Its financial management practices are strong, and largely have been established for decades. Revenue and expenditure estimates are accurate, and the rainy day fund will exceed 5 percent by the end of fiscal 2001.
Financial projections go out five years ahead, and the budget is balanced into the out-years.
The financial impact of all major legislation is analyzed carefully. The commonwealth also does an excellent job on contracting and procurement. Agencies evaluate and score vendors during the life of a contract, and make those scores available online. Past contracts are carefully evaluated so that previous mistakes don't occur again. The state's investment managers were given more freedom in their investment options a couple of years ago, and are just now beginning to utilize this capacity.