Solutions for Rethinking Budgeting

What is Rethinking Budgeting?

For the first time in nearly 30 years, the Government Finance Officers Association (GFOA) has introduced new guidance on budgeting. This long-overdue shift is a response to evolving economic conditions, technological advancements, and the increasing demand for more transparent, strategic financial management in local government. Polco is proud to be a key partner in shaping this innovative approach.

Traditional government budgeting often relies on incremental adjustments from previous years, making it difficult to address emerging challenges and evolving community needs effectively. Rethinking Budgeting is a transformative framework that emphasizes strategic alignment, flexibility, and public engagement to ensure that financial resources are allocated in ways that maximize community outcomes.

Strategic alignment

Move beyond incremental budgeting and prioritize long-term community goals.

Flexibility

Dynamically adapt budget strategies in response to real-time challenges.

Community engagement

Ensure public input plays a key role in financial decision-making.

1. Moving beyond incrementalism

Traditional budgeting relies on past budgets as a baseline, leading to small, reactive changes that may not align with community priorities. Rethinking Budgeting ensures financial decisions reflect current and future needs, not just past precedents.

2. Focusing on strategic priorities

Instead of funding departments and programs based solely on historical allocations, this approach directs resources toward the most pressing community challenges, ensuring that budgets drive long-term progress.

3. Enhancing decision-making

By integrating data-driven insights and structured decision processes, Rethinking Budgeting reduces bias, enhances transparency, and optimizes financial resource allocation.

4. Engaging the public in the process

Community members should have a voice in how their tax dollars are spent. Through participatory budgeting and interactive tools, governments can ensure their budgets truly reflect public needs and values.

5. Eliminating budgeting games

Traditional budgeting often creates unnecessary competition between departments for limited resources. Rethinking Budgeting fosters collaboration, encouraging cross-departmental solutions that improve efficiency and financial sustainability.

6. Building flexibility & resilience

Governments must be able to respond to economic shifts and emerging needs. A rolling, adaptive budget process replaces static annual planning, allowing for more agile decision-making.