The Innovation Grant program (sec. 79.038(1), Wis. Stats.), created under 2023 WI Act 12, is designed to provide funds to counties, municipalities, and tribes (transferor) that implement an innovation plan to completely transfer one or more of the allowable services/duties (see Question 5) to another county, municipality, tribe, nonprofit organization, or private entity (transferee).

• Nonprofit organizations and private entities are not eligible to receive grant funds directly from DOR

• If the innovation plan involves – only counties, municipalities, or tribes:
• Grant amount each year is equal to 25% of the total costs of providing the service/duty for the calendar year immediately preceding the transfer as outlined in the agreement/contract, excluding the costs paid by the highest cost entity involved in the innovation plan
• If the innovation plan involves – the transfer of the service/duty to a nonprofit organization or private entity:
• Grant amount each year is equal 25% of the total costs of performing the transferred service/duty incurred by the county, municipality or tribe transferring the service/duty for the calendar year immediately preceding the transfer
• Note:
• No county, municipality, or tribe may receive more than $10 million each year
• DOR can award a total of $300 million in Innovation Grant funds, under state law (sec. 79.038(1)(c)2., Wis. Stats.)

Under state law (79.038(1)(e)1., Wis. Stats.), DOR must give priority to innovation plans realizing savings for public safety, fire protection, and emergency services while maintaining the appropriate level of the services.

• A copy of the agreement/contract must be submitted to DOR, signed by the transferor and transferee, stating one or more allowable service/duty is being transferred with the signature date on or after the November 13, 2024 Administrative Rule notice date for Innovation Grants
• The agreement/contract signed by the transferor and transferee must show the transfer will yield a projected savings of least 10% of the total cost of providing the service/duty
• Transferor must have provided the service/duty being transferred for the calendar year prior to the transfer

A county, municipality, or tribe that qualifies for the Innovation Grant can transfer one or more service/duty to a county, municipality (village, city, town), tribe, nonprofit organization, or private entity (ex: business).

• Reviews/evaluates all the submitted grant applications and contacts you if we need additional information or clarification on what you provided
• Currently, DOR is determining the schedule for awarding and distributing the Innovation Grant funds and will share more information as it becomes available

To be eligible for the Innovation Grant, an application must involve the transfer of a service/duty entirely from a county, municipality or tribe to another entity. A joint merged service between municipalities is allowable. One option would be to have a joint merger that created a new entity or district. Another option would be to have a joint merger with an existing entity or district.

DOR will award the Innovation Grant funds per the agreement/contract, which must specify the allocation of the Innovation Grant funds between the counties, municipalities, or tribes that are involved in the transfer.

For detailed information on determining these costs, visit our I​nnovation Grants page and review determining fair market compensation and median hourly wage by county under the Innovation Grant Resources. The total cost of providing the service/duty includes the cost of wages, fringe benefits, training, and equipment of providing the service/duty.

• Within 24 months – achieved half the projected savings under the innovation plan
• Within 36 months – achieved the full amount of the projected savings under the innovation plan

Yes. DOR is required to audit a minimum of 10% of the grants awarded after 24 months of the first distribution of the grant.

If a county, municipality, or tribe did not achieve its required savings, the next grant payment is reduced by an amount equal to the difference between the amount of savings that must be realized, and the actual amount of savings realized.

Grant proceeds are unrestricted and may be spent on any activity/project approved by the local governing body. As the grant proceeds are not permanent recurring funding, DOR recommends avoiding the use of these funds for operational or personnel expenses that would result in a reduction of your county or municipal levy limit.

Contact the Wisconsin Department of Revenue at lgs@wisconsin.gov, (608) 266-1932, or (608) 266-6815.