Budgeting Wisely: Steps Toward Government Cost Reduction

Local governments operate like businesses. They have a clear structure with citizens as their main customers. It is their job to serve their community, and part of that responsibility is determining how to cut costs.

Reducing Costs is a Pressing Concern

Reducing costs is a pressing concern for many governments, as highlighted by a survey conducted by the McKinsey Center for Government a few years ago. According to the findings, 43 percent of public-sector transformation initiatives in the last five years were aimed primarily at reducing costs.

Effective cost management keeps local governments running smoothly and improves services. By finding areas to spend resources more efficiently, governments can focus on projects that help their communities grow and thrive.

Digital Transformation Leads to Reduced Labor and Costs

According to the IBM Center for the Business of Government, governments can reduce costs by moving processes online: “By moving as many touch points to electronic platforms as possible, and at the same time rationalizing the government’s field operations footprint, the government can reduce costs and improve the citizen’s experience.”

The report points to a key digital factor in reducing costs: automating government form processing. Alongside this, reducing citizen-related field operations on the federal level could cut costs by $30 billion (about $92 per person in the US) in a decade.

In 2021, the public spent 10.5 billion hours (about 1,200,000 years) on government paperwork.

According to the U.S. Chamber of Commerce Technology Engagement Center, digital processes could significantly reduce the amount of manual labor by government employees and the public.

Online Software Encourages Cost Reductions

Governments can encourage more efficient paperwork by adopting online software. Citizens can work on forms and applications online without needing to travel to the government office, play phone tag, or send emails with questions.

Online community development software, like Cloudpermit, speeds up permit issuance by 80% compared to paper-based systems. One of the main reasons this software can have such a dramatic impact on permit issuance is the reduced manual labor for both government staff and applicants.

Cloudpermit forces applicants to fill out every mandatory data input field before they can submit applications or complaints. This ensures that governments do not receive incomplete applications, which is a major problem for many departments.

By receiving complete applications every time, governments do not need to manually input data, track down missing information, or field in-person drop-in office visits with questions.

Main ways online software reduces labor and costs for governments:

• Departments always receive complete applications
• All communication can take place online
• Staff can work on the same projects simultaneously
• Administrative workload is reduced since applicants input information themselves
• Simplified audit and compliance processes with digital records
• Increased public satisfaction through faster and more efficient service
• Ability to analyze data trends for better decision-making and resource allocation
• Inspections are smoother with on-site mobile inspections

Not only does online permit tracking software encourage lower costs and reduced labor, but it also increases accessibility and transparency for communities.

Applicants can log in online to submit applications, ask questions in one place, and receive notifications when the status of their project changes.

Switching to online software for government services is essential for meeting modern demands. Digital solutions help cut costs, reduce manual work, and improve accuracy and efficiency.

This allows governments to use resources better and focus on community growth. Online systems also increase accessibility and transparency, building trust and satisfaction among citizens. Embracing digital transformation is crucial for efficient and effective government services. It’s time to budget wisely for reduced costs.