Monday, May 22, 2006

Will Ohio Adopt 'Zero-Based Budgeting?'

From the AP via ONN:

Seeking to convey they are fiscally disciplined, state lawmakers are poised to add language to state law that will force state agencies back to the drawing board each budget cycle to reevaluate every penny they spend.

It is a practice -- known as "zero-based budgeting" -- employed by former Georgia governor and President Jimmy Carter in the 1970s but ultimately abandoned as less efficient than the incremental year-over-year budgeting Ohio uses now. Among the American territories, only the Mariana Islands still use the practice, according to a 2006 report by the bipartisan National Council of State Legislatures.

House Speaker Jon Husted, a Kettering Republican, said the zero-based budgeting language will be part of a compromise with GOP gubernatorial candidate Kenneth Blackwell scheduled to be approved Friday evening. Legislative leaders agreed to put spending limits in state law in exchange for Blackwell pulling his government-limiting constitutional amendment off November's ballot.

But Scott Borgemenke, Husted's chief of staff, said requiring agencies to start at zero when planning each fiscal year wasn't a demand of Blackwell's.

I have never studied Zero-Based Budgeting, guys?


BizzyBlog said...

In theory, good. In practice, like everything else, it depends on willpower.

Its benefits under Carter in Georgia were, I believe, overstated. It was good presidential campaign noise but disappeared from the vocabulary shortly after he took office.

It is in no way shape or form a substitute for an overall TEL spending cap. It best seen as a possible way for agency heads to figure out a way to stay within them.

Anonymous said...

I know I read about zero-based budgeting in Steve Hayward's book "The Real Jimmy Carter", but I can't seem to find the reference.

But doesn't anything with Carter attached to it raise your spidey sense?

Steven J. Kelso Sr. said...

Yes Phil, well put!!! :)

Thanks guys!