Abstract: A method and apparatus for controlling quantization and buffering for video digital signal compression wherein a processor determines a bit budget value based on a number of frames to be skipped and a target buffer fullness. The bit budget value is used to retrieve a default Q-step value from a table of default quantization step size values and corresponding bit budget values. A default Q-step value is used to quantize the input digital signal only if it is less than a maximum. If, however, the default quantization step size value exceeds the maximum, then the number of frames to be skipped and the target buffer fullness may be increased to achieve a lower default quantization step size.