New York Secretary Of State Releases Shared Services Progress Report Projecting Local Government

• by New York State Department of State

ALBANY, NY (10/15/2008)(readMedia)--

a projected quarter of a billion dollars in local government savings leveraged from a state investment of $23.3 million in 139 projects over the past two years;

a growing network of local leaders and other partners advancing local government modernization and efficiency; and

the continuation of the Department of State's longstanding statutory obligation to work with local governments to develop solutions to common problems.

Secretary Cortés-Vázquez said, "Since David A. Paterson took office, he has promoted fiscal responsibility. In these challenging times, helping local governments modernize and figure out how to more efficiently deliver services is critical to reducing local property taxes. The shared services grant program requires a constructive state/local partnership to support local government leaders' increasing need to cut costs. The program is one of many Department of State responsibilities geared to aid communities to efficiently meet the needs of their citizens."

The report highlights $245 million in projected savings expected to be realized by local governments. The past two rounds of funds represent an average cost savings of $8.24 to every grant dollar invested.

The Shared Municipal Services Incentive program (SMSI) was established in 2005 to provide assistance to local governments to reduce costs and improve service delivery through shared services and municipal consolidation. Conceived as a program of both technical assistance and funding incentives, the Department of State administers the program and many other statutory responsibilities aimed to assist local governments with developing solutions to common problems. Over the three rounds of grant solicitations the Department of State received 768 applications requesting $143.6 million in funding and approved 161 grant awards aggregating $29.8 million. For 2008-2009 the program has been renamed and expanded to the Local Government Efficiency (LGE) grant program. The grant program includes funds for plans and studies, implementation project. This year over $23 million is available for grants.

During the shared services workshops held throughout the state to provide an overview of the program and assist potential applicants with the grant application process, three municipal leaders offered their thoughts about the program.

Steve Whicher, the Tompkins County Administrator said, "Tompkins County is acting as the lead agency for a SMSI/LGE grant to develop a County-wide healthcare consortium under the auspices of the Tompkins County Council of Governments. The Department of State has been exceptionally supportive of our bold venture and has worked with us as we faced each challenge in plowing this new ground. The SMSI/LGE grant program is an outstanding effort by the State to fund imaginative and bold ventures that have a real potential of saving the taxpayer funding. I commend the Department of State for creating a program that cuts through the red tape, supports real change, and is progressively managed."

Chief of Police for the Town of Greenburgh, John Kapica said, "While the sharing and/or consolidation of services may not be practical for all communities, in today's financial climate municipal leaders owe it to their constituents to explore this as an option to save taxpayer dollars."

As Lawrence Brinker, the Director of Government Relations for the Greater Binghamton Chamber of Commerce, and a planned participant in the upcoming Binghamton shared service workshop noted, "Now is the time for municipalities work together to share services so that we can reduce the cost and complexity of government in New York. Our nearly 1000 member companies and their 50,000 employees urge all local governments to take advantage of the Local Government Efficiency Grant program offered by the state Department of State. It only takes two municipalities working together to qualify for a grant and to begin to make a difference."

The Department of State will post the 2008 Shared Services Progress Report on its website at www.dos.state.ny.us.