Top 5 Budget Considerations for Local Governments in 2026
January 8, 2026Budgeting isn’t just about line items — it's a chance to solve real problems and boost efficiency. That’s why budgeting season is the time to think about the bigger picture of what local government software should be doing for you.
Outdated systems and paper-based processes for permitting, planning, licensing, code enforcement, inspections, and public works are among the leading causes of delays, confusion, and frustration.
The shift to modern digital tools that streamline workflows and accelerate processes is more urgent for staff and citizens alike.
The best new local government software is more affordable than ever — and your decision to include a software upgrade in your budget now can pay off with better services and internal workflows for years to come.
Your Key Budget Considerations
The budgeting process is complex, and it can seem like everyone has different ideas for how the money should be spent.
In recent years, local governments have recognized the need to expand digital services for constituents by moving permitting, planning, and payments online.
GovTech Magazine reports that the push for digital delivery and new ways to reach citizens has dominated recent tech trends and will remain a key focus for government budgets well into the future.
While each community has unique needs today and individualized goals for the future, some universal questions can narrow the wish list and identify the best investments in 2026.
To get to the core needs of your next budget, consider:
Modern steps are intuitive and easy to understand for staff and citizens alike:
- What problems are costing your team time and money today?
- What software or systems are outdated or unsupported?
- What are your staff’s biggest bottlenecks?
- Can you budget for a platform that solves cross-departmental problems?
- How will you measure success?
Let’s explore each of these considerations to make the budgeting process more focused and strategic as you find the right digital tools to boost your efficiency and streamline the delivery of government services.
1. What Problems Are Costing Your Team Time and Money Today?
Identifying exactly what’s not working with your current approach is the first step in planning a better process with new local government software.
Consider your current pain points—such as slow approval times, missed inspections, or escalating back-and-forth with applicants—and identify local government software that can streamline or address them.
2. What Software or Systems Are Outdated or Unsupported?
Many municipalities use a variety of platforms, software, paper, and PDF or email-based workflows to get things done. While these approaches might have worked at one time, they are likely creating more problems than they solve today.
Take stock of the software and systems your municipality currently uses, and identify which are outdated, unsupported, or no longer relevant. Those are the things you’ll want to upgrade first.
Upgrading to new permit tracking software can reduce delays and expedite the approval process. Modern licensing software and improved digital planning tools can keep community development and business operations on track.
3. What Are Your Staff’s Biggest Bottlenecks?
What, exactly, is slowing down your staff? Answering this question can help you pinpoint the biggest inefficiencies so you can find new software that will actually address them.
There are many potential bottlenecks to watch for, including:
- Incomplete or incorrect applications
- Manual or paper-based workflows
- Scattered communication and status updates
- Poor internal coordination
- Siloed data and no central record
- Public confusion about processes
- Delayed or missed inspections and follow-ups

4. Can You Budget for a Platform Solving Problems Across Departments?
It’s much easier to sell stakeholders on a single investment that addresses several of the municipality's most significant issues. Fortunately, the right software for local governments can streamline and improve multiple departments simultaneously.
Look for a digital platform that delivers benefits to your staff and citizens across community development and public works processes, maximizing your return on investment.
5. How Will You Measure Success?
Before making any investment, it’s helpful to first agree on what you’re trying to achieve. Carefully think through the metrics that you use to measure success, such as:
- Fewer phone calls
- Faster approvals
- Improved staff efficiency
- Increased revenue
The Chief Building Official in the City of Madisonville, Tennessee, boosted his efficiency by 40% simply by making the switch to modern community development software — and that improvement allowed him to keep up with his community’s unprecedented building boom.
Why New Local Government Software Should Be in Your Budget
Think about the core functions of municipal operations, from service delivery to how departmental professionals work. How much of it involves permits, licenses, work orders, inspections, or property data? For most towns and cities, the answer is nearly everything.
If you’re still relying on manual, outdated, or unnecessarily siloed systems and ways of getting things done, it’s going to increase things like:
- Staff workload
- Application delays
- Citizen confusion and frustration
- Missed revenue from fees, renewals, and fines
Cloud-based platforms for community development and public works are no longer a luxury — they’re a necessity for municipalities of all sizes today.
Digital government is advancing rapidly worldwide, particularly in North America. The most recent United Nations E-Government Survey, released in September 2024, found that the share of the global population underserved by digital government services fell from 45% to 22.4% between 2022 and 2024, and is on track to drop further to 20.4% in 2026.
Statistics like these point to a clear truth: Digital transformation for local governments is part of a global trend — and municipalities that aren’t investing in better digital tools now risk falling behind key benchmarks for efficiency and accessibility.

How to Secure Buy-In from Stakeholders
Even if you know that it’s time to upgrade to better new local government software and you’re ready to make a change, chances are you need to convince several other people or departments about the need for the investment as well.
Researching your best software options now can help you win over others and demonstrate the value of your choice.
Focus on showing the real return on investment in your choice of software:
- Fewer staff hours spent on repetitive or administrative tasks
- Better public experience, including an online portal for applications and payments
- Faster turnaround times
- More consistent decision-making
- Reduced siloes between departments
Consider using citizen satisfaction and digital access as your KPIs, and get everyone on board with enhancing the process at every step.
What You Should Modernize Now
Municipal services touch virtually every aspect of daily life, from the buildings where citizens work, live, shop, dine, and relax to the streets and sidewalks they use to get around.
Towns and cities need to identify high-impact ways to invest their resources in the most important parts of their communities and in resident safety.
That’s why today’s local governments should focus their spending on modernizing two vitally important parts of their services: Community development and public works.
Embracing the capabilities of digital community development and upgrading to better new local government software can offer widespread benefits for everyone, enabling things like:
- Online permit applications and renewals that simplify processes and boost accessibility
- Better mobile inspections that can be completed even without internet or cell service
- GIS-based workflows that give real-time access to the latest community data
- Automated status tracking to cut down on confusion and keep everyone in the loop
- Public portals that make local government services more accessible and transparent
- Improved cross-department communication to break down barriers among planning, enforcement, building, licensing, and inspections
Online software for public works can also drive much-needed improvements for staff and citizens, including online applications for street cuts or encroachments, mobile work order management, easier asset and inspection tracking, and better stormwater and safety coordination.
Municipalities have limited funds and must strategically invest resources to meet current and future demands. For towns and cities of all sizes, putting some money now toward better community development and public works processes will pay dividends for years to come.

One-Time vs. Ongoing Costs: What to Expect
Typically, you can expect to pay an initial implementation fee to get started with the modules and departments you choose from your software provider. You might also be asked to cover data import costs to populate your new platform.
With the right software, those will be your only charges in addition to your usual annual subscription cost — meaning you won’t have to worry about hidden costs for things like customization or development, on-premises hardware, or additional IT staff needs.
These one-time charges include everything you need to get started:
- Implementation
- Support
- Training
- Updates
The best software options today are scalable to user and application volume, offering municipalities unlimited user licenses and affordability, regardless of size.
Why Cloudpermit Is a Budget-Smart Choice for 2026
Changing software platforms is a big decision, and municipalities need to make informed choices when selecting new local government software for the coming years.
Many towns and cities of all sizes have embraced the streamlined processes, improved efficiency, and better workflows at the heart of Cloudpermit, a comprehensive online platform for community development and public works.
Cloudpermit’s powerful digital tools and unique features make it a wise choice for your 2026 budget:
- Purpose-built for local governments
- Affordable, subscription-based pricing — no surprise fees, and unlimited users
- Solutions for building, planning, enforcement, licensing, inspections, and public works
- Quick implementation with full support
- Configurable software that can meet local demands and processes
Build a Smarter Budget for a Better Municipality
As you plan your 2026 budget, now’s the time to invest in tools that pay off in efficiency, compliance, and trust.
You don’t have to overhaul everything at once — take the first step.
Book a demo with us today to see what an investment in Cloudpermit’s new local government software can do for your municipality.