The 3 Biggest IT Budget Challenges For Cities and Counties

How much do Digital Transformation (Dx) services cost?

Proven strategies & The 7 biggest IT budget mistakes

As the budget season nears, cities and counties are pushed to address their IT budget challenges.  And as technology continues to evolve rapidly, municipal governments are tasked with adapting to these challenges and meeting the ever-growing needs of their communities.

City and county officials face mounting IT budget concerns as they strive to modernize their infrastructure and enhance cybersecurity. A lack of funds and a solid budget poses the most significant challenge for these officials, who must maximize their resources while keeping up with evolving technology and threats.

This article discusses city and county officials’ IT budget issues and offers practical solutions and strategies to navigate these challenges.

And if this short article gives you a better perspective, don’t miss the link at the bottom to a fully comprehensive IT Budget guide for city and county officials.



The 3 Biggest IT Budget Challenges For Local Governments

IT Support Costs In Minneapolis and St. Paul

Local governments must navigate several obstacles when it comes to IT budgeting:



1. Limited funding and competing priorities within your IT budget

Roads or firewalls? Schools or servers? Tough choices indeed. City and county officials often need more funding for IT infrastructure, cybersecurity, and other technology-related projects. As cyber threats and infrastructure demands continue to evolve, officials must find ways to allocate their scarce resources effectively.


2. Cyber Security

The State of Cyber Security


Implementing cutting-edge technology is no longer a luxury but a necessity to maintain the efficiency and security of public services. With the rise of sophisticated cybersecurity threats, local governments must prioritize the allocation of resources to fortify their digital infrastructure and safeguard sensitive data.




3. Legacy systems and costly maintenance as part of the IT budget

Legacy systems and maintenance present a daunting challenge for city and county officials as they strive to balance IT budget constraints with the need for modernization.
These aging infrastructures often lack compatibility with newer technologies, require specialized skill sets for support, and pose heightened security risks. Consequently, the cost of maintaining and upgrading these systems can consume a significant portion of an IT budget, hindering the adoption of more efficient and secure solutions.



Balancing Priorities Within Your IT Budget

Managed IT Support Cost



Officials must balance their budget to accommodate various priorities, including public safety, healthcare, education, and transportation. When competing with these other essential services, allocating funds for IT initiatives can be a challenge.




Strategies to maximize your city or county IT budget



1. Conduct a thorough needs assessment of your IT budget

A comprehensive needs assessment is crucial for ensuring the most efficient use of your IT budget while fulfilling the needs of your community.
It’s critical that your IT provider work with you to identify critical gaps, prioritize investments, and align technology solutions to your city or counties goals.
By conducting a thorough needs assessment, it will empower you to optimize your IT infrastructure, promote operational efficiency, and ultimately, better serve your citizen’s.


2. Embracing cost-effective technology solutions

  • Invest in cloud computing and Software as a Service (SaaS) options: Save money and let someone else handle the server maintenance.
  • Implement open-source software and tools: Why pay for software when you can get it for free?
  • Adopt Cloud Services: City and county officials can reduce costs associated with maintaining and upgrading on-premise hardware and software by adopting cloud services.
  • Implement Shared Services: Collaborating with neighboring cities or counties can help officials pool resources and share IT costs.
  • Pursue Grants and Partnerships: City and county officials can seek external funding through grants and partnerships with private organizations or other government agencies.


3. Prioritize  Cybersecurity within your IT Budget for your city or county

As cyber threats evolve and become more sophisticated, safeguarding your local government’s digital assets and infrastructure is crucial for maintaining public trust and ensuring the uninterrupted delivery of essential services.

It’s necessary for your IT provider to work with your city or county to assess your cyber-risks, identify vulnerabilities, and implement robust security measures tailored to your unique needs.

A cybersecurity breach can have devastating financial consequences for city and county governments. By prioritizing cybersecurity and investing in robust defense measures, officials can minimize the risk of costly cyberattacks to both your offices and communities.


The 7 Biggest IT budget Mistakes For Cities and Counties

questions when vetting any IT provider


1. Insufficient emphasis on cybersecurity within your IT budget

Many local governments need to allocate more funds to cybersecurity measures, exposing their systems to risks like data breaches and ransomware attacks. A specific example is the City of Atlanta’s 2018 ransomware attack, where the city’s systems were crippled, and recovery costs exceeded $17 million. They could have avoided such expenses if they had allocated more resources to proactive cybersecurity measures.

2. Lack of centralized IT procurement:

Sometimes, local governments need to establish centralized IT procurement processes, leading to fragmented purchasing and wasteful spending. For instance, a county might have multiple departments purchasing similar software licenses or hardware components independently, resulting in higher costs and inefficiencies.

3. Inadequate investment in staff training and development

Many local governments need to pay more attention to the importance of training their IT staff in new technologies and best practices, which can lead to inefficiencies and security vulnerabilities. For example, a city may allocate funds for a new cloud-based software solution but must provide adequate employee training, leading to underutilization or improper use of the software.

4. Failing to consider long-term costs within your IT budget

Local governments often make IT purchasing decisions based solely on upfront costs, ignoring long-term expenses like maintenance, support, and upgrades. For instance, a county may choose a cheaper, outdated server system to save on initial costs, only to face increased maintenance expenses and performance issues in the long run. Therefore, conducting a total cost of ownership (TCO) analysis is crucial before making significant IT investments.

5. Inflexible IT budgeting

Some local governments allocate their IT budgets in a rigid manner, leaving no room for unexpected expenses or emerging technology opportunities. For example, a city may need to consider the possibility of a more efficient, cost-effective solution becoming available during the budget year to earmark specific hardware or software funds. On the other hand, flexible budgeting can help governments adapt to rapidly changing technology landscapes.

6. Neglecting IT infrastructure maintenance and upgrades

Local governments sometimes need to allocate funds for regular maintenance, system upgrades, or technology refreshes, leading to outdated and inefficient systems. A specific example is the state of Michigan’s 2016 IT infrastructure report, which revealed that 43% of the state’s IT applications were obsolete or at risk, costing millions of dollars in inefficiencies and security vulnerabilities.


7. Over-reliance on legacy systems

Outdated infrastructure


In some instances, local governments rely on outdated legacy systems due to insufficient budget allocation for modernization. For example, a city may continue to use a decades-old financial management system, causing inefficiencies, increased security risks, and potential data loss. Investing in modernization can result in long-term cost savings and improved services for constituents.
To avoid these mistakes, local governments should prioritize cybersecurity, establish centralized procurement, invest in staff training, consider long-term costs, maintain a flexible budget, and allocate resources for infrastructure maintenance and modernization.




Overcoming IT budget challenges and shortfalls for local city and county governments may seem like an uphill battle. Still, it’s possible to be successful with the right strategies and creativity.

City and county officials face significant IT budget challenges, with funding being the most prominent issue. However, these officials can overcome budget constraints and enhance their IT infrastructure and cybersecurity measures by adopting smart strategies such as leveraging cloud services, open-source solutions, shared services, and external funding sources.

By prioritizing investments, exploring alternative funding sources, streamlining processes, addressing personnel shortages, and embracing cost-effective technology solutions, local governments can continue to invest in IT and cybersecurity for a safer, more efficient future.


Next Steps:

If you felt this quick IT budgeting article was helpful, we have a more comprehensive and full IT budgeting guide for local government.
This guide will address your biggest issues, and give you solutions to your IT budget challenges
Check it out here …


Overcoming IT Budget Challenges:  The ultimate guide for cities and county officials


Thank you for your referral!


new look,
same great service.