OLR Report 2012-R-0491 describes the laws authorizing (1) towns to collaborate on different activities and (2) state grants or other financial incentives for towns that do so. This report updates OLR report 2011-R-0364.
Many statutes allow towns to collaborate on different activities. Some give them broad authority to (1) collaborate on any activity they can perform separately, (2) jointly finance projects and activities, or (3) share tax revenue. Other statutes specify the activity and how towns may collaborate to undertake it. This includes allowing towns to establish a regional entity to perform a specific municipal function (e.g., health, education, or waste management) and join together to implement a regional property revaluation program or purchase employee health insurance.
The law authorizes various state grant programs and subsidies to incentivize towns to join together to deliver a service, purchase capital equipment, or implement a capital project. The Regional Performance Incentive Grant Program provides grants to towns and regional entities for jointly performing a service they have been performing separately. It has been used to fund a variety of regional initiatives, including information technology, public safety, and public works-related projects.
There are also a number of grants and subsidies for towns that collaborate to provide specific public services. For example, the State Department of Education (SDE) administers a competitive grant program for school districts and regional education service centers (RESCs) that establish interdistrict cooperative programs. In addition, the Office of State-Wide Emergency Telecommunications (OSET) offers financial incentives to encourage towns to consolidate their 9-1-1 operations.
Towns that join together to purchase capital equipment may qualify for the Intertown Capital Equipment Purchase Incentive Program, which pays up to 50% or $250,000 of the cost of buying or leasing a vehicle or other equipment. Groups of towns collaborating on a capital project are also eligible for Small Town Economic Assistance Program (STEAP) grants.
For more information, read the full report.
