Local Government Finance Leaders Share Key Priorities: What Our Survey Revealed

New ClearGov report reveals that 60% of respondents are prioritizing modernizing inefficient systems

As many local governments head into 2026 planning, they’ll be examining what’s been working, what needs to be improved, and what’s important to focus on in the year(s) ahead. Among these considerations will be those centered on budgeting, financial reporting, and strategic planning itself  — all critical cornerstones of local governance. 

To better understand these finance-centric priorities, challenges and opportunities for success, we surveyed nearly 200 finance leaders and analyzed over 100 budget book transmittal letters. We’ve shared our findings in The 2025 Local Government Budgeting & Planning Outlook Report — a first-of-its-kind look at the challenges, priorities, and success factors shaping public finance today.

And to help local governments prepare for the year ahead, we’ve created this list of takeaways from our report. Here’s a snapshot of what we learned.

Budgeting, Reporting, and Planning Are Stronger Together

Our research confirms what many finance professionals already know: planning, budgeting, and reporting work best when they’re integrated. Nearly 60% of survey respondents said linking their budget to their strategic plan is very important, and almost three out of four emphasized that communicating the final budget to stakeholders is critical to success.

The message is clear: Budgets don’t live in a vacuum. When they are connected to a long-term vision — and when that vision is clearly reported to the public — local governments are more likely to achieve their goals, build trust, and maintain accountability.

Budgeting Takes the Most Time — and Faces the Most Unpredictability

Of the three core public finance functions, budgeting is the most time-intensive. 44% of respondents spend over 20 hours per week on budgeting during peak season — far more than they spend on strategic planning or financial reporting.

And that work is only getting harder. Forecasting accuracy and unexpected revenue fluctuations were the top budgeting challenges cited in the survey, overtaking internal issues like manual data entry. These external pressures underscore how difficult it is for governments to plan in an uncertain fiscal environment, especially for smaller organizations with limited staff or outdated systems.

Despite these challenges, over 70% of respondents agreed that clear budget communication and a well-communicated process and timeline were very important factors of budgeting success. These results highlight how important it is for local governments to align internal teams, stakeholders, and long-term goals during the budget cycle.

Financial Reporting Is Essential — and Often More Complex Than Budgeting

Financial reporting is more than a compliance exercise. When done well, it’s an opportunity to tell a government’s financial story, strengthen public trust, and meet best-practice standards. 

But our survey shows it can also be more difficult than budgeting. Half of respondents said developing budget books is difficult, and 47% said the same about preparing annual financial reports. Accessibility, formatting, and external communication requirements all contribute to the challenge.

At the same time, the keys to financial reporting success are consistent. Over 72% of respondents cited having a professional, polished report, a defined report development process and timeline, and collaboration with report contributors as being very important to reporting success. These factors shared remarkably similar themes with budgeting’s keys to success.

Strategic Planning Is Widespread but Unevenly Tracked

Eighty-five percent of survey respondents reported having a strategic plan in place, but only 31% frequently update progress metrics. Another 29% don’t track metrics at all. That gap reflects a key challenge: governments are embracing strategic planning but still lack the resources and expertise to execute it consistently.

We found that staff expertise and monitoring progress were two of the biggest obstacles to strategic planning. But leaders understand what drives strategic planning success. 94% said defining specific actions and timelines to achieve goals is very important, and 84% emphasized the importance of reporting progress to constituents — showing how transparency connects strategic planning to the spirit of financial reporting.

Modernization Tops Finance Leaders’ List of 2025 Investment Priorities

60% of respondents chose modernizing inefficient systems as one of their top investment priorities for the coming year. This was the most frequently selected initiative overall, followed by advancing capital projects (47%) and increasing financial transparency (37%).

That focus on modernization is also reflected in software investment plans. Local governments expressed the most immediate interest in budgeting and financial reporting tools, with strategic planning and grant management software following as longer-term priorities.

Download the Full Report

These insights are just scratching the surface of The 2025 Local Government Budgeting & Planning Outlook Report’s findings. The report dives deeper into how municipal, county, and special district finance leaders are tackling challenges, where they’re focusing their time and resources, and which priorities are shaping public finance in the year ahead. Download the full report here to see all the data and insights.