STATEHOUSE (Feb. 16, 2009) - Indiana is the only state in the nation that divides fiscal and other legislative policy-making decisions between two groups - boards of commissioners and county councils - according to the National Association of Counties.

Other states with county-level governments unify these roles under a county executive or single board, according NACO's Web site. 

On Monday, the Indiana Senate voted to allow each Hoosier county to decide if budgeting and policy making should be unified "in hopes of providing more effective, efficient and accountable local government," according to the bill's author.

Sen. Phil Boots (R-Crawfordsville) said Senate Bill 506 resulted from the property tax crisis faced by Hoosiers in recent years. State figures showed Indiana's county governments spent $2.2 billion in property taxes in 2007.

"All taxes are a function of government spending. Indiana's property taxes are used to fund schools and local government. In 2007 and 2008, Indiana faced a property tax crisis that saw homeowners' bills double and even triple. These high property taxes forced many Hoosiers - especially senior citizens and young homeowners - to make life-changing decisions," Boots said.

"Because Hoosiers faced life-changing decisions. and because Indiana faced a property tax crisis. and because property taxes fund schools and local governments. a blue-ribbon panel, the Kernan-Shepard Commission, was named to find the most effective, most efficient and most accountable system of local government and K-12 schools," Boots told Senate colleagues in presenting his bill and slight changes.

Boots' bill as amended on Monday allows each county's board of commissioners or voters to decide whether or not to unify budgeting and policy making.  Counties with populations greater than 400,000 - Lake and Marion - are excluded from the legislation, because their structures already vary from others statewide. 

Across Indiana, commissioners among other duties prepare part of the county budget, recommend salaries for officeholders, control and manage county property. County Councilors among other duties fix tax rates and salaries, incur debt and impose tax levies, purchase and sell county property.

"Sorting that out takes a scorecard," Chief Justice Randall Shepard, co-chair of the Kernan-Shepard Commission recently wrote in a statewide letter to the editor.

Under Boots' amended bill, county commissioners would choose among an elected county executive, a combined board of supervisors or a referendum by voters. Voters could subsequently choose between a board of supervisors or the current model from the mid-1800s. 

• An elected county executive follows the model used by federal and state government and is common among more than 700 counties in 29 states nationwide.
• A board of supervisors would combine the roles of commissions and councils, provide for district and at-large representation and establish a credentialed, full-time manager. It follows a model used in 47 other states.

Boots' bill also formalizes a state Office of Local Technical Assistance to promote sound fiscal, management and operational practices and to coordinate among units of local governments and state agencies. These functions are currently performed by the Indiana Office of Management and Budget.    

At Boots' urging, senators amended out of the bill language eliminating elected county assessors. As the bill now reads, voters in each county will continue to elect their county assessors. 

SB 506 as amended will allow "more clarity for citizens and reporters, choices and representation for voters, accountability and efficiency for taxpayers and collaboration, synergy and consultation for officials," Boots said.
"As it now stands, Senate Bill 506 provides home rule, avoids one-size-fits-all mentality, creates mechanisms for unifying fiscal and other policy making if locals desire, and maintains elected county assessors."

The bill as amended now goes before the Senate for a final vote before it can be considered by the Indiana House of Representatives.

Sen. Boots represents Senate District 23, which includes Montgomery County, Fountain County, and portions of Boone, Clinton, Warren and Hendricks counties.

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