The bill introduces a new section to chapter 43.88 RCW aimed at reforming the Washington state budgeting process through the implementation of zero-based budget reviews. Starting in 2026, the legislature will require state agencies to conduct these reviews for 20 percent of all state programs every biennium, ensuring that every program undergoes a review within a 10-year cycle. The selection of programs for review can be based on functional areas or prioritized by the legislature, allowing for flexibility in the definition of programs for specific agencies.

Agencies will be required to submit detailed analyses of the selected programs as part of their biennial budget requests beginning with the 2027-2029 fiscal biennium. This analysis will include the statutory basis for each program, its alignment with the agency's strategic goals, performance measures, cost and staffing data, and an evaluation of the program's effectiveness and efficiency. The governor and legislature will consider this information during the budget development process, and public hearings will be held to discuss the findings. Additionally, all submitted information must be filed electronically with the state's fiscal website.