Polco research shows government finance leaders say current budgeting processes need to be updated. Community engagement is a surefire way to align the city budget with where it will make the most impact. But many local governments don’t know how to get started.
Learn the best practices on how to engage with residents. See the new tools and strategies to unite residents and budget leaders around shared goals and make sustainable decisions for community well-being.
Too Much Information Makes Decision-Making Difficult
Shayne Kavanagh, a Senior Manager at the Government Finance Officers Association (GFOA) says too much information from competing parties makes it difficult to make good budget decisions. This lack of clarity leads to different groups acting in their best interest and taking more than they should. This ends up hurting everyone in the long run. It’s similar to the economic idea, The Tragedy of Commons, where people over-consume a limited resource out of fear of missing out.
“We can provide the alternative to that politics of cynicism by channeling public engagement and interest in constructive dialogue in a search for solutions,” he says. “And that's really what rethinking budgeting and rethinking public engagement is all about.”
Rethinking Budgeting GFOA Member Survey Results
Polco survey scientists administered an assessment to GFOA members, and asked their thoughts on the current state of budgeting. The survey also explored local government's readiness to embrace new budgeting techniques and determine key areas for improvement.
Areas of the budget process where local governments scored high:
- Incorporating values and opinions of elected officials
- Providing value to taxpayers
- Using clear financial rules
Areas of the budget process where local governments scored low:
- Building trust with residents
- Incorporating resident priorities
- Facilitating resident understanding of the budget process
- Involving residents in decision-making
- Digestible documents
- Less manual work
- Getting a head start
- Increased public understanding
One thing finance leaders would change in their budgeting processes:
- Better automation and technology use
- Increased focus on strategic planning
- Enhanced public engagement
- Improved staff involvement
Barriers to embracing new budgeting techniques:
- Entrenched thinking of long-term employees
- Limited resources for staff training
- Challenges in influencing organizational decision-making
Key characteristics of organizations satisfied with their budgets:
- Transparency
- Collaboration
- Data-driven decision-making
- Adaptability to change
- Dedication to staff training and development.
The Importance of Community Engagement in Rethinking Budgeting
Valerie Lemmie is the Senior Advisor for State and Local Government from the Charles F Kettering Foundation. She says rethinking budgeting must include engaging the public. But she says governments must involve citizens in meaningful discussions, rather than just seeking their response to pre-developed budget plans.
She says early public awareness, the need for a targeted communication strategy, and the role of influencers, and community resources are important in reaching diverse groups. This communication will address the growing lack of trust between governmental institutions and communities.
Lemmie also says making the budget process more engaging and fun can help engage the community.
She highlights the importance of building civic capacity, fostering equity, and creating trust through collaborative efforts between the public and local governments.
“The work that the public and local governments do together increases, not only the civic capacity and foster equity, but it also creates a huge amount of trust in public government,” she says. “Because they are now seeing themselves as true citizens as owners of the work of government and partners with you and the work that needs to be done in their community.”
Using Technology for Better Budgeting
Chris Adams is the founder of Balancing Act from Polco, which gives local governments engagement tools for more informed budgeting.
He says there are "three C's" to follow when it comes to budget engagement: Constraints, Context, and Consequences. Local governments must communicate budget constraints, provide context on budget allocations, and reveal the consequences of various budget decisions.
The Budgeting Simulation by Balancing Act from Polco gives residents three important pieces of information. The simulation mirrors a city's real-life budget that allows residents to try to break even by giving and taking funds from various possibilities. The simulation educates residents on what's possible while simultaneously collecting data on budeting priorities.
For instance, Montgomery County, Maryland, used the budget simulation to address a projected $105 million deficit.
They used the simulation to learn what budgeting-outcome priorities were most important to residents. The County showed an example of how reducing emergency response times could reduce city costs by $700,000, and asked residents if that is a trade-off they would be willing to make.
The simulation received thousands of entries and showcased how effective new technology can be in engaging residents. The ultimate goal is to combine technology and in-person interactions for a more comprehensive and effective approach to engagement in the budgeting process.
Request More Budgeting Engagement Information
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