From Federal Policies to GovTech Platform Solutions
What Trump’s Canada Vision Means for Local and State Governments and the Tech They Rely On
The remarks by Donald Trump regarding Canada potentially becoming the 51st state of the United States sparked the usual widespread political commentary, largely centered around federal issues like trade, border control, and defense spending. However, the real impact of such a shift would extend far beyond these national-level concerns, reaching directly into the heart of local governance.
Local and state governments, the closest levels of governance to the people, are frequently overlooked in broader policy discussions, despite being responsible for implementing the day-to-day consequences of federal decisions.
If Canada were to join the United States, local governments in both countries would face a significant imperative to adapt to new governance structures, tax frameworks, and regulatory environments.
This transformation would require municipalities and local authorities to rethink how they manage public services, citizen engagement, and internal operations, potentially forcing a significant transformation, albeit with a need for gradual but comprehensive shifts, in both systems and structures.
Historically, the North American city government market has been distinct from those in other regions such as the UK, Europe, Australia, and Asia. While differences in size and scope play a role, the primary distinction arises from the unique federal structures of the United States and Canada, rather than, for example, the use of the Torrens System1.
North American local authorities possess significant autonomy, enabling them to enforce complex and diverse regulatory requirements. They also provide a broader range of services, including utilities, many of which have been removed from the local government public sector in Australia through decades of deregulation, amalgamation, and de-amalgamation.
In contrast to regions where local governments typically operate within more centralised national frameworks, North American municipalities are accustomed to a higher degree of decentralisation and independence. Any attempt to merge these governance structures would fundamentally alter this dynamic, resembling a local amalgamation process but on a far larger and more disruptive scale.
From a technological standpoint, such a shift would demand a complete reevaluation of how cities manage governance, regulations, and finances. Incumbent software providers and an army of systems integrators would be tasked with adapting legacy products to handle cross-border data models (and integrations), new regulatory landscapes, and increasingly diverse population bases.
It could mean overhauling everything from taxation (revenue) policies to utilities management. U.S. cities, in turn, would need to consider the complexity of new territories with differing demographics, languages, and local laws.
The result, and I guess my main point? A vast, fragmented governance model that would prove incredibly difficult to manage within existing govtech systems.
Local governments would not only need to retool their systems to accommodate these changes but would also have to deal with the strain on existing technology infrastructures and service providers, many of which are not equipped for such complexity.
The North American city government market2 is extensive, with thousands of municipalities using a wide range of software solutions to manage daily operations. However, similar to the Australian, New Zealand, and UK markets, the core systems in North America are dominated by a few key brands. Additionally, much like in these regions, a significant portion of this software is built on legacy systems and outdated technologies, which often struggle to meet the evolving demands of modern governance and service delivery.
Faced with potential structural shifts, could legacy software providers adapt? Could newer, more agile competitors take their place? With much of today’s software rooted in 20th-century thinking, are there emerging solutions better suited to help local authorities navigate the challenges of the future?
Many traditional software solutions used in local government were designed for business models that were already showing their age decades ago. These systems often feature rigid, hard-coded data models and workflows tailored to the specific regulatory frameworks and service delivery models of a single jurisdiction.
Primarily focused on core functions like property, revenue, financial management, permitting, and public services, they were built with a narrow, localised perspective rather than with flexibility or scalability in mind.
This approach is not unique to local government; it reflects how state-level government systems are often designed to meet specific mandates rather than being built to adapt to changing policies or to operate across in cross-border contexts.
This hypothetical scenario, while dramatic and particularly unsettling for Canadians regardless of political persuasion, highlights a critical point. It underscores the need for city government leaders to evaluate whether their current systems are equipped to handle increasing complexity. If these systems struggle with routine changes, how can they possibly manage the unpredictable disruptions that are sure to arise?
Local governments already contend with a relentless array of challenges, including economic shifts, regulatory changes, natural disasters, population growth, and the evolving needs of their communities and citizens.
In many cases, the answer is clear: legacy systems are simply not designed to scale and adapt to the demands of today’s fast-paced, ever-changing environment.
Cloud is Not Enough
As governance structures grow more complex and varied, software solutions built on static, inflexible architectures will increasingly fail to meet the demands of modern municipalities. Local governments require systems that can scale, adapt, and evolve to accommodate shifting regulations, diverse populations, and dynamic service delivery models. The software providers that will succeed in this changing landscape are those offering modular, scalable solutions designed to evolve with their clients' needs.
However, it's becoming clear that simply being "cloud-based" is no longer sufficient. While cloud technology offers scalability, there are plenty of cloud solutions that still lack the flexibility required to handle the intricate complexities of local government.
The future lies in Platform-as-a-Service (PaaS) solutions. These platforms go beyond traditional cloud models by providing the modularity, flexibility, and seamless integration capabilities that modern local governments require. PaaS-based architectures are inherently designed to scale and adapt, allowing governments to integrate with other tools and systems effortlessly while responding to new challenges and regulatory changes.
As local governance grows increasingly fragmented and dynamic, PaaS solutions will emerge as the new architectural standard, empowering govtech to effectively support and adapt to a modern environment where disruption and constant change have become the new norm.
Vision or Reality?
The vision of flexible, adaptable, and truly integrated systems may seem like a pipe dream to many in local government. After all, for decades, the sector has been constrained by rigid legacy systems and cloud solutions that only partially address its unique challenges.
The obvious question is, “Does a solution actually exist that can deliver on the promise of modern govtech or are we still chasing an ideal that remains out of reach?” The simple answer (to my own question), is yes. PaaS solutions do exist and they are being increasingly utilised by local government authorities.
One example is Agilyx MUNIvers, a compelling entrant in the city government software market. MUNIvers not only promises to bridge the gap between traditional systems and the evolving demands of local government but also demonstrates the ability to do so on a global scale, spanning markets as diverse as North America and Australia. Built on the Salesforce PaaS foundation, MUNIvers is real and a tangible solution built for the complexities of today.
Its solution architecture integrates property, rating and regulatory management utilising a platform-as-a-service (PaaS) backbone. Agilyx even supports the implementation and management of a Salesforce-based finance system (Certinia, formerly FinancialForce). Moreover, it enters a market where Salesforce is already well-established in the local government market through partner solutions in the CRM space. Same platform, strong partner network.
You can clearly see the emergence of a new economic market taking shape, along with the first steps toward transforming how legacy govtech challenges are addressed.
MUNIvers is precisely the kind of PaaS-based solution that can adapt to both the large-scale shifts in governance and the incremental, ongoing operational changes that are characteristic of every city government. Its architectural flexibility ensures it can handle both immediate disruptions and the steady evolution that municipalities face over time.
The platform’s Salesforce foundation also offers a major advantage over other contemporary cloud-based solutions in use across the sector in both North America and Australia. That is, better integration with other systems (see Nobody Ever Got Fired for why this is critical), along with the ability to deliver modern services in ways that traditional, monolithic software systems simply cannot achieve.
The PaaS architecture enables cities to more easily add new modules, integrate third-party tools, and adapt their systems to meet emerging regulatory requirements. This adaptability will be key in an era where municipal governments are likely to experience rapid and unpredictable change.
What it Means for Australia and New Zealand
Originally designed for the North American (Canadian) market, the question now is whether Agilyx MUNIvers could also play a role in the Australian and Pacific region. Interestingly, the kernel for the solution actually began in Australia, sparked by a council-led discussion in South Australia.
This is not unusual. Councils often engage in discussions about shared challenges and potential solutions with service providers. I think what set these conversations apart is the ability to do something about the growing frustration at the persistent lack of meaningful progress in modernising systems, streamlining workflows, and improving service delivery.
Today, the sector is impatient with the inadequacy of current solutions to address the significant gap between expectations and reality. For those working in the sector, this disconnect comes as no surprise. It is a well-known and persistent issue.
The bottom line is that the next generation of leading software providers in local government will be built on PaaS architectures. This will transform local government software into a truly global sector. And that changes everything.
The Agilyx MUNIvers platform stands out architecturally, offering clear advantages for Australian councils seeking to enhance their information and business systems. Its adaptability positions it as one of the first genuine multi-regional contenders in this space. Beyond its immediate potential, it also serves as a blueprint for the future of govtech.
Hypothetical or not, the geopolitical shifts in North America starkly reveal the fragility of govtech systems and highlight the pressing challenges confronting local governments worldwide. These events are a reminder that the next unexpected disruption, one we should have anticipated, will again test our readiness as govtech leaders.
The common method of land registration used in many Commonwealth countries.
Ironically, as the name suggests, Canada is already a part of this economic tech market. They are effectively one and the same.