The "Zero-Based Budget Act" establishes a new budgeting framework for the State Treasurer, requiring the implementation of zero-based budgeting practices for the preparation of the Governor's annual budget message, effective for fiscal years starting July 1, 2020. This act shifts the focus of budget requests from historical allocations to a justification model based on the cost-effective achievement of agency goals and objectives. To facilitate this transition, the State Treasurer, in collaboration with the Director of the Division of Budget and Accounting, is tasked with designing a tailored budget process that mandates spending agencies to provide comprehensive justifications for their appropriation requests.

The bill outlines specific requirements for spending agencies, which must include detailed statements on their goals, activities, legal authority, methodologies, spending estimates, and the potential impacts of funding cuts. Furthermore, it ensures that all zero-based budget data is incorporated into the final budget request submitted to the Governor and the Legislature, promoting transparency and public access to budgetary information. The act also amends existing laws related to the submission and approval of supplemental appropriations and clarifies the responsibilities of the State Treasurer concerning budgetary studies and personnel requests.