Local Funding Lab

Across many jurisdictions, local expenditures are growing faster than revenues, creating fiscal imbalances that are particularly acute in remote and resource-constrained regions such as the Arctic. In response, PORA developed the Local Funding Lab as an evidence-based, practice-oriented instrument to assist local authorities in identifying, understanding, and mobilizing a wider range of funding sources. Drawing on international experience, it brings together dispersed knowledge in a clear and structured format, helping to address persistent informational and institutional gaps in municipal finance.

The Local Funding Lab is an interactive digital platform that presents best practices in financing local development projects. It covers more than seventy financial instruments, ranging from traditional fiscal tools such as taxes and intergovernmental transfers to non-fiscal and market-based mechanisms, including municipal bonds, public–private partnerships, and targeted funds. These instruments are grouped into sixteen categories for ease of use. The platform also features over 170 case studies from eleven countries, covering both Arctic and non-Arctic contexts. While the Local Funding Lab was developed with a focus on municipalities in the Russian Arctic, it is designed to be scalable and applicable across a wider range of territorial settings.

The Local Funding Lab provides a practical knowledge base for strengthening municipal finance. It highlights underutilized fiscal capacities, supports the identification of non-tax revenue sources, and pinpoints institutional constraints that limit local governments’ ability to attract and manage funding. By aligning international practices with domestic frameworks, it also informs policy discussions on legal and regulatory reform, particularly in areas where key instruments remain underdeveloped. 

The platform’s insights are expected to underpin recommendations for municipal and federal decision-makers, inform further policy development in municipal finance, and support ongoing analytical and advisory work aimed at improving the financial sustainability of Arctic municipalities.