On page 89, after line 2, insert the following:

"(11) Within existing resources, the office of financial management shall begin implementation of a zero-based budgeting exercise for agencies whose expenditures amount to one-fourth of total state appropriations for each biennial budget cycle. By June 1, 2026, the office shall report to the fiscal committees of the legislature the names of the agencies whose operations for the 2027-2029 fiscal biennium will be budgeted using zero-based budgeting principles. The budget documents submitted to the legislature for the 2027-2029 fiscal biennium pursuant to RCW 43.88.030 shall reflect the zero-based budgeting exercise for the identified agencies. It is the intent of the legislature to continue this policy in future biennia such that each agency's budget is reassessed using zero-based budgeting principles once every four biennia."

EFFECT: Requires that the Office of Financial Management use zero-based budgeting when developing the 2027-2029 biennial budget request documents for agencies whose expenditures amount to one-fourth of total state expenditures. States legislative intent to continue using zero-based budgeting for one-fourth of state expenditures in future biennia.