Show Summary Details

Page of

PRINTED FROM OXFORD HANDBOOKS ONLINE (www.oxfordhandbooks.com). © Oxford University Press, 2018. All Rights Reserved. Under the terms of the licence agreement, an individual user may print out a PDF of a single chapter of a title in Oxford Handbooks Online for personal use (for details see Privacy Policy and Legal Notice).

date: 04 June 2020

Abstract and Keywords

This article analyzes the challenge of state budgeting during periods of dramatic and unplanned declines in state revenue collections. Most public finance textbooks describe the budget process as an orderly cycle of preparation, approval, execution, and evaluation. When governments are experiencing a steady growth or only marginal declines in revenues such as during the past two decades (1989–2009), it's easy to see how state budget officials can become accustomed to a predictable, “regular rhythm.” Thus, when the Great Recession hit, a series of month-after-month and quarter-after-quarter revenue shortfalls affected nearly all state budgets. The result was that with little warning and preparation, policymakers faced midyear budget deficits. This article takes on the topic of managing midyear budget adjustments. Beginning with a review of the institutional tools available to governors and legislatures (e.g., allotments, apportionment, budgeting, impoundments, special fund transfers, fund withholdings, furloughs), the article carries out a study of how five states went about balancing their budgets in 2009–2010 and how the lessons from these state responses can inform those dealing with the next fiscal crisis.

Keywords: state budgeting, state revenue collection, Great Recession, revenue shortfalls, fiscal crisis, state responses

Carolyn Bourdeaux

Carolyn Bourdeaux is an Associate Professor at Andrew Young School of Policy Studies and Associate Director of the Georgia State University Fiscal Research Center.

W. Bartley Hildreth

W. Bartley Hildreth is a Professor in the Andrew Young School of Policy Studies at Georgia State University.

Access to the complete content on Oxford Handbooks Online requires a subscription or purchase. Public users are able to search the site and view the abstracts and keywords for each book and chapter without a subscription.

Please subscribe or login to access full text content.

If you have purchased a print title that contains an access token, please see the token for information about how to register your code.

For questions on access or troubleshooting, please check our FAQs, and if you can''t find the answer there, please contact us.