GOVERNOR PATERSON ANNOUNCES $13.7 MILLION IN GRANTS TO REDUCE LOCAL GOVERNMENT COSTS

Grants Will Save Taxpayers Money and Improve Efficiency in 67 Local Governments

Governor David A. Paterson today announced the recipients of 67 grants totaling $13.7 million that will help improve efficiency and lead to savings for taxpayers through partnerships among local governments. The grants will be awarded under the Shared Municipal Services Incentive (SMSI) program, which reduces the cost of local government by providing technical assistance and competitive grants to municipalities for the development of projects that will trim costs and promote shared services among two or more localities. Grants will be used to purchase a new shared public works facility, shared equipment for infrastructure and highway maintenance, evaluate condition and potential improvement for parks and recreational resources as well as upgrades to water supply and distribution systems.

Declining populations in certain regions of the state have left some communities with a governmental infrastructure which cannot be adequately supported. The need to reduce the cost of government has come into increasing focus in the recent fiscal crisis. The Governor has made it clear that spending growth must be reduced significantly because the state is facing rising out-year deficits.

“The high cost of government has become an impediment to economic growth in many regions in New York State,” said Governor Paterson. “I am very pleased to award these grants to forward-looking governments that recognize the need to do more with less during these fiscally challenging times. The programs we are funding today demonstrate that significant cost savings are possible, if we think creatively and act diligently.”

Today’s announcement comes a day after the Governor accepted the Local Government Efficiency and Effectiveness Commission’s report. The Commission’s report offers numerous recommendations to increase the cost effectiveness of local governments throughout the state — proposals that could lower taxes and government spending through modernization, shared services, consolidation and mandate relief.

Just yesterday, Governor Paterson also announced plans to propose legislation that will begin to lay the groundwork for the necessary reforms to ease the onerous tax burden on New Yorkers. The Program Bill offers the potential for up to $50 million in local savings. It advances certain Commission recommendations to eliminate redundant expenditures and programs by facilitating greater cooperation between municipal and state agencies as well as local governments.

Secretary of State Lorraine Cortés-Vázquez said: “The Department of State has expanded the focus of its Division of Local Government towards funding projects that assist local municipalities to be more efficient and cost effective. The grants further the Governor’s agenda to consolidate local government and ease New Yorker’s tax burden. Upon completion, the projects can be used as models for other local governments. Not only will these projects help provide cost savings for local governments and taxpayers but also improve efficiencies in the delivery of these services all across New York State.”

The SMSI program is administered by the Department of State’s Division of Local Government. The grants focus on efficiencies and are aligned with the Governor’s commitment to lower taxes and government spending through shared services and consolidation.

SMSI was established by the 2005-2006 New York State Budget to promote shared services, cooperative agreements, mergers, or consolidations and dissolutions among two or more units of local government. SMSI grants are awarded on a competitive basis. This year, the Department of State received 241 applications requesting a total of $51.7 million in grant money.

New York State Senator Betty Little, Chair of the New York State Senate Local Government Committee, said: “We’re facing uncertain fiscal times and the need to increase government efficiency is taking on even greater importance. I applaud the recipients for their initiative in pursuing these grants which will help them continue to deliver high-quality municipal services while controlling costs for local taxpayers.”

Assemblyman Sam Hoyt, Chair of the New York Assembly Committee on Local Governments, said: “Re-engineering government for the twenty-first century means rethinking government at all levels. The Governor and the Secretary of State are leading the way by encouraging right-sizing, sharing and consolidation. I am proud to be working alongside them in this endeavor.”

The Enacted Budget has authorized an increase of $9.33 million over last year’s budget for grant awards. The name of the program has changed from SMSI to Local Government Efficiency Grants (LGEC). A total of $23.03 million is available for both competitive and non-competitive grants.

A complete list of the grant recipient projects can be found at the Department of State’s website at www.dos.state.ny.us.

The 2007-2008 grant awards may be found here.