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State Incentives for Local Government Efficiency

January 31, 2012

States are currently in the business of promoting local government efficiency as a way to cut local government expenditures.   However, funding is a barrier for local governments that are tryting to take steps towards efficiency.  State incentive programs offer the funding that is needed for local governments to become more efficient through shared services, consolidation, dissolution, mergers, or cooperative agreements. 

The Local Government Efficiency Program in New York is a state incentive program that will provide technical assistance and competitive grants for local governments that seek to save money through consolidation, merger, dissolution, shared services, and cooperative agreements while at the same time still provide core governmental services to the community.  The grants are awarded through the LGeGrant Program which requires the municipality to go through an application process to be awarded the funding.

The Local Government Innovation Fund (LGIF) is an Ohio incentive program (click here for program policies) that will provide financial assistance to municipalities that are trying to set in place innovative and more efficient ways to deliver government services to their community.  Local governments seeking this award should be expected to describe how the plan will also improve the business environment and attract members to the community. With 45 million dollars available, 9 million for grants and 36 million for loans, the LGIF is a resource that local governments should use to implement innovative ideas.

For more information, and technical assistance, on local government consolidation, dissolution, mergers, and shared services visit the Center for Government Research, as well as, the Technical Assistance Manuel for New York’s Share Municipal Services Incentive Grant Program  prepared by the Government Law Center of Albany Law School for the New York Department of State, Division of Local Government Services.

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