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Fiscal Planning, Budgeting, and Rebudgeting Using Revenue Semaphores
Author(s) -
Cornia Gary C.,
Nelson Ray D.,
Wilko Andrea
Publication year - 2004
Publication title -
public administration review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 2.721
H-Index - 139
eISSN - 1540-6210
pISSN - 0033-3352
DOI - 10.1111/j.1540-6210.2004.00358.x
Subject(s) - revenue , context (archaeology) , semaphore , process (computing) , legislature , point (geometry) , economics , government (linguistics) , budget process , government revenue , business , finance , public economics , computer science , political science , paleontology , linguistics , philosophy , geometry , mathematics , law , biology , operating system , politics
Revenue forecasts play an important role in the state government budget and policy process. These forecasts are generally reported to executive and legislative leaders as point estimates, with no acknowledgment of their corresponding risk and uncertainty. The revenue semaphores proposed in this article outline procedures by which revenue uncertainty directly influences the planning process. The goal is not to make forecasts more accurate, but to make discussions of budget and revenue alternatives more comprehensive. Explicitly incorporating risk and uncertainty measures into the budgeting process increases the degree of real‐time budgeting and reduces some adverse effects of budget revisions after the fiscal year begins. The discussion occurs in the context of budget control, management, and policy making.