Why Transparency Alone Isn’t Enough to Rebuild Trust in Local Government

Overview: Trust in local government is on shaky ground. While many governments are already committed to transparency by making budgeting data available, it may not be enough to rebuild citizens’ trust. Continue reading to learn how “smart transparency” is the more effective approach and how to put it into practice with ClearGov.

The Trust Crisis In Local Government

Trust in local government is on shaky ground.

Recent surveys show that 45% of Americans have a less than favorable view of their local government’s trustworthiness. This erosion of trust isn’t just a public relations “image” issue—it’s a serious problem that can hinder a government’s ability to function effectively. In particular, local governments can face the following challenges when they experience a decline in public trust.

Policy changes are harder to implement

Without trust, even the most well-intended policies can face resistance. Imagine a local government trying to implement a new zoning policy to create more affordable housing. In a low-trust environment, residents might assume there are hidden motives or that the policy will negatively impact their property values, leading to strong opposition.

Future planning is jeopardized

Moreover, low trust can derail long-term projects and investments. For instance, local governments often rely on municipal bonds to fund critical infrastructure improvements, like road repairs, school renovations, or water system updates. These bonds are essentially loans from citizens and investors to the government, repaid with interest over time. If citizens don’t understand or trust bonds, local governments will struggle to fund projects. 

Civic engagement declines

In addition, when people don’t trust their local government, they’re less likely to participate in community initiatives like voting in local elections or engaging in public forums. This results in decisions being made by smaller homogeneous groups of citizens and potentially even elected officials who don’t truly represent the community’s interests.

Efficiency takes a hit

Furthermore, lack of trust often leads to increased scrutiny and drawn-out bureaucratic processes (“red tape”) that slow down decision-making. For example, routine budget approvals might face extensive delays as council members and citizens demand more detailed justifications for each line item.

Talent attraction becomes harder

Finally, local governments struggling with trust issues may find it harder to attract and retain talented public servants. Skilled professionals might opt for private sector jobs or more trusted public entities, leaving key positions unfilled or filled by less-qualified candidates.

Now, let’s explore how local governments have sought to address these issues and how redefining transparency can create a greater impact. 

The Promise Of Transparency (And The Pitfalls Of Data Dumping)

Transparency is often touted as the answer to reverse this erosion of public trust. When citizens understand how their tax dollars are being spent and when it’s clear that decisions serve citizen interests, they’re more likely to trust their local leaders.

However, transparency isn’t effective when it can’t be understood.

Financial literacy among U.S. adults has hovered at around 50% for the past eight years, according to the Personal Finance Index. If the average citizen struggles to understand their personal finances, how can we expect them to comprehend complex government financial data?

Unfortunately, many local governments fall into the trap of believing that sharing lots of data means they’re being transparent. Data dumping can backfire because it often confuses people instead of clarifying things – especially when there’s no context to help them understand the data. Additionally, difficult-to-read PDF documents can be hard for some people to access, and too much information without clear communication can exacerbate confusion.

Even more concerning is when data is intentionally obscured. As Marc Holzer, a well-known academic and author of Rethinking Public Administration, points out:

“We have a lot of data out there and a lot of performance measures. But most citizens don’t have access to that because it’s not communicated to them. And in many cases, it’s deliberately hidden by management because they don’t want to put themselves in the line of fire.”

Holzer highlights a critical issue: true transparency isn’t just about having data available somewhere. It’s about how a government shares the data and takes accountability for it to ensure citizens understand —the good, bad, and ugly. 

Enter “Smart Transparency”

This is where the concept of “smarter transparency” comes into play. Even the Government Finance Officers Association (GFOA), in a report titled Transparency: A Means to Improving Citizen Trust in Government maintains that, “‘Transparency’ does not mean just making financial data available to those who have an interest in it. Governments must go beyond open and accessible data strategies in order to build trust.”

This report highlights several key factors that influence how citizens form trust in their local government, including:

Competence and Values 

Citizens assess the government’s ability to achieve goals (competence) and its underlying motives (values). 

Transparency and Communication 

Open communication about government values (such as fairness and integrity) ensures these values are reflected in actions.

Procedural Justice 

Citizens are more likely to accept decisions, even unfavorable ones, if they perceive the decision-making process as fair. 

Accessibility and Understandability

When information is presented clearly and concisely, using tools like digital dashboards and citizen-centric reporting, it fosters trust by making government operations more accessible and easy to understand. 

Focus on Impact and Value

When governments showcase how their services positively impact citizens’ lives by demonstrating the connection between tax dollars and tangible benefits, it strengthens trust by helping citizens see the real-world value of their contributions.

Now that we understand the principles of smart transparency, it’s time to put these ideas into action. ClearGov’s innovative budgeting tools are designed to help you build trust with your citizens through effective, accessible financial communication. 

How ClearGov Achieves Smart Transparency

Let’s explore how ClearGov can empower your local government with smart transparency:

Digital Budget Book

ClearGov’s Digital Budget Book solution revolutionizes the way local governments create and present their budget information:

• Automation & Templates – Our pre-built templates and automatic data import eliminate time spent on spreadsheets and formatting. This frees up finance teams to focus on more strategic and impactful tasks.
• Interactive & Intuitive Visualizations – ClearGov’s dynamic charts and graphs transform raw data into easy-to-understand visuals. Citizens can explore the budget at their own pace to deepen their understanding of the district’s financial situation.
• Integrated Narratives – Budget narratives are easy to incorporate alongside charts so that the “why” behind the numbers is presented clearly.
• Collaboration Made Easy – Collaboration features allow you to invite department heads to directly contribute to their sections. Not only does this take the burden off the finance team, but department heads can often provide a more in-depth explanation of their operations and decision-making processes.
• Accessibility Anywhere, Anytime – The web-based format ensures that you can always access your budget book. Distribute the link widely and encourage citizen feedback to create a two-way dialogue about your government’s financial health.

Transparency

ClearGov’s Transparency solution takes financial openness a step further:

• Link to your Digital Budget Book – Prominently feature a link to your digital budget book right on your Transparency homepage.
• Automated financial summaries – Transparency pulls key financial data and insights from your budget to populate easy-to-understand overview pages.
• Demographic and community data – Give citizens a snapshot of your community with auto-generated infographics on things like population, home values, and income. 
• Department dashboards  – Invite department heads to create their own pages highlighting their budget and key initiatives to connect spending to real-world outcomes.
• Timely updates – As you make updates to your live budget, that data automatically syncs to your Transparency portal so that citizens always have access to the latest financial information.

By combining your Digital Budget Book with Transparency, you’ll be providing a comprehensive, 360-degree view of district finances for better understanding, trust, and engagement. It’s a powerful way to not just meet, but exceed, transparency expectations.

Schedule a quick demo today to see how ClearGov can help you build trust with your citizens with smart transparency.