Wisconsin has launched an innovative program designed to help local governments streamline operations and reduce costs through strategic service transfers.
The Innovation Grant program, created under 2023 Wisconsin Act 12 and modified under 2025 Wisconsin Act 15, offers financial incentives to counties, municipalities and tribes that completely transfer government services to other entities.
Administered by the Wisconsin Department of Revenue (DOR), the program provides up to $300 million in state funding to support local government efficiency initiatives. Individual counties, municipalities or tribes can receive up to $10 million annually for transferring allowable services such as public safety, fire protection, emergency services and more.
The program accomplishes several key objectives for Wisconsin’s local governments, according to officials. It provides financial relief to municipalities facing rising costs and declining revenues while promoting regional cooperation by incentivizing collaboration rather than duplicate services. Communities can maintain the same services at lower costs by transferring them to larger, more efficient providers.
The program prioritizes essential public services, according to the program description, with state law requiring DOR to give preference to innovation plans involving public safety, fire protection and emergency services. The scope of the program, however, extends to several service categories including:
Public safety, including law enforcement (not jails)
Fire protection
Emergency services
Courts
Jails
Training
Communications
Public works
Information technology
Administration, including staffing, payroll and human resources
Economic development and tourism
Public health
Housing, planning and zoning
Parks and recreation
Interested counties, municipalities and tribes that apply must agree to a minimum three-year contract. Grant recipients receive annual payments equal to 25% of their pre-transfer costs, with the state distributing up to five payments between July 1, 2025, and June 30, 2030.
Participating entities must keep total costs within 115% of their pre-transfer expenses during the grant period and certify compliance annually, with DOR auditing at least 10% of awarded grants.
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