House Bill No. 7235 mandates the Office of Fiscal Analysis (OFA) to conduct a review of appropriated funds, excluding the General Fund, for the state budget for the fiscal year ending June 30, 2026. The review will focus on identifying areas of spending that have increased by ten percent or more compared to the previous fiscal year. The OFA is required to submit the findings of this review to the Appropriations Committee by February 1, 2026. This bill is set to take effect on July 1, 2025.

The bill does not introduce any new fiscal impacts, as the OFA has the necessary expertise and staff to carry out the review without additional costs. The proposed budget for the fiscal year includes various appropriated funds, such as the Special Transportation Fund and the Municipal Revenue Sharing Fund, among others. The bill's passage was supported by the Appropriations Committee, with a favorable vote of 40 to 14.