The Innovation Grant program (sec. 79.038(1), Wis. Stats.), created under 2023 WI Act 12 and updated under 2025 WI Act 15, 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 privat​e entity (transferee).

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

• Date of the first grant payment
• Duration of the service/duty transfer under the innovation plan
• Your ability to meet the 115% cost limitation requirement (see Q​uestion 12​)

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

• A copy of the contract/agreement 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
• 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.

• Costs for performing the service/duty in the calendar year a grant payment is made cannot exceed 115% of the costs for those entities in the calendar year prior to the transfer effective date
• If costs in the calendar year a grant payment is made exceed 115% of the costs for those entities in the calendar year prior to the transfer effective date, DOR will not distribute the next year's grant payment

Awarded grant applicants must certify to DOR yearly following the initial grant payment that this requirement is being met. DOR will audit a minimum of 10% of awarded applications 24 months after the initial grant payment to ensure compliance.

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.

No. A municipality or tribe cannot transfer a service or duty to an RPC for the Innovation Grant. Under state law (sec. 66.0309(8)(a)2., Wis. Stats.), an RPC's function is solely advisory to the local governments and local government officials in its region.

However, a municipality or tribe can consult with an RPC for the Innovation Planning Grant, to research and plan its innovation plan.

For additional details on an RPC's role, review sec. 66.0309(8), Wis. Stats.

Contact the Wisconsin Department of Revenue at lgs@wisconsin.gov, (608) 266-1932, or (608) 266-5​815.