Relating to state financial administration; prescribing an effective date.

Directs the Governor and Legislative Assembly, in developing an outcomes-based budget, to use a process to establish the priorities of state government. Requires state agencies to report to the Director of the Oregon Department of Administrative Services when any budgeted position is vacant for at least six months. Prohibits filling of a vacant position if the director determines that insufficient reasons exist for retaining the position. Directs the Oregon Department of Administrative Services, in coordination with the Legislative Fiscal Officer and the Legislative Revenue Officer, to prepare a biennial budget stress test report that estimates the effects on state finances of negative economic conditions. Declares the policy of the state to use zero-based budgeting in developing biennial budgets. Requires state agencies to include information justifying all proposed expenditures in agency request budgets. Takes effect on the 91st day following adjournment sine die.