2023 WI Act 12 created the Innovation Planning Grant Program under sec. 79.038(2), Wis. Stats.

• Any Wisconsin municipality (village, city, or town) or tribe, with a population not exceeding 5,000 may apply for this planning grant
• Awarded funds can only be used for – staffing and consultant expenses for planning the transfer of one or more allowable services/duties (listed below) from a municipality or tribe to another entity (county, municipality, tribe, non-profit organization, or private entity) under sec. 79.038(1)(b), Wis. Stats.
• A maximum of $100,000 can be awarded per proposed innovation plan

If your municipality or tribe has a population not exceeding 5,000, you may submit an application to the Wisconsin Department of Revenue (DOR). To apply, e-file the 2024 Innovation Planning Grant (Form SL-400) through MyDORGov by February 28, 2025.

An applicant for this grant can be either the transferor or transferee with respect to the service being transferred but there can only be one grant payment per proposed innovation plan.

The amount you request on the grant application should equal the amount your municipality or tribe needs for staffing and/or consultant expenses for planning the transfer of one of the services/duties (listed in question 1) from your municipality or tribe to another entity.

• Maximum amount awarded for each proposed innovation plan cannot exceed $100,000
• DOR may award funds less than the amount you requested because:
• Of supporting documentation your municipality or tribe provided with the application, or
• The maximum award amount for the grant program is reached

• DOR receives/reviews initial applications for the Innovation Planning Grant
• Award decisions are anticipated to occur in January 2025 and are not expected to exceed $1 million in total for this award period

• An additional application period for the Innovation Planning Grant
• Award decisions for all applications received, but not previously awarded, are anticipated to occur in February 2025 and are not expected to exceed $1 million in total for this award period

• Final application period
• Award decisions for all applications received, but not previously awarded, are anticipated to occur in March 2025 and are not expected to exceed $1 million in total for this award period

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.

For each Innovation Planning Grant application submitted, your municipality or tribe must provide a project summary or draft plan (if possible) and include supporting documentation detailing the anticipated planning effort.

At a minimum, include these items:

If approved, a municipality or tribe may receive a maximum of $100,000 for each proposed innovation plan.

• A municipality or tribe can submit a separate application for each service/duty it would like to transfer
• If the same municipality or tribe submits multiple Innovation Planning Grant applications, they will be prioritized separately
• DOR can award a total of $3 million in Innovation Planning Grant funds, under state law (sec.79.038(2), Wis. Stats.)

A municipality or tribe can transfer a service/duty to a county, municipality (village, city, or town), tribe, nonprofit organization, or private entity (ex: business).

To be eligible for the Innovation Planning Grant, an application must involve the planning for transferring a service/duty entirely from a 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.

• Reviews/evaluates all the submitted planning grant applications and contacts you (by email or phone) if we need additional information or clarification on what you provided
• Asks you to amend or resubmit your application with updated or additional information if needed
• Email award decisions following the end of each application period (see question 4 above)

DOR will award the Innovation Planning Grant funds to the municipality or tribe that submitted the Innovation Planning Grant application. The submitter may be either the transferor or transferee with respect to the service/duty transfer being planned but there can only be one grant payment per proposed innovation plan.

If your municipality or tribe no longer wants to receive the approved grant funds, contact us at lgs@wisconsin.gov immediately.

The Innovation Grant program (sec. 79.038(1), Wis. Stats.) is designed to provide funds to counties, municipalities, and tribes 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.

• DOR expects the Innovation Grant application to be available in July 2025
• $300 million in total available funds
• A county, municipality or tribe may receive up to $10 million each year
• Requirements
• Enter into an agreement or contract to transfer services/duties with the signature date on or after the November 13, 2024 Administrative Rule notice date for Innovation Grants
• Provide a copy of signed agreement or contract satisfying the requirements outlined in sec. 79.038(1)(a)1., Wis. Stats.
• County, municipality, or tribe provided all services/duties for the calendar year prior to the transfer
• Transfer must realize a projected savings of at least 10% of the total cost of providing the service/duty
• 50% of the projected savings must be realized within 24 months after the first grant payment
• Full amount of projected savings must be realized within 36 months after the first grant payment
• Note: DOR is required to audit at least 10% of the grants awarded to ensure projected savings are realized
• Awards
• DOR distributes three annual payments – each payment equals:
• 25% of the total cost excluding the district with the highest cost – for plans including only counties, municipalities, or tribes
• 25% of the total cost – when transferring to a nonprofit organization or private entity
• No county or municipality may receive more than $10 million each year
• DOR must give priority to innovation plans realizing savings for public safety, fire protection, and emergency services while maintaining the appropriate level of such services
• See the Innovation Grant common questions for additional details

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