Evolving Fiscal Risks: Navigating the Uncertain Future of Public Budgeting in States

The future of public budgeting is uncertain as various emerging trends pose challenges to this practice. State budgets, in particular, are likely to face new difficulties that fiscal leaders must anticipate and plan for. In its project on “Managing Fiscal Risks,” the Pew Trusts outlines several ways that state budgets and other public spending plans will be impacted in the coming years.

Crafting a state budget requires careful consideration of numerous factors, including revenue trends and spending needs. However, with significant demographic, environmental, and technological changes on the horizon, it can be challenging for fiscal leaders to anticipate and address the potential fiscal impact of these emerging risks. To ensure long-term financial stability, states must find ways to prepare for these evolving risks and manage their budgets effectively.

In a recent article on the Pew website, author Peter Muller discusses the anticipated revenue effects of an aging population, climate-related spending needs, and cybersecurity concerns. These challenges highlight the need for states to plan ahead and manage their future budgets proactively. By addressing these risks now, states can ensure that they are well-prepared for any unexpected changes in their financial landscape. For more information about managing fiscal risks in state budgeting, visit the Pew website today.