The budgeting process has long been a cornerstone of local government operations. It’s where policy goals meet financial reality. Yet for many years, the public sector has relied on outdated models—designed for stability and compliance more than agility or responsiveness. Now, that is beginning to change.
A national survey conducted in early 2025 by GFOA and civic engagement and data analytics research firm Polco paints a hopeful picture of a sector in motion. This is the second in a series, following an initial survey conducted by GFOA and Polco in 2023. The 2025 survey gathered insights from more than 200 finance and budget professionals—most from GFOA Distinguished Budget Award-winning organizations—and suggests that local governments are moving beyond status quo budgeting. The results show encouraging progress in adopting new practices, greater alignment with strategic plans, and increasing interest in performance and technology. But they also reveal persistent gaps—in public engagement, outcome focus, and modernization.
In short, reform is underway, but the journey is far from complete.
- Publication date: June 2025