By Claire Elise Thompson for Grist.
Broadcast version by Danielle Smith for Keystone State News Connection reporting for the Solutions Journalism Network-Public News Service Collaboration

Governments the world over have made a lot of great-sounding climate commitments. In Pittsburgh, for example, an ambitious plan adopted in 2018 outlines objectives like 100 percent renewable energy in municipal facilities by 2030, a fossil-free fleet, and zero-waste operations. But setting goals is one thing. Implementing the programs and infrastructure needed to reach them is another - and that work costs money.

"We had a large, ambitious agenda, but very little resources that went alongside it," says Grant Ervin, Pittsburgh's former chief resilience officer who oversaw creation of the 2018 plan. "Following the completion of our resilience strategy and our climate action plans, we were asking the question: Where is the money to help implement these different initiatives that we had identified?"

Answering that was tricky for this midsize post-industrial city, which was designated as "financially distressed" from 2003 until early 2018. For Ervin, the challenge went beyond raising funds for new initiatives. He wanted to ensure the city's spending - all of its spending - aligned with its climate and equity promises. "If we're going to address the climate challenge," he remembers thinking, "we're going to have to start to leverage our existing resources to do the things that we know we need to do."

For Steel City, that meant scrutinizing its entire spending plan through a climate lens with the help of a method called priority-based budgeting.

The challenge: budgeting for a cause

There are several ways an organization can slice its budget. One common approach is incremental budgeting, wherein the previous year's budget provides the baseline for the next, with incremental adjustments. It's easy to imagine how that might lead to inefficiencies when line items get carried over year after year.

Priority-based budgeting, on the other hand, maps every single dollar a city spends to a specific program - everything from "rodent baiting" to recycling collection - then scores each one according to how it achieves the city's priorities. Although the method could be used in the private sector, it was developed for local governments, which work toward the common good rather than a profit margin.

"There are so many societal objectives that are really up to local governments to mount a charge to try to solve," says Chris Fabian, who developed the approach to budgeting around 2010. After years in the public sector, he saw that municipal budgets were not designed to reveal how much money was going toward objectives like climate action, equity, or resilience. Such efforts were often bundled into many different line items, making accountability difficult. He wanted to develop a system that would help cities see how they could redistribute resources to finance their top priorities - from general goals like fostering safe, healthy communities to specific projects like addressing homelessness.

Fabian cofounded the software and consulting company ResourceX in 2015 and has since helped over 300 local governments across the U.S. and Canada adopt priority-based budgeting. Common priorities the company helps cities advance include equity, safety, and thriving economies. "It does vary," Fabian says. "If you go into some conservative communities, they might not feel that they have a role in economic vitality. They're like, 'The business sector should figure it out on their own.' Whereas other places invest heavily in visitors bureaus and convention centers and so on."

Climate, he says, is something of a new focus for the municipalities he and his team work with. In 2020, Pittsburgh became the first to use the process to develop a climate-first budget for the entire city.

Pittsburgh's goal: a zero-carbon budget

When Ervin worked for the city of Pittsburgh, he visited towns around the world to learn how they were integrating climate priorities into their spending. Although some Scandinavian cities employ "carbon budgeting" - a greenhouse-gas accounting system that resembles a fiscal plan - Ervin never found an example of a comprehensive financial plan that accounted for climate and equity priorities.

"One of the things that we had as a goal was to eventually have a zero-carbon budget" - one that wouldn't cause any net increase in carbon emissions - says Will Bernstein, who became an advisor to Pittsburgh through its participation in Bloomberg Philanthropies' American Cities Climate Challenge, and is now the city's climate and energy manager. "But we didn't really know exactly how to get there in terms of understanding the budget, and how you construct that and how you measure that." With the help of a $50,000 grant from the challenge, Pittsburgh hired ResourceX to pursue its goal.

"They reached out and said, 'We found you guys through a Google search,'" Fabian recounts, "'and it seems like you might have the tool that we're looking for, to get budget alignment toward a priority. Have you ever done it on climate?'"

Over a period of roughly three months in the fall of 2020, city officials tracked nearly every dollar in the $600 million operating budget to a specific program, then scored each program against Pittsburgh's climate and equity priorities. Of 27 departments, only four did not participate in the process. Then, in early 2021, over 50 representatives from those departments joined a series of workshops to pitch ideas for where costs could be cut and revenue generated, and how that money could finance the city's climate goals. Pittsburgh identified $41 million that could be reallocated toward climate and equity initiatives. However, those dollars didn't move right away - and some still haven't.

"Sometimes it's difficult to see a one-to-one transition," says Patrick Cornell, deputy director of Pittsburgh's Office of Management and Budget. The goal of a priority-based budget isn't necessarily to kill any program that doesn't score highly and move the money to ones that do. It's an iterative process, more akin to what Ervin hoped to do with the budget: see where the city's spending might be running counter to its climate objectives, and how that could be fixed over time - whether by ending a program, or changing the way work gets done.

One example of a relatively straightforward shift is electrifying the city's fleet. "Currently, any sedans that need to be replaced are being replaced with electric," says Rebecca Kiernan, assistant director of the Department of City Planning, who leads the sustainability and resilience division. But, she adds, the budget is always tight, and the city was already decades behind in updating its fleet. She and her team are also accelerating the EV transition with the help of federal money. This year, the city is getting eight electric recycling trucks, with funding from the American Rescue Plan and the EPA's Targeted Airshed Grants Program. "Those are gonna be our first [electric] heavy-duty fleet vehicles. So that's really exciting," Kiernan says.

Eliminating paper contracts - something Ervin called "master of the obvious" - is an example of changing the way work gets done. A city ordinance approved in November 2021 requires the use of electronic signatures for all city business. Not only did that free up around $50,000 a year by Kiernan's estimate, it reduced waste.

Priority-based budgeting: one tool in the box

Pittsburgh enacted its first priority-based spending plan in 2022, a $615 million operating budget that provided, among other things, the money to create Bernstein's position. The city is still quite a ways off from having a zero-carbon budget. But the priority-based approach appears to have staying power. The city will continue working with ResourceX for at least another three years, aiming to get closer with each iteration to a budget that reflects its climate and equity goals.

Prior to working with the American Cities Climate Challenge, Cornell wouldn't have considered priority-based budgeting much more than a fad. "Different things become popular depending on what major cities are doing, or what is new in the thrilling world of municipal budgeting," he says. And he admits that some departments found the process more intuitive than others. But he and his team have gotten behind the approach - so much so that he took up the mantle of pitching it to the new administration when the mayor's office changed hands in 2022. Everyone was keen to keep going with it. "We're able to think more holistically about different programs that residents are concerned about," he says.

And the city has also used that holistic thinking as an opportunity to communicate more openly with residents. In the fall of 2022, Pittsburgh launched a public-facing tool that allows anyone to explore the city's new priority-based budget and see how various city-funded programs benefit residents. "That's a brave act," says Erik Fabian, Chris's brother and the business development manager at ResourceX. "It's transparent - some programs are more aligned than others. So that's being communicated, and putting the city in a position of accountability."


Claire Elise Thompson wrote this article for Grist.


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Two pieces of legislation in Connecticut could bolster public transportation if they make it through the General Assembly.

Senate Bill 277 would restore funding to Shore Line East to increase rail service. Ridership plummeted during the pandemic, though it's been growing modestly since then.

But as more people opt to work from home instead of commute, some question whether there's a need for more rail service.

Jay Stange, coordinator with the Transport Hartford Academy, said state investments can help transit lines attract the riders they need.

"Ridership on the Hartford Line, which has been supported by state investment, is up every year," said Stange. "We also are seeing huge increases on the Waterbury Line in Connecticut, where those service investments have been made. The bottom line is that if you don't have the service, you won't have the riders."

The 2023 budget cut funding for Shore Line East to 44% of what was required for pre-pandemic service.

The bill received wide support at a public hearing, but some residents don't agree that funding cuts cause low ridership.

Stange said restoring this funding would provide economic benefits through growing jobs and tourism.

Another bill incentivizes transit-oriented development.

House Bill 5390 would provide water and sewer funding for land-use planning and other developments, making it easier to build housing where transit and rail services exist.

Stange said it's time for the state to build better.

"Connecticut is starting to see," said Stange. "that the development pattern of the last 70 years - where we build new interstate to green-land development that's mostly single-family homes - is a money-losing proposition, in the long term."

Studies show transit-oriented development reduces air pollution and uses large plots of land to accommodate growing populations.

The bill faced opposition from communities concerned about the need for local control for developing these projects. The new version of the bill allows communities to "opt in" for these incentives instead.




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City and county governments are feeling the pinch of rising operating costs but in Wisconsin, federal incentives are driving a range of local projects, taking off some of the pressure in making communities economically viable.

Dane County is no stranger to embracing clean energy and federal aid from policies like the Inflation Reduction Act and the Bipartisan Infrastructure Law are spurring more activity.

Joe Parisi, Dane County executive, said there have been past government credits for things like solar installations and the latest approach is more expansive, with a robust list of those who can benefit.

"Everybody -- a business, a nonprofit, a church, a temple, even a government, and a local government -- gets 30% back on renewable energy projects," Parisi pointed out.

For example, a local construction company put solar arrays on several of its facilities. Parisi noted the new credits speed up the pace of reimbursements, creating more energy savings in the near future. Federal officials said demand has been strong for the programs but Parisi said one challenge is creating broader awareness so under-resourced areas can apply.

Locally, the website for the Dane County Office of Energy and Climate Change has posted details about project opportunities and investments. Beyond clean energy, Parisi emphasized the federal government's push for more "Made in America" manufacturing creates opportunities for local plants and regional economies.

"There's money to help retooling to manufacture (products)," Parisi stressed. "Then, there's a stronger market for those components now because they are made in America."

National polling shows Americans are greatly concerned about things like inflation but Parisi argued long-term investments stand to help reduce operating expenses for government agencies and businesses, hopefully keeping local taxes in check and providing savings for consumers.


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Federal and agency officials convened with stakeholders in Southeastern Utah to discuss how federal funds can help grow and strengthen local economies.

Lenise Peterman, mayor of Helper in Carbon County, said money from major legislation like the Bipartisan Infrastructure Act and the Inflation Reduction Act often bypasses communities like hers, which are often the most in need.

Peterman was part of the "Coal Country at a Crossroads Listening Session," examining the challenges of smaller, rural communities in addressing needs for clean energy, workforce and economic development, and infrastructure.

"I felt very optimistic, because I felt like I was no longer just this region, somewhere tucked away in the intermountain area, but somebody that they had to look at and see, and hear them say, 'I need to get this funding. How do I do this?'" Peterman recounted.

Like many rural towns, Helper has seen a declining coal industry. In 2022, five operators in Utah produced coal worth $504 million, down 15% from the previous year. Peterman pointed out power plants and coal mines have traditionally been the sources of well-paid jobs, but communities like hers are figuring out how to adapt with the times and ensure people can continue to call rural Utah home.

Peterman said she considers the listening session a success, as it brought together federal officials and local leaders to focus on possible solutions. She noted one message was the government may need to do more to ensure communities like Helper, as she put it, "don't fall through the cracks."

"How do we equate a rural community with these more urban areas that have headcount, and have people on staff who can look into these federal funding opportunities and collect them?" Peterman suggested.

She added she works with a team of 15 other individuals but is the sole grant writer for her town. Legislation in Congress, called the "Rebuild Rural America Act," would have allocated money to help smaller communities compete for federal dollars but got stuck in a Senate committee last year.


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