Lawmakers urged to pass zero-based budgeting bill amid heightened scrutiny of fraud
Supporters urged Ohio lawmakers Tuesday to adopt decennial zero-based budgeting as a tool to combat waste and fraud in state spending, including recent revelations of widespread Medicaid irregularities.
As previously reported, House Bill 645 would require state agencies to justify every dollar in the executive budget proposal from a zero base every 10 years, beginning with the 137th General Assembly in 2027. The measure, sponsored by Rep. Mike Dovilla, R-Berea, aims to replace incremental budgeting, which often carries forward prior spending and inflation.
In prepared testimony before the House Finance Committee on May 12, Greg R. Lawson, senior research fellow at The Buckeye Institute, said the bill offers a practical reset.
“House Bill 645 takes a sound approach to government budgeting that can help Ohio weather the economic storms looming on the state’s horizon,” Lawson testified. “Strategic, zero-based budgeting resets proposed spending at zero rather than a pre-existing spending baseline, forcing policymakers to justify every programmatic dollar rather than just additional spending.”
Lawson highlighted pressures including Medicaid growth, SNAP costs and welfare fraud.
“This more disciplined approach will be helpful as Ohio addresses concerns over property tax relief, more tax reform, Medicaid growth, unresolved nursing home underpayments, new SNAP program costs, and welfare fraud,” he said.
🚨 BOMBSHELL DEVELOPMENT: Ohio auditor drops report finding possible HUGE Medicaid fraud, 40% of home healthcare going to Franklin County
Tons of funds go to 2 ZIP CODES 4 miles from each other
$4B in foreigner FRAUD may have just been found! DEFUND NOW pic.twitter.com/h6kqnZWZww
— Eric Daugherty (@EricLDaugh) May 12, 2026
His comments came days after reports detailed alleged massive Medicaid home-health fraud in Ohio, with investigations uncovering over $1 billion in questionable spending in 2024 and federal probes into companies that billed hundreds of millions while operating from questionable addresses.
Vice President JD Vance’s Press Conference on Anti-Fraud Initiatives https://t.co/rWhzUlmMXz
— The White House (@WhiteHouse) May 13, 2026
During a White House press conference, Vice President JD Vance, announcing a new anti-fraud initiative, emphasized the Ohio case while acknowledging the state’s work to uncover fraud and pursue provider indictments.
Yet, fiscal hawks emphasize that reactive enforcement is both costly and time-consuming. Arguing that unchecked government programs annually expand in scope and expense, creating opportunities for fraud and abuse, supporters of HB 645 say zero-based budgeting is a needed proactive approach.
Urging proactive measures, Hannah Kubbins, legislative director for Americans for Prosperity–Ohio, testified that the bill is a “meaningful step” in the right direction.
“By requiring agencies to justify spending from the ground up, lawmakers and taxpayers alike will have a clearer understanding of how public dollars are being allocated,” Kubbins said in related remarks. “Zero-based budgeting helps ensure spending decisions are intentional, disciplined, and aligned with Ohio’s core priorities. It also creates opportunities to identify outdated or low-value programs.”
Lawson, similarly urging broader proactive reforms, offered lawmakers two recommendations to “clarify that zero-based budget requests require more than starting from a zero-dollar baseline” every 10 years.
Lawson urged that each government program or function should “be evaluated and justified as if it were being funded for the first time.” In addition, he suggested that each spending proposal include a “description of the specific policy objective” to be advanced, and to review whether a federal requirement actually mandates its existence.
The committee held proponent and interested-party testimony on May 12. The bill remains in the Finance Committee. If advanced, it would face votes in the House and Senate before reaching Gov. Mike DeWine.
Proponents view the decennial cycle as striking a balance between accountability and administrative feasibility, citing examples from Georgia, Texas and Idaho.
