Public budgeting in 2010 is dominated, at all levels of government, by continuing high demands for government services and large budget deficits. Looking ahead to 2020, these struggles are likely to continue. The federal government’s 10-year budget outlook is bleak, and its longer-term outlook is even more dismal, driven by growth in health care costs. State and local government budgets will slowly recover from the effects of the recent recession, but will continue to have structural problems. Each of the three major revenue sources—income, sales, and property taxes—are candidates for reform. On the spending side, health care and education will dominate at the state and local level, while controlling entitlement spending is the main federal challenge. Government also will face continued pressures to finance and maintain infrastructure, appropriately staff the budget function, and make good on promises of more transparent and accountable government.