Bill Sponsors
de la Cruz, Rogers, Paolino, and E Morgan
Committee
Senate Finance
Summary
Select
This legislation mandates a transition to "zero-based budgeting" for Rhode Island state departments, starting in the fiscal year 2027. Instead of basing budget requests on previous years' spending with incremental increases, department heads will be required to justify every dollar of their requested appropriation from scratch. This requirement will be phased in over five years, starting with departments having the smallest budgets. Additionally, the bill establishes a three-person panel appointed by legislative leaders to review these budget plans and explore alternative methods for conducting departmental activities.
Sponsor
Analysis
Pros for Progressives
- Can potentially identify and eliminate wasteful spending in outdated administrative structures, allowing those funds to be redirected toward underfunded social services and community welfare programs.
- Increases government transparency by forcing department heads to publicly justify all expenditures, ensuring that taxpayer money is actively serving the public interest rather than maintaining the status quo.
- The creation of a review panel adds a layer of oversight that could theoretically be used to scrutinize corporate subsidies or ineffective privatization contracts within department budgets.
Cons for Progressives
- Creates a massive administrative burden that drains time and resources from state agencies, potentially detracting from their ability to deliver essential services to the poor and disadvantaged.
- Risks the stability of social safety net programs by forcing them to re-justify their funding every cycle, making them vulnerable to cuts by fiscal conservatives looking to shrink government.
- Zero-based budgeting often prioritizes quantitative financial metrics over qualitative social outcomes, which may disadvantage programs where the benefits to the community are harder to measure in dollars.
Pros for Conservatives
- Imposes strict fiscal discipline on the government by ending the practice of automatic baseline budgeting, forcing bureaucrats to prove the necessity of every tax dollar they spend.
- Provides a systematic mechanism to identify and eliminate obsolete, redundant, or wasteful government programs that have persisted simply because they were funded in the past.
- Strengthens legislative oversight of the executive branch by establishing a specific panel to review agency efficiency and explore alternative (potentially cheaper) ways to conduct business.
Cons for Conservatives
- The implementation timeline is very slow, with the full zero-based budgeting requirement not taking effect for all departments until the fiscal year 2031.
- The review panel includes appointments from the legislative leadership, which, depending on the political makeup, may not be aggressive enough in cutting spending.
- The bill creates a process for review but does not mandate specific spending caps or tax reductions, meaning the government could theoretically justify and keep its current size.
Constitutional Concerns
None Likely
Impact Overview
Groups Affected
- State Government Departments
- State Employees
- Budget Officers
- Legislators
- Taxpayers
Towns Affected
All
Cost to Taxpayers
Amount unknown
Revenue Generated
None
BillBuddy Impact Ratings
Importance
Measures population affected and overall level of impact.
Freedom Impact
Level of individual freedom impacted by the bill.
Public Services
How much the bill is likely to impact one or more public services.
Regulatory
Estimated regulatory burden imposed on the subject(s) of the bill.
Clarity of Bill Language
How clear the language of the bill is. Higher ambiguity equals a lower score.
Enforcement Provisions
Measures enforcement provisions and penalties for non-compliance (if applicable).
Environmental Impact
Impact the bill will have on the environment, positive or negative.
Privacy Impact
Impact the bill is likely to have on the privacy of individuals.
Bill Status
Current Status
Held
Comm Passed
Floor Passed
Law
History
• 01/16/2026 Introduced, referred to Senate Finance
Bill Text
SECTION 1. Sections 35-3-4, 35-3-7 and 35-3-9 of the General Laws in Chapter 35-3 entitled "State Budget" are hereby amended to read as follows:
35-3-4. Estimates submitted by department heads.
(a) On dates determined by the budget officer, but not later than the first day of October in each year, each head of a department of the state government, not including the general assembly or the judiciary, shall assemble, correlate, and revise, with power to increase or decrease, the estimates for expenditures and requests for appropriations for the next ensuing fiscal year of each of the divisions, boards, commissions, officers, bureaus, institutions, or agencies of the state included within his or her department, and, after this revision, shall prepare an itemized departmental estimate of the appropriations necessary to meet the financial needs of the department, including a statement in detail of all moneys for which any general or special appropriation is desired at the ensuing session of the general assembly. The estimate shall be in such form, and in such number of copies, and with such explanation as the budget officer may require, and, on dates determined by the budget officer, but not later than the first day of October in each year, shall be submitted to the governor through the budget officer and to the fiscal advisors of the house and senate.
(b) The estimates shall also include a supplemental presentation of estimates of expenditures for information resources and information technologies as defined in § 29-8-2 [repealed], regardless of source of financing. The estimate shall include a detailed listing and explanation of expenses and the source of funds and shall be in such form, and in such number of copies, and with such explanation as the budget officer may require. Copies shall be provided directly to the house fiscal advisor, the senate fiscal advisor, and the Rhode Island information resources management board.
(c) Commencing with the fiscal year beginning on July 1, 2027, and in accordance with the schedule provided in this section, the estimates for expenditures and requests for appropriations shall be based upon a justification by each department head of the budget of the department from a zero base. The budget request shall be accompanied by a statement giving facts and explanations of reasons for each item requested. It shall include a brief explanation of the functions of each of the divisions, boards, commissions, officers, bureaus, institutions, or agencies of the state included within the department and comments on its policies and plans, with such descriptive, quantitative, comparative and other data as to work done and other information as is considered necessary or desirable. "Zero-based budget" requests, so-called, are requests for appropriations based upon a justification of a department from a zero base as if the budget for the department was being initiated for the first time and shall be required based upon the following schedule:
(1) Beginning with the fiscal year beginning July 1, 2028, zero-based budgets shall be submitted by twenty percent (20%) of state departments, being those departments which submitted the lowest budget requests for the fiscal year beginning July 1, 2027;
(2) Beginning with the next fiscal year, zero-based budgets shall be submitted by twenty percent (20%) of state departments, being those submitting the lowest budget requests for the fiscal year beginning July 1, 2028, except for those departments included in subsection (c)(1) of this section;
(3) Beginning with the next fiscal year, zero-based budget requests shall be submitted by twenty percent (20%) of state departments submitting the lowest budget requests for the fiscal year beginning July 1, 2029, except for those departments included in subsections (c)(1) and (2) of this section;
(4) Beginning with the next fiscal year, zero-based budget requests shall be submitted by twenty percent (20%) of state departments submitting the lowest budget requests for the fiscal year beginning July 1, 2030, except for those departments included in subsections (c)(1),(2), and (3) of this section; and
(5) For the fiscal year beginning July 1, 2031, and thereafter, zero-based budgets shall be submitted by all remaining state departments.
(d) The budget officer shall provide copies of all submitted zero-based budgets to the house fiscal advisor and senate fiscal advisor. LC004059 - Page 2 of 6
35-3-7. Submission of budget to general assembly — Contents.
(a) On or before the third Thursday in January in each year of each January session of the general assembly, the governor shall submit to the general assembly a budget containing a complete plan of estimated revenues and proposed expenditures, with a personnel supplement detailing the number and titles of positions of each agency and the estimates of personnel costs for the next fiscal year, and with the inventory required by § 35-1.1-3(b)(5). Provided, however, in those years that a new governor is inaugurated, the new governor shall submit the budget on or before the first Thursday in February. Beginning with the fiscal year beginning July 1, 2027, and in accordance with the schedule set forth in § 35-3-4, the budget submitted by the governor shall be a partial "zero-based budget," a budget based upon a justification of each department's estimate of expenditures and requests for appropriations from a zero base. In accordance with the schedule set forth in § 35-3-4, the entire budget for the fiscal year beginning July 1, 2031, shall be a zero based budget.
In the budget the governor may set forth in summary and detail:
(1) Estimates of the receipts of the state during the ensuing fiscal year under laws existing at the time the budget is transmitted and also under the revenue proposals, if any, contained in the budget, and comparisons with the estimated receipts of the state during the current fiscal year, as well as actual receipts of the state for the last two (2) completed fiscal years.
(2) Estimates of the expenditures and appropriations necessary in the governor’s judgment for the support of the state government for the ensuing fiscal year, and comparisons with appropriations for expenditures during the current fiscal year, as well as actual expenditures of the state for the last two (2) complete fiscal years; provided, further, in the event the budget submission includes any transfers of resources from public corporations to the general fund, the budget submission shall also include alternatives to said transfers.
(3) Financial statements of the:
(i) Condition of the treasury at the end of the last completed fiscal year;
(ii) Estimated condition of the treasury at the end of the current fiscal year; and
(iii) Estimated condition of the treasury at the end of the ensuing fiscal year if the financial proposals contained in the budget are adopted.
(4) All essential facts regarding the bonded and other indebtedness of the state.
(5) A report indicating those program revenues and expenditures whose funding source is proposed to be changed from state appropriations to restricted receipts, or from restricted receipts to other funding sources.
(6) Such other financial statements and data as in the governor’s opinion are necessary or LC004059 - Page 3 of 6 desirable.
(b) Any other provision of the general laws to the contrary notwithstanding, the proposed appropriations submitted by the governor to the general assembly for the next ensuing fiscal year should not be more than five and one-half percent (5.5%) in excess of total state appropriations, excluding any estimated supplemental appropriations, enacted by the general assembly for the fiscal year previous to that for which the proposed appropriations are being submitted; provided that the increased state-share provisions required to achieve fifty percent (50%) state financing of local school operations as provided for in P.L. 1985, ch. 182, shall be excluded from the definition of total appropriations.
(c) Notwithstanding the provisions of subsection (a) of this section, the governor shall submit to the general assembly a budget for the fiscal year ending June 30, 2006, not later than the fourth (4th) Thursday in January 2005.
(d) Notwithstanding the provisions of subsection (a) of this section, the governor shall submit to the general assembly a supplemental budget for the fiscal year ending June 30, 2006, and/or a budget for the fiscal year ending June 30, 2007, not later than Thursday, January 26, 2006.
(e) Notwithstanding the provisions of subsection (a) of this section, the governor shall submit to the general assembly a supplemental budget for the fiscal year ending June 30, 2007, and/or a budget for the fiscal year ending June 30, 2008, not later than Wednesday, January 31, 2007.
(f) Notwithstanding the provisions of subsection (a) of this section, the governor shall submit to the general assembly a budget for the fiscal year ending June 30, 2012, not later than Thursday, March 10, 2011.
(g) Notwithstanding the provisions of subsection (a) of this section, the governor shall submit to the general assembly a budget for the fiscal year ending June 30, 2013, not later than Tuesday, January 31, 2012.
(h) Notwithstanding the provisions of subsection (a) of this section, the governor shall submit to the general assembly a budget for the fiscal year ending June 30, 2016, not later than Thursday, March 12, 2015.
(i) Notwithstanding the provisions of subsection (a) of this section, the governor shall submit to the general assembly a budget for the fiscal year ending June 30, 2022, not later than Thursday, March 11, 2021.
35-3-9. Action on bills by house committee — Hearings.
(a) The budget plan and bill or bills for proposed appropriations, when sent by the governor to the general assembly, shall be referred as soon as practicable to an appropriate committee of the LC004059 - Page 4 of 6 house of representatives, and upon receipt of the budget plan the committee shall refer it to a budget panel consisting of three (3) persons: one of whom shall be appointed by the speaker of the house; one of whom shall be appointed by the house minority leader; and one of whom shall be appointed by the senate president. The members of the panel shall be persons with expertise and experience in the areas of finance or accounting. The panel shall review the budget plan and shall consider the objectives, operations, and costs of all activities of each department; explore alternative means of conducting the activities of each department; evaluate alternative budget amounts for various levels of effort for each activity of each department. The panel shall report its findings and make its recommendations as to the needs of each department, the programs and activities of each department and all other recommendations and information that it deems appropriate, to the committee, within thirty (30) days after the budget plan is referred to it.
(b) The committee shall proceed to the consideration of the bill upon receipt of this recommendation of the panel.and the The committee shall forthwith proceed to the consideration of the bill. The committee shall hear the budget officer upon the bill as a whole or upon any item thereof or any proposed amendment thereto as each may elect, and the committee may summon the budget officer to appear before it and to furnish such information relative to the bill or any item therein, or any proposed amendment thereto, as it may require, and the committee may in its discretion hear the proper person representing any department or agency desiring to be heard with respect to any item or amendment in the bill relating to the department or agency; provided, that nothing contained in this section shall be construed to limit the right of the committee to hold public hearings upon the bill as a whole or upon any item therein, or to summon any person for examination regarding any item contained therein, or for the purpose of obtaining information necessary for a full and proper consideration of the bill. The committee, after the consideration of the bill, shall report the bill with its recommendation endorsed thereon to the house of representatives.
SECTION 2. This act shall take effect upon passage.
35-3-4. Estimates submitted by department heads.
(a) On dates determined by the budget officer, but not later than the first day of October in each year, each head of a department of the state government, not including the general assembly or the judiciary, shall assemble, correlate, and revise, with power to increase or decrease, the estimates for expenditures and requests for appropriations for the next ensuing fiscal year of each of the divisions, boards, commissions, officers, bureaus, institutions, or agencies of the state included within his or her department, and, after this revision, shall prepare an itemized departmental estimate of the appropriations necessary to meet the financial needs of the department, including a statement in detail of all moneys for which any general or special appropriation is desired at the ensuing session of the general assembly. The estimate shall be in such form, and in such number of copies, and with such explanation as the budget officer may require, and, on dates determined by the budget officer, but not later than the first day of October in each year, shall be submitted to the governor through the budget officer and to the fiscal advisors of the house and senate.
(b) The estimates shall also include a supplemental presentation of estimates of expenditures for information resources and information technologies as defined in § 29-8-2 [repealed], regardless of source of financing. The estimate shall include a detailed listing and explanation of expenses and the source of funds and shall be in such form, and in such number of copies, and with such explanation as the budget officer may require. Copies shall be provided directly to the house fiscal advisor, the senate fiscal advisor, and the Rhode Island information resources management board.
(c) Commencing with the fiscal year beginning on July 1, 2027, and in accordance with the schedule provided in this section, the estimates for expenditures and requests for appropriations shall be based upon a justification by each department head of the budget of the department from a zero base. The budget request shall be accompanied by a statement giving facts and explanations of reasons for each item requested. It shall include a brief explanation of the functions of each of the divisions, boards, commissions, officers, bureaus, institutions, or agencies of the state included within the department and comments on its policies and plans, with such descriptive, quantitative, comparative and other data as to work done and other information as is considered necessary or desirable. "Zero-based budget" requests, so-called, are requests for appropriations based upon a justification of a department from a zero base as if the budget for the department was being initiated for the first time and shall be required based upon the following schedule:
(1) Beginning with the fiscal year beginning July 1, 2028, zero-based budgets shall be submitted by twenty percent (20%) of state departments, being those departments which submitted the lowest budget requests for the fiscal year beginning July 1, 2027;
(2) Beginning with the next fiscal year, zero-based budgets shall be submitted by twenty percent (20%) of state departments, being those submitting the lowest budget requests for the fiscal year beginning July 1, 2028, except for those departments included in subsection (c)(1) of this section;
(3) Beginning with the next fiscal year, zero-based budget requests shall be submitted by twenty percent (20%) of state departments submitting the lowest budget requests for the fiscal year beginning July 1, 2029, except for those departments included in subsections (c)(1) and (2) of this section;
(4) Beginning with the next fiscal year, zero-based budget requests shall be submitted by twenty percent (20%) of state departments submitting the lowest budget requests for the fiscal year beginning July 1, 2030, except for those departments included in subsections (c)(1),(2), and (3) of this section; and
(5) For the fiscal year beginning July 1, 2031, and thereafter, zero-based budgets shall be submitted by all remaining state departments.
(d) The budget officer shall provide copies of all submitted zero-based budgets to the house fiscal advisor and senate fiscal advisor. LC004059 - Page 2 of 6
35-3-7. Submission of budget to general assembly — Contents.
(a) On or before the third Thursday in January in each year of each January session of the general assembly, the governor shall submit to the general assembly a budget containing a complete plan of estimated revenues and proposed expenditures, with a personnel supplement detailing the number and titles of positions of each agency and the estimates of personnel costs for the next fiscal year, and with the inventory required by § 35-1.1-3(b)(5). Provided, however, in those years that a new governor is inaugurated, the new governor shall submit the budget on or before the first Thursday in February. Beginning with the fiscal year beginning July 1, 2027, and in accordance with the schedule set forth in § 35-3-4, the budget submitted by the governor shall be a partial "zero-based budget," a budget based upon a justification of each department's estimate of expenditures and requests for appropriations from a zero base. In accordance with the schedule set forth in § 35-3-4, the entire budget for the fiscal year beginning July 1, 2031, shall be a zero based budget.
In the budget the governor may set forth in summary and detail:
(1) Estimates of the receipts of the state during the ensuing fiscal year under laws existing at the time the budget is transmitted and also under the revenue proposals, if any, contained in the budget, and comparisons with the estimated receipts of the state during the current fiscal year, as well as actual receipts of the state for the last two (2) completed fiscal years.
(2) Estimates of the expenditures and appropriations necessary in the governor’s judgment for the support of the state government for the ensuing fiscal year, and comparisons with appropriations for expenditures during the current fiscal year, as well as actual expenditures of the state for the last two (2) complete fiscal years; provided, further, in the event the budget submission includes any transfers of resources from public corporations to the general fund, the budget submission shall also include alternatives to said transfers.
(3) Financial statements of the:
(i) Condition of the treasury at the end of the last completed fiscal year;
(ii) Estimated condition of the treasury at the end of the current fiscal year; and
(iii) Estimated condition of the treasury at the end of the ensuing fiscal year if the financial proposals contained in the budget are adopted.
(4) All essential facts regarding the bonded and other indebtedness of the state.
(5) A report indicating those program revenues and expenditures whose funding source is proposed to be changed from state appropriations to restricted receipts, or from restricted receipts to other funding sources.
(6) Such other financial statements and data as in the governor’s opinion are necessary or LC004059 - Page 3 of 6 desirable.
(b) Any other provision of the general laws to the contrary notwithstanding, the proposed appropriations submitted by the governor to the general assembly for the next ensuing fiscal year should not be more than five and one-half percent (5.5%) in excess of total state appropriations, excluding any estimated supplemental appropriations, enacted by the general assembly for the fiscal year previous to that for which the proposed appropriations are being submitted; provided that the increased state-share provisions required to achieve fifty percent (50%) state financing of local school operations as provided for in P.L. 1985, ch. 182, shall be excluded from the definition of total appropriations.
35-3-9. Action on bills by house committee — Hearings.
(a) The budget plan and bill or bills for proposed appropriations, when sent by the governor to the general assembly, shall be referred as soon as practicable to an appropriate committee of the LC004059 - Page 4 of 6 house of representatives, and upon receipt of the budget plan the committee shall refer it to a budget panel consisting of three (3) persons: one of whom shall be appointed by the speaker of the house; one of whom shall be appointed by the house minority leader; and one of whom shall be appointed by the senate president. The members of the panel shall be persons with expertise and experience in the areas of finance or accounting. The panel shall review the budget plan and shall consider the objectives, operations, and costs of all activities of each department; explore alternative means of conducting the activities of each department; evaluate alternative budget amounts for various levels of effort for each activity of each department. The panel shall report its findings and make its recommendations as to the needs of each department, the programs and activities of each department and all other recommendations and information that it deems appropriate, to the committee, within thirty (30) days after the budget plan is referred to it.
(b) The committee shall proceed to the consideration of the bill upon receipt of this recommendation of the panel.
SECTION 2. This act shall take effect upon passage.