ENGAGE 2026: Join us March 15-18 in Washington, DC
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Jan 21, 2026

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The new year is a chance for public administrators to step back and take stock. What’s working, what’s slowing teams down, and what needs to change before it becomes a bigger problem?
Whether funding stays the same, increases, or tightens, most of it is already allocated—leaving leaders to solve new problems with fixed resources and limited staff. Meanwhile, community expectations continue to rise.
Across finance, HR, procurement, and operations, agencies are rethinking the systems and workflows that slow down services. Things like legacy tools, siloed data, and manual handoffs create delays and increase risk—making it harder to meet citizen expectations.
In 2026, the agencies that lead will modernize with intention. The focus is adopting technology and streamlining operations strategically to simplify work, connect departments, and save time.
To accomplish this, agencies are implementing AI, moving to the cloud, strengthening cybersecurity, and more. Keep reading for the top five public administration trends in 2026—and how they support more efficient, citizen-focused services.
AI is no longer a “future-state” initiative in public administration. It’s happening now, and it’s happening fast. According to GovTech, AI has overtaken cybersecurity as the top priority for state CIOs in 2026, ending a 12-year streak where cybersecurity held the #1 spot.
That shift is showing up inside agencies too. NASCIO reports that 82% of state government offices have employees using AI tools in their daily work. Workloads are increasing, budgets are fixed, and teams need to reduce time-consuming steps that slow down services. That’s where public administration AI delivers. It’s now being used to summarize information, streamline documentation, and support faster decision-making.
But adoption isn’t reckless. NASCIO also found that 88% of agencies have implemented guardrails to ensure AI is used responsibly, securely, and ethically.
That’s why choosing the right tool matters. Solutions like Centerline AI help agencies automate work while staying aligned with state and federal standards.
Legacy systems may be familiar, but they come with a real operational cost. According to EY, 69% of IT leaders say legacy technology reduces operational efficiency. Another 68% say it introduces security risk. And 64% say it holds back modernization efforts altogether.
In public administration, many systems were built decades ago and patched over time instead of redesigned. Modernizing them isn’t always simple. Budgets are planned years in advance. Teams are cautious about disruption. And change often runs into internal resistance. Still, the momentum is clear. Even at the federal level, 63% say modernizing legacy systems is a priority in 2026.
The payoff is worth it. Upgraded platforms reduce long-term cost of ownership (i.e. maintenance, updates, licences, etc.), strengthen security, and improve productivity across departments. They also remove friction for the public—faster service, fewer handoffs, and more transparent interactions.
In 2026, modernizing legacy systems is less about “new tech” and more about keeping your agency functional, secure, and ready for what’s next.
Cybersecurity may have shifted to the #2 priority for state CIOs in 2026, but it hasn’t become any less urgent. If anything, it’s more important now. More agencies are expanding cloud adoption, piloting AI tools, and connecting systems that were never designed to work together.
That growth brings new exposure. More integrations. More users. More data moving across platforms. And more opportunities for disruption if security isn’t prioritized from the start.
Strong cybersecurity practices protect the systems, data, and services your agency can’t afford to lose: financial operations, payroll, citizen services, internal records, and communications. It also protects operational continuity during disasters—whether it’s a ransomware attack, regional outage, or severe weather that knocks teams off normal routines.
In 2026, resilience is part of the plan, not a backup idea. That means training staff, tightening access controls, monitoring threats, and building an emergency preparedness plan that keeps services running during any event.
Cloud adoption is accelerating across public administration. In CentralSquare’s 2025 Cloud Study, 94% of surveyed agencies said the cloud is at least somewhat important to their future. That’s not hype. It’s a signal that public sector leaders are prioritizing modern, more resilient technology solutions.
On-prem infrastructure comes with constraints. Hardware ages out. Budgets get locked in years ahead. But cloud platforms remove much of that friction by giving agencies predictable operating costs, on-demand scalability, and built-in redundancy.
The benefit isn’t just technical. It’s operational too. Cloud adoption helps agencies stay available during disruptions, support hybrid teams, and keep critical systems running without constant maintenance. It also gives departments room to grow without expensive hardware refresh cycles or long upgrade timelines.
As 2026 priorities take shape, the cloud is becoming a practical path to long-term efficiency. Learn how CentralSquare cloud solutions can help your agency optimize operations and respond more effectively to evolving community needs.
Public agencies don’t struggle because they lack data. They struggle because their data is static.
Route Fifty reports that only 6% of surveyed government leaders rate interoperability as mission-critical. The reality on the ground tells a different story.
When finance, HR, permitting, and community services run on separate systems, even simple work gets slowed down. Teams re-enter the same information. Updates get missed. And leaders lose time trying to reconcile what should already be aligned.
That’s why interagency collaboration and connected data are a defining trend of 2026. Agencies are moving away from siloed tools and toward integrated workflows where information flows across departments without manual handoffs. The result is smoother processes, fewer delays, and clearer insights for decision-makers.
Connected systems maximize your other investments as well. AI becomes more useful because it has a broader context. Cloud works the way it’s supposed to—fast, unified, and scalable. Cybersecurity improves because access and controls can be managed consistently.
When systems and data work together, services improve too. Citizens get faster answers, fewer steps, and a more reliable experience end to end.
Many public administrators still work around outdated systems, disconnected departments, and inefficient workflows. That’s changing in 2026.
This year, agency leaders are focused on modernizing with intention. That means adopting AI where it genuinely saves time, moving critical systems to the cloud for scalability and continuity, and strengthening cybersecurity as more platforms become connected. It also means upgrading legacy tools that slow service delivery and create unnecessary risk.
Just as important, agencies are prioritizing interoperability so data can move across departments without manual handoffs or duplicate work. When systems work together, teams move faster and serve residents with fewer delays.
If you’re planning for the year ahead, start by auditing what’s working and what’s holding you back. Then schedule a discovery call to see how CentralSquare can help you reach your goals in 2026.
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