Zero-Based Budgeting.

This bill requires North Carolina state agencies to use zero-based budgeting on a rotating eight-year schedule starting in 2026. Under this method, agencies must justify every dollar of spending from scratch by listing specific activities, their legal basis, and the costs needed to maintain minimum or current service levels, rather than simply adjusting previous budgets. The Office of State Budget and Management will provide technical assistance to agencies as they prepare these plans, which must include data on program outcomes and the potential negative impacts of discontinuing any activity. Funding of $10,000 is allocated to the budget office to support the administration of this new requirement.