Sen. McInnis files bill in North Carolina Senate mandating zero-based budgeting

A new bill filed by State Sen. Tom McInnis seeks to require North Carolina state agencies to adopt zero-based budgeting, aiming to enhance budget justification and oversight across the executive branch, according to the North Carolina State Senate.

The bill, filed as SB 126 on Feb. 21 during the 2025 regular session, was formally listed with the short title: ‘Zero-Based Budgeting.’

The following is our breakdown, based on the actual bill text, and may include interpretation to clarify its provisions.

In essence, this bill mandates the implementation of zero-based budgeting for North Carolina state agencies on a rotating basis, starting July 1, 2025. In even-numbered years, selected state agencies within the executive branch will prepare and submit zero-based budget plans for the upcoming fiscal biennium to the Office of State Budget and Management, which will provide technical assistance. A zero-based budget is defined as a budget beginning with a base of zero dollars, devoid of prior adjustments, necessitating justification for each activity’s existence and associated expenses. The bill outlines specific details the budget plan must include, such as activity descriptions, estimated impacts if discontinued, quantifiable outcomes, itemized expenditures, and activity rankings. A schedule is provided for agency submissions every eight years. Additionally, statutory appropriations are excluded from zero-based budgeting plans. The bill becomes effective upon becoming law.

Of the two sponsors of this bill, Jim Burgin proposed the most bills (10) during the 2025 regular session.

Bills in North Carolina follow a multi-step process before becoming law. A lawmaker starts by filing a bill, which is assigned to a committee for review. The bill must be read three times in each chamber. If one chamber changes the bill after the other passes it, both must agree on the final version. Once both chambers approve the same bill, it goes to the governor, who has 10 days (or 30 if the legislature is not in session) to sign, veto, or let it become law without a signature.

You can read more about the bills and other measures here.

Mclnnis, a Republican, was elected to the North Carolina State Senate in 2023 to represent the state’s 21st Senate district, replacing previous state senator Ben Clark.