To Increase Trust in Government, Reinvent the Local Government Budget

Abstract

A well-functioning democracy requires citizens’ trust in their governmental institutions. In times of crisis, when state and local governments need community support to respond effectively, trust becomes even more critical. Without earning that trust, communities cannot succeed in addressing the impact of the COVID 19 pandemic, economic uncertainty, systemic racism, increasing severe weather events, and the growing list of other crises. But how can we accomplish this at a time of increasing polarization, misinformation, and civic disillusionment? GFOA—and its members—have focused our trust building efforts in three areas: values-based ethics, a leadership framework based on common pool resource theory, and rethinking local government budgeting. The budget is arguably the most important policy document prepared by a local government. Through the allocation of scarce resources, the budget should reflect a community’s values and where it believes investments will most help its citizens thrive. If prepared transparently and informed by research, with real community engagement, data, and best practices, the budget can build a foundation of trust between a local government and its citizens. The incremental, opaque approach to budgeting that is still prevalent today, reduces governments’ ability to innovate and use data for better decision making. Traditional budget processes do not fully incorporate community needs or address past inequities. In short, budget preparation with little data, non-existent, or flawed, citizen engagement, and a bias for the status quo, continue to perpetuate inequities, contributing to the ongoing trend of citizen distrust in government. We believe there is a better way.