Revenue Estimating in the States

Source: Erica MacKellar, LegisBrief, Vol. 24 no. 12, March 2016

Revenue estimating is one of the most important parts of the state budgeting process. Before the governor and legislature can allocate funds, they must know how much is available to spend. Estimating the amount of revenue a state will receive in a given fiscal year may sound straightforward, but accurate forecasts rely on many factors, and states use a variety of strategies for determining the forecast.