OK SB810

Legislative Office of Fiscal Transparency (LOFT) must develop a comprehensive list of all Oklahoma state agencies, boards, commissions, and trusts by December 1, 2025, and create a tiered categorization system based on budget size, employee count, statutory footprint, licenses issued, and administrative rules.

Higher-tier agencies (larger budgets/more employees) must undergo zero-based budgeting review every 4-6 years, while lower-tier agencies face review every 2-4 years, with all agencies rotating through review within a maximum six-year period.

LOFT begins conducting zero-based budgeting reviews on July 1, 2026, with annual reports due to the Legislature by December 1st, coordinating with the Governor's office, Legislature, and agency staff throughout the process.

Each agency review requires a four-step analysis: identifying key activities, developing performance measures with at least four years of historical data, analyzing program budgets and expenditures by object class, and summarizing findings with improvement recommendations.

Reviews must evaluate whether programs are statutorily required, identify alternative service delivery methods, assess cost-effectiveness, determine if services could be provided by non-profit or private sectors, and identify any duplicative programs across state government.