Governor Hochul announces $8 million in new state funding to help local governments improve efficiency and expand shared service initiatives across New York

New York – Governor Kathy Hochul has announced the approval of $8 million in grant funding for 21 local government projects across New York State, a major investment aimed at improving efficiency, reducing costs, and strengthening collaboration among municipalities. The funding, distributed through the Local Government Efficiency Grant (LGEG) Program, is designed to help local governments streamline operations, consolidate services, and ultimately save taxpayer dollars.

The announcement underscores New York’s ongoing effort to make government operations more effective and affordable. Administered by the New York State Department of State (DOS), the LGEG Program provides both planning and implementation grants for localities that work together on shared service initiatives. These efforts range from water and wastewater projects to technology upgrades and regional planning programs, all with a shared goal — delivering better services while lowering costs for residents.

“We are constantly working with our local government partners to make New York State a more affordable place to live, do business and raise a family, and many of our local governments are looking to do the same,” Governor Hochul said. “These municipalities are joining forces, looking at opportunities to lower costs and ultimately save taxpayers money. We will continue to work together and support measures that result in streamlined services.”

Supporting Local Collaboration and Cost Savings

The LGEG Program, a competitive grant initiative, offers up to $20,000 for planning projects and up to $250,000 for implementation projects. It rewards municipalities that engage in cooperative efforts to reduce redundancy and create long-term financial savings.

“The LGEG program provides an excellent return-on-investment for New York State as it encourages municipalities to problem solve together to bolster services and amplify savings,” said New York Secretary of State Walter T. Mosley. “Under the Governor’s leadership, this new round of funding will help local governments address both current and emerging challenges, to accomplish what ultimately matters the most: effective municipal services and tax savings for residents.”

Since its creation, the LGEG Program has been a catalyst for innovation at the local level. Municipalities that once operated independently are now finding ways to combine efforts in areas like infrastructure maintenance, emergency services, information technology, and water management.

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According to the Department of State, the latest round of funding will generate both short- and long-term financial relief by reducing the burden on taxpayers and allowing local governments to reinvest savings into vital community services.

Regional Awards Across the State

The newly announced $8 million will support projects in every corner of New York State, benefiting both rural and urban communities.

In the Capital Region, three municipalities received funding:

• Town of Hunter – $1,250,000
• Town of Petersburgh – $358,107
• Warren County – $422,668

In Central New York, the awards went to:

• Cazenovia Central School District – $40,000
• Madison County – $20,850

In the Finger Lakes Region, several major projects were approved:

• Village of Avon – $500,000
• Village of Brockport – $476,619
• Livingston County Water and Sewer Authority – $642,150
• Wyoming County Planning and Development – $75,000

In the Mid-Hudson Region, recipients include:

• Town of Carmel – $1,200,000
• Town of Liberty – $21,675
• Livingston Manor Central School District (Rockland CSD) – $450,000
• Village of Rye Brook – $25,000
• Ulster County – $40,000

In the Mohawk Valley, the Village of Fonda received $50,000.

In the North Country, funding was awarded to:

• Village of Copenhagen – $682,418
• Lewis County – $1,053,070

In the Southern Tier, the following projects were selected:

• Village of Montour Falls – $32,120
• Southern Tier Central Regional Planning and Development Board – $20,000
• Tompkins County – $324,000

And in Western New York, the Town of Evans received $316,323 to advance shared service initiatives.

Strengthening Local Capacity and Innovation

The Local Government Efficiency Grant Program continues to prove itself as one of the most practical and impactful tools for improving local operations in New York.

Applications for funding are evaluated based on several criteria, including return on investment (ROI), project need, and readiness to complete implementation within five years. This ensures that the projects chosen are not only feasible but capable of delivering measurable savings.

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In this round, additional scoring points were given to projects targeting five high-priority areas identified by the Department of State:

• Information technology and cybersecurity
• Emergency management services
• Shared code enforcement and planning
• Water and wastewater management
• Climate change and sustainability initiatives

Projects that built upon previous planning efforts or were included in existing Countywide Shared Services Initiative (CWSSI) plans also received priority consideration.

Local Leaders Praise the Governor’s Investment

The announcement drew praise from local and statewide officials who say these grants help communities modernize, save money, and deliver better results for residents.

Assemblymember Michaelle Solages applauded the continued state support for municipalities. “Local governments are on the frontlines of service delivery, and their ability to work efficiently is key to strengthening our communities. These Local Government Efficiency Grants help municipalities collaborate, modernize operations, and reduce costs for taxpayers. I applaud Governor Hochul and the Department of State for supporting innovative partnerships that make government work better for the people of New York.”

Phil Church, President of the New York State Association of Counties, said the funding provides real-world solutions to long-standing challenges. “Counties across New York are constantly seeking ways to improve efficiency and these grant awards are a powerful tool for empowering local governments to collaborate, innovate, and deliver essential services more effectively. Investments like these strengthen our communities, help drive long-term savings, and support the critical work of our local leaders across the state.”

Barbara Van Epps, Executive Director of the New York State Conference of Mayors, noted that the program highlights the power of collaboration. “NYCOM appreciates the Department of State’s continued commitment to the Local Government Efficiency Grant Program. This funding helps our members advance shared service initiatives that reduce costs, streamline operations, and enhance the delivery of services to their residents. Furthermore, these projects demonstrate the power of collaboration in building stronger, more sustainable communities throughout New York State.”

Christopher A. Koetzle, Executive Director of the New York Association of Towns, also expressed gratitude for the ongoing support. “The New York Association of Towns would like to thank the Department of State for this generous round of the Local Government Efficiency Grant (LGEG) Program. State support via financial assistance often is the critical element in executing local projects. While towns annually generate nearly $200 million in revenue through shared services, the LGEG’s grant reimbursement program encourages new efficiencies. NYAOT looks forward to working with the Department to continue to support towns and their residents.”

A Proven Record of Long-Term Savings

Since the inception of the LGEG Program, the Department of State has made 655 project awards, providing over $121 million in funding to local governments. The estimated long-term savings for participating municipalities now exceeds $684 million — a testament to the effectiveness of shared service models and inter-municipal collaboration.

Eligible entities for funding include counties, cities, towns, villages, special improvement districts, fire districts, libraries, planning boards, and school districts. Projects can cover a wide range of costs, from legal and consulting services to capital improvements and transitional personnel costs for up to three years.

The grants are reimbursement-based, meaning municipalities are reimbursed after completing approved project activities. This model ensures accountability and encourages municipalities to deliver on their project goals efficiently and effectively.

Building the Future of Local Governance

Governor Hochul’s announcement reflects a continued push toward fiscal responsibility and regional collaboration. By supporting shared service initiatives, the state is helping local governments do more with less — a principle that is becoming increasingly essential in today’s economic climate.

With infrastructure upgrades, modernized operations, and digital transformation projects underway, the $8 million in new funding will serve as both an immediate and long-term boost to New York’s local government landscape.

A new Request for Applications (RFA) for the next round of awards is expected in the coming weeks, ensuring that more communities will have an opportunity to access state resources for efficiency and collaboration.

As Secretary Mosley put it, the LGEG program is about “bolstering services and amplifying savings” — a philosophy that continues to guide New York’s commitment to building stronger, more efficient, and more affordable local governments across the state.