Budget Stress Tests Help State Leaders Identify and Assess Risk

Budget Stress Tests Help State Leaders Identify and Assess Risk

In a memo to Colorado’s Office of State Planning and Budgeting, experts from The Pew Charitable Trusts explain how budget stress tests—which examine the impact of various economic scenarios on revenues and expenditures—help states identify their risk from adverse events such as economic downturns. The memo, sent Aug. 20, 2021, outlines how states can design budget stress tests, how such tests can inform policy, and how other states have employed this fiscal tool.

Getty
Getty

Economic Downturns: Protecting State and Local Budgets

Quick View

In particularly challenging times, when revenue is volatile and priorities may need to be reassessed, it is important that lawmakers manage budgets effectively to mitigate fiscal stress.

Money dust
Money dust
Report

State Strategies for Maintaining a Balanced Budget

Quick View
Report

Many states ended 2017 flush with unexpected cash. Federal legislation that caps some tax deductions beginning in 2018 prompted many Americans to prepay their state and local taxes. While this surprise revenue was positive news for state budgets, several policymakers struck a cautious tone.

America’s Overdose Crisis
America’s Overdose Crisis

America’s Overdose Crisis

Sign up for our five-email course explaining the overdose crisis in America, the state of treatment access, and ways to improve care

Sign up
Quick View

America’s Overdose Crisis

Sign up for our five-email course explaining the overdose crisis in America, the state of treatment access, and ways to improve care

Sign up
Street map art, three prints in blue, white and black
Street map art, three prints in blue, white and black
Report

States Can Direct Economic Development to Places in Need

Quick View
Report

Data from an array of sources has shown that Americans who grow up in economically distressed areas experience lower-performing schools, higher crime rates, a variety of health and environmental hazards, and less upward mobility.