New Jersey Senate Bill S1669

New Jersey 2022-2023 Regular Session

• Introduced: 2/14/22
• Refer: 2/14/22

Caption

"Zero-Based Budget Act;" requires State Treasurer to develop and integrate certain zero-based budgeting practices and procedures in preparation and submission of Governor's annual budget message.

Impact

This legislation addresses the pressing need to reform the state's budgeting process in the face of economic uncertainties and declining resources. By shifting to a zero-based budgeting model, the law seeks to enhance transparency and scrutiny in budget preparation. State agencies will be required to submit comprehensive justifications for their budget requests, including evaluations of how funds will be used and metrics for assessing performance. Such an approach is expected to enable the state to prioritize expenditures based on current needs rather than historical precedence, potentially leading to more effective allocation of taxpayer dollars.

Summary

Senate Bill 1669, known as the 'Zero-Based Budget Act,' mandates the New Jersey State Treasurer to implement zero-based budgeting practices in the preparation and submission of the Governor's annual budget message. This act aims to promote fiscal responsibility by requiring state agencies to justify all expenses without reliance on previous spending patterns. Instead of justifying budgets based on prior years' appropriations, agencies must demonstrate the necessity of their requested funds based on the cost-effectiveness of achieving specific goals and objectives.

Contention

While the bill is designed to promote accountability, it does spark notable discussions regarding the implementation process. Critics may argue about the increase in administrative workload on state agencies, as the detailed justifications required could lead to challenges in complying with the new requirements. Moreover, the efficiency of zero-based budgeting as a long-term solution remains under debate, as stakeholders weigh its potential benefits against the risk of bureaucratic bottlenecks and resistance to change within established budgeting practices.