Local Government Finance Staffing: Why the Warning Signs Are Now a Crisis

Local government finance is facing its most significant staffing challenge in decades, and the pressure is mounting.

Before COVID, many in the sector were already sounding the alarm. The baby boomer generation was approaching retirement, and the warnings were clear: staffing shortages were coming. But those warnings were often overshadowed by day-to-day demands and competing priorities.

Then the pandemic hit, accelerating what had been a slow-moving issue into an urgent reality.

Today, across British Columbia, local governments are struggling to recruit and retain finance staff like never before. Chief Financial Officers and senior managers are working overtime at unprecedented levels. Burnout is growing, and with it comes a serious risk: if those few experienced leaders step back due to health, exhaustion, or retirement, the bench strength simply isn’t there to carry the load.

The numbers tell the story. Thirty-four percent of BC finance departments report being understaffed compared to their budgeted full-time equivalents, with vacancies often going unfilled for months (GFOABC BC, 2023). Recruitment is difficult, with positions remaining vacant for months or even years. Retention is fragile, as some new hires leave quickly after realizing local government finance isn’t what they expected. CFOs are under strain, working long hours under constant pressure, and knowledge gaps are widening as decades of institutional knowledge risk being lost without proper succession planning.

This instability isn’t just an internal issue. It directly affects financial reporting, service delivery, and the quality of advice provided to elected officials — with real implications for governance and decision-making.

Traditional approaches to local government administration, while once effective, will not carry us into the future. We need to adapt — and quickly. Future generations of professionals bring different expectations, and if we fail to listen and respond, we will struggle to attract and retain the people we need. They are looking for flexibility through hybrid work options and genuine work-life balance. They want purpose — a clear connection between their work and positive community outcomes. They expect growth opportunities to advance, take on responsibility, and make an impact early in their careers. And they need modern tools that enable efficiency rather than outdated systems that frustrate.

The silver lining is that this moment also presents an opportunity. With many retirements underway, young professionals can progress more quickly than in most industries. They have the chance to shape the financial future of the communities they call home — if we can attract and retain them.

There are practical steps we can take together. Co-op programs offer a powerful entry point: business students from BC universities are eager for real-world experience, and bringing them into finance departments allows local governments to showcase the profession early while benefiting from fresh perspectives, particularly around technology and efficiency. Mentorship and succession planning must be strengthened, with senior finance officers supported — with time and resources — to mentor junior staff and transfer critical knowledge before retirement. Collaboration across jurisdictions can ease pressure on smaller municipalities by pooling resources, sharing training opportunities, and exploring shared service models. And we need to promote the profession more effectively, telling the story that managing billions of dollars in public assets is challenging, meaningful work with real community impact.

Addressing this challenge requires intentional leadership decisions — about investment, flexibility, training, and support — not simply hope that conditions will improve on their own. Without deliberate action, the pressure on those who remain will continue to grow, with real implications for financial sustainability and governance.

But if we work together — embracing change, investing in people, and supporting the next generation — we can prevent a crisis and build a stronger, more resilient future for local government finance in British Columbia.

This isn’t just a human resources issue. It’s a financial sustainability and governance issue — and one that requires leadership, investment, and intentional action now.

The question isn’t whether change is coming. It’s whether we lead it.

Let’s start now.