Back to Oregon

SB406 • 2025

Declares a policy of the state to use zero-based budgeting in developing the biennial budget plan.

Declares a policy of the state to use zero-based budgeting in developing the biennial budget plan.

Budget
Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor
Senator Girod
Last action
2025-06-27
Official status
In Senate Committee
Effective date
Not listed

Plain English Breakdown

Using official source text because the generated explanation was unavailable or could not be confirmed against the official bill text.

Declares a policy of the state to use zero-based budgeting in developing the biennial budget plan.

Digest: The Act says the state will use zero-based budgeting.

What This Bill Does

  • Digest: The Act says the state will use zero-based budgeting.
  • The Act tells state agencies to justify proposed expenditures in their budget requests filed with DAS.
  • (Flesch Readability Score: 62.1).
  • Declares a policy of the state to use zero-based budgeting in developing the biennial budget plan.

Limits and Unknowns

  • This entry is temporarily using official source text because the generated explanation could not be confirmed against the official bill text during the last sync.

Bill History

  1. 2025-06-27 Senate

    In committee upon adjournment.

  2. 2025-01-17 Senate

    Referred to Rules.

  3. 2025-01-13 Senate

    Introduction and first reading. Referred to President's desk.

Official Summary Text

Digest: The Act says the state will use zero-based budgeting. The Act tells state agencies to justify proposed expenditures in their budget requests filed with DAS. (Flesch Readability Score: 62.1).
Declares a policy of the state to use zero-based budgeting in developing the biennial budget plan.
Requires state agencies to include information justifying proposed expenditures in agency request budgets filed with the Oregon Department of Administrative Services.
Applies to biennia beginning on or after July 1, 2027.
Relating to: Relating to zero-based budgeting.
Current location: In Senate Committee

Current Bill Text

Read the full stored bill text
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
83rd OREGON LEGISLATIVE ASSEMBLY--2025 Regular Session
Senate Bill 406
Sponsored by Senator GIROD (Presession filed.)
SUMMARY
The following summary is not prepared by the sponsors of the measure and is not a part of the body thereof subject
to consideration by the Legislative Assembly. It is an editor’s brief statement of the essential features of the
measure as introduced. The statement includes a measure digest written in compliance with applicable readability
standards.
Digest: The Act says the state will use zero-based budgeting. The Act tells state agencies to
justify proposed expenditures in their budget requests filed with DAS. (Flesch Readability Score:
62.1).
Declares a policy of the state to use zero-based budgeting in developing the biennial budget
plan.
Requires state agencies to include information justifying proposed expenditures in agency re-
quest budgets filed with the Oregon Department of Administrative Services.
Applies to biennia beginning on or after July 1, 2027.
A BILL FOR AN ACT
Relating to zero-based budgeting.
Be It Enacted by the People of the State of Oregon:
SECTION 1.
Section 2 of this 2025 Act is added to and made a part of ORS 291.201 to
291.222.
SECTION 2. (1) As used in this section, “zero-based budgeting” means budgeting that
begins with the assumption that initial funding amounts for each component of a budget are
zero and that contains justification for each proposed expenditure.
(2) It is the policy of the state to use zero-based budgeting in developing biennial budget
plans.
(3) Agency request budgets that are filed by or prepared for a state agency under ORS
291.208 must contain the following information:
(a) A description of activities that the agency performs and a justification for the exist-
ence of each activity by reference to statute or other legal authority;
(b) For each activity, a quantitative estimate of any adverse impacts that could reason-
ably be expected if the activity were discontinued, together with a full description of the
methods by which the adverse impact is estimated;
(c) For each activity, an itemized account of expenditures that would be required to
maintain the activity at the minimum level of service required by the statutory or other legal
authority, together with a concise statement of the quantity and quality of service required
at that minimum level;
(d) For each activity, an itemized account of expenditures required to maintain the ac-
tivity at the current level of service, together with a concise statement of the quantity and
quality of service being provided; and
(e) A ranking of all activities that shows the relative contribution of each activity to the
overall goals and purposes of the agency at the current level of service.
SECTION 3.
Section 2 of this 2025 Act applies to agency request budgets prepared for
NOTE: Matter in boldfaced type in an amended section is new; matter [ italic and bracketed] is existing law to be omitted.
New sections are in boldfaced type.
LC 1479
SB 406
1
2
biennia beginning on or after July 1, 2027.
[2]