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Structures subcommittee recommends easing consolidation requirements, new incentives for joint services

Commission on Local Government (CLG) · July 1, 2026
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Summary

The Structures Subcommittee reported survey results from 28 localities and recommended removing voter‑referendum language for consolidation, offering tax incentives tied to city reversion, and finding ways to incentivize interlocal collaboration without burdensome codified requirements.

Members of the Structures Subcommittee reported results from a survey of 28 localities (6 cities and 22 counties) showing broad use of joint service arrangements — including regional jails, criminal justice training academies, mental health services and planning district commissions. The subcommittee noted many successful regional initiatives originally relied on state incentives, which are no longer available in some cases.

Discussion focused on options to encourage collaboration without creating new procedural barriers. The subcommittee recommended striking voter‑referendum requirements for consolidation, exploring tax incentives for counties if a city reverts to town status, clarifying which services should be administered at the state versus local level, and seeking ways to incentivize joint collaboration without relying solely on codified acts.

Members said incentives that persist must demonstrably save both localities and the state money to be politically viable. The subcommittee also suggested reviewing past studies and considering regional magnet schools as an alternative to full school consolidation in some cases.

The Structures Subcommittee asked staff to compile additional background materials to inform the next stakeholder meeting and potential recommendations to the full Commission.