Mayor Michael Bloomberg is looking for ways for local governments to solve challenges and he's willing to pay for them.

His foundation, Bloomberg Philanthropies, is launching a multi-million dollar contest looking for ideas to transform the way governments work.

He announced the contest on CBS This Morning.

Bloomberg has sent letters to the mayors of more than a thousand large cities inviting them to submit their ideas for improving areas like housing, health care and budgeting.

A total of 20 finalists will come to New York next year for an ideas camp to refine their proposals.

"We're trying to find out what's the best ideas," Bloomberg said. "Each mayor can have a different idea that may be transferable to another city and we're all in this together. So, hopefully with this prize people will focus on coming up with new, innovative ideas that improve efficiency, improve the services, make government more responsive."

The winner - to be announced next May - will receive $5 million.

Four runners-up will receive a million dollars each.