February 27, 2013

Reducing Municipal Costs by Regionalizing Services

Proponents of regionalism have long argued that municipalities can save money by jointly delivering services.  A recent study by the New England Public Policy Center examines the potential cost savings associated with these efforts.

The study focused on the long-term savings in Connecticut and Massachusetts from regionalizing three specific local services: (1) 9-1-1 operations, (2) public health services, and (3) public pension administration. 

Its findings suggest that Connecticut towns could realize significant long-term savings in these three areas:

  1. 9-1-1 Operations: Consolidating 9-1-1 operations by county would cut expenses by about 60% and could potentially improve response times.
  2. Public Health Services: Consolidating and restructuring local health departments and the services they provide could cut expenses by 41% and reduce service disparities across the state.
  3. Pension Administration: Consolidating local pension plans would cut costs by more than 14%, consolidating state plans would cut costs by about 8%, and combining all plans would reduce costs by about 17%.