1851

2. 1851 • State constitution created Indiana’s multi-layered local government system, which is still used today • One-size-fits-all approach not applicable today

3. Then and Now Indiana 1851 2002 Population <1 million >6 million Total Farms 144,000 63,000 Trip to Cty Seat Day on Horseback Minutes

4. 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?

5. 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

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

7. Indiana Local Government • Counties1 • Indiana: 92 • U.S. Average: 63 • Townships2 • Indiana: 1,008 • U.S. Average: 833 • Cities/Towns • Indiana: 566 • U.S. Average: 385 • Connecticut and Rhode Island do not have counties • Only twenty states have townships

8. Local Government Growth(1997-2002)

9. Estimated Annual Efficiency Savings

10. 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

11. 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

12. 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

13. 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

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

15. Recommendation Combine recorder, clerk, treasurer and auditor functions. Potential Savings: $14.1 - $45.1 million Create Department of Highways & Infrastructure. Potential Savings: $12.2 - $17.4 million

16. Recommendation Proposed County Organization

17. 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

18. 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)

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

20. 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

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

22. 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

23. 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

24. 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

25. 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

26. 2005 Legislative Session Local Government Efficiency Bills

27. HB 1435 • Indy Works HB 1193 • Number of County Commissioners

28. HB 1335 • Statistical Information on Townships SB 308 • Qualification of Assessors

29. SB 636 • Merger of Townships