Your Federal Quarterly Tax Payments are due April 15th Get Help Now >>

BEST PRACTICE Incorporating Sustainability in Public Finance Practices by qau19822

VIEWS: 0 PAGES: 2

									                                               BEST PRACTICE

              Incorporating Sustainability in Public Finance Practices (2002) (BUDGET)

Background. Sustainability is the notion that current economic and consumption patterns should not reduce
opportunities for future generations by depleting or impairing resources. The driving force behind sustainability is
the recognition that the earth’s—and by extension, our communities’—natural capital is limited and that pollution
and waste are a drain on the economy. Sustainability demands balance among economy, environment, and
community. Emphasizing any one of these factors over the others causes an imbalance in intergenerational equity
and undermines the ability to support current business practices over the long term. In contrast, a “triple bottom
line” approach aspires to a strong and growing economy, while simultaneously maintaining the quality of the
environment and working to achieve social fairness.

Programs to reduce air pollution and clean up our rivers, harbors, and landfills are all very real and immediate
examples of the high cost of sidestepping sustainable practices. Both the public and private sectors have
experienced the complexity and costs of rectifying mistakes caused by an imbalance between economic and
environmental goals. At the same time, many businesses worldwide have demonstrated that they can operate
profitably while employing sustainable practices. Similarly, many governments have adopted and implemented
sustainable policies and business practices. Through the power of example, the public sector must continue to lead
the way toward a sustainable future. Standing at the vortex of the policymaking process, government finance
officers have an important role to play in this critical effort.

Recommendation. The Government Finance Officers Association (GFOA) recommends that the issue of
sustainability be considered a core value in setting organizational policy and establishing business practices in all
areas of public finance. Accordingly, GFOA encourages governments to consider the following actions:

Public Policy:
   • Incorporate a commitment to sustainability into mission and value statements.
   • Develop organizational goals that reflect sustainability principles both at the jurisdiction wide and
        departmental levels.
   • Encourage policy development that supports the environmental sustainability of the jurisdiction.
   • Implement policies encouraging or requiring the use of products certified as sustainable and/or
        environmentally friendly.
   • Evaluate how the jurisdiction’s tax structure affects its goals for a healthy economy, a healthy
        environment, and social fairness.
   • Form partnerships with other government agencies and with the private and not-for-profit sectors that
        promote sustainability.

Budget and Management:
   • Develop budget processes that reflect sustainability goals and objectives, measure government
       performance in realizing those goals and objectives, and benchmark such performance against
       comparable jurisdictions and/or accepted standards.
   • Consider financing and capital planning processes that systematically identify future costs and allocate
       those costs equitably across generations. The use of life-cycle costing and similar analytical tools is
       advised.
Sustainable Business Practices:
    • Implement purchasing practices that support the procurement of sustainable and recycled goods and
        services consistent with the jurisdictions’ financial plans and resources. Promote the use of products
        certified by reputable third-party organizations.
    • Develop sustainability principles and guidelines for facility and infrastructure development. Adopt green
        building standards, such as LEED, for construction projects.
    • Adopt policies that promote sustainable business practices in governmental operations, such as fleet
        management, building maintenance, and parks and greenspaces. Consider adopting guidelines established
        by independent organizations.
    • Implement practices and procedures that reduce waste, carbon dioxide emissions, and reliance on non-
        renewable resources; promote recycling and reuse; and minimize employee exposure to hazardous
        materials.
    • Educate and inform employees of the importance of sustainable practices and offer suggestions they can
        employ in the workplace.
    • Report on sustainable business practices and goals in annual reports, budget documents, and other core
        communications.
    • Include sustainability in job descriptions and performance reviews.

References

•   Caring for the Earth: A Strategy for Sustainable Living, World Conservation Union et. al.,1991.
•   The Ahwahnee Principles, Local Government Commission, 1994.
•   Our Ecological Footprint: Reducing Human Impact on the Earth, William Rees and Mathis Wackernagel,
    New Society Publishers, 1996.
•   Sustainable Communities: From Vision to Action, Lamont C. Hempel, Claremont Graduate University, 1998.
•   “Policy Guide on Planning for Sustainability,” American Planning Association, 2000
    (www.planning.org/policyguides/sustainability.htm).
•    “Portland, Oregon: A Case Study in Sustainability,” Government Finance Review, GFOA, February 2002.
•   “Purchasing Power: The Massachusetts Environmental Procurement Program,” Government Finance Review,
    GFOA, February 2002.
•   “Economic Development and Environmental Protection: The Northampton County, Virginia, Experience,”
    Government Finance Review, February 2002.


Approved by the GFOA’s Executive Board, June 17, 2002.

								
To top