On Monday, the Senate Finance Committee approved SB 68, authored by Senator Jane Nelson, R-Flower Mound, directing state agencies to undergo strategic fiscal review — a form of zero-based budgeting.
“Agency budgets should not automatically start with the previous year’s amount with new spending added on top,” Nelson said. “We need to make sure that existing programs and funding streams are justified, and zero-based budgeting allows us to start at zero and build budgets from the ground up. Through this process we will put each agency budget under a microscope.”
Specifically, SB 68 directs that agencies undergo strategic fiscal review on a rotating basis aligned with the Sunset review schedule, according to a news release from Nelson’s office. As part of strategic fiscal review, all programs are analyzed to determine if it is required by state or federal law and ranked according to an agency’s core mission.
The bill now goes before the full Senate for consideration.
Nelson represents District 12, including portions of Tarrant and Denton Counties. She is Chairman of the Senate Finance Committee and the highest-ranking Republican in the Texas Senate.