The purpose of the grant program is to provide incentive-based grants to stimulate smaller, more efficient government and encourage mergers, consolidations, and cooperation between two or more qualified jurisdictions. The grants are to offset the costs associated with mergers, interlocal agreements, and cooperative efforts for cities, villages, townships, counties, school districts, and intermediate school districts that elect to combine government operations. The program is focused on stimulating projects between two or more qualified jurisdictions that are creating new mergers, consolidations, and/or cooperative efforts/collaborations of existing services.

All Michigan cities, villages, townships, counties, school districts, and intermediate school districts. For a school district or intermediate school district to qualify for grant funding under this program, the school district or intermediate school district must combine operations with a city, village, township, or county. Additionally, if grant funding is received from the competitive grant assistance program under the state school aid act, 1979 PA 94, MCL 388.1601 to 388.1896, the applicant is not eligible for grant assistance through the Michigan Department of Treasury.

• A completed application with detailed information
• Merger of two or more governmental units
• Consolidation of departments and/or existing services across 2 or more governmental units
• Cooperative effort or collaboration of 2 or more governmental units
• Consolidated or combined government operations must demonstrate taxpayer benefits of cost savings, efficiencies, and/or improved services
• The governmental unit must demonstrate how budgeted costs directly relate to and are necessary for implementation of the merger, consolidation, or cooperative effort
• Priority will be given to projects that start after October 1, 2012
• Projects are funded on a reimbursement basis

Approximately $11.7 miilion in funding will be available for the Michigan Department of Treasury to award.