Local governments are facing a widening gap between aging municipal facilities and the resources available to modernize them. While deferred facility maintenance continues to stack up, federal funding and the skilled professionals needed to address the backlog are becoming harder to find. To manage this uncertainty, local governments must embrace digital, data-driven facility planning. Better data means being better able to plan for big facility expenses, rather than absorbing them as surprise shocks to next year's budget. And better long-term planning can relieve everyday budget strain by reducing overall operating costs. Cities regroup against shrinking federal funding 84% of municipalities now cite insufficient capital budget as a top infrastructure barrier, alongside rising labor and materials costs, as local governments grapple with a nearly $100 billion backlog in maintenance for publicly owned buildings. According to the National League of Cities' (NLC) 2026 Municipal Infrastructure Conditions Report, the share of municipalities rating their public buildings in good condition fell to 29% in 2026, while the share rated "not satisfactory" climbed to 25%. This decline coincides with what NLC’ CEO Clarence Anthony describes as winding-down federal investment, like the Infrastructure Investment and Jobs Act (IIJA), which had previously boosted local project development. Nationally, NLC has called for "a reliable federal partnership" as Congress weighs future infrastructure legislation. When project funding arrives but skilled labor doesn't Even when funding is available, many local governments lack the skilled staff needed to scope, manage, and execute facility projects. Jess Davis, Performance Manager for Digital Services at Schneider Electric, describes the problem he’s seeing municipal clients face this way: "We're seeing far fewer people entering facilities management and mechanical trades, and many experienced facilities professionals are approaching retirement. That creates real uncertainty for districts that have relied on one or two key individuals to manage and maintain
Municipal facility planning amid funding and workforce scarcity
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