What Happened?
Thirty-two municipalities in Southeast Michigan will receive more than $10.5 million in state grants to help offset the cost of sharing or consolidating services.
So What?
As Gov1 has been tracking rigorously, consolidation is on the upswing across the country. Sometimes those initiatives yield long-term savings that aren’t immediately realized; the Michigan grants are an innovative move that other states can consider to accelerate the adoption of shared services.
The Source
The Michigan grants come from the Michigan Department of Treasury’s Competitive Grant Assistance Program, which provides grants to offset the costs associated with mergers, inter-local agreements, and cooperative efforts. According to the Michigan Governor Rick Snyder, the program “has proven itself to be instrumental in helping municipalities collaborate on innovative programs and incorporate best practices.”
Examples
A list of the communities that received the grants was released by the state, and it included projects such as:
- City of Dearborn—Received $263,000 to consolidate IT services with the city of Dearborn Heights
- City of Dearborn Heights—Received $43,500 to consolidate fire department services with Garden City.
- Huron Township—Received $202,386 to consolidate 911 and detention facilities with Sumpter Township
- Macomb County—Received $1.5 million to consolidate dispatch and communications operations
- City of Roseville—Received $342,000 to consolidate with the city of Eastpointe to create a recreation authority.
In addition, $3.6 million was granted to the city of Grand Rapids, which will develop a financial-management system that will eventually be available to all local governments through the Michigan Municipal Services Authority.
Elsewhere
As Gov1 covered earlier this year, other states such as Ohio have been aggressively pursuing shared services, creating incentives and programs like those in Michigan. As Ohio State Controlling Board President Randy Cole wrote in a Guest Column for Gov1, Ohio has provided local officials with a roadmap to achieving the cost-saving efficiencies of shared services.
Extensive coverage of recent consolidation efforts can be found in the left-column of EfficientGov’s Web site under Consolidation.
Next Steps
For more information on the grant program, how it was developed, and how it can be replicated in your state, contact Sara Wurfel in Governor Snyder’s office, 517-355-6397. You can also contact the Office of Revenue and Tax Analysis in Michigan at 517-373-2697.