “zero−based budgeting” as the compilation of an agency’s budget in which each component is justified on the basis of cost, need, and relation to the statutory responsibilities of the agency.

The bill also requires that agency budget base reports, which all agencies must submit each fiscal biennium under current law, identify the intended goal of each appropriation and analyze whether each appropriation completely succeeded in meeting its intended goal and, if not, an explanation as to why not. The bill also requires that DOA post the reports on its website.