To amend sections 107.03, 126.02, 126.13, and 126.27 and to enact sections 126.025 and 126.026 of the Revised Code to require the use of zero-based budgeting in the development of the state budget.
HB645 would require Ohio to use zero-based budgeting in the development of the state budget on a recurring ten-year cycle, beginning with the general assembly convening in 2027 and every ten years thereafter. Zero-based budgeting means agencies would have to justify requested appropriations from scratch, rather than building them on prior-year funding levels. The bill amends the budget-preparation statutes to direct the director of budget and management to incorporate zero-based budgeting into budget forms and estimates, and it requires state agencies to prepare their requests using that method during the designated budget cycles.
The bill also updates the governor’s budget submission requirements to reflect the new budgeting approach and preserves existing reporting requirements for budget materials, including tax reports, TANF spending plans, and Medicaid caseload and expenditure forecasts. It retains the current framework for agency budget requests, performance reviews, and the governor’s recommendations, while adding a requirement that the governor’s budget submissions in the zero-based years be based on zero-based budgeting principles. In effect, the bill changes how budget requests are developed and justified, but it does not itself appropriate funds or alter program eligibility or benefits.
HB645 would amend sections 107.03, 126.02, 126.13, and 126.27 of the Revised Code and enact new section 126.025, creating a statutory requirement for periodic zero-based budgeting in Ohio’s state budget process. The practical impact would fall on the governor, the Office of Budget and Management, and all state agencies that submit budget requests, which would need to prepare detailed justifications for spending without relying on prior appropriations during the designated budget cycles. The bill would also affect the form and content of budget estimates, agency submissions, and the governor’s budget recommendations, while leaving the underlying substantive programs and appropriations laws unchanged unless later modified through the budget process.
Based on the bill text and available context, the measure appears to be framed as a government-efficiency and fiscal-accountability reform. Because there are no committee transcripts or recorded votes provided, there is no documented public debate in the supplied materials showing support or opposition. The bill was introduced and referred to the House Finance Committee, suggesting it was at an early stage of consideration when the available record ended.
The main point of potential contention is the administrative burden and feasibility of implementing zero-based budgeting across state agencies every ten years, especially for large and complex areas such as Medicaid and other major programs. Supporters would likely view the bill as a way to force periodic scrutiny of spending and eliminate outdated or unnecessary expenditures, while critics may argue that the process could be resource-intensive, disruptive to long-term planning, and difficult to apply consistently across agencies. Another possible issue is how the new requirement would interact with existing performance review and budget-estimate procedures, though the bill attempts to preserve those structures while layering zero-based budgeting on top of them.