A budget is more than numbers, it’s a reflection of values, priorities, and trust.
Across the country, local governments are wrestling with the same questions:
- How do we make budgeting more strategic and less reactive?
- How do we involve the public meaningfully?
- How can we modernize without losing what already works?
In partnership with GFOA, Polco set out to answer these questions through a national survey of budget officers and finance leaders. The results, captured in our whitepaper, paint a revealing picture of progress, pain points, and what's still needed to build truly transparent, performance-driven budgets.
Here’s a snapshot of what we found.
High Satisfaction But Limited Transformation
- 80% of respondents rated their current budget process as “excellent” or “good.”
- Yet only 25% said their budgets were created with strong resident engagement.
- And fewer than 6 in 10 rated their budgets highly for using outcomes to drive decisions.
In short: most local governments feel comfortable, but not necessarily confident, that their budget processes meet today’s demands.
The Technology Gap Is Real
Despite growing interest in digital tools:
- 76% of respondents still rely on spreadsheets as their primary tool.
- Only 42% use purpose-built budgeting software.
- Fewer than 20% use tech for strategic planning, performance tracking, or community engagement.
“It is incredibly manual and takes an enormous amount of time to create visualization and data analysis that makes the information meaningful for decision makers.” – Survey Respondent
Modern solutions exist, but most teams still face funding, training, and integration challenges.
Momentum Is Building for Change
Compared to 2023, local governments are making real progress:
- The share of respondents who made a major change to their budgeting process in the past 2 years rose from 32% to over 50%.
- The top areas of change? Technology, new budget methods, and better alignment with strategic plans.
Still, some of the most stubborn challenges, like resident engagement and outcome-based budgeting, remain unsolved.
What Budget Leaders Want Next
When asked how we can help:
- 28% said they need templates and tools to modernize.
- 28% asked for more training and education to support the transition.
- Others voiced the need for flexibility in award criteria so innovation isn't punished.
The appetite for rethinking is there. Now it’s about providing the roadmap and support to act on it.
Want to Know Where Your Budget Stands?
The full whitepaper includes:
- Detailed benchmarking data from over 200 high-performing local governments
- A look at trends since 2023
- What’s working, what’s stalling, and where leaders are focusing next
- A breakdown of the top 10 capabilities needed to modernize budgeting
Download the full whitepaper
Whether you're just starting your rethinking journey or looking to take the next step, this report is your guide to smarter, more strategic budgeting.