An Act providing for zero-based budgeting.

HB 1105 requires Pennsylvania state agencies to undergo regular zero-based budget reviews, mandating that every program be justified from scratch at least once every five years. Starting in 2026, the Secretary of the Budget must review approximately one-fifth of the state budget annually, with agencies required to submit detailed plans explaining each program's legal basis, estimated impacts if discontinued, and itemized costs for maintaining services at both minimum and current levels. This directly affects all state agencies and the Budget Secretary, shifting budget decisions away from incremental adjustments to past spending. The bill aims to eliminate outdated programs by requiring agencies to prove the necessity and cost-effectiveness of each activity through specific documentation, not just historical spending patterns. It takes effect 60 days after enactment.