CA AB1964

Department of Finance must compile a complete list of all state agencies by January 1, 2026, divided into five equal sections distributed across legislative budget subcommittees.

Department of Finance must publish the full agency list and annually designate which one-fifth section of agencies must use zero-based budgeting on January 1, 2027, and every January 1 thereafter.

Starting January 1, 2027, designated state agencies must develop budgets using zero-based budgeting method, which requires examining current operations, considering alternatives, and ranking programs by importance.

Agencies using zero-based budgeting must submit detailed reports including documents, receipts, and expenditures to the Senate Committee on Budget and Fiscal Review, Assembly Committee on Budget, and Joint Legislative Budget Committee by January 10 annually.

Each section of state agencies must use zero-based budgeting again five years after their first implementation, and every five years thereafter.