S.F. No. 1875 Summary

• Establishes zero-based budgeting requirements for Minnesota state agencies, requiring expenditure forecasts to be set at zero for departments in their scheduled year rather than assuming continuation of current spending levels.

• Requires affected departments to submit detailed operating budgets and zero-based budget plans by November 30 that justify each proposed expenditure as if it were new, including activity descriptions, legal authority, adverse impact estimates, and program outcome measures.

• Implements a staggered 10-year schedule for zero-based budgeting reviews: beginning in 2020 for 14 agencies (including Education, Transportation, and Human Services), 2022 for 13 agencies, 2024 for 12 agencies, 2026 for 15 agencies, and 2028 for 9 agencies.

• Modifies revenue and expenditure forecast parameters to treat scheduled agencies' budgets as zero in November and February forecasts, and sets appropriation bases to zero for affected departments in budget submissions covering the next two biennia.

• Effective date is July 1, 2019, with budget plans submitted to the legislature simultaneously with the governor's detailed budget recommendations.