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

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.