This bill amends several sections of the General Laws in Chapter 35-3, titled "State Budget," to implement a phased approach to zero-based budgeting for state departments. Commencing with the fiscal year beginning July 1, 2027, each department head will be required to submit budget estimates based on a justification from a zero base, meaning that each budget request will be treated as if it were being initiated for the first time. The bill outlines a schedule for the gradual implementation of zero-based budgets, with 20% of departments required to submit such budgets each year until all departments are included by the fiscal year beginning July 1, 2031.

Additionally, the bill modifies the governor's budget submission process to include a partial zero-based budget starting in the fiscal year beginning July 1, 2027, and mandates that the entire budget for the fiscal year beginning July 1, 2031, be a zero-based budget. The bill also establishes a budget panel within the House of Representatives to review the budget plan and provide recommendations. The budget officer is tasked with providing copies of all submitted zero-based budgets to the House and Senate fiscal advisors. This act will take effect upon passage.