In NY, local development corporations (LDCs) are quasi-government entities that are generally created by local governments, but not subject to the same public oversight. No one knows how many there are in the state, no government office monitors them, and they operate outside normal government structures. The powers that allow them to take steps that benefit the public also leave them open to abuse. In a study funded by the Beatrice Bibby Fund at CGR in partnership with the League of Women Voters of Metropolitan Rochester (NY), CGR identifies the 16 largest and/or most active in the region, provides case studies, and urges state action.

For the Long Island Index,CGR conducted a landmark study comparing local government costs in the 2 counties on Long Island with 2 comparable counties in northern Virginia. Including school districts and special districts, Long Island has 439 local government entities compared with 17 in northern Virginia. Long Island governments spend 45% more, per capita, than their northern Virginia counterparts, and local property taxes are 55% higher on Long Island. Yet a separate comprehensive survey of both regions found that citizens in northern Virginia rate the level of service provided by local governments and schools higher, and say they have better access to government officials. CGR’s detailed analysis of school district and fire services illustrated that a fragmented management structure restricts cost-effective use of resources and thus, in New York State, is a significant contributing factor to high costs and high taxes for local government.

Subsequent to the study, CGR was selected by Nassau County on Long Island to be among a key group of consultants addressing consolidation planning issues for the county. That work is ongoing. In late 2007, CGR also undertook a study of local government costs in Northeast Ohio.

By offering a Shared Municipal Services Incentive (SMSI) grant program, the state of New York is actively encouraging local governments to find ways to increase service sharing and consolidation and reduce government expenditures. Currently CGR is involved in SMSI studies for 5 different communities in the state’s Finger Lakes, Adirondack and Hudson Valley regions. Topics range from increased service sharing/consolidation between a village and a town to potential consolidation of village police and county sheriff services.