It’s been called a billion-dollar prize – the gap between available revenue opportunities and the ability of local, state and federal government agencies to turn those potential revenue opportunities into reality.
It’s a challenge that many municipalities face. Research from McKinsey estimates that close to 20 percent of government revenues worldwide – or $309 billion in the U.S. – are lost each year, either in uncollected agency fees or due to outbound payment issues.
Compounding the current problem of unrealized revenue are new business models driven by technological, economic and social forces. In addition to financial services such as peer-to-peer lending and crowdfunding, digital sharing platforms for parking spaces, cars, bikes, scooters and RVs have emerged in recent years. These platforms are creating new challenges for local leaders and City Hall which lacks the infrastructure to support efficient permitting, regulation and taxation. However, municipalities can play a key role in helping this wave of emerging companies who are driving the sharing economy.
(Read more: CitiesSpeak)
