Budgeting for Smarter Systems and Stronger Communities

FORWARD Platform
Jun 25
3 min read

Local government leaders and nonprofit executives face increasing pressures from tightening budgets, growing community needs, and uncertainties around future funding. Strategic investments in technology can help organizations efficiently manage these challenges, maintain high-quality service delivery, and sustain positive community impact.

This actionable guide equips elected officials, city and county managers, directors of human services, economic development directors, and nonprofit leaders with clear steps to effectively budget for innovation in the upcoming fiscal year.

Step 1: Align Your Budget to Community Priorities

Move beyond traditional historical budgeting by adopting priority-based budgeting methods that directly align resources with clearly defined community outcomes.

Action

Convene stakeholders to clearly identify and rank community priorities, such as economic growth, service equity, or community health.

Outcome

Ensures every budget dollar supports critical outcomes, maximizing community benefits and operational efficiency.

Step 2: Identify Strategic Technology Investments

Focus on technology investments that substantially improve operational effectiveness and community service quality, such as:

Case Management Systems: Automate routine tasks, reduce errors, and improve client tracking.
Program Administration Platforms: Streamline program launches, simplify grant processes, and boost transparency.

Action

Conduct an organizational technology audit to identify processes ripe for digital transformation.

Outcome

Increased service capacity, efficiency, and quality without significant staff increases.

Step 3: Build a Strong Business Case for Innovation

Clearly articulate the return on investment (ROI) of proposed technologies by emphasizing tangible benefits:

Efficiency Gains: Showcase expected reductions in processing times, manual tasks, and administrative overhead.
Community Impact: Highlight improvements in service equity, accessibility, and citizen satisfaction.

Action

Gather relevant data and success stories from peer jurisdictions and nonprofits that illustrate technology-driven improvements.

Outcome

Stronger internal and external stakeholder support by providing clear evidence of potential impact.

Step 4: Diversify and Optimize Funding Streams

Broaden funding strategies to reduce reliance on general operating budgets and enhance financial sustainability:

Grants and Partnerships: Leverage technology-focused grants, philanthropic partnerships, and corporate sponsorships aligned with digital innovation and equity.
Multi-Year Financial Planning: Spread technology investment costs across several budget cycles to ease financial pressure.
Collaborative Procurement: Coordinate with regional jurisdictions and organizations to share costs and negotiate better terms.

Action

Develop detailed, multi-year financial plans, actively pursue diverse funding sources, and create regional alliances.

Outcome

Sustainable, resilient funding strategies that reduce immediate budget impacts and ensure long-term success.

Step 5: Conduct Proactive Fiscal Stress Testing

Prepare for potential financial uncertainties through proactive fiscal stress testing.

Action

Model scenarios of funding reductions and their impacts on critical services.

Outcome

Improved preparedness and agility to adjust budgets proactively, ensuring continuity of essential community services.

Step 6: Engage Stakeholders Early for Transparent Planning

Build consensus and support by involving stakeholders early and transparently in the budget planning process.

Action

Organize workshops, public meetings, and transparent communications about proposed technology investments and expected outcomes.

Outcome

Enhanced stakeholder buy-in, smoother implementation, and reduced resistance to change.

Step 7: Implement Robust Change Management Strategies

Overcome organizational resistance to new technologies through effective change management.

Action

Provide comprehensive training, clear communication of benefits, and designate internal technology champions to support staff during transition periods.

Outcome

Accelerated adoption, increased staff engagement, and smoother integration of new technologies.

Step 8: Track Progress, Monitor Outcomes, and Adapt

Continuously evaluate the performance of technology investments to ensure they meet intended goals.

Action

Regularly monitor key performance indicators such as operational efficiency, client satisfaction, and cost savings.

Outcome

Ongoing improvement, justification for continued investment, and strengthened accountability with stakeholders.

Conclusion: Innovate Strategically for Lasting Community Impact

Strategically budgeting for smarter systems not only builds organizational resilience but also ensures that communities thrive, even amidst uncertainty. By prioritizing innovation, local governments and nonprofits can efficiently manage resources, enhance service delivery, and sustain meaningful impacts.