Judicial activism already is an important influence on the state budgetary process. Today, almost 50% of the largest agencies in eight survey states operate judicially mandated programs. Given the force of this development, it is somewhat surprising that so little thinking about public budgeting reflects the new role of the courts. It seems likely that the rise of an activist judiciary: (1) transfers power from elected execu tives and legislators; (2) frustrates retrenchment; (3) opens up new opportunities for budgetary games; and (4) both demands creative public management and narrows the range of administrative discretion.