Zero-based budget reviews

AN ACT Relating to reforming the Washington state budgeting 1
process through zero-based budget reviews; and adding a new section 2
to chapter 43.88 RCW. 3
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:4
NEW SECTION. Sec. 1. A new section is added to chapter 43.88 5
RCW to read as follows: 6
(1) As used in this section, unless the context clearly requires 7
otherwise: 8
(a) "Agency activity" means major activities of state agencies 9
pursuant to RCW 43.88.090 and described in the office of financial 10
management's agency activity inventory for the appropriate biennium.11
(b) "Program" means a service or a group of services designed to 12
accomplish a specific public goal and result in specific public 13
benefits except for those entitlement services listed in the 14
definition of "caseload" under RCW 43.88C.010 (7) and (12). For the 15
zero-based budget review under this section, a program is any 16
distinguishable service or unit that makes up an agency activity. In 17
most cases, an agency activity will encompass several programs, 18
although in some cases the agency activity could be one program.19
(c) "Zero-based budget review" means: 20
H-2583.2
HOUSE BILL 2449
State of Washington 69th Legislature 2026 Regular Session
By Representatives Couture, Marshall, Rude, Valdez, Corry, Keaton,
Schmidt, Schmick, Connors, Barkis, and Griffey
Read first time 01/13/26. Referred to Committee on Appropriations.
p. 1 HB 2449
(i) Information and analysis regarding an agency's programs 1
prepared by the agency as required by subsection (3) of this section 2
that must be included as a separate document in an agency's biennial 3
budget request under this chapter; and 4
(ii) Consideration of the information provided under (c)(i) of 5
this subsection by the governor and the legislature during the budget 6
development process. 7
(2) Beginning in 2026 and in each even-numbered year thereafter, 8
the legislature must specify, in the omnibus operating appropriations 9
act or in other legislation, programs for which agencies must perform 10
a zero-based budget review under subsection (3) of this section. It 11
is the intent of the legislature that 20 percent of all state 12
programs be subject to a zero-based budget review each biennium, so 13
that every program receives a zero-based budget review within a 10-14
year cycle. When selecting programs for review, the legislature may 15
specify programs by functional area, such as education, health care, 16
other human services, natural resources, and general government, or 17
may specify programs as prioritized by the legislature. When 18
selecting programs for a zero-based budget review for a particular 19
biennium, the legislature may broaden or narrow the definition of 20
program for specific agencies. 21
(3) Beginning with biennial budget requests for the 2027-2029 22
fiscal biennium and with each biennial budget request thereafter, 23
agencies must submit zero-based budget reviews for the programs 24
identified by the legislature for review that biennium under 25
subsection (2) of this section. Information and analysis submitted by 26
agencies for the zero-based review under this section shall include:27
(a) A statement of the statutory basis or other basis for the 28
creation of each program and the history of each program that is 29
being reviewed; 30
(b) A description of how each program fits within the strategic 31
plan and goals of the agency and an analysis of the quantified 32
objectives of each program within the agency; 33
(c) Any available performance measures indicating the 34
effectiveness and efficiency of each program; 35
(d) A description with supporting cost and staffing data of each 36
program and the populations served by each program, and the level of 37
funding and staff required to accomplish the goals of the program if 38
different than the actual maintenance level; 39
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(e) An analysis of the major costs and benefits of operating each 1
program and the rationale for specific expenditure and staffing 2
levels; 3
(f) An analysis estimating each program's administrative and 4
other overhead costs; 5
(g) An analysis of the levels of services provided;6
(h) Where applicable, an analysis estimating the amount of funds 7
or benefits that actually reach the intended recipients; and8
(i) Other information and analysis requested by the legislature 9
in the legislation identifying the agency programs for review under 10
subsection (2) of this section. 11
(4)(a) The governor and legislature shall consider the 12
information and analysis provided by agencies under this section in 13
the budget development process. The house of representatives 14
appropriations committee and the senate ways and means committee 15
shall hold at least one public hearing on the information and 16
analysis submitted by agencies under the zero-based budget review.17
(b) The information and analysis submitted by agencies under the 18
zero-based budget review process must be filed electronically with 19
the state's fiscal website managed by the legislative evaluation and 20
accountability program committee. 21
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