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What are state balanced budget requirements and how do they work?

FEBRUARY 3, 2022 | by Editorial | TAX POLICY CENTER

Includes: "Under some circumstances, state policymakers can circumvent their BBRs (Balanced Budget Requirements). These rules typically apply to a narrowly defined share of total state spending, and government fund accounting practices can provide opportunities to shift obligations between funds or years. For example, because BBRs are applied on a cash rather than accrual basis, states can push a payroll or state aid payment from the last month of the current fiscal year into the first month of the next."

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