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Last Action

Re-ref Com On Appropriations2025-03-04

Vote Breakdown

No floor votes recorded.

Plain Language Summary

This bill requires North Carolina to transition to zero-based budgeting for state agencies, starting with a phased implementation beginning in fiscal year 2027-2028 and completing by the 2031-2033 fiscal biennium. Under zero-based budgeting, agencies must justify all spending from scratch each budget cycle rather than starting from their previous year's budget amount.

Arguments in Favor

• •Supporters argue that zero-based budgeting promotes fiscal responsibility by requiring agencies to justify every dollar spent and eliminate wasteful or outdated programs.
• •They contend this approach can identify inefficiencies, prevent automatic continuation of low-priority spending, and ensure taxpayer money is used for the most cost-effective services.

Arguments Against

• •Opponents argue that zero-based budgeting is time-consuming and resource-intensive, requiring agencies to rebuild their entire budget requests from zero each cycle rather than adjusting existing budgets.
• •They worry this process could divert staff attention from core functions, create uncertainty for ongoing essential services, and potentially lead to administrative costs that outweigh savings.