Financing the future.

• Author: Kinney, Anne Spray
• Position: From the editor - Editorial

Forecasting helps define a government's financial parameters, and is therefore one of the most important tasks a finance officer performs. Forecasts let governments know about financial imbalances before a crisis develops, create a basis for realistic discussions about the future, and allow jurisdictions to create long-term plans and strategies. This issue of Government Finance Review includes articles about forecasting in theory and in practice.

The GFOA has created a forecasting approach based on the advice of leading forecast scientists and the experiences of public finance practitioners and academic researchers. In "Structuring the Revenue Forecasting Process," Shayne C. Kavanagh and Charles Iglehart describe this step-by-step approach to conducting revenue forecasts that are replicable and transparent.

The City of Redmond, Washington, addressed the prospect of growing deficits every budget cycle by developing a long-range financial strategy that focused on realizing the city's vision, consistent with available resources. In "The City of Redmond Focuses on Vision and Fiscal Sustainability," Mike Bailey explains how this approach helps the community feel confident that the city government is tackling tough issues, focusing on what's most important to the community, and making good use of leading practices.

The...