State budgeting practices are generally not designed to contend with significant demographic, technological, and economic shifts. For example, many states are facing an increase in their proportion of older residents. That can lead to rising spending for some programs, diminishing revenue from sources like income tax, and potential workforce shortages, and can present risks to programs’ fiscal stability. States also will need to contend with the effects of a changing climate. Pew assesses current approaches among states to identify and prepare for emerging risks to fiscal stability and helps policymakers anticipate the economic consequences of those risks.