In response to the severe state budget crisis, several state leaders have been promoting zero-base budgeting as a means of rationalizing expenditures across competing demands for government services. “Zero-based budgeting is an approach to public budgeting in which each budget year’s activities are judged in a self-contained fashion, with little or no reference given to the policy precedents of past years” (Lynch, 1995, p. 50). In theory, expenditures are set according to need rather than historic levels. Last year, Governor Brad Henry signed a bill requiring state agencies to justify each proposed expenditure during the budget process.

 

In addition to the state government, local governments in Oklahoma have also adopted zero-base budgeting or at least considered its use. For example, Oklahoma County attempted the zero-based approach a few years ago, but with little success. A more recent attempt is credited with saving the County almost a million dollars (Lackmeyer, 2003).

 

Critics of zero-base budgeting claim that it is actually a much more incremental approach than “its name implies; programs virtually never are cut to zero” (Henry, 2004, p. 223). Implementation of zero-base budgeting at the federal level during the seventies achieved mixed results and was associated with a significant increase in paperwork reporting requirements (Hatry, 1992-1993). The City of Norman considered adopting zero-base budgeting for its Fiscal Year 2005, but that proposal was ultimately defeated. As Norman’s Mayor Ron Henderson explained, “To justify everything we do, we are going to spend a lot of time on that justification. If we do that, I’m afraid we can’t accomplish our goals” (Cannon, 2003).

 

Supporters of this approach claim that it is a very useful tool for helping policy leaders prioritize and that it encourages healthy participation in decision-making.

 

Please indicate whether you agree or disagree with the following statements:

 

1. “Zero-base budgeting in practical application can be expected to reduce government expenditures, or at least its growth.”

        Strongly Agree             Agree              Disagree             Strongly Disagree             Undecided

          11%                       33%                        50%                             7%                               0%     

 

2.   “Zero-base budgeting in practical application can be expected to allocate government expenditures to those services of greatest public need.”

        Strongly Agree             Agree              Disagree             Strongly Disagree             Undecided

          9%                         37%                        39%                             13%                             2%

3.  “Zero-base budgeting in practical application can be expected to reduce or eliminate those services demanded by those with the least political influence, regardless of public need.”

        Strongly Agree             Agree              Disagree             Strongly Disagree             Undecided

           4%                         43%                        41%                             7%                               4%     

 

4.  “Zero-base budgeting— in contrast to other more incremental approaches—benefits the process of allocating public resources significantly more than the cost in time and effort that must be committed to this form of budgeting .”

        Strongly Agree             Agree              Disagree             Strongly Disagree             Undecided

           9%                         22%                        35%                             28%                             7%