Compact for a Balanced Budget

The Compact for a Balanced Budget is an agreement among some states to keep their budgets balanced, meaning they only spend what they receive in revenue each year. This cooperation aims to promote fiscal responsibility, prevent excessive borrowing, and ensure state governments remain financially healthy. By sticking to this commitment, states aim to avoid large deficits, reduce debt, and create a more stable economic environment for both governments and citizens. Essentially, it’s a voluntary pledge to prioritize balanced budgets for long-term financial stability.