House Bill 391

AN ACT TO DIRECT ALL STATE AGENCIES, DEPARTMENTS AND INSTITUTIONS SUBMITTING BUDGET REQUESTS FOR FISCAL YEAR 2008 AND EACH LATER FISCAL YEAR TO DEVELOP THOSE BUDGET REQUESTS ACCORDING TO ZERO-BASED BUDGETING PRINCIPLES; TO DIRECT THE JOINT LEGISLATIVE BUDGET COMMITTEE AND THE GOVERNOR'S OFFICE TO DEVELOP BUDGET RECOMMENDATIONS ACCORDING TO ZERO-BASED BUDGETING PRINCIPLES; TO REQUIRE THAT EACH APPROPRIATION BILL ENACTED BY THE LEGISLATURE BE DETERMINED ACCORDING TO ZERO-BASED BUDGETING PRINCIPLES; AND FOR RELATED PURPOSES.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

SECTION 1. For fiscal year 2008 and each later fiscal year, each state agency, department or institution that is required to submit a budget request shall develop the request according to zero-based budgeting principles. Those principles shall require the agency, department or institution to do the following for each budgetary unit:

(a) Identify the component programs of the budgetary unit, describe the activities conducted by each program, and specify the legal basis for each program to conduct each activity described;

(b) Itemize in detail by object of expenditure the budgetary requirements for conducting the activities of each program of the budgetary unit with the actual expenditures for the prior fiscal year, the estimated expenditures for the current fiscal year, and the projected expenditures for the budget fiscal year, by starting with a base of zero dollars and adding dollar amounts for activities conducted in the prior fiscal year that are deemed appropriate in the current fiscal year and requested for the budget fiscal year;

(c) Identify and itemize in detail by object of expenditure the changes in the budgetary requirements for conducting the activities of each program of the budgetary unit between the actual expenditures for the prior fiscal year and the estimated expenditures for the current fiscal year, and between the estimated expenditures for the current fiscal year and the projected expenditures for the budget fiscal year; and

(d) Develop a narrative for each program of the budgetary unit justifying each line-item of the itemized budgetary requirements for conducting the activities of the program with the actual expenditures for the prior fiscal year, and justifying each line-item of the itemized changes in the budgetary requirements for conducting the activities of the program between the actual expenditures for the prior fiscal year and the estimated expenditures for the current fiscal year, and between the estimated expenditures for the current fiscal year and the projected expenditures for the budget fiscal year.

SECTION 2. The Joint Legislative Budget Committee and the Governor's Office shall review and evaluate only those budget requests that are developed as prescribed in Section 1 of this act, and shall develop budget recommendations to the Legislature starting with a base of zero dollars for each program in each budgetary unit and adding dollars as necessary for actual expenditures on activities approved in the prior fiscal year, and adding or reducing dollars as necessary for estimated changes in expenditures approved for the current fiscal year, and adding or reducing dollars as necessary for recommended changes in the expenditures deemed appropriate for the budget fiscal year.

SECTION 3. The Legislature shall determine the amount of each appropriation for each state agency, department or institution for fiscal year 2008 and each later fiscal year by starting with a base of zero dollars for each program in each budgetary unit and adding dollars as necessary for actual expenditures on activities approved in the prior fiscal year, and adding or reducing dollars as necessary for estimated changes in expenditures approved for the current fiscal year, and adding or reducing dollars as necessary for changes in expenditures deemed appropriate for the budget fiscal year.

SECTION 4. This act shall take effect and be in force from and after July 1, 2006.