With many major revenue sources in decline, there is a heightened interest in exploring innovative ways to control local government and school district costs by eliminating duplicate services. If your community hasn’t yet considered county-wide shared services, what are you waiting for?
Although the concepts of shared services and functional consolidation are not new, they are receiving greater attention in the media and from taxpayers and policy leaders at all levels of government. Just last week, State Comptroller Thomas P. DiNapoli announced 30 local governments that ended 2020 in some form of fiscal stress. Shared services present a viable option for reducing costs or slowing growth in spending without necessarily impacting service quality for local governments, including counties, cities, towns and villages, school districts, and fire districts. Below we will provide tips to local officials interested in exploring greater degrees of cooperation with other local governments.
What is CWSSI?
The county-wide shared services initiative, or CWSSI, expands on New York State’s ongoing commitment to reduce property taxes and modernize local government services by fostering new shared services and enhancing the existing collaborations already in place. The Department of State offers several comprehensive programs to incentivize and aid local government efficiencies. The CWSSI is extended from December 31, 2021, through December 31, 2024, so that each county CEO outside of New York City is required to continue to convene a Panel to:
- Revise or update a previously approved CWSSI Plan or developing a new Plan.
- Provide information the Secretary of State might request under the law.
Are there other 2021 CWSSI updates to be aware of?
The short answer is yes. The 2021 Amendments to Section 239-bb also made the following changes to add flexibility for State Matching Funds:
- Counties can choose one of two statutory match years for each new action implemented. Each county and its participating local government entities may be eligible for State Matching Funds from each new action that generate net savings from implementation during the statutory match years of either: (i) January 1st through December 31st of the year immediately following Plan approval, or (ii) July 1st of the year immediately following approval and transmission of a Plan through June 30th of the subsequent year.
- Counties will be able to submit one Match Application per year and must choose a match year for each action in the Application. The Match Application will include sections for actions implemented during both the January 1st through December 31st and July 1st through June 30th period. Counties may choose to implement an action for the first time during either period, notwithstanding the implementation period designated in an approved and submitted Plan.
- Actions commencing before the beginning of a selected period are not eligible for State Matching Funds for that period.
Should I consult with residents?
Yes! In fact, it’s a requirement. The CEO, who is the Panel Chair, must hold a minimum of three public hearings to solicit input from citizens, civic, business, labor, and community leaders. Any individuals or groups who will be impacted and can directly or indirectly influence the implementation of the project will have valuable input. Follow these steps to conduct a fruitful shared services survey:
- Identify stakeholders
- Develop a focused mission statement and goals
- Identify viable options for accomplishing goals
- Select realistic programs
- Study options thoroughly and weigh all options
- Deal directly with problems
Ultimately, considering shared services is an investment in your community’s future at a time when it will help to fuel the longer economic recovery from the COVID-19 pandemic. To give you an idea of the savings potential that was submitted in 2018, 23 county-wide shared services plans generated an estimated first year savings of $49 million. Of the 2018 highest savings highlights, three Hudson Valley counties grabbed a spot in the top five, including Westchester ($7.5M), Orange ($5.0M), and Rockland ($4.7M). We hope the information you’ve read has helped to reinforce the importance of cooperation and consolidation in achieving local cost efficiencies, especially during these times of fiscal uncertainty. The Office of the State Comptroller (OSC) can provide specific training and web-based data to assist local officials in exploring opportunities for their communities. As always, our trusted RBT team members are standing by ready to assist you with any personalized questions, or to set up a consultation.