Planning for the long-term

How to Replace Lost Revenue

Loss of revenue will likely be a considerable obstacle to achieving your community’s common vision for the future. In many cases, the community will need to adjust to a “new normal” in terms of how revenue is generated or what and how services are delivered—at least in the first few years. This won’t be easy, but here are three approaches that can help.

1. ‍Be clear and honest upfront. Explain clearly that things will likely change while new sources of revenue come online. This could mean cuts to services, imposition of user fees for services, and consolidations to create economies of scale.
2. ‍Consider using participatory budgeting to address budget shortfalls. This process that starts with quantifying the impacts of a closure so that a community can see clearly how the financial status of the community (and region) will change, how impacts on both contributors (taxpayers) and users (residents) of services will materialize, and how decisions to live within a new budget will be made.
3. ‍Don’t go it alone. Seek financial help from the state or federal government and identify champions to help pursue such support. These discussions may spawn additional engagement or lobbying on the part of community members and may also help lawmakers embrace new priorities for government spending and for leveraging other available funds.