THE U.S. COMMUNITIES GREAT GOVERNMENT SERIES

SEGMENT #3:

Intergovernmental Cooperation: Great Governments Doing More With Less.

By Steve Hamill

During this current economic downturn, it is no surprise that governments across the country are faced with major budget deficits and the difficult challenge of continuing to provide essential services to their constituents. Government at every level is now being required to do more with less. There is no time better than the present for governments to establish service partnerships, share costs and cooperate with one another to achieve improved operating results.

In the first article of the Great Government Series, I introduced the practice of cooperative procurement, which is an excellent introduction to, and example of, intergovernmental cooperation. Cooperative procurement aggregates the purchasing power of multiple government agencies in order to drive down deeper discounts on goods and services, while at the same time reducing administrative expenses. Shared purchasing is just one way in which Great Governments can cooperate with each other to save time and money.

The Great Government Series focuses on the concept of improved operating results (“IOR”) and the role that it plays in the path to achieving greatness. As a review, IOR refers to new knowledge, ideas, methods or innovations that have been used by one or more government agencies to increase productivity, reduce costs and improve the efficiency and effectiveness of operations, services and programs.

Intergovernmental cooperation is an arrangement by which two or more government entities or individual agencies share or consolidate resources such as employees, equipment, buildings, revenue or other assets in order to achieve IOR.

Last year, three municipalities in San Diego County entered into a joint agreement for shared fire protection. The cities of El Cajon, La Mesa, and Lemon Grove created a shared management team to coordinate fire and emergency medical services, firefighter training, fire prevention, emergency planning, and community preparedness. By consolidating these essential services and sharing management functions, the three cities expect to save a combined $560,000 annually.

Government agencies have also been able to achieve IOR by cooperating with one another to provide joint emergency dispatch services. Lincoln Park, Southgate and Wyandotte, three cities in Wayne County, Michigan, are the first to combine their 911 dispatch services under the Downriver Central Dispatch. The decision to join services was made in an effort to cut costs and improve essential services. Savings for the communities are estimated to be between five and ten percent per city.

To reduce costs in a similar fashion, the Union County, New Jersey Board of Chosen Freeholders recently announced that they intend to move forward in establishing a shared public safety dispatch system between the County and the Borough of Fanwood. This shared arrangement will result in significant savings for Fanwood of almost $230,000 over its first three years. The shared dispatch system will cover all Fanwood emergency services including Police, Fire, and Emergency Medical Services. Fanwood Mayor Colleen Mahr recently stated, “I am proud that Fanwood is serving as the pilot for this new program, which saves real dollars and shrinks local government costs without compromising services.”

Over 30 cities and other public agencies in King County, Washington, have taken advantage of interlocal agreements with the County’s Road Service Division. From routine maintenance to highly technical engineering, the King County Road Services Division offers a wide variety of services to other jurisdictions within the region. Individual agencies in and around the County are able to take advantage of the County’s large inventory of equipment which reduces the expense for all participants.

Throughout the United States, governments are embracing change and demonstrating efficient, effective, fiscally responsible and innovative ways of meeting their constituents’ needs. Utilizing technology is another great example of great governments driving change and achieving IOR.

Just like most cities and counties across the U.S., school districts are also faced with shrinking budgets and staff cuts. Cooperation among school districts has been shown to reduce costs and ensure that necessary services can continue to be provided to students. Washtenaw County, Michigan’s ten traditional school districts are currently working on a plan to combine the busing of students countywide by next fall. The Washtenaw Intermediate School District is leading the efforts and has hired two consulting firms to analyze the potential cost reductions. The goal is to generate savings for the districts ranging from 18 percent to 25 percent in their transportation budgets.

During this difficult economic crisis, many governments are faced with the tremendous need to cut spending and accomplish more with less resources. Inspired government leaders nationwide are pursuing opportunities to share the delivery of common services and reduce costs without reducing service levels. Great Governments have found ways to cooperate with one another in order to achieve IOR and better weather the budget storm.

We view the Great Government Series as a collaborative and living effort. We welcome input from our government leaders and the public at large. If you have thoughts on great government or would like to share some examples of great government in your community, we’d love to hear from you. Please contact us at greatgovernment@uscommunities.org.

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Steve Hamill is the former Assistant Chief Administrative Officer for Alameda County, California. He is the General Manager of the U.S. Communities Government Purchasing Alliance (“U.S. Communities”), a non-profit government purchasing cooperative founded by and currently co-sponsored by the United State Conference of Mayors (USCM), National League of Cities (NLC), National Association of Counties (NACo), Association of School Business Officials (ASBO) and the National Institute of Governmental Purchasing (NIGP). U.S. Communities assists local and state government agencies, school districts (K-12), higher education, and nonprofits in reducing the cost of purchased goods by offering managed access to competitively solicited contracts between suppliers and lead public agencies. In 2008, aggregate program sales exceeded $1.4 billion, with $200 million in estimated savings to participating public agencies.