CICP

I hope you will take a moment to read the Indianapolis Star’s excellent editorial  on the fight for local government reform in the General Assembly.

The Central Indiana Corporate Partnership strongly supports reform.  Though the last legislative session was disappointing in its lack of progress on the broader Kernan-Shepard Commission recommendations, we have an opportunity this year to take at least a few small steps in the right direction  – focusing specifically on Indiana’s 1,008 township governments.

There are obvious ethics reforms that top this scaled-back agenda.  As lawmakers debate tougher ethics standards at the state level, they should also correct notable abuses among the townships.  It’s time to end nepotism in these offices, the widespread practice of hiring family members (often at exorbitant salaries).  (A review of public records show that two-thirds of township trustees share a last name with at least one person on their township payroll).  It’s also a clear conflict of interest to allow township employees to serve on the local legislative bodies that determine their budgets and salaries. 

As the state’s fiscal climate continues to worsen and county and municipal governments face a “one-two punch” from the recession and property tax caps, it’s also time for binding oversight of township budgets by county councils. 

Township governments spend more than $400 million a year statewide, and have over-taxed their way to more than $230 million in unused surpluses.  We’ve heard story after story of blatant waste, even fraud, in township finances.  At best, the system is inexcusably inefficient – for example, spending an average of eight times more in overhead than the typical private charity in Indiana to deliver every dollar of poor relief to the disadvantaged.

At a time when government at all levels must make tough choices, we can’t allow townships to continue taxing and spending unchecked.  Just as the Department of Local Government Finance approves county budgets, counties should oversee and approve township budgets.

We’re pleased that the Star continues to be a strong voice for reform, along with other media across the state.  With enough public attention and outcry from their taxpaying constituents, the General Assembly will move to reform a 19^th century system of local government to serve Hoosiers more effectively and efficiently today.