Local governments are facing unprecedented new challenges. Issues confronting communities include climate change, societal inequity, aging infrastructure, fiscal challenges, capacity pressure, and so much more.
Local government budgeting and planning processes are more complicated than ever. To keep pace with the needs of the community, budgets need to address everything from potholes and building permits to climate change and equity.
A strategic budget is the foundation on which local government services are built on. Taking a strategic approach to budgeting allows administrators to create a roadmap to guide resource allocation and pivot as needed to address changing priorities and emerging community needs.
Line item budgeting has been a staple of local government administration for the past 100 years. However, this approach is not effective at meeting today’s complex community needs.
According to the National Oceanic and Atmospheric Administration (NOAA), in 2022, the United States experienced 18 weather or climate disaster events1 that resulted in losses totaling more than $1 billion each.
School districts have notoriously tight budgets, which makes it absolutely essential to stay focused on the most important programs and services.
Human-induced climate change1 is already having a global impact. We see regular evidence of this in the form of increasingly powerful hurricanes, uncontrollable wildfires, record-breaking high- and low-temperatures, and other extreme weather events.
The Government Finance Officers Association (GFOA) was founded in 1906 to facilitate positive change and advance excellence in public finance. The association, which currently comprises more than 20,000 members, represents federal, state/provincial, and local finance officials across the United States and Canada.
The goods and services state and local governments provide are largely determined by the needs and priorities of the communities they serve. Funding for these programs is transferred down from the federal level to the state or municipal level, depending on which jurisdiction administers the services.
