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Senate · Engrossed · 2025-2026 Regular Session

SB 392: "Waste Reduction Act of 2026"; enact

Last action March 3, 2026 · House Second Readers

Senate Bill 392 would require Georgia's state budget process to periodically use zero-base budgeting, forcing agencies to justify spending from scratch rather than just adjusting last year's totals, starting with the January 2027 budget report.

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The summaries below were written by an AI model (claude-sonnet-5) from the text of the bill and are not part of it. Quote the text, not the summary. The stored text is the Engrossed version, the latest the General Assembly's website lists.

In plain language

Georgia's current budget process largely builds each year's spending plan by adjusting the prior year's figures. This bill adds a new section to the state's Budget Act requiring the Governor and state agencies (called budget units) to use zero-base budgeting for certain agencies and programs each year, a method where spending must be justified from a zero starting point rather than assumed to continue. The House Budget and Research Office and Senate Budget and Evaluation Office, working with the Governor's Office of Planning and Budget, would choose which agencies undergo this review each year, requiring every agency to do it at least once every ten years but no more than once every eight years. Agencies selected must analyze past spending, list goals and performance measures, and rank funding options by priority. The Board of Regents of the University System of Georgia is specifically included, and the Department of Education must submit a full zero-base budget for the January 2027 report. The judicial branch is encouraged, but not required, to participate.

What the bill does

  • Adds a new Code section requiring the Governor's budget report and agency budget estimates to use zero-base budgeting on a rotating schedule.
  • Directs legislative budget offices, working with the Office of Planning and Budget, to select which agencies use zero-base budgeting each year.
  • Sets a minimum and maximum frequency: every agency must use zero-base budgeting at least once every ten years but not more than once every eight years.
  • Requires agencies chosen for zero-base budgeting to report on purposes, performance measures, program size, and a ranked list of funding options.
  • Specifically requires the Department of Education to submit a full zero-base budget for the January 2027 report, and includes the Board of Regents as a covered agency.
  • Allows each legislative chamber's fiscal affairs subcommittee to review zero-base budget materials and hold hearings.

Who it affects

State agencies and departments that prepare budget requests, the Governor and the Office of Planning and Budget, the House Budget and Research Office and Senate Budget and Evaluation Office, the Board of Regents of the University System of Georgia, the Department of Education, and legislative fiscal affairs subcommittees.

Why it matters

If enacted, Georgia agencies selected for review would need to justify their full budgets rather than just changes from the prior year, which could increase scrutiny of state spending and require more staff time for preparation and legislative review, particularly for the Department of Education starting in 2027.

Key provisions

  • Section 1 gives the Act two short titles: the 'Waste Reduction Act of 2026' and the 'Zero-Base Budgeting Act.'
  • Section 2 adds new Code Section 45-12-75.1, applying zero-base budgeting starting with the budget report presented in January 2027.
  • Subsection (b) requires budget offices to balance the number of agencies doing zero-base budgets against available staff for preparation and review.
  • Subsection (c) requires selected budget units to include a two-year spending analysis and a priority list of alternative funding levels.
  • Subsection (e) specifically applies the requirement to the Board of Regents of the University System of Georgia.
  • Subsection (f) requires the Department of Education to submit a full zero-base budget in the January 2027 report.
  • Subsection (g) encourages, but does not require, the judicial branch to participate.
  • Section 3 repeals any conflicting laws.

From the bill

“The House Budget and Research Office and Senate Budget and Evaluation Office in consultation with the Office of Planning and Budget shall require each agency to use zero-base budgeting at least once every ten years and shall not require any agency or program to use zero-base budgeting more often than once every eight years.”

Sets the minimum and maximum frequency for agencies to undergo zero-base budgeting review.

“it is specifically provided that in the budget report presented to the General Assembly in January, 2027, the Department of Education's budget shall be submitted as a zero-base budget according to the guidelines provided in this Code section.”

Requires the Department of Education to be the first agency subject to full zero-base budgeting.

Discussed in meetings (9)

The House and Senate meetings that took this bill up, from their machine transcripts. Each account was written by Georgia Commons with AI and is not part of the record; the video is what was said.

  1. Senate Appropriations Committee, February 18, 2026

    From 0:16:29 · Watch on the General Assembly's Vimeo channel

    Summary by Georgia Commons: The sponsor said SB 392 would restore zero-based budgeting without an expiration date, requiring each area receiving appropriations to rebuild its budget at least once every 10 years. The sponsor said reviews would examine two years of spending and program effectiveness to identify waste, duplication and opportunities for savings. One member asked whether all departments would be covered. The sponsor said all appropriated spending would be included. A second member questioned whether the language required detailed spending items rather than general reports, and requested further work before a floor vote. The sponsor agreed to work with that member and said lawmakers should establish reporting expectations. The Senate president pro tempore asked how the requirement would apply to formula-funded programs. The sponsor said reviews would examine the staffing, systems and operations supporting those programs. Another member questioned whether the work would outweigh savings and how implementation would differ from the earlier law. The sponsor said the earlier requirement expired in 2020 and that lawmakers must enforce compliance. No amendment was offered during the discussion. The committee approved the bill unanimously.

  2. Senate Rules Committee, February 19, 2026

    From 0:10:13 · Watch on the General Assembly's Vimeo channel

    Summary by Georgia Commons: The sponsor described SB 392 as reinstating zero-based budgeting. The chair noted that the bill had recently been heard in Appropriations and invited questions. No substantive questions or vote followed.

  3. Senate Rules Committee, February 20, 2026

    From 0:08:08 · Watch on the General Assembly's Vimeo channel

    Summary by Georgia Commons: The sponsor described SB 392 as a zero-based budgeting measure and said it was time to restore that approach. The chair recalled that the state had used it before. A committee member later selected the bill, expressing support for its fiscal policy. The committee unanimously approved it as part of a five-bill floor calendar motion.

  4. Senate floor session, February 24, 2026 (legislative day 23)

    From 2:21:49 · Watch on the General Assembly's Vimeo channel · Confirmed by the bill's status history (Senate Third Read)

    Summary by Georgia Commons: The sponsor said SB 392 would restore agency budget reviews that expired in 2020, without another expiration date. The sponsor described public analyses of spending, program purposes, results, and alternatives, at least every 10 years. An opponent argued that Georgia already underfunded services and that the proposal would help justify further cuts. A questioning senator said the bill required information, not spending reductions. Another supporter said budgets mainly highlight annual changes and cited growth from $26 billion to $42 billion over seven years as a reason to examine existing spending. That supporter described an eight-year review cycle, differing from the sponsor's description. A third supporter said periodic reviews balanced efficiency against staff costs. The sponsor responded that the proposal sought priority-based spending and transparency, not automatic cuts. The Senate passed the bill, 44-7. Afterward, another senator questioned starting budgets from zero and warned about budget deadlock. That senator gave notice of reconsideration for the next legislative day.

Status timeline

  1. 2026-03-03House Second Readers (House)
  2. 2026-02-26House First Readers (House)
  3. 2026-02-24Senate Notice to Reconsider (Senate)
  4. 2026-02-24Senate Passed/Adopted (Senate)
  5. 2026-02-24Senate Third Read (Senate)
  6. 2026-02-19Senate Read Second Time (Senate)
  7. 2026-02-18Senate Committee Favorably Reported (Senate)
  8. 2026-01-14Senate Read and Referred (Senate)
Show full history (9 actions)
  1. 2026-01-13Senate Hopper (Senate)

Sponsors

  • John Albers (R, SD-56)Primary sponsor
  • Blake Tillery (R, SD-19)
  • Shawn Still (R, SD-48)
  • Chuck Hufstetler (R, SD-52)
  • Steve Gooch (R, SD-51)
  • Larry Walker, III (R, SD-20)
  • Kay Kirkpatrick (R, SD-32)
  • Jason T. Dickerson (R, SD-21)
  • Carden Summers (R, SD-13)
  • Max Burns (R, SD-23)
  • Jason Anavitarte (R, SD-31)
  • Brian Strickland (R, SD-42)
  • Marty Harbin (R, SD-16)
  • Frank Ginn (R, SD-47)
  • Bill Cowsert (R, SD-46)
  • Clint Dixon (R, SD-45)
  • Chuck Payne (R, SD-54)
  • Bo Hatchett (R, SD-50)
  • Mike Hodges (R, SD-3)
  • Greg Dolezal (R, SD-27)

Votes

  1. PassedSenate voteFebruary 24, 2026

    44 yea, 7 nay (2 not voting, 2 excused)

    PASSAGE: Senate Vote #575

Topics

  • state budget process
  • zero-base budgeting
  • Department of Education funding
  • Georgia government spending

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Machine-readable https://georgiacommons.org/bills/2025-2026/sb392.md · https://georgiacommons.org/bills/index.md · MCP https://mcp.georgiacommons.org/mcp