Zero‐Base Budgeting Redux in Georgia: Efficiency or Ideology?

Zero‐base budgeting reentered the Georgia budgetary process in 2012 after a hiatus of approximately three decades. This article describes the events leading up to the reentry of ZBB, compares the new version of ZBB with the original version implemented during the administration of Governor Jimmy Carter in the 1970s, and assesses the likely impact of this latest budget reform for Georgia and other state governments. Even though the nomenclature, “ZBB,” used to describe the current Georgia budget process is the same as that used to describe the state's budget process during the Carter administration, operationally the Carter‐era and new ZBB are not the same. The Carter‐era ZBB had a unique and clearly defined terminology and set of procedures, whereas the new ZBB relies mostly on existing performance‐budget procedures. The Carter‐era ZBB purported to build the budget up from a zero base. The new ZBB is about drilling down into the base or continuation budget. The Carter‐era ZBB was a managerial process intended to achieve efficiency and effectiveness. The new ZBB is more ideologically conservative with the aim of cutting the budget and shrinking state government. Claimed budget reductions may be significant at the micro‐level, but they probably are not at the macro‐level. However, it may not matter what cost reductions are actually realized. The symbolic effect of the ZBB process is what is most important, confirming the fiscal conservative bona fides of state government leaders.