Budgeting’s Turning Point
From rising inflation to staffing shortages, public sector finance teams are being asked to deliver more with fewer hands-on deck. According to the 2025 State of Public Budgeting report, many local agencies are operating with lean teams yet managing multimillion-dollar budgets and navigating high-stakes decisions daily.
But here’s the surprising part: despite those constraints, nearly 80% of respondents say they’re confident in achieving their budgetary goals this year. With AI now being incorporated into tools, that confidence will only grow because employees will be able to get more done in a quicker and easier fashion.
Small Teams, Big Pressure
The survey shows that most finance departments are small but mighty. Teams of just a few professionals are shouldering responsibility for planning, allocating, and communicating entire municipal budgets. But with the end of federal aid programs, continued revenue volatility, and increasing demands for transparency, even the most efficient teams are feeling stretched.
That’s where intelligent tools come in, not to replace humans, but to amplify what they can do – completing tasks in a shorter amount of time and faster.
What Is an Augmented Budget Team?
An “augmented” team is one where automation handles the repetitive, manual, or data-heavy tasks, while humans focus on analysis, prioritization, and decision-making.
For example:
- Automated forecasting engines now simulate revenue outcomes with just a few inputs.
- Scenario planning tools allow departments to model best- and worst-case financial futures in minutes.
- Interactive dashboards visualize complex budget changes so leaders can act quickly and collaboratively.
This is not about replacing finance professionals; it’s about giving them more room to lead strategically.
Early Wins: Scenario Planning as a Launchpad
The State of Public Budgeting report revealed that 55% of agencies already use scenario planning, and that number is only growing. These tools are helping governments:
- Prepare for funding cuts and economic downturns
- Adjust staffing plans and capital priorities based on “what if” situations
- Justify tradeoffs to leadership and the public with visual, data-backed models
When combined with centralized financial data and automated workflows, these capabilities are transforming how public sector teams manage complexity.
The City of Denver, Colorado uses scenario planning to make smart, data-driven financial decisions that ensure the continued success of their community. Read their story here.
How to Prepare for AI-Driven Budgeting
AI adoption doesn’t happen overnight, but the groundwork starts now. Here’s how forward-thinking agencies are preparing:
- Centralize your data: Disparate spreadsheets and siloed systems limit automation potential. Cloud-based platforms like Euna Budget bring everything into one place.
- Standardize your workflows: Consistent structures for personnel, capital, and operating budgets make forecasting easier to scale and automate.
- Document your assumptions: Today’s tools can track every input and revision, making AI insights auditable and trustworthy.
- Start small, scale smart: Use scenario modeling or forecast comparisons as pilot areas before expanding automation more broadly.
The Future Is Human + Machine
AI isn’t here to replace finance professionals; it’s here to elevate them. By shifting repetitive tasks to smart systems, public sector teams gain time, clarity, and capacity to focus on what matters most: aligning resources with community needs.
And as Euna Budget customers have shown, adopting these tools doesn’t mean overhauling everything at once. It’s about strategic steps toward an integrated, future-ready finance function.
Conclusion
The future of budgeting won’t be built on spreadsheets and staff burnout. It will be led by augmented teams that blend institutional knowledge with intelligent tools. These teams are empowered to plan strategically, act quickly, and communicate clearly with their communities.
