Tag Archives: townships

Short Session Starts With a Flurry of Activity

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The Governor and General Assembly have continually heard from Hoosier employers on the need for a skilled workforce – and better aligning state programs with job demand. The good news is bills are being introduced to address those concerns. While only a handful of measures have been released to date, we are seeing legislation related to training tax credits and grants, as well as efforts to streamline current workforce programs. We anticipate a comprehensive workforce bill (1002) will be introduced in the House later next week.

The Governor’s computer science bill (SB 172) requires all public schools to offer a one-semester elective computer science course at least once each school year to high school students. We expect a hearing on this measure in the next two weeks. Both this and the workforce efforts are 2018 Indiana Chamber legislative priorities.

Senate Bill 257 has been introduced by Sen. Travis Holdman (R-Markle) to serve as the beginning of discussions on clarifying the exempt status of computer software sold as a service (SaaS) – a Chamber priority. Holdman is also authoring another major piece of tax legislation, SB 242, which contains a variety of tax matters. The House bills are coming in too, with a good number already filed addressing local tax issues.

Speaking of local matters, the Chamber is very pleased to see that the House Republican agenda includes a bill that will make township government more effective and efficient by the merging of townships (approximately 300) where less than 1,200 people reside. Such local government reform has been a longstanding Chamber goal.

In addition to SB 257, other technology-related bills include Rep. Ed Soliday’s (R-Valparaiso) autonomous vehicle (AV) proposal to position Indiana to safely test and implement AV technology with automobiles. The bill also will address truck platooning, which uses GPS and WiFi technology to allow trucks to more closely follow each other for greater efficiency, on Indiana roads.

Rural broadband, high-speed internet and small cell wireless structures technology all will be topics for the Legislature to debate. Certified technology parks also will be discussed with the idea to have an additional capture of sales and income tax revenue for those complexes that perform well.

In health care, enabling employers to ask prospective employees if they are smokers not only heads the Chamber’s wish list but also appears to be gaining traction this go-round. Eliminating the special protections (currently in state statute) for smokers is found in SB 23 and will be guided by Sen. Liz Brown (R-Fort Wayne). The bill has a pretty good chance of getting a hearing in the Senate – which would be a first. Previously, a measure was taken up in a joint hearing in the House.

Increasing the tobacco tax and raising the legal age for smokers to 21 are policies that likely will be included in a bill to be introduced by Rep. Charlie Brown (D-Gary). The Indiana Chamber is supportive of both.

Nine utility-related bills are on our radar screen at this point. They range from tweaks of last year’s big legislation (like SB 309, which addressed rising energy costs and a long-standing struggle between the investor-owned electric utilities and larger consumers of energy) to compulsory sewer connection, excavation for infrastructure, regulation of solar energy systems in homeowners’ associations and new water legislation. Separately, Sen. David Niezgodski (D-South Bend) has a proposed ban on coal tar pavement sealer, which we oppose.

There are also a number of bills proposing changes to Indiana’s alcohol laws including: Sunday sales, cold beer sales by grocery and convenience stores, and increases in fees and penalties.

The Chamber will be providing more details on all of these bills as the session progresses.

For anyone who wants a refresher about how legislation becomes law, the Chamber has a handy guide free of charge. It includes a diagram of the bill process, a glossary of often-used terms and a look at where bills commonly get tripped up.

Additionally, the Chamber will be providing updates and issuing pertinent documents throughout the session at www.indianachamber.com/legislative.

Why Consolidation is Right for Muncie/Delaware County

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James Gooden, a Muncie native and consultant for GEA Architects, penned a thoughtful column for the The Star Press contending the time has come for Muncie and Delaware County to merge into a single unit of local government. The Indiana Chamber has been working to reduce government duplication statewide for years now, and we’re happy to see this getting more press.

Why should we merge Muncie and Delaware County into a single unit of local government?

It should be done because the current form is archaic and it is not in sync with present or future lifestyles and employment trends. Along with having high value for education, quality health and wellness facilities, and lifestyle opportunities, communities with effective and creative government are attractive as places to work and live: All are appealing traits to potential investors.

It bears recognizing that effort to bring new investment to ECI in no way diminishes the importance of the significant roll that current manufacturing, agriculture, retail and service sectors play in our economy. All are poised for growth. While, now, only about 1 percent of the county’s workforce is engaged in farming the land, the diverse business of agriculture stands out because it has been a mainstay since the pioneer days of the 19th century, but the industry has changed with the times — local government has not.

Town and country are today a homogenized community. Yet, we still operate local government in a horse-and-buggy fashion and that prompts a couple of pertinent examples. Recently, the rebuilt West Jackson Street bridge, opened to traffic after a long closure. In a related Star Press article, County commissioner Todd Donati pointed out that all bridges (except those carrying state highways) are constructed and maintained by the county. Conversely, the streets (except those carrying state highways) leading to and away from the bridges in Muncie are constructed and maintained by the city. How absurd is that (?)

Reactions to Local Government Reform Progress Mixed

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It’s no secret the Indiana Chamber is a strong proponent of local government reform, and we’re directly involved with MySmartGov. Although we’re encouraged that legislation curbing nepotism in local government passed this year, to this point the going has been rather slow in getting Indiana legislators to eliminate duplication at the township level. The Indiana Economic Digest has an interesting article on the topic, relaying how the gentlemen who created the Kernan-Shepard Report — the document that initially stated the case for reform — don’t see the progress thus far as being entirely negative.

Getting property tax bills out on time may not seem like a headline-grabber, but for supporters of a sweeping government reform effort, it’s big news.

Four years ago, not a single county in Indiana hit the deadline for sending out tax bills that generate revenues needed to keep the gears of local government moving. The following year, only two did.

Last year, 90 of Indiana’s 92 counties made the deadline.

The difference has saved cities and schools millions in interest payments on tax anticipation loans while waiting for their counties to collect and hand over tax dollars.

State finance officials credit the dollars saved to a recommendation made in December 2007 by the Indiana Commission on Local Government Reform.

The bipartisan commission spent months coming up with a road map to streamline local government. In a report that called for sweeping changes, it issued 27 recommendations — including the one that led to the consolidation of township assessors under the county and a shift to more professional assessment standards.

But only about one-third of those 27 recommendations have come to fruition since.

That’s not enough for Gov. Mitch Daniels, who created the commission. Talking to reporters Monday — just two days after the Indiana General Assembly closed Daniels’ last legislative session — the governor bemoaned the fact that much of the bipartisan commission’s recommendations have met a bipartisan wall in the Legislature.

“I continue to be disappointed that we didn’t get more than one-third done,” Daniels said.

That’s not how one of the men who headed the commission’s work sees it, though.

Retiring Indiana Supreme Court Chief Justice Randall Shepard is the Republican who co-chaired what became known as the “Kernan-Shepard commission” with former Gov. Joe Kernan, a Democrat.

He thinks progress on local government reform has been impressive, given the resistance to change a system put largely in place before Indiana became a state.

Shepard recalls a conversation with commission members just as they were getting ready to release the 2007 report that called for virtually eliminating township government while consolidating hundreds of school and library districts and imposing new rules for financial accountability.

One member said it would be a “miracle” if everything in the report got done. Shepard said the response from another commission member was: “‘It’ll be a miracle if anything gets done.’”

So in Shepard’s estimation, getting one-third done “is a pretty good outcome.”

In the session that just ended, lawmakers passed a bill with roots in the Kernan-Shepard recommendations: Aimed at eliminating conflicts of interest and reducing nepotism in local government, it bars a local government employee from taking office as an elected official of the government he or she works for. It also bans a local government employee from supervising a relative in a local government job.

Similar legislation failed in past sessions.
 

Nepotism at the Township Level: Monroe County Edition

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More evidence Indiana needs HB 1005 to pass to start cracking down on township government abuse. RTV6 has the story:

The State Board of Accounts is demanding a former Monroe County township trustee repay more than $95,000 after an audit revealed questionable expenditures involving family members.

Benton Township Trustee Heather Cohee stepped down last week amid criticism that she hired her husband and daughter to perform tens of thousands of dollars of work for the township without proper documentation.

The Attorney General’s Office told RTV6 on Monday that it will likely file a civil lawsuit against Cohee to recover the public funds, as well as a preliminary injunction and temporary restraining order to freeze her financial assets.

According to the audit, Cohee hired her husband, Todd, also a Monroe County Sheriff’s deputy, to perform jobs such as cemetery mowing, parking lot paving, snow removal and landscaping.

Auditors said she also hired her daughter, Brittany, to do regular cleanings for the township, but the trustee had little documentation to support where the money actually went.

Todd Cohee served as the Township Clerk and Brittany Cohee served as the Township Assistance Clerk.

Auditors said Heather Cohee repeatedly did not file a conflict of interest statement for her husband or her daughter, which is a Class D felony.

Heather Cohee was unavailable Monday to discuss her resignation or the audit with RTV6.

Daniele Coe is handing the books for now, while the township board figures out the next steps.

"I don’t have a comment on what has gone on, but I know the board is doing everything it can to make sure business goes on as usual," Coe said.

Board member Lynn Stevens told RTV6 that the board would do everything possible to get the taxpayers’ money back, and said they scheduled an emergency meeting Monday night to discuss options.

Web Site Sheds Further Light on Local Government Spending

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Keeping track of townships and local government spending is a complicated, but necessary measure. That should now be a little easier thanks to some efforts of the Indiana Dept. of Local Government Finance and their new web site. The Tribune (Seymour) has the story via Indiana Economic Digest:

Hoosiers now have an opportunity to take a deeper look at how local governing units collect and spend their money thanks to a new website recently unveiled by the state.

And Jackson County seems to be faring better that (sic) a lot of Indiana counties, a local official says.

“We look really good,” county Councilman Brian Thompson told his fellow council members during their recent meeting at the courthouse annex.

Thompson was basing that assessment on information located on the web at https://gateway.ifionline.org/ …

The Indiana Department of Local Government Finance unveiled the website developed in cooperation with the Indiana Business Research Center at Indiana University’s Kelley School of Business in mid-November.

According to a press release from the DLGF, the website is the second phase of a new online data collection system and public access website that “substantially increases the transparency and accessibility of local government finance” for Hoosiers.

The first phase of the system, known as the Indiana Gateway for Government Units or Gateway for short, allowed local officials to submit 2012 budget forms electronically from July 1 to Nov. 3.

As part of the second phase, those budget figures are now incorporated into the interactive research website. Visitors to the site can compare against other units and analyze per capita revenues and spending.

The public site allows taxpayers to access relevant data by property address, view up-to-the-minute budget summary information and download customizable reports.

“Once Gateway is fully implemented, with a few mouse clicks, citizens can obtain local government budgets, property tax information, debt tallies, and spending reports,” Department Commissioner Brian Bailey said.

Local officials also will use Gateway to submit annual reports to the state Board of Accounts, allowing users to tie budget information to expenditure information easily for the first time.

They also will report debt information through Gateway, providing taxpayers with information about borrowing costs and overall indebtedness. This data, which local officials must submit by March 1, will be made available through the public access website this spring.

“By linking local government finance to the other data hosted on Stats Indiana, policy makers and businesses will have information at their fingertips to help them make fiscal decisions in the context of their overall community, or communities they may consider joining,” IBRC Deputy Director and Chief Information Officer Carol Rogers said.

Governor to Support Overdue Government Reforms

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The Indiana Chamber and MySmartGov have been champions of sensible government reform in Indiana, and have supported suggestions from the Kernan-Shepard Report that would eliminate townships, among other excesses. The Evansville Courier & Press now reports Governor Mitch Daniels will firmly put his weight behind these measures in the 2012 session:

Gov. Mitch Daniels will make one last push for local government reforms – this time, a select and scaled-back set of them – during the final legislative session of his administration, he announced Friday.

Daniels unveiled his legislative agenda for the Indiana General Assembly’s 10-week 2012 session, which starts Jan. 4, during a speech at the Kiwanis Club of Indianapolis.

He said he will lobby for structural changes at both the township and county levels, as well a crackdown on conflicts of interest among municipal workers who also sit on the elected bodies that set the budgets for their employers.

It’s another try at implementing more of the recommendations offered in 2007 by a blue-ribbon panel chaired by former Gov. Joe Kernan and Indiana Chief Justice Randall Shepard.

This year, as freshman Rep. Kevin Mahan, R-Hartford City takes over the chairmanship of the House Government and Regulatory Reform Committee, Daniels said he believes the conditions are right for more progress than he has made in the past.

“We’re going to try to approach it in a little simpler way,” Daniels said.

He said he hopes four local government changes that have stalled out in previous sessions can gain more traction this year. Those four are:

– Allowing counties to switch their executive structure from three-member groups of commissioners to a single county commissioner.

– Abolishing three-member township advisory boards that oversee township trustees’ budgets and bumping their fiscal oversight duties up to county councils.

– Eliminating nepotism – that is, the ability for local elected officials to hire their relatives to do the area’s work.

– Restricting “conflicts of interest,” or situations where those who are paid by local government, such as police, firefighters, park employees and more, also serve on the councils that set their budgets.

“I think if we could get action on two, three, four fronts like those, this would be good. Those are some important reforms. I’ve always believed that we wouldn’t do this in one or two big gulps; it would have to be an incremental process, and this would get the process moving forward,” he said.

Township Trustee Paid $332,000 for….. Nothing?

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This story is unfortunate, and I genuinely feel bad for the trustee who lost this money — and was subsequently ambushed at her home by a news crew. But a mistake was made — and it was a big one. It just simply points to yet another instance of township government in Indiana not using taxpayer resources very effectively.

A township trustee who paid up front for a fire truck that never showed up is now facing scrutiny from the State Board of Accounts and the Indiana Attorney General’s Office.

Pamela Crum, the trustee of Sheffield Township in Tippecanoe County, wrote a check for $332,970 to Elite Fire Apparatus of Wisconsin, but the company went bankrupt shortly after, according to an audit by the State Board of Accounts.

"The result was, they were just out the money and they were going to get no fire truck, and, according to the bankruptcy court, there were no assets to distribute," said Paul Joyce, deputy state examiner for the State Board of Accounts.

Indiana code states that public officials should not pay for goods or services up front, unless it’s a recurring expense, such as rent, 6News’ Kara Kenney reported.

"You’re not supposed to pay for anything in advance," Joyce said. "That’s because you might not get the goods and services you purchased."

Joyce called Sheffield Township’s $332,970 check the worst case the agency had ever seen of a public official paying for something that didn’t show up.

In an effort to recoup the money on behalf of taxpayers, the attorney general’s office sent out letters to Crum, the former board members who approved the expenditure, as well as Ohio Farmers Insurance and National Fire & Casualty.

National Fire & Casualty has a $500,000 policy on the township, and Ohio Farmers Insurance has a $15,000 surety bond on the township trustee, according to the attorney general’s office.

If they don’t pay within 30 days, the attorney general’s office may file a lawsuit to recover the public funds.

"I’m not happy, not happy," said Linda Gregory, a longtime Sheffield Township taxpayer. "For a small town like this, it’s surprising."

No Direct Comparison Intended; Just a Clever Lead

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Yesterday’s blog post about two local government reform bills being defeated in the Senate was intended (like all communication efforts) to draw attention. After all, comprehensive reform — particularly at the township level — has been a top priority of the Chamber (and the governor) over the last four years.

The attention goal was achieved, at least in part, as there was an interpretation by some (including at least one state senator) that the analogy in the lead was directly comparing the defeat of these two bills to the magnitude of the House Democrat walkout. That was not the intention at all. The reference to the House dispute (one could be justified using much stronger terms) was simply to show that 99% of the media and public attention was focused on the House and that the actions of the Senate (both those we agreed with and did not support) were occurring "under the radar screen."

That’s the great thing about interpretations — everyone has their own. Now, you know mine in authoring this post.

Township Reform: Senators Do Their Own Harm Before Heading Home

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Look up the definition of "currently under the radar screen," and you might find an image of the Indiana Senate. With House Democrats bolstering the Illinois economy, little to no attention is being paid to the other side of the third floor of the Statehouse.

But before wrapping up its first half of the session, senators managed to do their own harm by failing to pass two important local government reform measures. SB 405 (eliminating township boards) was defeated 28-21 and SB 303 (giving counties the option to go to a single county executive instead of three commissioners) went down 27-22.

What were they thinking? It’s been clearly demonstrated — over and over and over — that townships waste taxpayer dollars, fail to effectively provide basic services and are a relic of days gone by. Townships don’t work in Indianapolis, Evansville, Fort Wayne or the many less populous areas throughout the state.

Yet, some legislators in more rural districts made the case to their colleagues that, and I paraphrase, "our township folks are good people; it’s OK that they hire their relatives and so what if they break the rules every now and then and sit on money that could be used for schools, libraries and other local services."

As a colleague described it, politics and emotion won out over common sense. We expected more, much more, from our senators.

Lawmakers should have listened to two trustees (one former, one current) who had a clear message.