Providing community services is the primary responsibility of the public sector; however, funding and maintaining all of these services can put a significant strain on budgets. Because taxes are the traditional primary source of public sector funding, it is easy for other potential income sources to be overlooked. Numerous opportunities exist for generating additional revenue that could ease the burden on the taxpayer and lead to more efficient and sustainable public services.

Although counties, municipalities, and state governments face similar challenges in maintaining cash flow and tax-revenue streams in a perpetually cash-strapped environment, many public sector assets are still not being used to their fullest. In this context, any avenue that could potentially provide better funding and management of public services should be thoroughly explored according to the principles of financial viability, fairness, and transparency.

Simon-Kucher supports the public sector in ensuring sustainable revenue optimization and successfully managing services supporting both public and citizen interests. Our revenue and strategy experts help unlock the untapped potential of government assets for the purpose of strategic revenue management. A fair distribution of costs between taxpayers and users, and movement toward more self-sustaining or cross-subsidizing systems, can strengthen and stabilize public sector financial resources. Several measures can be taken to ensure public services remain available and accessible; these include identifying viable commercial assets, determining their utilization as revenue sources, and optimizing income from fees and dues, not for pure profit maximization but based on a fair distribution of costs ensuring accessibility and availability of public resources.

Simon-Kucher has extensive revenue-generation and budget management project expertise, and has collaborated closely with a range of public services, including:

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