States' Use of Sustainable Budgeting Tools

Long-term assessments and stress tests help policymakers make better budget choices

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Projects: State Fiscal Health

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States' Use of Sustainable Budgeting Tools
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Source: Pew analysis of state documents and information provided by state officials

Copyright © 2024 The Pew Charitable Trusts. All rights reserved.

When state leaders have data and analysis that illuminate their states’ long-term risks and outlooks, they are better able to ensure that their budgets stay on a sustainable path. As part of its 2023 report “Tools for Sustainable State Budgeting,” The Pew Charitable Trusts produced fact sheets on each state that, since the start of 2018, has published one or both of two tools that provide the information policymakers need:

  • Long-term budget assessments analyze multiyear revenue and spending projections to show whether and why states may face chronic deficits.
  • Budget stress tests gauge states’ preparedness for temporary shortfalls that would result from future economic downturns.

These fact sheets describe the strengths of each state’s analyses, ways in which those analyses have informed policymakers’ decisions, and opportunities to improve.

Alaska Arizona California Colorado
Connecticut Florida Illinois Maine
Maryland Minnesota Montana Nebraska
New Mexico New York North Carolina Pennsylvania
Rhode Island Tennessee Utah West Virginia
Fact Sheet
Projects: State Fiscal Health
Topics: Fiscal & Economic Policy & U.S. State Policy
Experts: Jeff Chapman, Josh Goodman & Angela Oh
Places: United States
Related Experts
Jeff Chapman Director
State Fiscal Health
Josh Goodman Senior Officer
State Fiscal Health
Angela Oh
Angela Oh Project Director
State Fiscal Health
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What is Budget Stress Testing?
What is Budget Stress Testing?
Article November 15, 2023

States Should Measure Budget Risks

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What is Budget Stress Testing?
Article November 15, 2023

Responsible state fiscal policy requires more than just balancing the current year’s budget. It must also include ensuring that the budget is on a sustainable path. Otherwise, policymakers cannot have the lasting impact they hope for: They may act to improve state services or cut taxes only to have to scale those efforts back later. This risk is especially high in the aftermath of the COVID-19 pandemic.

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Report November 15, 2023

Tools for Sustainable State Budgeting

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Report November 15, 2023

Responsible state fiscal policy requires more than just balancing the current year’s budget. It must also include ensuring that the budget is on a sustainable path. Otherwise, policymakers cannot have the lasting impact they hope for: They may act to improve state services or cut taxes only to have to scale those efforts back later. This risk is especially high in the aftermath of the COVID-19 pandemic. Record budget surpluses, driven largely by federal pandemic aid, empowered states to adopt historically large tax cuts and spending increases from 2021 to 2023, investments that many state leaders hope to build on in coming years.

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