Strategic Management Planning Program (STMP)

The Strategic Management Planning Program (STMP) is administered by the Pennsylvania Department of Community & Economic Development (DCED) through the Governor’s Center for Local Government Services (GCLGS). Its primary goal is to support local governments across Pennsylvania in achieving long-term fiscal sustainability through comprehensive financial and administrative planning. The program is rooted in DCED’s broader vision of revitalizing communities and strengthening the economic foundation of the commonwealth. It targets distressed and economically challenged municipalities by providing the tools, resources, and financial support necessary to avert fiscal crises, enhance service delivery, and improve administrative operations. At its core, the STMP is a multi-phased program designed to help local governments develop and implement a three-to-five-year financial management plan. In Phase I, participating municipalities conduct a comprehensive review of their financial condition, forecast future trends, assess management capacity, and prioritize areas for intervention. The financial plan addresses both short- and long-term goals with a strong emphasis on implementing best practices, increasing operating efficiency, and identifying intergovernmental cooperation strategies. The plan must also include a public adoption process and requires detailed reporting to DCED. If urgent issues such as cash flow crises are identified, an emergency action plan for the current fiscal year is required. Following completion of Phase I, municipalities may be eligible for implementation funding to act on the plan’s recommendations. These subsequent phases support activities such as updating administrative policies, investing in information technology, engaging an implementation manager, developing capital budgets, and conducting related operational studies. Capacity-building efforts, including training for elected and appointed officials, are also an integral part of the program to ensure long-term sustainability. Participation in GCLGS-approved training is a prerequisite for accessing implementation funding. The grant program offers awards of up to $200,000, generally covering 50% of total project costs. Municipalities must provide the remaining cost share, though this requirement can be reduced to as low as 10% for applicants experiencing acute fiscal distress, participating in consolidation efforts, or facing other extenuating circumstances. A formal request for financial hardship must be submitted with supporting documentation. Grant disbursements are typically processed in two or more installments, contingent on satisfactory progress. All grantees must comply with DCED’s audit requirements, including submission of the Annual Financial Report (AFR). Applications are submitted through DCED’s Electronic Single Application system at grants.pa.gov and are accepted on a rolling basis. Required documents include a signed resolution of support, detailed project narrative and budget, supporting addenda, and relevant attachments for matching reduction (if applicable). GCLGS encourages potential applicants to schedule a pre-application meeting. Evaluation criteria include the municipality’s financial and economic condition, commitment to implementation, prior performance, and alignment with Keystone Principles for sustainable development. For more information, applicants may contact the Governor’s Center for Local Government Services at (888) 223-6837 or via email at [email protected]. Regional contact numbers are provided in the guidelines. Successful applicants are notified by letter and will enter into a formal grant agreement with DCED. The standard performance period for a Phase I plan is 12 months from project initiation. The program is recurring with applications accepted continuously, and future implementation support available for municipalities that meet the training and compliance requirements outlined in the guidelines.

Review application with solicitor; schedule pre-application meeting; ensure AFR is submitted on time.