Why this Tool
In today’s rapidly evolving economic and social landscape, cities must adopt innovative and diversified funding strategies to address the interconnected challenges impacting residents’ health and wellbeing. Relying solely on single funding streams, such as property taxes or federal grants, can leave cities vulnerable to economic shocks and unexpected events, reducing their ability to respond to emerging priorities. By combining best practices with innovative approaches, cities can build financial resilience, sustain long-term initiatives, and ultimatelly champion the health and wellbeing of all residents.
The Diversified Funding for Health and Wellbeing Guide is designed to help you think about what’s needed to build a more resilient and sustainable financial strategy targeting health and wellbeing in your city. It provides foundational knowledge and core concepts that can guide your efforts as you develop a plan tailored to your community’s needs.
Budgeting Wellbeing
At its core, this guide operates on the principle that diversified funding is more than just finding resources to support programming. A city’s decisions around how funds are allocated and used reflect its core priorities and values. As cities across the country center thriving, resilient, and livable communities, meaningful progress depends on aligning financial strategies with community needs and long-term goals.
To do this effectively, cities must adopt a wellbeing lens. Wellbeing in a city refers to the overall health and quality of life of all city residents. It encompasses the physical, mental and social health of residents, as well as the opportunities available to them to create meaningful futures (CITE: RWJF). Applying a wellbeing lens represents a fundamental shift, from a narrow issue-specific focus to a comprehensive view of the interconnected factors that influence how well and how long residents live. This approach encourages cities to consider how city domains, from housing and economic development to arts and culture, all contribute to residents’ wellbeing. It moves beyond departmental silos and fosters integrated strategies that reflect the complexity of today’s municipal challenges.
When applied to funding, a wellbeing lens helps cities to leverage funds in ways that close disparities and ensure that investments deliver lasting, positive outcomes. This
expanded perspective broadens the funding universe and creates an integrated strategy
that connects the work and resources of multiple departments and partners around a shared vision for city-wide wellbeing. It also guides cities in directing resources where they are needed most, through targeted strategies that ensure all residents have access to the opportunities and support they need to thrive.
Diversified funding lays the groundwork for a robust city-wide health and wellbeing approach, while simultaneously strengthening the city’s overall financial standing. Cities with strong funding strategies are able to:
- Mitigate Risks: Cities relying on a mix of funding sources can better withstand economic downturns, changing federal priorities, and shifting local tax revenues.
- Sustain Initiatives: A diversified approach helps cities extend the lifespan of essential programs, particularly those focused on health and wellbeing.
- Foster Innovation: Diversified funding models enable experimentation with new approaches like social impact bonds, allowing cities to test innovative solutions to complex problems like homelessness or community health disparities.
- Expand Wellbeing and Opportunity: Cities with a variety of funding streams can prioritize investments in historically underserved areas, ensuring that efforts in public health, infrastructure, and social services address the most pressing community needs.