1851 State constitution created Indiana’s multi-layered local government system, which is still used today One-size-fits-all approach not applicable today

Then and Now Indiana Population 6 million Total Farms 144,000 63,000 Trip to Cty Seat Day on Horseback Minutes

Key Questions Why has our local government system not changed with the times? What is the proper process for evaluating current local government structure? To what extent can property taxpayers benefit from a more efficient local government?

Recent Studies 1999 – COMPETE study examined current effectiveness of local government and outlined recommendations for improvement 2004 – Follow-up report quantifies original analysis and defines benefits of implementing recommendations

Our Goals Deliver blueprint of recommendations and benefits Spur local debate and local solutions Pass enabling legislation allowing local decisions to be implemented

Counties 1 –Indiana: 92 –U.S. Average: 63 Townships 2 –Indiana: 1,008 –U.S. Average: 833 Cities/Towns –Indiana: 566 –U.S. Average: 385 (1)Connecticut and Rhode Island do not have counties (2)Only twenty states have townships Indiana Local Government

Local Government Growth ( )

Estimated Annual Efficiency Savings

Case 1: Property Assessment 1,100 local officials are involved in property assessment 15% of townships have elected assessors; trustee is the responsible official in the other townships Appropriations for annual operations (not reassessment) were approximately $25 million in 2002

Recommendation Consistency is the key to successful real property assessment. Property assessment should be removed as a township function and assigned to the county. Counties should then have the ability to coordinate with other counties to have property assessment occur on a regional basis. Potential savings: $11.6-$13.1 million

Case 2: Poor Relief In 2002, of the $61.6 million appropriated by townships for poor relief: $32.3 million for direct assistance; $29.2 million for administration For every $1 in poor relief assistance at the township level, 90 cents was appropriated for administrative costs Indiana is one of three states that administers poor relief at a sub-county level of government

Recommendation The funding and provision of poor relief services to be shifted to county government. Local ports of delivery should be maintained where possible. Potential savings: $26 million if following a standard of 10% administrative expenses

Case 3: County Government Typical County Organization Indiana has the highest number of separately elected county officials in the entire nation

Recommendation Combine recorder, clerk, treasurer and auditor functions. Potential Savings: $ $45.1 million Create Department of Highways & Infrastructure. Potential Savings: $ $17.4 million

Recommendation Proposed County Organization

Case 4: Multi-County Jails $97 million appropriated for jail operation in 2002; $22 million appropriated for debt related to such facilities (33 of 93 counties) Several counties have overcrowding, while an adjacent county has capacity

Recommendation Counties should be permitted and encouraged to share in the capital and operating costs of a multi-county correctional facility. Potential savings: $5.4 - $10.5 million (not including joint purchasing and other operational capital expenses)

Case 5: Joint Purchasing Bulk purchasing has been a proven practice for many years. Government, however, has room for substantial improvement.

Recommendation Police and fire administration should engage in joint purchasing with other fire units in area. Standards for creation of a Quantity Purchase Award (QPA) program should be developed. Potential Savings: Sample of six QPA purchases – 18% or $7.64 million statewide More conservative estimate of 10% - $4.24 million

Estimated Annual Efficiency Savings $64,205,000 - $122,411,000

Recurring Themes Local government structure should reflect clear lines of accountability Where practical, those who benefit from public services should bear the cost of those services Neighboring units of government should work with one another to achieve economies of scale

Recurring Themes Fiscal responsibility in local government should be encouraged and rewarded Elected offices requiring specific skills should be held by individuals possessing the training and qualifications necessary to carry out the functions of those offices

Key Points Indiana’s local government structure needs to be updated. Diversity within state requires the ability to formulate, approve and implement local solutions Duplication of services and unproductive operations harm productivity and unnecessarily increase property tax rates

Key Points Poor relief services are a model of inefficiency with approximately 90 cents appropriated to deliver $1 of assistance - this must be streamlined Centralizing property assessment, establishing multi-county correctional facilities and reorganizing county offices and duties will also improve effectiveness and produce costs savings

2005 Legislative Session Local Government Efficiency Bills

HB 1435 Indy Works HB 1193 Number of County Commissioners

HB 1335 Statistical Information on Townships SB 308 Qualification of Assessors

SB 636 Merger of Townships