NC S785

Requires state agencies in the executive branch to prepare zero-based budget plans on a rotating schedule, beginning with fiscal year 2024, where budgets start from zero and do not reflect prior appropriations.

Zero-based budget plans must include: discrete agency activities with statutory justification, quantitative estimates of adverse impacts if activities are discontinued, quantifiable program outcomes, itemized expenditures for minimum and current service levels, and rankings of activities by contribution to agency goals.

Office of State Budget and Management (OSBM) must provide technical assistance to agencies and submit completed plans when the Governor presents budget recommendations to the General Assembly.

Agencies are divided into four groups on an eight-year rotating cycle: Health and Human Services divisions begin in 2024; additional DHHS divisions and Department of Public Instruction in 2026; administrative and justice agencies in 2028; and remaining agencies including Agriculture, Environmental Quality, and Labor in 2030, with each cycle repeating every eight years thereafter.

Statutory appropriations as defined in existing law are excluded from zero-based budgeting requirements.