NC H686

Requires the Governor to begin implementing zero-based budgeting for state agencies starting with fiscal year 2019-2020, phased in over four fiscal years beginning with executive branch agencies.

Defines "zero-based budget" as a budget starting from zero dollars with no reference to prior appropriations, reflecting only funding necessary for cost-effective agency performance with accompanying narratives of tasks, goals, and objectives.

Mandates that state agencies submitting zero-based budgets must provide detailed statements explaining facts and reasons for each requested item, including descriptions of divisional functions, policies, plans, and relevant performance data.

Requires the Governor to present budget recommendations to the General Assembly beginning in fiscal year 2019-2020 that include zero-based budgets for identified agencies, with the entire state budget for the 2021-2023 fiscal biennium to be zero-based.

Becomes effective when signed into law.