Rhode Island Senate Bill S2458

Rhode Island 2022 Regular Session

• Introduced: 3/1/22
• Refer: 3/1/22

Caption

State Budget

Impact

The implementation of zero-based budgeting as stipulated in S2458 will significantly alter how state budget proposals are prepared and reviewed. The bill phases in the requirement for all state departments to adopt this budgeting method over a five-year period, starting from fiscal year 2023, with full compliance expected by 2027. This new requirement aims to promote thorough justifications for budget requests, potentially leading to reductions in unnecessary or outdated expenditures and improving overall fiscal responsibility within state government.

Summary

Bill S2458, introduced in the Rhode Island General Assembly, focuses on amendments to the state budget process, specifically mandating a shift towards a zero-based budgeting approach. This legislation outlines the requirements for department heads to submit their budget proposals based on a justification for each expenditure as if starting from scratch, rather than using previous budgets as a baseline. The bill is expected to enhance accountability and ensure that state funds are allocated more efficiently and effectively according to current needs rather than historical patterns.

Contention

While supporters of S2458 argue that this shift will improve budget efficiency and promote more strategic allocation of resources, there are some concerns regarding the potential administrative burden it may impose on state departments. Critics fear that the robust process of justifying each line item could overwhelm agencies with additional work, particularly in smaller departments that may lack the resources to adequately prepare comprehensive zero-based budgets. The balance between ensuring financial accountability and maintaining operational efficiency will be key points of contention as the bill progresses through the legislative process.