By S. Mohsen Fatemi, University of Kansas, on behalf of, Rachel M. Krause, University of Kansas; Le Anh Nguyen Long, University of Twente; Gwen Arnold, University of California, Davis; and Sara Ludwick, University of California, Davis

Why Governance Culture Matters

When communities face floods, extreme heat, or other climate risks, the first instinct is often to look at resources: staff size, budget, or federal aid. But new research published in Climate Policy suggests that internal governance culture—how a local government learns, anticipates, and adapts—may be just as important as financial capacity.

The study, which surveyed 386 U.S. municipalities, introduces the idea of Transformative Governance Capacity (TGC). Communities with high TGC don’t just bounce back after climate shocks—they bounce forward. They take calculated risks, encourage learning, and plan proactively. The findings show that cities with stronger TGC are significantly more likely to go beyond federal minimums and adopt ambitious climate policies, particularly in flood management.

Lessons from FEMA’s Community Rating System

Researchers used FEMA’s Community Rating System (CRS)—a voluntary program that rewards communities for going beyond minimum floodplain management standards—as a measure of ambition. Local governments that participate in CRS often reduce insurance premiums for residents by 5–45% while investing in more comprehensive risk reduction strategies like stricter building codes, early warning systems, and land-use changes.

Case examples stand out:

• Tulsa, Oklahoma, transformed flood-prone neighborhoods into green space.
• Roseville, California, tightened building regulations and preserved open space.
• Fort Collins, Colorado, paired strong codes with community flood drills.

Despite these benefits, only about 5% of U.S. communities participate in CRS. The study found that the difference often comes down to governance culture rather than just money or hazard exposure.

What Is Transformative Governance Capacity?

The research team defines TGC around three behavioral traits:

• Learning-focused: continuously seeking new information, piloting ideas, and adjusting policies.
• Proactive: planning for long-term risks, even when immediate threats aren’t visible.
• Risk-accepting: recognizing that bold action carries political and financial risks, but moving forward anyway.

Communities that scored higher on the TGC index were not only more likely to join CRS, but also earned higher scores within the program. On average, the most “transformative” communities scored 272 points higher than their peers, a difference that translates into stronger protection for residents and lower long-term costs.

What This Means for Local Leaders

The study emphasizes that capacity isn’t just about resources. Local governments with modest budgets but strong cultures of learning and adaptation can outperform wealthier peers. Traditional measures—population size, revenue, or even flood risk—explain some differences, but they don’t capture the behavioral side of governance.

For practitioners, this means that cultivating TGC is within reach. The authors suggest:

• Investing in staff training that builds strategic foresight and adaptive management skills.
• Engaging in peer networks like ICLEI or regional collaboratives to exchange knowledge.
• Experimenting with participatory processes (citizen assemblies, participatory budgeting) that strengthen legitimacy and generate new ideas.
• Encouraging policy pilots—small-scale experiments that can be scaled if successful.

Takeaway

Resilience starts with culture. Communities that value learning, proactivity, and risk acceptance are better positioned to protect their residents and seize opportunities in the face of climate disruption.

City and county leaders can begin today by asking:

• Does our governance culture encourage learning and experimentation?
• Do we anticipate long-term risks, or only react to immediate crises?
• Are we willing to take smart risks to protect future generations?

ICMA members have long led by example in public service innovation. The next frontier in climate resilience may not be about adding more dollars to the budget, but about fostering a culture inside the local government that empowers teams to think, act, and lead differently.

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