LD 1521

132nd MAINE LEGISLATURE
  FIRST SPECIAL SESSION-2025
Legislative Document  No. 1521
H.P. 1006  House of Representatives, April 8, 2025
  An Act to Require All State Agencies to Provide a Zero-based
  Budget Once Every 10 Years
    Reference to the Committee on Appropriations and Financial Affairs suggested and ordered
printed.
  ROBERT B. HUNT
  Clerk
Presented by Representative DUCHARME of Madison.
Cosponsored by Senator BICKFORD of Androscoggin and
Representatives: ARATA of New Gloucester, FLYNN of Albion, HASENFUS of Readfield,
MCINTYRE of Lowell, RUDNICKI of Fairfield, Senator: STEWART of Aroostook.
  Printed on recycled paper
1 Be it enacted by the People of the State of Maine as follows:
2     Sec. 1. 5 MRSA §1662, sub-§1-B is enacted to read:
3      1-B. State budget document. For biennial budget documents for fiscal years 2027-28
4 and 2028-29, the budget document must be prepared and submitted using a budget process
5 that includes zero-based budgeting for each department and other agency in the Executive,
6 Legislative and Judicial Departments at least once every 10 years. For the purposes of this
7 subsection, "zero-based budgeting" means a method of budgeting in which programs and
8 activities are justified for a budgetary period using cost-benefit analysis without regard to
9 the amount that was budgeted for those programs and activities in a prior budgetary period;
10     Sec. 2. Budget provisions review. By January 1, 2026, the Department of
11 Administrative and Financial Services shall review the provisions of the Maine Revised
12 Statutes, Title 5, chapter 149 and submit legislation to the Joint Standing Committee on
13 Appropriations and Financial Affairs by January 15, 2026 making necessary changes to
14 statute to facilitate the submission of a budget for fiscal years 2027-28 and 2028-29 that
15 includes zero-based budgeting based on the following conditions:
16     1. Establishing a zero-based budgeting system in which each agency is required to use
17 a zero-based budgeting format every 10 years;
18     2. Establishing a system for periodic agency review with the biennial budget;
19     3. Establishing targeted budgeting or a similar alternative budgeting system for
20 agencies for budget submissions during years when the agency is not submitting a
21 zero-based budget; and
22     4. Requiring the provision of alternative funding and budget recommendations for
23 agencies that, at a minimum, require recommendations from each agency outlining 5% and
24 10% funding reduction proposals during years when the agency is not submitting a
25 zero-based budget.
26     The joint standing committee may report out a bill to the Second Regular Session of
27 the 132nd Legislature based on the legislation submitted by the department.
28SUMMARY
29      The bill requires the development of a new budgeting system in which agencies would
30 be subject to zero-based budgeting every 10 years and in the interim years be subject to
31 review and alternative budget requirements. The bill also requires the Department of
32 Administrative and Financial Services to submit legislation facilitating a zero-based budget
33 to the Joint Standing Committee on Appropriations and Financial Affairs and authorizes
34 the committee to report out a bill based on the department's submission.
  Page 1 - 132LR0715(01)