CRCOG recently hosted a workshop and forum to highlight the benefits of shared services and explain how the concept works. The workshop featured a presentation from Martin Heft, Rebecca Auger, and Christine Goupil at the Connecticut Office of Policy and Management, who reviewed the state statutes permitting shared services as well as the Regional Performance Incentive Program (RPIP). The RPIP is a state grant designed to help local governments and school districts develop new regional programs and services. Our workshop also included an interactive panel discussion moderated by Peter Souza, Town Manager in Windsor. The panel was comprised of Jim Rupert, Town Administrator in Bolton, Maria Capriola, Chief of Shared Services in Mansfield, Andy Cirioli, Assistant Town Manager in Plainville, and Pauline Yoder, Chief Operating Officer at CRCOG. The panelists shared their various experiences with shared services as well as tips for success.
Our municipalities and school districts face a variety of challenges, including a loss of pandemic relief monies, rising costs, and difficulties with workforce recruitment and retention. This scenario creates added pressure on municipal budgets, finances, and staff. To help address these financial and workforce challenges, local governments can use a “shared services” or “service sharing” model to capture an economy of scale to utilize taxpayer funds more efficiently and effectively.
At the municipal level, service sharing is often used to provide administrative and support services, such as financial management, information technology, and facilities maintenance. Within the CRCOG region, for example, Mansfield, Plainville, and West Hartford all share administrative and support services with their respective school districts.
The shared services model is also effective for community-based services, particularly those requiring a specialized professional or technical skill set such as animal control, building inspection, waste management, and public health. The Town of Bolton, for instance, manages a regional building inspection program that serves three other communities – Andover, Ashford, and Willington. As another example, Windsor and Bloomfield have shared a landfill and transfer station for many years.
Benefits of shared services
At CRCOG’s recent workshop, our presenters and panelists talked extensively about how service sharing enables public agencies to provide services more efficiently, saving taxpayer funds and other resources over the long term. While service sharing is sometimes viewed pejoratively as a means to lay people off or to implement a reduction in force, experience demonstrates that most consolidation occurs at the senior management or
specialist level, usually through attrition. For example, an IT Department serving a small town and its local school district probably needs only one departmental director and one webmaster, as opposed to multiple people in those positions.
Another overlooked benefit of the shared services model is the opportunity to improve or enhance services. For example, service sharing allows the partner organizations to combine resources to hire specialists and other staff that they might not be able to afford on their own. The Town of West Hartford, where I worked previously, shares facilities management services with the West Hartford Public Schools. This model enables the town and the school district to employ skilled trades professionals and capital project managers, among other benefits. Bolton’s regional building inspection program is also a good example of this point – Andover, Ashford, and Willington have increased service in their towns by partnering with Bolton, while Bolton has added redundancy and additional coverage for its community.
Other benefits to shared services include savings achieved by sharing facilities, avoiding the cost of redundant software systems, and increased opportunities for cross-training and succession planning. In addition, service sharing offers a means to enhance customer service and provide a consistent experience for residents and taxpayers. This is a scalable concept that can be successfully employed by any municipality, school district, or agency.
Furthermore, the shared services model provides multiple opportunities for relationship building and collaborating on mutually beneficial initiatives. For a first selectman or town manager, sharing services with your local school district enables you to develop a more effective working relationship with your superintendent of schools and other district staff. This can be invaluable when facing financial and other challenges.
Keys to success
Our workshop panelists identified good governance, communication, and collaboration as essential components to a successful shared services partnership. Hiring the right people – particularly people who are collaborative – is also essential for success. Maria Capriola, Mansfield’s Chief of Shared Services & Administration, notes that it is important for both staff and the chief executives to “check their ego at the door” for a shared services model to be successful.
Based on my own experience, I believe it is important for the partner agencies to negotiate an interlocal agreement or other legal document to detail how they will fund, manage, and provide shared services. This point was also emphasized by our panelists. A straightforward document that is regularly reviewed by the parties helps set expectations and provide continuity when the players change.
In addition, our panelists recommend regular meetings and interaction between the chief executives and departmental directors to foster communication and collaboration and to
monitor program performance. Similarly, it can be a healthy practice for the partner agencies to periodically bring their elected bodies together to discuss the benefits of the shared services program. Meeting regularly helps to strengthen the relationship and keep the partners engaged in the program’s success.
How to get started
Connecticut has several tools to help municipalities, school districts, and other public agencies share services. The staff at your regional council of governments (COG) or regional education service center (RESC) can provide advice, model documents, and other resources. COGs and RESCs can also provide shared services directly. For example, the Northeastern Connecticut Council of Governments has administered a successful regional animal shelter for many years.
The State of Connecticut supports service sharing by statute and through various grant programs. The RPIP grant administered by OPM offers an opportunity to lower barriers of entry for shared services. Grant recipients can use the program to fund staff and support infrastructure to start a new shared service venture. Both COGs and RESCs are eligible to apply to the RPIP on behalf of their members.
Municipalities and other agencies looking to share services can start small or with a pilot. Sharing a specialist, such as a payroll administrator, with your school district or a piece of equipment with your neighboring town are good examples. Small successes can lead to additional opportunities to collaborate and to share services on a larger scale. Find a partner that you can trust and be flexible, patient, and willing to take some risk.
For more information, please visit CRCOG’s Shared Services Resource Page.
Matt Hart is the author of this post.
