There have been many academic studies demonstrating the benefits of multi-year budgeting. There is one other reform I would recommend, even though it is not directly related to the issue of late budgets. The State should implement a GAAP-based budgeting system. The state currently uses a cash basis of accounting to prepare its budget. In that system, revenues are recorded when received and expenses are recorded when payments are made.
GAAP accounting provides a more accurate picture of an entity's financial condition.
The budget reflects the revenues collected and the expenses incurred in the year in which they occur. Most important, using cash accounting has allowed the State to finance its operations by neglecting to pay aid to local governments. This happens because it takes time for local government to provide the documents to qualify for state aid. But since the State budget is a cash budget and only deals with bills presented in the current year, it simply ignores bills for prior year aid. If GAAP accounting were in place, the State would be required to set aside funds to pay these bills as they come due.