Senate Approves Zero-Based Budgeting

Senate Bill 33, the Waste Reduction Act of 2011, passed the Senate on Tuesday with overwhelming bi-partisan support, according to a press release issued by State Sen. Barry Loudermilk, R-Cassville. The measure authored by State Sen. David Shafer, R-Duluth, and co-sponsored by Loudermilk will implement a system of zero-based budgeting for state government.

“To effectively reduce government waste and duplication, we must have full disclosure of where taxpayers dollars are being spent,” Loudermilk said in the release. “This bill, once enacted, will provide needed accountability and better oversight.”

Georgia currently prepares its budget on a “continuation” basis, which assumes that all current spending will be carried forward, and legislators only examine proposed increases. This bill would require that one-fourth of the budget be 'zero-based' each year, so that over a four-year term, the entire budget is scrutinized by the General Assembly.

The Waste Reduction Act of 2011 ends the system of “continuation” budgeting, under which, appropriations approved one year are automatically rolled over into next year’s budget. This system, which effectively hides 95 percent or more of each year’s budget from public view, makes it difficult to identify spending programs that are no longer needed.

Under zero-based budgeting, within four years, every line of the Georgia state budget would be scrutinized. Any waste and doubling of efforts could be eliminated, saving taxpayers untold dollars.

The Senate has passed a version of zero-based budgeting four times in the last eight years, the last three times unanimously. During the 2010 session, SB 1, The Zero-Based Budgeting Act, passed the Senate and House unanimously, with bi-partisan support. The bill was then vetoed by then Governor Sonny Perdue.

On Jan. 27, 2011, the Senate voted to override the former governor’s veto in an effort to increase openness and fairness in government and further benefit the taxpayers of Georgia.

Loudermilk represents the 52nd Senate District which includes Floyd County and portions of Bartow and Gordon counties.