Fiscal Management Tools
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.
These tools help states evaluate their fiscal outlook over the long run, assess how much they should set aside in their rainy day fund to weather economic downturns, and sustainably fund vital programs and services, among other things.
Pew research provides policymakers with best practices—such as the implementation of these tools—to help them pursue long-term budget objectives that benefit their state.