News From Terre Haute, Indiana

Flashpoint

January 10, 2009

FLASHPOINT: The misconceptions of local government reform

The issue of local government modernization is extremely important to county officials. A primary motivation for enacting any type of change should be that the new framework will save taxpayers money. There are five misconceptions about the cost of government “reform” that should be brought to your attention.

Misconception 1: Placing county government under the control of a single executive will streamline the operation of counties.

County government is, for most purposes, already controlled by the commissioners and county council. The commissioners set personnel policies for each county employee, manage the facilities and sign all county contracts. Where authority diverges is in the implementation of state laws. The checks and balances inherent in the county system prevent fraud and waste.

Misconception 2: Moving from three commissioners to one will save on salaries while improving accountability.

The Association of Indiana Counties supports this change as a local option. A statewide mandate will, however, require increased cost in many counties. In the current system, three commissioners are part time, often dividing the work between themselves. This ensures the representation of different parts of the county. A single county executive will be a full-time position. Comparing the salaries of mayors with those of a county of the same population shows that the combined salary of three commissioners is far less than the mayor, a single executive. The three commissioners in Hendricks County, for example, receive a combined salary of $79,959 serving 104,093 residents. The mayor of South Bend, population 107,789, is paid $94,633. This difference is that the pay is consistent throughout the state in counties of all sizes.

Misconception 3: The structure of county government impairs economic development.

No evidence supports this position. The governor and members of the administration routinely tout Indiana’s success in attracting business and industry. Many of the largest projects announced within recent years were county projects. These include: Boone County, Anson Development; Decatur County, Honda; Gibson County, Toyota; Posey County, Abengoa (ethanol); Whitley County, SDI expansion; Monroe County, Ivy Tech project.

Misconception 4: Eliminating elected positions will save money and create efficiency.

The elimination of local elected officials is unlikely to result in any savings. The duties of some elected officials can be consolidated and some efficiency gained (a good example being the transition from the township assessors to the county assessor). Most duties of county officials are, however, set by state statute and will not disappear with the office.

Moreover, the trend has been an increase in duties of county officials, often through state mandates, rather than a decrease. Even the recent study by the Kernan-Shepard Commission and Local Government Expenditures (conducted by the Center for Business and Economic Research at Ball State University), often cited as evidence of reform savings, recognizes that transferring duties to other officials is “a potentially more costly activity.”

Elected officials often run for office to give back to their communities. In addition to already low salaries, many officials forgo pay increases during times of economic tightening. Again comparing salaries of the appointed deputy clerk of a city of similar size to those of an elected official, little savings can be seen. The Parke County treasurer receives $27,000 and serves 17,241 residents while the deputy clerk of the City of Huntington, population 17,500, is paid $37,202.

Misconception 5: Eliminating local elected officials will “bring county government into the 21st Century.”

County offices were specifically placed in the Constitution so that Indiana citizens would have a local voice in the implementation of state laws. A large bureaucracy patterned on the city government may be “modern” but it does not recognize the unique role of county officials and their relationship to not just county government, but to all the citizens in the county.

Each elected official is accountable to the voters. To place these positions under a single executive would invite cronyism and corruption.

— Andrew Berger

Legislative Director

Association of Indiana Counties

Indianapolis

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