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OMB declines full 0‑based budgeting pilot this year, recommends yearlong design and legislative coordination
Summary
OMB told the House Finance Committee it could not implement 0‑based budgeting for an agency this cycle, saying it found no U.S. states using full 0‑based budgeting and recommending a year of planning with legislative finance to develop a usable approach.
Committee members reviewed intent language asking OMB to pilot 0‑based budgeting for one agency. Director Lacey Sanders said OMB researched other states and "we were not able to identify other states that are using 0 based budgeting as a tool." She told the committee that 0‑based budgeting is a time‑consuming, multi‑step process and that OMB "would need at least a year's time frame to create a structure that works" with IT systems and the legislative appropriation process.
Sanders said OMB would be willing to work with the legislature and the Division of Legislative Finance to define the scope (program‑level, contract‑level or agency‑level), the presentation format, and a common set of expectations so the output is useful for both the administration and legislators. Members pressed for whether a single smaller agency or programmatic breakdown could be practical; Sanders said OMB has not yet implemented steps beyond internal review but is open to developing a strategic plan and to exploring external assistance.
Several members urged the administration and the legislature to pursue clearer programmatic line items and KPIs to improve transparency. OMB recommended a coordinated, deliberate one‑year design process rather than an off‑the‑cuff pilot that could confuse appropriators or add work without delivering useful information.
