Scenario planning is a strategic planning technique that prepares for multiple possible futures rather than assuming a single forecast will prove accurate. For municipal budgeting, scenario planning might develop budgets for optimistic, baseline, and pessimistic economic conditions. Each scenario models different assumptions about assessment growth, grant funding, inflation, and service demands. Scenario planning helps identify risks, prepare contingency responses, and make decisions robust across different futures. When unexpected changes occur (like economic downturns or pandemics), organizations with scenario planning can pivot more quickly because they've already considered alternatives. Scenario planning acknowledges uncertainty rather than pretending forecasts are certain.