Budget Resiliency Planning
In light of the COVID-19 pandemic, Cityfi with the support of HR&A Advisors brought together a cohort of 5 cities from across the United States to identify new revenue generation opportunities, cost reduction measures, and inclusive budget allocation processes, that will allow for more resilient and just budgets in 2021 and beyond. As a result of the cohort, Cityfi produced a report that detailed recommendations for developing a budget resiliency practice focused around equitable budgeting, new revenue generation, cost savings and in-kind opportunities, and partnerships. This program was funded by the Knight Foundation and included the cities of Philadelphia, Detroit, Miami, St. Paul, and Macon-Bibb.
The COVID-19 pandemic turned the world, and in turn, the health and fiscal solvency of cities, upside down. It has devastated urban communities and economies and exposed deep structural inequities, reflected in the disparate scale of lives, jobs, and homes lost, and the greater risk of eviction and long-term economic insecurity among communities of color and other marginalized people. In addition to cities and their communities facing challenges in areas like economic development, workforce development, transportation, streets and public realm, they must also manage the repercussions of major budget shortfalls due to significant losses in revenue. In many cities, this lack of funding has already led to program cuts as well as staff furloughs and lay-offs.
Context
Method
Cityfi initiated a sprint of five weeks, and produced a suite of recommendations to be implemented in individual cities as part of future budget planning; to pilot new revenue strategies; and to help supplement current shortfalls.
The team used targeted interviews to understand each city’s financial standing, budget process, and other considerations that will help to assess current budget challenges and potential revenue opportunities. Cityfi and HR&A Advisors also conducted weekly cohort calls to facilitate discussions and brainstorming sessions about the challenges cities are experiencing, where opportunities for budget resiliency and equitable distribution of resources may lie; and what similarities and differences among cities can be leveraged to develop lessons learned and best practices.
In the strategy development process, Cityfi developed a literature review of best practices related to new revenue generation, partnerships and best practices, and opportunities for cost savings for budget resiliency within cities both historically and more recently in the time of COVID. Furthermore, Cityfi partnered with HR&A, who produced the Ford Foundation’s A Guide for a Just and Resilient Recovery, to assess and develop strategies and tools that emphasize an equitable recovery from COVID-19.
Now that the sprint is completed, Cityfi and HR&A will continue to host cohort discussions on relevant budget resiliency topics as 2021 unfolds including the following questions:
What return on investment has occurred, either through revenue generation, cost-savings, or in-kind support;
What return on investments provided for a more equitable distribution of resources and investments;
How have cities engaged with marginalized and vulnerable communities to obtain better data, inform decision-making, and assess the effectiveness of implemented solutions; and
How this work supported each city in preparing for its 2022 budget?
