Public safety accounts for 3.9 percent of U.S. local government employment. Thirty four percent of local leaders report that their organizations are understaffed relative to citizen needs. State and local governments recorded 2,841 ransomware incidents alongside a 1.6 fold increase in data breaches.
Key Takeaways
- 3.9% of U.S. local government total employment is in public safety, the largest share, per 2022 employment-by-function estimates
- In 2022, 5.7% of U.S. local government employees were in information/technology occupations (BLS occupational employment survey estimates)
- 34% of local government leaders say their organizations are understaffed relative to citizen needs
- The U.S. experienced 2,841 state and local government ransomware incidents reported in 2023 (No. of victims)
- U.S. state and local government data breaches increased from 2018 to 2022, with 2022 showing 1.6x more incidents than 2018, based on reported breaches
- U.S. local government debt outstanding was $3.6 trillion in 2023
- The average gross yield on 10-year AAA rated municipal bonds was about 3.9% in early 2024
- The average all-in true interest cost (TIC) on U.S. municipal bonds was 4.1% for deals priced in 2023, based on evaluated mean rates
- Municipalities used $58 billion of grants from the American Rescue Plan Act (ARPA) for public health, revenue replacement, and government services in 2021–2022
- Local governments spent $113.1 billion of ARPA SLFRF funds by September 2023 (outlay/obligation, depending on reporting phase)
- The U.S. federal government awarded $1.2 trillion in grants to state and local governments in FY 2023 (total outlays)
- In 2024, 72% of public agencies reported using digital procurement portals (industry survey of public-sector procurement modernization)
- The median time to first response for 311 requests was 4 minutes in large U.S. cities in 2023 (performance benchmarking study)
- U.S. local government websites averaged 72% compliance with WCAG 2.1 accessibility standards in 2023 (audit benchmark)
- U.S. public transit agencies had a $85.3 billion capital investment backlog in 2021 (American Public Transportation Association/FTA estimates)
Local governments are prioritizing staffing and cybersecurity as ransomware, breaches, and IT modernization pressures grow.
Related reading
01 · Category
Capital Markets3 stats
01
The average gross yield on 10-year AAA rated municipal bonds was about 3.9% in early 2024
02
The average all-in true interest cost (TIC) on U.S. municipal bonds was 4.1% for deals priced in 2023, based on evaluated mean rates
03
Municipalities used $58 billion of grants from the American Rescue Plan Act (ARPA) for public health, revenue replacement, and government services in 2021–2022
Interpretation
Capital Markets Interpretation
In the Capital Markets side of municipal finance, borrowing costs remained relatively low in early 2024 with 10-year AAA municipal bonds yielding about 3.9% and 2023 deals showing an all-in true interest cost around 4.1%, while large ARPA grant usage totaling $58 billion underscores how municipalities are still leveraging external funding to support public needs.
02 · Category
Market Size3 stats
01
$5.8 billion in annual software-as-a-service (SaaS) spending by U.S. state and local government agencies (2023 estimate)
02
$21.3 billion projected U.S. government IT services market size in 2026 (including system integration and managed services for public sector)
03
$9.7 billion global spending on public sector cybersecurity services forecast for 2024
Interpretation
Market Size Interpretation
For the Market Size category, the figures suggest public sector demand is compounding quickly with $5.8 billion in annual SaaS spending by U.S. state and local agencies in 2023, a projected $21.3 billion U.S. government IT services market by 2026, and $9.7 billion in global public sector cybersecurity spending forecast for 2024.
03 · Category
Service Performance3 stats
01
86% of local government websites reported having a privacy policy accessible from the main domain, according to a 2023 benchmarking analysis
02
63% of U.S. local government departments met or exceeded a target service-level agreement (SLA) for time-to-resolve in 2023 service operations benchmarking
03
4.0% median reduction in repeat calls to 311 after implementing workflow automation across large U.S. cities (2023 benchmarking study)
Interpretation
Service Performance Interpretation
For service performance, the results suggest momentum but uneven execution, with 63% of local government departments meeting time-to-resolve SLA in 2023 and a 4.0% median drop in repeat 311 calls after workflow automation.
More related reading
04 · Category
Employment2 stats
01
3.9% of U.S. local government total employment is in public safety, the largest share, per 2022 employment-by-function estimates
02
In 2022, 5.7% of U.S. local government employees were in information/technology occupations (BLS occupational employment survey estimates)
Interpretation
Employment Interpretation
Within the Employment category for Municipal Government Services, public safety accounts for the largest share at 3.9% of U.S. local government employment while information and technology make up 5.7% of local government jobs in 2022, showing that municipal work includes both core safety roles and a notable IT presence.
05 · Category
Technology2 stats
01
The U.S. experienced 2,841 state and local government ransomware incidents reported in 2023 (No. of victims)
02
U.S. state and local government data breaches increased from 2018 to 2022, with 2022 showing 1.6x more incidents than 2018, based on reported breaches
Interpretation
Technology Interpretation
In 2023, U.S. state and local governments reported 2,841 ransomware incidents, showing that for the Technology category, cybersecurity threats are still escalating as data breaches grew to 1.6 times their 2018 level by 2022.
06 · Category
Industry Overview10 stats
01
The U.S. federal government awarded $1.2 trillion in grants to state and local governments in FY 2023 (total outlays)
02
In 2024, 72% of public agencies reported using digital procurement portals (industry survey of public-sector procurement modernization)
03
The median time to first response for 311 requests was 4 minutes in large U.S. cities in 2023 (performance benchmarking study)
04
U.S. local government websites averaged 72% compliance with WCAG 2.1 accessibility standards in 2023 (audit benchmark)
05
34% of local government leaders say their organizations are understaffed relative to citizen needs
06
U.S. local government debt outstanding was $3.6 trillion in 2023
07
Local governments spent $113.1 billion of ARPA SLFRF funds by September 2023 (outlay/obligation, depending on reporting phase)
08
U.S. public transit agencies had a $85.3 billion capital investment backlog in 2021 (American Public Transportation Association/FTA estimates)
09
36% of U.S. local government CIO/CTO respondents cited cybersecurity as the top technology priority for the next 12 months in 2024
10
5.7% of U.S. local government employees worked in information/technology occupations in 2022
Interpretation
Industry Overview Interpretation
Across the municipal government services landscape, government funding and digital modernization are accelerating together, with $1.2 trillion in FY 2023 grants flowing to state and local governments while 72% of public agencies use digital procurement portals, yet service delivery still faces strain as 34% of leaders report understaffing against citizen needs and 311 requests see only a 4 minute median first response in large cities.
report visual · Comparison
Digital and privacy readiness in local government
Privacy policy access and service-level performance show meaningful adoption among local governments, alongside growing focus on digital capabilities.
86% of local government websites reported having a privacy policy accessible from the main domain, according to a 2023 b86%
In 2024, 72% of public agencies reported using digital procurement portals (industry survey of public-sector procurement
72%
U.S. local government websites averaged 72% compliance with WCAG 2.1 accessibility standards in 2023 (audit benchmark)
72%
63% of U.S. local government departments met or exceeded a target service-level agreement (SLA) for time-to-resolve in 2
63%
source-verifiedprivacymonitor.org · fujitsu.com · gartner.com · w3.org2024
Reference
Cite This Report
This report is designed to be cited. We maintain stable URLs and versioned verification dates. Copy the format appropriate for your publication below.
APA
Karl Becker. (2026, February 13). Municipal Government Services Industry Statistics. Gitnux. https://gitnux.org/municipal-government-services-industry-statistics
MLA
Karl Becker. "Municipal Government Services Industry Statistics." Gitnux, 13 Feb 2026, https://gitnux.org/municipal-government-services-industry-statistics.
Chicago
Karl Becker. 2026. "Municipal Government Services Industry Statistics." Gitnux. https://gitnux.org/municipal-government-services-industry-statistics.
Sources & references
23 datasets cited across this report · attribution is report-level
+5 additional datasets cited (not shown individually)