We Understand Your Issues
A rapidly changing economy and efforts to overhaul industries such as healthcare and financial services are impacting government operations at the federal, state, local and tribal government levels. Governmental entities face constantly evolving issues and trends, such as:
- Many state, local and tribal governments continue to deal with funding shortfalls caused by a perfect storm of factors ranging from declining tax revenues and reduced federal aid to increased service demands and growing entitlement program obligations. Resulting fiscal and budget concerns have overwhelmed the dialogue and overshadowed many other concerns for governmental entities, making long-term planning particularly challenging.
- Many pension investment portfolios have rebounded over the past two years, but underfunded pensions remain a looming problem for many state and local governments that may be forced to make up funding differences through measures like raising taxes or cutting services. Waves of retirements could make this problem more acute over the next 20 years and compel governments to examine defined contribution plan options, raise pension qualification ages and extend vesting periods.
- Many state, local and tribal governments are struggling with how to finance much needed infrastructure improvement projects - from public water supply and waste water systems to transportation projects such as bridges, highways, roads and transit systems - leading to an increase in public-private partnerships.
- The impending demographic shift stemming from the aging of baby boomers, followed by smaller population sets among successive generations, will fuel a seismic change within government services and areas of focus. A strong senior voting block may exercise inordinate power in elections at a critical time when elected officials are expected to be dealing with challenges such as potential changes to Social Security and Medicare. Concurrently, this baby boomer generation will strain the resources and attentions of government sponsored programs ranging from healthcare to transportation.
- Globalization is presenting new challenges across the board for state and local governments. Governmental agencies and education systems are strained to meet the needs of rapidly increasing immigrant populations in areas such as housing assistance and bilingual instruction. Additionally, these governments are dealing with economic issues like the retention of large businesses that may consider offshoring or attracting new international businesses looking for credits and incentives as they consider opening new facilities in the United States. In some areas, Indian reservations continue to struggle to attract new businesses and to provide employment, while other tribal territories have become engines of growth.
Are you positioned to succeed?