Did you know that 2024 will be a record-breaking year for governments around the world? Over 2 billion people will vote in elections in 50 countries, including the United States. Research shows that the majority of adults in the US believe that their government needs to do more to address some of the most pressing concerns they face. This includes addressing concerns over inflation, health care, public safety, and improving public services.
Government organizations at both state and local levels face heightened scrutiny from citizens, stakeholders, and the media. The public expects government agencies to be transparent and accountable and deliver efficient, effective services. It’s imperative for state and local governments to adopt a data-driven approach to decision-making and service delivery.
Data-driven decision-making means relying on facts, figures, and quantitative evidence to inform policy decisions and resource allocation. By tracking and analyzing metrics and key performance indicators (KPIs), governments will gain valuable insights into their operations, identify initiatives for improvement, and demonstrate their commitment to accountability and transparency.
Public sector entities can use KPIs to measure government performance and make informed decisions. Government KPIs are a great way to:
- Improve efficiency and effectiveness: Identify bottlenecks and inefficiencies in government operations.
- Enhance accountability: Demonstrate transparency and accountability to citizens and stakeholders for higher “customer satisfaction.”
- Measure progress toward goals: Track progress toward strategic objectives and identify areas for improvement.
- Optimize resource allocation: Send resources where they’re most needed and can have the greatest impact.
- Make data-driven decisions: Base decisions on evidence and facts rather than assumptions or intuition.
In this article, we will explore several essential KPIs that state and local governments could track to drive performance and improve outcomes for their constituents.
Financial performance KPIs
Measuring the financial health of a local government is crucial for ensuring sustainable service delivery and long-term economic stability.
Revenue collection
Revenue collection refers to the process of collecting taxes, fees, and other income sources that fund government operations and public services. This KPI measures how effectively a local government generates the financial resources necessary to meet its obligations and fulfill its strategic plan. A high revenue collection rate indicates efficient tax administration and strong compliance, while a low rate may signal issues such as tax evasion, inadequate enforcement, or economic downturn.
Financial KPI tracking helps governments identify potential problems, implement corrective measures, and improve their financial sustainability. For example, if property tax collection is declining, the government can investigate the causes, such as outdated property valuations or inefficient collection methods, and take action to address them.
Debt-to-GDP ratio
The debt-to-GDP ratio is a key leading indicator of a government’s financial health. It is a quantifiable measure that shows the level of government debt relative to the size of the local economy, represented by its gross domestic product (GDP). A high debt-to-GDP ratio indicates that the government has a significant debt burden compared to its economic output, which can limit its ability to invest in essential services, respond to economic shocks, and maintain fiscal sustainability.
Local governments should strive to maintain a healthy debt-to-GDP ratio to ensure long-term financial stability. By monitoring this KPI, governments can assess their debt levels, identify potential risks, and implement strategies to manage debt effectively. This may involve controlling spending, increasing revenue, or restructuring existing debt.
Operational efficiency KPIs
Government entities need to efficiently deliver services to their constituents. Operational efficiency KPIs measure how well resources are utilized, processes are managed, and services are delivered. These KPIs help identify bottlenecks, streamline operations, and improve overall productivity.
Employee productivity
Employee productivity or performance KPIs measure the efficiency and output of a local government’s workforce. This KPI can be assessed through various metrics, such as the response time to service requests received, time taken to complete tasks, absenteeism rate, or cost per service delivered. High employee productivity indicates that the government is using its human resources effectively and maximizing the return on investment in its workforce.
Improve employee productivity through initiatives such as training and development, streamlining workflows, implementing performance management systems, and fostering a positive and motivating work environment.
Infrastructure maintenance backlog
The infrastructure maintenance backlog refers to the accumulated deferred maintenance needs of a local government’s assets, such as roads, bridges, buildings, and water systems. This KPI measures the gap between the required maintenance and the actual maintenance performed, indicating the level of investment needed to keep infrastructure in good repair. A large backlog can lead to costly repairs, service disruptions, and safety hazards, while a small backlog reflects proactive maintenance practices and efficient resource allocation.
Local governments should strive to minimize their infrastructure maintenance backlog by prioritizing preventive maintenance, optimizing maintenance schedules, and allocating sufficient resources for repairs and upgrades. Regularly monitoring this KPI allows governments to track the condition of their assets, identify emerging maintenance needs, and make informed decisions about infrastructure investments. Reducing the backlog can improve service quality, enhance public safety, and extend the lifespan of critical infrastructure.
Additional KPI areas to consider
Aside from financial, operational, and service-related KPIs, there are several other KPI areas that warrant consideration depending on your focus area.
- Unemployment rate: Tracking the number of people who are unemployed helps gauge the economic health of the community and identify potential workforce development needs. A low unemployment rate indicates a strong local economy with ample job opportunities for residents.
- Education and workforce development: These KPIs focus on educational attainment levels, graduation rates, and skills development programs. Investing in education and workforce development strengthens the local economy and enhances the quality of life for residents.
- Environmental protection: Measuring environmental KPIs such as air quality, water quality, and waste reduction promotes a sustainable and healthy environment for current and future generations.
- Transportation: Assess the efficiency and accessibility of your area’s public transportation service providers, traffic congestion levels, and road safety. Efficient transportation networks are vital for economic growth and quality of life.
How Alachua County found forever homes for animals using data collection with AchieveIt
In Florida, Alachua County serves more than 280,000 people in multiple ways from animal services to building code enforcement. The local government agency takes resource allocation and spending very seriously — as well as the concerns of their citizens.
The county was dealing with an overcrowded animal shelter due to a recent boom in the homeless pet population. They knew that having the right data in hand was key to solving the issue, but much of the information was siloed in various databases across numerous departments.
The team at Alachua County turned to AchieveIt to develop a system that centralizes data into a single source of truth. They built a user-friendly, public-facing dashboard to communicate their efforts with their constituents and stakeholders.
With this done, they quickly spotted a trend — animal intakes increased every year from June to August. They waived adoption fees during the summer months, leading to less crowded shelters and more animals placed in their forever homes. This also meant better resource allocation and less taxpayer dollars spent on managing the situation.
To learn more about how Alachua County used AchieveIt to reach their strategic goals, read the full case study here.
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City of College Station, Texas Customer Story
Read this customer story to better understand how a municipal administration improved its reporting methods, enhancing transparency and time for both residents and officials through AchieveIt.
