Systems and methods for compressing video data are provided. The method includes segmenting a video frame, selecting a coding mode, and encoding. The segmenting includes segmenting the video frame of the video data into a sequence of coding blocks. The selecting includes selecting the coding mode from a plurality of coding modes. The selecting of the coding mode is based on an allowable bit budget and occurs for each coding block. The encoding includes encoding each coding block based on the coding mode. The allowable bit budget varies according to a bit utilization of prior encoded coding blocks and varies such that the video frame does not exceed a specified compression ratio.