CICP News & Updates

As lawmakers gather at the Statehouse for Organization Day today, we urge them to forge ahead with the critical issue of local government reform.  As legislators ponder the growing gap between government collections and spending, and consider whether to include property tax caps in the Indiana Constitution, they can’t continue to ignore the fundamental need for structural reforms that would allow local government to do more with less. 

During the last session, the General Assembly rejected the common-sense government reforms recommended by the bipartisan Kernan-Shepard Commission, changes that could have saved taxpayers up to $600 million statewide (according to studies by Ball State economists).  This session, legislators should at least push for increased openness, oversight and accountability to ensure that tax dollars are used efficiently and effectively during these tough times.  As state-level lobbying reform and other government ethics proposals are in the headlines, transparency in local government (especially the oft-overlooked township offices) shouldn’t fall by the wayside.

We couldn’t make the case any better than this editorial from Gary Reiter – this version appeared in the Indianapolis Star a few weeks back.

Times too tough to ignore township government

Gary Reiter

The recession has hit Hoosiers hard – we’ve seen it in our 401(K) statements, the family checkbook, the fortunes of the businesses that make up our economy.  Government isn’t immune; there’s been a lot of attention over the last two weeks to the state’s plummeting revenues, short more than $250 million over the last quarter.

But even closer to home, local government is facing the budget axe, too.  The recession and the property tax caps passed by the General Assembly last year are a one-two punch that have forced Indianapolis into cutting funding for parks, the arts, correctional facilities (raising the specter of early inmate releases) and other public services. 

During times like these, there can be no sacred cows.  As Governor Daniels recently said, everything has to be on the table – and that includes the operations and oversight of township government.

A few weeks ago, the Indianapolis City-County Council held a hearing on the financial practices of Marion County’s township offices.  I attended to learn more, and came away more convinced than ever that we desperately need reform.  Tough times demand an informed public, but when it comes to township officials, taxing and spending happens largely out of sight and out of mind.

I heard several troubling facts during the Council hearing that led me to do additional research:

Marion County township governments are hoarding more than $48 million in unused surpluses.  We’re being overtaxed, and townships are sitting on more than enough excess cash to plug the budget deficit for the entire county – instead of maintaining our parks, restoring arts programs and keeping criminals behind bars, we’re padding the bank accounts of township trustees. 

Washington Township, for one, holds a $5.4 million surplus, enough to operate for two years without taxing citizens another cent.  You may recall that the Washington Township advisory board voted itself a 69% raise last year.

In Franklin Township, the trustee’s office held a surplus of more than $5.5 million at the end of 2008.  Wayne Township has an amazing $12.7 million surplus!  Imagine if these funds could be spent on public safety, economic development or mass transit…or used to cut property taxes for homeowners.

The townships are also inefficient in administering the money they did spend.  In Center Township, less than half of spending related to poor relief went directly to those in need.  In Warren Township, the trustee’s office spent $12.20 in administrative expenses for every dollar dedicated to poor relief and fire protection.  In Washington Township, the figure was $9.44 in overhead for every dollar in services. 

It’s incredible that tens of millions of our tax dollars continue to be funneled through this largely-ignored layer of bureaucracy during a fiscal crisis, while the City-County Council has little authority except to hold hearings. 

It’s time to shine a light on township government.  It’s time to push for oversight and accountability, and a real public debate over whether townships have outlived their usefulness altogether in providing services that could be more efficiently and effectively provided at the county level. 

This debate starts with taxpayers getting informed and  speaking up – please don’t fail to make your voice heard.

Gary Reiter is the Chief Financial Officer of KERAMIDA Inc., a Global Environmental, Health, Safety, and Sustainability firm located in downtown Indianapolis and a resident of Center Township.