Memorandum From the President on Zero-Base Budgeting

Memorandum for the Heads of Executive Departments and Agencies

Shortly after I took office, I asked each of you to institute zero-base budgeting in your agency. I commend your efforts to accomplish this within the short time that was available.

I want you to know that the zero-base budgeting process helped me and other reviewers in the difficult task of allocating limited resources among competing and worthy programs. And now, after a year's experience, I expect the process to aid even more during the 1980 budget cycle.

The Office of Management and Budget has reported to me the results of this year's zero-base budgeting efforts. As was expected, some agencies did better than others. Most agencies need to focus more attention on objectives and on ways to accomplish those objectives more efficiently. In addition, I think more emphasis should be placed on the examination of minimum levels, so I ask that you make additional efforts to do this.

I have asked the office of Management and Budget to issue revised guidelines. These guidelines will include many of your staff's suggestions on ways to improve the process for the 1980 Budget.

In addition to the changes needed under these revised guidelines, I ask that you use zero-base budgeting as the sole basis for the preparation of your 1980 budget request. This should relieve the added work that was caused last year by the preparation, in some instances, of both ZBB and traditional budget justifications. I also ask you to involve managers at all levels within your agency. This will help to identify ways to bring about our common goal of increased effectiveness in Government operations.

By continuing to work together to improve our zero-base budgeting processes, we can make the Federal budget more responsive to the needs of the people.

JIMMY CARTER