Government budgets are a lot like closets; if you don’t clean them out occasionally, you end up hoarding stuff you don’t need while struggling to find the things that matter. For years, local governments have relied on the “add a little here, trim a little there” budgeting method. But what if we did it differently?
Enter zero-based budgeting (ZBB), the Marie Kondo of government finance. Instead of just adjusting last year’s numbers, ZBB forces every department to start from scratch and justify every expense. If it doesn’t serve the community effectively, does it really spark joy? No? Then maybe it’s time to let it go.
What is zero-based budgeting?
Unlike traditional budgeting, which simply tweaks last year’s numbers, ZBB starts every budget cycle from scratch. Every department and office must justify all expenses, ensuring that spending aligns with our community’s most pressing needs rather than just rolling over outdated spending.
Why does this matter?
It eliminates waste: We don’t just rubber-stamp old allocations. We review programs, and if they aren’t effective, we fix them or reallocate funds.
It boosts efficiency: It encourages all departments and offices to think outside the box and make wise spending decisions instead of relying on automatic funding increases.
It increases transparency: Residents can see precisely how their tax dollars are spent, making our government more accountable.
Why now? Because chaos at the national level means we need stability here at home
Look, if there’s one thing we can count on, it’s that we can’t count on the federal government to make smart financial decisions. Between the revolving door of White House economic policies (or lack thereof) and the general circus act happening in Washington, the best thing we can do is make Durham’s budget as airtight as possible. We don’t have the luxury of just hoping for a revenue windfall; we need to plan ahead, and ZBB is how we do it.
Lessons from other communities
Several local governments have used ZBB with success, yielding significant savings:
Los Altos, California, adopted ZBB and earned multiple awards for excellence in budgeting. This allowed resources to be shifted to where they were most needed.
Georgia was the first state to implement ZBB and improve resource allocation and government efficiency.
Houston, Texas, used ZBB to prioritize vital services and eliminate unnecessary spending, making the city’s budget more sustainable.
Why this matters for Durham
This year, I’m prioritizing ZBB to ensure we are strategically prepared for future budget cycles, especially as we face several fiscal challenges:
Declining sales tax revenue: Our budget department has reported that Durham County has seen a nearly 10 percent decrease in sales tax revenue.
Limitations on progressive property taxation: North Carolina state law restricts our ability to implement progressive property tax rates, limiting our flexibility in revenue generation and creating inequitable tax burdens on our most vulnerable residents.
Uncertain future revenues: Given these constraints, we cannot rely on the high revenue growth we have experienced in the past few budgets.
Let’s embrace this opportunity to rethink our budgeting process, eliminate redundancies, and invest wisely in Durham’s future.
By evaluating every expense now through ZBB, we can ensure that our spending decisions are based on essential community needs rather than outdated or inefficient patterns. If we get this right, we’ll be prepared for future tax revaluations and beyond. If we don’t? Well, we’ll be stuck playing financial whack-a-mole while Washington continues setting money on fire while their billionaire friends get tax cuts.
Bottom Line: If we don’t clean out and reorganize the budget closet now, we’re going to regret it later. Let’s make every dollar count! W
Nida Allam is chair of the Durham County Board of Commissioners.
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