Governor Hochul Doubled the Local Government Efficiency Grant Program to Help Local Governments Reduce Current and Future Operational Costs

Support for Local Governments Will Help Lower Taxes and Ensure Property Owners Across the State Can Save Money

Governor Kathy Hochul on Nov 19th, announced that the popular Local Government Efficiency Grant program has doubled the amount of funds available to municipalities with innovative ideas for streamlining government operations and services to reduce current or future costs, ultimately translating into savings for local property taxpayers. This year’s $8 million initiative provides grants for measures in which two or more local governments team up to apply to plan or implement shared services, consolidations, and dissolutions.

“We are committed to working with our local governments to keep costs down and help New Yorkers save their hard earned money,” Governor Hochul said. “By doubling the Local Government Efficiency Grant to $8 million, we’re reducing current and future county, town and village operational costs and lowering property taxes while also ensuring residents enjoy the services they deserve.”

Secretary of State Walter T. Mosley said, “Incentivizing municipalities to work together is a win-win for both local governments and property taxpayers. We see an excellent return on investment with our Local Government Efficiency program and expanding and doubling the amount to serve communities will help encourage local officials to construct tailor-made solutions that will effectively address current and emerging challenges.”

The LGEG program is comprised of approximately $7.2 million available for implementation grants and $800,000 for planning grants. Implementation grants are capped at $1,250,000 with a maximum of $250,000 for each participating municipality and require a 10% local match, while planning grants are capped at $100,000 with $20,000 per municipality and require a 50% match.

The $8 million is a doubling of the $4 million that has been made available annually to local governments in recent years. With the increase, DOS aims to enhance the impact for local governments facing capacity constraints. This year’s program allows for Regional Projects led by Regional Planning Boards or eligible counties to serve as the leads on projects that involve four or more co-applicants. Additionally, DOS is offering a one-year Qualification Grant of up to $20,000 for Regional Planning Boards and eligible Counties to evaluate and select a project for future LGE funding.

New York State Association of Counties President Benjamin Boykin II said, “The Local Government Efficiency Grant program is vital to counties continued success in reducing local property taxes while maintaining the essential services New Yorkers depend on. Planning and implementing collaborative projects across county and municipal lines is often expensive, but ultimately leads to significant savings for local taxpayers. By doubling the amount of funding available and expanding the scope of eligible projects, New York State and Governor Hochul are empowering local governments to do what we do best—work together to think outside the box and find ways to accomplish more for New Yorkers while asking for less of their hard-earned money."

New York Association of Towns Executive Director Christopher A. Koetzle said, "The Association of Towns is thrilled that the state has increased the amount of funds available to help local governments pursue more shared services opportunities. Many of our member towns have a long history of collaboration and sharing resources at the local and regional levels. They have always found ways to save taxpayer money without sacrificing services or quality of life. This additional funding will better support their efforts and help them continue to deliver critical, front-line services that remain affordable for the taxpayers."

New York Association of Regional Councils President Richard Zink said, "With increased funding for the Local Government Efficiency program, we have a unique opportunity to drive meaningful collaboration across our region. These additional resources empower municipalities to streamline services, reduce costs, and improve quality of life for residents. By fostering shared services and strategic partnerships, we’re building a stronger, more resilient regional economy that’s well-prepared for future challenges and opportunities."

Through the LGEG, DOS is also aiming to assist local governments trying to address emerging threats in addition to current challenges. In this current funding round, Priority Points will be given to: Regional Projects; Regional or Local Projects being implemented are part of a previous LGE planning grant or that was included in a Countywide Shared Services Initiative (CWSSI) plan; or Regional or Local Projects that aim to address:

- Information Technology Services (ITS), including Cybersecurity;

- Emergency Medical Services (EMS);

- Countywide or Multi-County Code Enforcement and Planning;

- Water and/or Wastewater Management Systems; or

- Climate Change.

The LGEG Request for Applications (RFA) and additional information may be found on the DOS website. RFAs must be submitted by Friday, January 24, 2025 at 4 pm.

Through March 2024, DOS has made 489 LGEG project awards, totaling over $105 million. The estimated long-term savings for local government recipients is nearly $650 million.

Eligible Local Government entities are counties, cities, towns, villages, special improvement districts, fire districts, public libraries, association libraries, public library systems (if they advance a joint application on behalf of member libraries), water authorities, sewer authorities, regional planning and development boards, school districts, and Boards of Cooperative Educational Services (BOCES).

Applications are evaluated based on the potential return on investment (ROI), project need, service delivery benefits, operational changes, local and regional capacity, project readiness (ability to complete the project in 5 years) and the comprehensiveness and specificity of the work plan and budget.

Local Government Efficiency Grants may be used to cover costs integral to project implementation including, but not limited to: legal and consultant services; capital improvements and equipment; and transitional personnel costs not to exceed three years.