Long-Term Budget Forecasts and Contingency Plans Help States Prepare for Fiscal Challenges

Budget Forecasts and Contingency Plans Help States Prepare

In a memo sent Aug. 20, 2021, to Colorado’s Office of State Planning and Budgeting, experts from The Pew Charitable Trusts discuss how two fiscal management tools—long-term budget projections and contingency plans—help states prepare for fiscal challenges. Specifically, long-term (or multiyear) budget projections help leaders identify problems that can build over time, while contingency plans help officials prepare for acute, short-term crises.

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Getty

Economic Downturns: Protecting State and Local Budgets

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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.

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Finance charts

Long-Term Fiscal Management Tools

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A multi-year perspective on revenue and expenditures can help policymakers avoid crisis-driven decisions and unsustainable budget practices. States can use a variety of fiscal management tools to attain this longer-term view of their budgets and to manage uncertainty, including multiyear revenue and expenditure projections, budget stress tests, and contingency plans.

What is Budget Stress Testing?
What is Budget Stress Testing?
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What is Budget Stress Testing?

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How can lawmakers manage budget uncertainty while still meeting residents' needs? Our Kil Huh explains what budget stress testing is and how it works—and how states can use it in the months ahead.

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Learn the Basics of Broadband from Our Limited Series

Sign up for our four-week email course on Broadband Basics

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How does broadband internet reach our homes, phones, and tablets? What kind of infrastructure connects us all together? What are the major barriers to broadband access for American communities?

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Pills illustration

What Is Antibiotic Resistance—and How Can We Fight It?

Sign up for our four-week email series The Race Against Resistance.

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Antibiotic-resistant bacteria, also known as “superbugs,” are a major threat to modern medicine. But how does resistance work, and what can we do to slow the spread? Read personal stories, expert accounts, and more for the answers to those questions in our four-week email series: Slowing Superbugs.