Conservative revenue estimates are deliberate underestimates of expected revenues in budget forecasts, providing a cushion against actual revenues falling short of projections. By budgeting based on lower revenue expectations, municipalities reduce the risk of mid-year shortfalls requiring service cuts or tax increases. If actual revenues exceed conservative estimates, the surplus can go to reserves or one-time expenditures. The trade-off is that conservative estimating may leave money 'on the table'—services that could have been provided if revenues were estimated accurately. Budget discussions often involve debates about how conservative estimates should be. Economic uncertainty may justify more conservative approaches, while stable conditions allow tighter projections.