Assembly Bill 556 mandates that starting with the 2027-29 fiscal biennium, the Department of Administration (DOA) will require 20 percent of executive branch agencies to prepare their biennial budget requests using zerobased budgeting principles. This approach necessitates that each budget component is justified based on cost, need, and its relation to the agency's statutory responsibilities. Furthermore, in each subsequent fiscal biennium, a different 20 percent of agencies will be required to submit their budget requests in this manner, ensuring that every agency participates at least once during any five consecutive fiscal biennia.

Additionally, the bill amends existing statutes to enhance accountability in budget reporting. It requires agencies to include a statement identifying the intended goal of each appropriation and to analyze whether each appropriation fully met its intended goal, providing explanations for any shortfalls. The reports must be made available on the agencies' websites, and the DOA is tasked with posting these reports online as well. This legislation aims to improve transparency and efficiency in state budgeting processes.

Statutes affected:
Bill Text: 16.42(1)(intro.), 16.42, 16.423(3)(a), 16.423, 16.423(3m), 16.46(5g), 16.46