Are You Ready for a State Audit? How to Prove Your Programs Deliver ROI

If you’re a local government leader, you may feel the pressure of state-level scrutiny—especially from your state’s version of the Department of Government Efficiency (DOGE). The question often thrown your way: What return are you generating with your programs?

That can feel impossible to answer. But it’s not.

From Costs to Outcomes: Making the ROI Case in Public Service

You may know what you’re spending. But how do you show what you're achieving?

Let’s talk about outcome metrics: what your community is gaining as a result of your programs. Each program should be linked to measurable improvements in one or more of three areas:

1. Economic Growth
   Are jobs increasing? Are wages growing? Is your business community thriving?
   
2. Resident Sentiment
   Are your programs making life better for residents?
3. Fiscal Health
   How do your efforts show up in your financial outlook?

Let’s dig into each of these.

1. Economic Growth

What it is:

Economic growth measures the strength and vitality of your local economy. It's not just about raw job numbers, it includes job quality, wage equity, small business health, poverty rates, and economic resilience.

Why it matters:

State auditors and community stakeholders want to know: Are your investments contributing to a thriving local economy? If you're spending public dollars on economic development, workforce training, infrastructure, or housing, you need to be able to show their real impact.

Common metrics used:

• Unemployment rate
• Job growth over time
• Median household income
• Number of businesses and business starts
• Poverty rate (overall and child-specific)
• Economic inequality indicators (e.g., Gini coefficient)

What makes this tricky:

Because many of these indicators are affected by national trends, it’s important to put your local data in context, by comparing it to similar communities and tracking how it has changed over time.

How to track it:

Tools like Polco’s Track platform help you monitor these indicators, benchmark against peer communities, and visualize how your local economy is changing over time. Track brings in trusted data sources like the U.S. Census Bureau, Bureau of Labor Statistics, and Bureau of Economic Analysis, wrapped in an easy-to-use dashboard tailored to local governments. This helps public leaders shift from reporting activity to measuring resident-centered outcomes.

So whether you're investing in workforce programs, supporting entrepreneurship, or improving infrastructure, Track can help you show economic ROI in ways the state will understand and respect.

2. Resident Satisfaction and Quality of Life

What it is:

Resident satisfaction is a key indicator of how well your programs are improving the daily lives of people in your community. It’s a leading signal for trust in government, future policy support, and even economic migration patterns.

Why it matters:

You can have a balanced budget and a booming economy, but if residents don’t feel safe, supported, or heard, your programs may be missing the mark. And when budgets are tight, this data can guide you toward what matters most to the people you serve.

Common metrics used:

• Satisfaction with city services (e.g., parks, police, transit, libraries)
• Perceptions of safety
• Quality of housing and transportation
• Sense of belonging and trust in local government
• Net promoter scores or "would you recommend living here?" ratings

What makes this tricky:

Anecdotal feedback isn’t enough. You need data that’s scientifically valid, representative, and benchmarked, so you can make fair comparisons and defend your results.

How to track it:

Polco’s benchmark surveys, especially The National Community Survey™ (The NCS™), offer rigorous, probability-based data collection to assess how residents feel about local life. You’ll get insights across 10 key dimensions of livability, plus comparisons to hundreds of peer communities nationwide. So you’re not just reporting scores—you’re showing where you stand and how you’re improving.

Use this data to connect specific programs (like a new park, transit expansion, or public safety initiative) to shifts in resident satisfaction. That’s proof that what you’re spending is driving real impact.

Even better: The results are digestible for residents and compelling for auditors.

3. Credit Rating Signals and Fiscal Health

What it is:

Fiscal health refers to the strength and sustainability of your local government's finances. This includes internal performance (e.g., fund balance, reserves, debt load) and external perceptions, like credit ratings and voter support for tax measures.

Why it matters:

Auditors—and credit agencies—look at how well you manage your financial obligations. But fiscal health is more than a spreadsheet. It’s about credibility. Can your community trust that its government is financially sound and spending wisely?

Common signals:

• Fund balance ratio and liquidity
• Debt service coverage
• Revenue diversity and stability
• Voter approval rates for bond measures or tax renewals
• Ratings from agencies like Moody’s or S&P

What makes this tricky:

Many local governments only measure inputs (how much they’re spending) and outputs (how many units were built or services delivered). But state auditors are increasingly looking for outcomes: Are these investments improving your financial resilience?

How to track and improve it:

1. Use citizen transparency tools like Polco’s Taxpayer Receipt, which shows residents exactly where their tax dollars go. This builds support for revenue initiatives and shows alignment between public priorities and spending.
2. Use Budget Simulations to demonstrate proactive planning and public involvement. Polco's Simulation Tools help tell the full story to credit agencies and voters alike.
3. Use Track’s fiscal indicators to identify weak points before the state does, and integrate resident sentiment to demonstrate not just solvency, but satisfaction with fiscal stewardship.

These tools don’t just prepare you for scrutiny, they build the foundation for fiscal resilience.

Get Help Categorizing Input Costs

Already tracking costs? Great. If not, we can connect you with our partners at Tyler Technologies and their Priority Based Budgeting system—the experts in aligning budgets to community priorities. Pair that with Polco’s suite of tools (Track for outcome metrics, Assess for sentiment, Simulations for community-facing transparency) and you’ll be able to tie dollars to results with clarity and credibility.

When the Audit Comes, Be Ready to Knock It Out of the Park

State performance audits are no longer rare. They’re a rising standard. But what if instead of fearing the audit, you could treat it as an opportunity? An opportunity to:

• Showcase the ROI of your programs
• Prove your impact using trusted benchmarks
• Lead with transparency and data-driven accountability

Let’s get you ready to hit that audit out of the park. Polco is here to help, with data that’s credible, tools that are easy to use, and a team that’s ready to back you up every step of the way.