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Budgeting for Emergencies: State Practices and Federal Implications

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Report Type Reports and Testimonies
Report Date Sept. 30, 1999
Report No. AIMD-99-250
Subject
Summary:

Congress has shown an interest in recent years in changing the way that emergencies are funded. Federal emergency appropriations totaled more than $114 billion from 1991 through 1998. Many states experiencing budget surpluses have set aside money in reserve or contingency funds to help prepare for economic downturns or other unforeseen events. This report examines state practices and experiences with reserve funds to see if they might inform the federal debate on the emergency funding process. GAO provides information on state experiences with reserve funds for emergencies or other unpredictable funding needs and state practices that could be instructive in the emergency spending debate, particularly regarding how the federal government might budget for emergencies with surplus funds.

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