Bill Text: CA AB1964 | 2023-2024 | Regular Session | Introduced

California Assembly Bill 1964

CA State Legislature page for AB1964

Introduced

Bill Title: State agencies: budgeting.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced) 2024-02-12 - Referred to Com. on BUDGET. [AB1964 Detail]

Download: California-2023-AB1964-Introduced.html

CALIFORNIA LEGISLATURE— 2023–2024 REGULAR SESSION

Assembly Bill

No. 1964

Introduced by Assembly Member Vince Fong

January 29, 2024

An act to add Section 13292.2 to the Government Code, relating to state government.

LEGISLATIVE COUNSEL'S DIGEST

AB 1964, as introduced, Vince Fong. State agencies: budgeting.

Under existing law, a state agency for which an appropriation is made is generally required to submit to the Department of Finance for approval a complete and detailed budget setting forth all proposed expenditures and estimated revenues for the ensuing fiscal year. Existing law authorizes the department to require certain state agencies to produce financial and statistical reports, as specified.

This bill would require the Department of Finance, on or before January 1, 2026, to compile a list of all state agencies and to split the list into ¹/₅ sections with each section equally distributing state agencies across the legislative budget subcommittees, as specified. The bill would require the department, on January 1, 2027, to publish on its internet website the full list of state agencies, as described above. The bill would require the department, on January 1, 2027, and annually thereafter, to publish a list of which section of state agencies is required to develop its budget using a zero-based budgeting method, as defined. The bill, commencing January 1, 2027, would require each state agency, as specified, to develop its budget based on a zero-based budgeting method for review during the budget process, as prescribed. In developing its budget based on a zero-based budgeting method, the bill would require, among other things, representatives from each state agency to work with the department to submit a report, as specified, to the Senate Committee on Budget and Fiscal Review, the Assembly Committee on Budget, and the Joint Legislative Budget Committee.

Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO

The people of the State of California do enact as follows:

SECTION 1.

Section 13292.2 is added to the Government Code, to read:

13292.2.

(a) (1) On or before January 1, 2026, the Department of Finance shall compile a list of all state agencies and split the list into one-fifth sections with each section equally distributing state agencies across the legislative budget subcommittees.

(2) The Department of Finance shall determine which state agencies in each section shall develop their budgets using a zero-based budgeting method pursuant to this section that fiscal year.

(3) On January 1, 2027, the Department of Finance shall publish on its internet website the list as described in this subdivision.

(4) On January 1, 2027, and annually thereafter, the Department of Finance shall publish a list indicating which section of state agencies described in paragraph (1) shall develop its budget using a zero-based budgeting method.

(b) (1) Commencing January 1, 2027, each state agency within the section designated by the Department of Finance shall develop its budget based on a zero-based budgeting method for review during the budget process as follows:

(A) Representatives from each state agency within the section designated by the Department of Finance shall work with the Department of Finance to submit a report, in compliance with Section 9795, and notwithstanding Section 10231.5, on or before January 10 of each year that includes documents, receipts, expenditures, and desired budget proposals to the Senate Committee on Budget and Fiscal Review, the Assembly Committee on Budget, and the Joint Legislative Budget Committee and shall publish this information on each state agency’s internet website.

(B) Each state agency within the section designated by the Department of Finance shall submit to the Legislature a new budget change proposal request, or equivalent request that provides for an alternative methodology that allows for the Legislature to appropriately assess and examine the budget expenditures of each state agency.

(2) After developing its budget using a zero-based budgeting method for the first time pursuant to this section, each section of state agencies shall develop its budget using a zero-based budgeting method again in five years and every five years thereafter.

(1) “State agency” shall have the same meaning as defined in Section 11000.

(2) “Zero-based budgeting method” means a systematic budget analysis in support of decisionmaking in which a state agency shall do all of the following:

(A) Examine current objectives, operations, and costs.

(B) Consider alternative ways of carrying out their program or activity.