AN ACT RELATING TO PUBLIC FINANCE -- STATE BUDGET (Requires that the governor submit a zero-based budget to the general assembly with the zero-based budget phased in over a five (5) year period, commencing with the fiscal budget year of July 1, 2027.)

S2103

2026 -- S 2103
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LC004059
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STATE OF RHODE ISLAND
IN GENERAL ASSEMBLY
JANUARY SESSION, A.D. 2026
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A N A C T
RELATING TO PUBLIC FINANCE -- STATE BUDGET

Introduced By:
Senators de la Cruz, Rogers, Paolino, and E Morgan

Date Introduced:
January 16, 2026

Referred To:
Senate Finance
It is enacted by the General Assembly as follows:
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SECTION 1. Sections 35-3-4, 35-3-7 and 35-3-9 of the General Laws in Chapter 35-3
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entitled "State Budget" are hereby amended to read as follows:
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35-3-4. Estimates submitted by department heads.
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(a) On dates determined by the budget officer, but not later than the first day of October in
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each year, each head of a department of the state government, not including the general assembly
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or the judiciary, shall assemble, correlate, and revise, with power to increase or decrease, the
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estimates for expenditures and requests for appropriations for the next ensuing fiscal year of each
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of the divisions, boards, commissions, officers, bureaus, institutions, or agencies of the state
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included within his or her department, and, after this revision, shall prepare an itemized
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departmental estimate of the appropriations necessary to meet the financial needs of the department,
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including a statement in detail of all moneys for which any general or special appropriation is
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desired at the ensuing session of the general assembly. The estimate shall be in such form, and in
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such number of copies, and with such explanation as the budget officer may require, and, on dates
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determined by the budget officer, but not later than the first day of October in each year, shall be
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submitted to the governor through the budget officer and to the fiscal advisors of the house and
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senate.
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(b) The estimates shall also include a supplemental presentation of estimates of
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expenditures for information resources and information technologies as defined in § 29-8-2
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[repealed], regardless of source of financing. The estimate shall include a detailed listing and

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explanation of expenses and the source of funds and shall be in such form, and in such number of
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copies, and with such explanation as the budget officer may require. Copies shall be provided
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directly to the house fiscal advisor, the senate fiscal advisor, and the Rhode Island information
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resources management board.
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(c) Commencing with the fiscal year beginning on July 1, 2027, and in accordance with
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the schedule provided in this section, the estimates for expenditures and requests for appropriations
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shall be based upon a justification by each department head of the budget of the department from
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a zero base. The budget request shall be accompanied by a statement giving facts and explanations
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of reasons for each item requested. It shall include a brief explanation of the functions of each of
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the divisions, boards, commissions, officers, bureaus, institutions, or agencies of the state included
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within the department and comments on its policies and plans, with such descriptive, quantitative,
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comparative and other data as to work done and other information as is considered necessary or
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desirable. "Zero-based budget" requests, so-called, are requests for appropriations based upon a
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justification of a department from a zero base as if the budget for the department was being initiated
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for the first time and shall be required based upon the following schedule:
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(1) Beginning with the fiscal year beginning July 1, 2028, zero-based budgets shall be
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submitted by twenty percent (20%) of state departments, being those departments which submitted
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the lowest budget requests for the fiscal year beginning July 1, 2027;
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(2) Beginning with the next fiscal year, zero-based budgets shall be submitted by twenty
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percent (20%) of state departments, being those submitting the lowest budget requests for the fiscal
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year beginning July 1, 2028, except for those departments included in subsection (c)(1) of this
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section;
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(3) Beginning with the next fiscal year, zero-based budget requests shall be submitted by
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twenty percent (20%) of state departments submitting the lowest budget requests for the fiscal year
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beginning July 1, 2029, except for those departments included in subsections (c)(1) and (2) of this
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section;
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(4) Beginning with the next fiscal year, zero-based budget requests shall be submitted by
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twenty percent (20%) of state departments submitting the lowest budget requests for the fiscal year
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beginning July 1, 2030, except for those departments included in subsections (c)(1),(2), and (3) of
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this section; and
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(5) For the fiscal year beginning July 1, 2031, and thereafter, zero-based budgets shall be
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submitted by all remaining state departments.
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(d) The budget officer shall provide copies of all submitted zero-based budgets to the house
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fiscal advisor and senate fiscal advisor.

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35-3-7. Submission of budget to general assembly — Contents.
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(a) On or before the third Thursday in January in each year of each January session of the
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general assembly, the governor shall submit to the general assembly a budget containing a complete
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plan of estimated revenues and proposed expenditures, with a personnel supplement detailing the
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number and titles of positions of each agency and the estimates of personnel costs for the next fiscal
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year, and with the inventory required by § 35-1.1-3(b)(5). Provided, however, in those years that a
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new governor is inaugurated, the new governor shall submit the budget on or before the first
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Thursday in February.
Beginning with the fiscal year beginning July 1, 2027, and in accordance
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with the schedule set forth in § 35-3-4, the budget submitted by the governor shall be a partial
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"zero-based budget," a budget based upon a justification of each department's estimate of
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expenditures and requests for appropriations from a zero base. In accordance with the schedule set
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forth in § 35-3-4, the entire budget for the fiscal year beginning July 1, 2031, shall be a zero based
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budget.
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In the budget the governor may set forth in summary and detail:
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(1) Estimates of the receipts of the state during the ensuing fiscal year under laws existing
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at the time the budget is transmitted and also under the revenue proposals, if any, contained in the
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budget, and comparisons with the estimated receipts of the state during the current fiscal year, as
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well as actual receipts of the state for the last two (2) completed fiscal years.
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(2) Estimates of the expenditures and appropriations necessary in the governor’s judgment
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for the support of the state government for the ensuing fiscal year, and comparisons with
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appropriations for expenditures during the current fiscal year, as well as actual expenditures of the
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state for the last two (2) complete fiscal years; provided, further, in the event the budget submission
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includes any transfers of resources from public corporations to the general fund, the budget
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submission shall also include alternatives to said transfers.
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(3) Financial statements of the:
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(i) Condition of the treasury at the end of the last completed fiscal year;
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(ii) Estimated condition of the treasury at the end of the current fiscal year; and
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(iii) Estimated condition of the treasury at the end of the ensuing fiscal year if the financial
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proposals contained in the budget are adopted.
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(4) All essential facts regarding the bonded and other indebtedness of the state.
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(5) A report indicating those program revenues and expenditures whose funding source is
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proposed to be changed from state appropriations to restricted receipts, or from restricted receipts
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to other funding sources.
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(6) Such other financial statements and data as in the governor’s opinion are necessary or

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desirable.
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(b) Any other provision of the general laws to the contrary notwithstanding, the proposed
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appropriations submitted by the governor to the general assembly for the next ensuing fiscal year
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should not be more than five and one-half percent (5.5%) in excess of total state appropriations,
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excluding any estimated supplemental appropriations, enacted by the general assembly for the
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fiscal year previous to that for which the proposed appropriations are being submitted; provided
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that the increased state-share provisions required to achieve fifty percent (50%) state financing of
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local school operations as provided for in P.L. 1985, ch. 182, shall be excluded from the definition
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of total appropriations.
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(c) Notwithstanding the provisions of subsection (a) of this section, the governor shall
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submit to the general assembly a budget for the fiscal year ending June 30, 2006, not later than the
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fourth (4th) Thursday in January 2005.
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(d) Notwithstanding the provisions of subsection (a) of this section, the governor shall
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submit to the general assembly a supplemental budget for the fiscal year ending June 30, 2006,
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and/or a budget for the fiscal year ending June 30, 2007, not later than Thursday, January 26, 2006.
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(e) Notwithstanding the provisions of subsection (a) of this section, the governor shall
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submit to the general assembly a supplemental budget for the fiscal year ending June 30, 2007,
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and/or a budget for the fiscal year ending June 30, 2008, not later than Wednesday, January 31,
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2007.
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(f) Notwithstanding the provisions of subsection (a) of this section, the governor shall
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submit to the general assembly a budget for the fiscal year ending June 30, 2012, not later than
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Thursday, March 10, 2011.
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(g) Notwithstanding the provisions of subsection (a) of this section, the governor shall
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submit to the general assembly a budget for the fiscal year ending June 30, 2013, not later than
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Tuesday, January 31, 2012.
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(h) Notwithstanding the provisions of subsection (a) of this section, the governor shall
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submit to the general assembly a budget for the fiscal year ending June 30, 2016, not later than
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Thursday, March 12, 2015.
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(i) Notwithstanding the provisions of subsection (a) of this section, the governor shall
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submit to the general assembly a budget for the fiscal year ending June 30, 2022, not later than
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Thursday, March 11, 2021.
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35-3-9. Action on bills by house committee — Hearings.
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(a)
The budget plan and bill or bills for proposed appropriations, when sent by the governor
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to the general assembly, shall be referred as soon as practicable to an appropriate committee of the

LC004059 - Page 4 of 6
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house of representatives,
and upon receipt of the budget plan the committee shall refer it to a budget
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panel consisting of three (3) persons: one of whom shall be appointed by the speaker of the house;
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one of whom shall be appointed by the house minority leader; and one of whom shall be appointed
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by the senate president. The members of the panel shall be persons with expertise and experience
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in the areas of finance or accounting. The panel shall review the budget plan and shall consider the
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objectives, operations, and costs of all activities of each department; explore alternative means of
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conducting the activities of each department; evaluate alternative budget amounts for various levels
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of effort for each activity of each department. The panel shall report its findings and make its
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recommendations as to the needs of each department, the programs and activities of each
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department and all other recommendations and information that it deems appropriate, to the
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committee, within thirty (30) days after the budget plan is referred to it.

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(b) The committee shall proceed to the consideration of the bill upon receipt of this
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recommendation of the panel.

and the

The
committee shall forthwith proceed to the consideration
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of the bill. The committee shall hear the budget officer upon the bill as a whole or upon any item
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thereof or any proposed amendment thereto as each may elect, and the committee may summon the
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budget officer to appear before it and to furnish such information relative to the bill or any item
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therein, or any proposed amendment thereto, as it may require, and the committee may in its
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discretion hear the proper person representing any department or agency desiring to be heard with
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respect to any item or amendment in the bill relating to the department or agency; provided, that
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nothing contained in this section shall be construed to limit the right of the committee to hold public
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hearings upon the bill as a whole or upon any item therein, or to summon any person for
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examination regarding any item contained therein, or for the purpose of obtaining information
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necessary for a full and proper consideration of the bill. The committee, after the consideration of
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the bill, shall report the bill with its recommendation endorsed thereon to the house of
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representatives.
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SECTION 2. This act shall take effect upon passage.
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EXPLANATION
BY THE LEGISLATIVE COUNCIL
OF
A N A C T
RELATING TO PUBLIC FINANCE -- STATE BUDGET
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This act would require that the governor submit a zero-based budget to the general
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assembly with the zero-based budget phased in over a five (5) year period, commencing with the
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fiscal budget year of July 1, 2027.
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This act would take effect upon passage.
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