Introduction

California’s local government leaders are facing a pivotal year. Recently, the Institute for Local Government (ILG) asked local leaders to share their most pressing challenges and priorities for 2026. Across the 200+ local government leaders surveyed, a singular narrative emerged: agencies are being forced to do fundamentally more with fundamentally less, pushing operational capacity to a breaking point.

At ILG, we aren’t just looking at this data — your feedback is directly influencing our upcoming resources, training, and technical assistance to ensure we are meeting you exactly where you are. The road ahead in 2026 may be challenging, but you don’t have to navigate it alone. We are proud to be your partner in building resilient, well-governed, and thriving communities.

Below is a brief summary of the survey results, including a high-level analysis of the most pressing issues and challenges facing local government agencies today.

Download the full 2026 Priorities Survey Results report here.

Executive Summary

Survey Methodology

The following is based on responses to ILG’s 2026 Annual Priorities Survey from February 4 to March 17. ILG conducted the survey online through Qualtrics, which took respondents approximately 10 minutes to complete. ILG promoted the survey through email marketing, social media, partners/affiliates/friends, and word of mouth.

Top Issues and Concerns

The key pain points from our 2026 Annual Priorities Survey were clear: while fiscal instability and budget shortfalls remain the overwhelming top concern, there is a profound need for leadership development, workforce stability, and a return to civility in our public squares.

Survey respondents said their top five repeated issues or concerns were:

1. Budget Shortfalls & Fiscal Instability (the overwhelming top concern)
2. Staffing Shortages, Recruitment & Retention Challenges
3. Unfunded State & Federal Mandates / Regulatory Pressures
4. Community Trust, Misinformation & Political Polarization
5. Housing Affordability, Cost of Living & Community Stability

The overall theme points to financial strain as the dominant issue, and it directly connects to nearly every other concern, including staffing capacity, service delivery, infrastructure maintenance, public trust, and the ability to meet state and federal requirements. Stay tuned for how ILG will help local leaders address these issues throughout the rest of 2026.