19/10/2026
POST #34: ZERO-BASED BUDGETING, A 1970s TOOL IN A 2026 COUNTY
"Zero-based budgeting" keeps coming up this election season. Calvert County says it uses it. It's a budgeting method from the 1970s that the federal government tried and dropped within four years.
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WHAT IT IS?!
Each department starts from zero every year and justifies every expense, instead of taking last year's budget and adjusting it.
Calvert introduced it with the FY2026 budget.
Source: https://conduitstreet.mdcounties.org/2025/04/30/calvert-budget-proposal-focuses-on-core-services-fiscal-stability/
Its FY2028 budget page says it continues to use it.
Source: https://www.calvertcountymd.gov/4107/Fiscal-Year-2028-Budget-Development
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WHERE IT CAME FROM
Peter Pyhrr developed it at Texas Instruments in 1969 and wrote about it in the Harvard Business Review in 1970. Georgia Governor Jimmy Carter read the article and hired him to bring it to Georgia's state budget.
Source: https://www.dmagazine.com/publications/d-magazine/1976/october/yesterday-tl-tomorrow-the-us/
Carter brought it into the federal government as president in 1977.
Source: https://patimes.org/time-to-revisit-zero-based-budgeting/
A study of its first federal year found no significant cost savings in agencies' 1979 budgets, though it did shift money toward higher priorities. Most agencies said it took excessive time and effort.
Source: https://pubsonline.informs.org/doi/10.1287/mnsc.26.8.750
The Reagan administration dropped it in 1981. Budget Director David Stockman said it had proved cumbersome and had not helped control spending.
Source: https://www.csmonitor.com/1981/0811/081122.html
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HOW CALVERT HAS USED IT
The budget starts as a staff recommended budget, prepared by the Department of Finance & Budget and sent to the commissioners by the County Administrator. The commissioners hold hearings, make changes and adopt the final budget.
FY2026, the first year: prepared under Finance Director Bruce Miller (p. 2), cover letter signed by then-County Administrator Julian M. Willis (p. 5). Every general fund department shows the same amount "Requested" and "Recommended." The budget balanced with one summary line: "Unspecified Budgetary Reductions," minus $15,384,967, with no detail on what it would cut (p. 16).
Source: https://www.calvertcountymd.gov/DocumentCenter/View/48610/FY2026-SRB
The FY2027 staff budget uses the same format: each department page is a short table of spending categories with no written explanation.
Source: https://www.calvertcountymd.gov/DocumentCenter/View/53761/FY-2027-Staff-Recommended-Operating-and-Capital-Improvement-Budget
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HOW BUDGETING HAS MOVED ON
Zero-based budgeting is a paper exercise: a fresh set of justifications every year. Counties now use data to track whether spending works, all year long.
Montgomery County has had CountyStat since 2007, a performance management and data analytics team that tracks county services and publishes department dashboards.
Source: https://www.montgomerycountymd.gov/office-management-budget/countystat
Montgomery's "Outcome Based Budgeting" sorts every department's measures into three questions: How much did we do? How well did we do it? Is anyone better off?
Source: https://www.montgomerycountymd.gov/office-management-budget/countystat/department-performance-dashboards
Calvert has taken a step this direction. The FY2027 adopted budget book added department objectives and performance measures, split into outputs and outcomes (framework on p. 26). They appear in the final book, after adoption, not alongside the requests.
Source: https://www.calvertcountymd.gov/DocumentCenter/View/56895/FY-2027-Adopted-Operating-Budget
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WHAT IT ISN'T: A CHECK OR A BALANCE
Zero-based budgeting is a planning method. It doesn't check anything.
The department justifies its own request. No one independent reviews the justification.
It happens before the money is spent. It doesn't ask whether the money worked.
Money can move after adoption. In Calvert, a change over $150,000 needs a resolution and a public hearing. Smaller changes don't need a resolution.
Source:https://mgaleg.maryland.gov/2018RS/fnotes/bil_0009/hb0729.pdf
It can be worked. San Diego's Independent Budget Analyst noted in 2016 that managers who don't buy in may try to "game" the system.
Source:https://www.sandiego.gov/sites/default/files/ibareport16-16.pdf
As of October 18, 2026, I haven't found a county document that reports what zero-based budgeting has saved since it started.
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QUESTIONS WORTH ASKING
What has zero-based budgeting saved since FY2026, and where is that reported?
Who reviews a department's justification besides the department?
After a request is funded, who checks whether it delivered?
Zero-based budgeting isn't built to answer those. Other tools are.
This is the first in a short series explaining terms you're hearing, using public documents.
Up next: What is an inspector general?
Zero-based budget: can you justify the receipt?
Missing step: did we get what we paid for? 👀