Budget Analyst Career Guide

What Does a Budget Analyst Do?

Budget analysts help public and private organizations plan their finances by preparing budget reports and monitoring organizational spending.

They work with program and project managers to develop budgets, review proposals for completeness and compliance with regulations, and combine department budgets into consolidated organizational budgets. Budget analysts explain funding requests to stakeholders, analyze proposed plans, monitor spending, inform managers about fund availability, and estimate future financial needs.

About **26% work for the federal government**, with others employed by educational institutions (15%), state government (13%), local government (11%), and professional services firms (10%). They typically work in offices, though some travel to verify funding allocations.

Education & Requirements

• Typical Education: Bachelor's degree in business, social science, psychology, mathematics, or related field. Some employers prefer master's degrees. Coursework in accounting, economics, and statistics is helpful.
• Certifications: Not required, but professional certifications available and may help with career advancement.
• Key Skills: Analytical skills (processing data, evaluating costs/benefits), communication skills (explaining/defending analyses), attention to detail, math skills, writing abilities to present technical information clearly.
• Experience: No prior work experience required. Sometimes budget- or finance-related experience can substitute for formal education.

Salary Information

According to the Bureau of Labor Statistics (May 2024 data):

• Median Annual Salary: **$87,930** ($42.27/hour)
• Entry-Level (10th percentile): **$60,510**
• Experienced (90th percentile): **$134,640**
• Top-Paying Industries: Federal government ($99,800), Professional/scientific/technical services ($98,390), Local government ($84,510), State government ($80,280), Educational services ($77,460)

Job Outlook & Growth

Employment of budget analysts is projected to grow **1% from 2024 to 2034**, slower than the average for all occupations.

Despite limited employment growth, about **3,100 job openings** are projected annually, mostly from workers retiring or changing careers. Employment will grow from 50,400 jobs in 2024 to 51,000 by 2034, adding approximately **500 new positions**.

**Growth context:** Calls for efficient use of public funds will sustain demand for budget analysts to estimate program costs, develop budgets, and explain findings to legislators and the public. Demand is somewhat tied to government funding allocated for these positions. However, budget analysts manage resource allocation and will be needed even during tight budgets. Deadlines and tight schedules can be stressful, and overtime is sometimes required.

How to Break Into This Field

1. Education: Earn a bachelor's degree in business, accounting, economics, public administration, or related field. Take coursework in accounting, economics, statistics, and financial management. Consider a master's degree for competitive advantage.
2. Entry-Level Roles: Budget analyst positions are often entry-level for those with appropriate degrees. Some start as accounting clerks, financial analysts, or administrative assistants in finance departments.
3. Build Skills: Develop proficiency in financial management software and programs. Strengthen analytical, communication, and writing skills. Gain experience with cost-benefit analysis, budget forecasting, and regulatory compliance.
4. Network: Join professional organizations like the Association for Financial Professionals (AFP) or Government Finance Officers Association (GFOA). Attend industry conferences, connect with budget analysts on LinkedIn.
5. Apply Strategically: Target federal, state, and local government agencies (largest employers). Also apply to universities, healthcare organizations, and professional services firms. Use USAJobs.gov for federal positions, state/local government career pages, and general job boards.

Career Path & Advancement

Typical progression: **Budget Analyst → Senior Budget Analyst → Budget Manager → Chief Financial Officer** (CFO) or **Budget Director**.

Budget analysts can advance by taking on more complex projects, managing larger budgets, or supervising teams. Some transition to related roles like financial analyst, management analyst, or financial manager (median $161,700). Professional certifications can enhance advancement opportunities.

Government analysts may attend committee hearings to explain recommendations to legislators. Some evaluate programs, assess policy, and draft budget-related legislation, opening pathways to policy analysis or program management roles.

Pros & Cons

Related Careers

If you're interested in budget analysis, you might also consider:

• Financial Analysts - Guide investment decisions and financial planning ($101,910 median)
• Accountants and Auditors - Prepare and examine financial records ($81,680 median)
• Financial Managers - Direct financial reports, investments, and long-term goals ($161,700 median)
• Management Analysts - Recommend ways to improve organizational efficiency ($101,190 median)
• Cost Estimators - Assess time, money, materials, and labor for projects ($77,070 median)
• Economists - Research and evaluate monetary and fiscal policy ($115,440 median)