1 / 9

GFOA Innovation Lab

Accelerating Innovation in Public Finance

Real solutions. Public finance impact.

A new platform to identify, develop, and scale solutions that solve real problems for local governments.

20K+ GFOA Members
Jan 2026 Target Launch
∞ Impact Potential
2 / 9

The Challenge

Local Government Finance Departments Face Critical Barriers

  • Innovation Paralysis: Limited ability to take risks or pilot new approaches
  • Resource Constraints: Insufficient funding and personnel for innovation
  • Technology Gap: Stuck with outdated tools while facing modern challenges
  • Institutional Lag: History shows local governments get left behind in tech adoption
The Result: A widening gap between what's possible with modern technology and what most finance departments actually have access to use.
3 / 9

Why Now?

🚀 AI Revolution

We're at the beginning of the AI transformation. If history is any guide, local government finance will be left far behind without proactive intervention.

🏛️ Institutional Renewal

The institutions of the future will be built in "bits and bytes, not just atoms." Public finance needs to be part of this transformation.

💪 GFOA's Unique Position

GFOA is uniquely positioned to lead this transformation with trusted relationships, deep expertise, and 20,000+ members ready for solutions.

⚡ Fiscal Pressure

Unprecedented fiscal challenges require new approaches to budgeting, forecasting, and financial management.

4 / 9

The Solution: GFOA Innovation Lab

A Platform That Can Take Risks and Bring Resources to Bear

  • Mission-Driven Innovation: Technology-led solutions grounded in GFOA's mission
  • Balanced Portfolio: Mix of practical "blocking & tackling" tools and game-changing innovations
  • Multiple Solution Sources: Homegrown development, startup partnerships, and government-created innovations
  • Ethical Foundation: Strong guardrails to maintain GFOA's neutrality and member trust
Key Differentiator: Unlike vendor-driven initiatives, the Lab applies discipline, ethics, and structured evaluation to ensure real value delivery.
5 / 9

Dual-Track Implementation Strategy

Track 1: Infrastructure Development

  • Legal entity formation and governance
  • Fundraising and team building
  • Program design for external partnerships
  • Long-term institutional capacity

Track 2: Homegrown Solutions

  • Scale existing prototypes (ChatGFOA, risk-based reserves)
  • Solution-specific fundraising
  • Market validation and early revenue
  • Immediate impact and credibility
Strategic Advantage: Track 2 provides market validation that strengthens Track 1's fundraising, while Track 1 creates the capacity for Track 2 to scale.
6 / 9

Priority Homegrown Solutions

🤖 ChatGFOA

AI-enabled assistant for public finance questions using GFOA resources. Flagship proof-of-concept for AI in public finance.

📊 Risk-Based Reserves Tool

Framework for calculating reserve levels based on risk scenarios. Strong mission alignment with GFOA best practices.

🔍 AI-Powered Fraud Detection

Anomaly detection for financial transactions. Start narrow (duplicate payments) and expand.

💼 Accrued PTO Liability Simulator

Models long-term cost of employee leave liabilities. Clear market gap with no standard ERP solution.

💰 Risk-Based Cash Flow Forecasting

Scenario-based cash flow prediction tool. Natural extension of reserves tool.

📏 Materiality Assessment App

Calculator for financial reporting materiality thresholds. Training and audit risk reduction focus.

7 / 9

Implementation Timeline

June 2025
Assemble Board of Advisors, validate market demand, begin solution testing
July 2025
Hire interim CEO, build technical capabilities, develop go-to-market approach
August 2025
Complete pitch deck, test solutions with partners, pursue funding opportunities
September 2025
Launch VC roadshow, begin legal formation, validate market response
Jan 2026
Public Launch: Lab operations with proven solutions and business model
June 2026
Demo Day: Showcase success stories at GFOA Annual Conference
8 / 9

Financial Model (Draft)

Revenue Streams (To Be Validated)

  • Software licensing for homegrown solutions
  • Consulting services and implementation support
  • Program fees from Accelerator participants
  • Revenue sharing with external partners

Funding Approach

  • Phase 1: GFOA seed funding for validation
  • Phase 2: Strategic investors based on traction
  • Phase 3: Growth capital with proven model
80%+ Target member interest in solutions
5+ Governments using solutions by end of 2025
24 months Path to operational break-even
9 / 9

Request for Board Support

Strategic Opportunity for GFOA Leadership

Position GFOA at the forefront of public finance innovation while maintaining trusted, neutral relationships with members and vendors.

What We Need

  • Board endorsement of the Lab concept
  • Support for separate legal entity formation
  • Initial seed funding for market validation
  • Permission to use GFOA relationship for development
  • Guidance on governance and ethics framework

What Success Looks Like

  • Tangible improvements in government financial management
  • Enhanced value proposition for GFOA members
  • Sustainable revenue streams for continued innovation
  • Leadership position in public finance transformation
  • Maintained trust and institutional neutrality
Next Steps: Board approval to proceed with advisor assembly, market validation, and interim CEO recruitment.