The Impacts of Autonomous Vehicles and E-Commerce on Local Government Budgeting and Finance

Abstract

The goal of this white paper is to consider the impact of AVs on municipal budgets. AVs create a “potential rat’s nest of a budgeting challenge.” This paper seeks to begin the process of untangling that rat’s nest, and provide the foundation for future phases of the project that will consider potential additional revenue sources to fund the infrastructure changes that may come from the integration of AVs as well as land use planning implications.

Autonomous vehicles, E-commerce and the sharing economy will have profound effects on municipal budgets. While only a preliminary analysis, this report points to a large degree of disruption brought about by these technologies. The changes in the departmental distribution of revenue and expenditures, not to mention changes in overall budget numbers, will affect the ease of service provision and will require a re-balancing of budgets and priorities. Cities must begin to incorporate these changes in their budgeting, capital improvement plans, and organizational structure to both protect themselves against detrimental effects and to be able to effectively leverage these emerging technologies to further community goals.