Press release from DLGF stuns council
By Debbie Lowe Staff writer

Months, maybe even a year ago, one of the first questions the Comet asked a representative of the Indiana Department of Local Government Finance (DLGF) when comprehensive coverage of the county financial crisis began, was how that office could approve budgets over the past several years in which appropriations consistently exceeded income. The Comet was told at that time the DLGF had reason to believe there was money enough to fund the appropriations.

It was discovered from a press release from DLGF last Thursday the reason that assumption was made was because the county financial data supplied to them was in error. Investment fund amounts had been added into the general fund in 2004 which made the general fund appear to contain much more money than was actually true. DLGF's conclusions that the county had the necessary funds for the budgets were based on that number, which they called a "mistake in balancing the checkbook of the county."

Reactions to the Letter to the Editor, printed in its entirety in the Lafayette Journal & Courier's March 22 edition (and printed on page 5A in today's issue of the Comet), among council members were similar - frustration. Council president Nancy S. Cripe sent an e-mail to the DLGF asking for further explanation and clarification.

"Ms. Michalak: I read your Letter to the Editor in the Journal & Courier on March 22, 2008. As you stated in your letter it is very important that the public receive information about the current financial situation in Carroll County. It is even more important that the Carroll County officials receive information. Point in fact is that the Finance Committee has been working with the DLGF and SBOA (State Board of Accounts) since early 2007. No mention has ever been made of an error in balancing the checkbook of the county in 2004. Who actually overstated the General Fund balance and when did the DLGF find the error? Had this mistake been brought to the attention of the Council prior to reading it in a Letter to the Editor, Carroll County might not be in this financial situation. If any official was notified of an error, please provide me a copy of that correspondence. If there was only verbal notification, please advise the date, who from the DLGF made contact, and what official was notified. I will await your reply."

Mary Jane Michalak, Director of Communications for DLGF told the Comet Monday that their office tracks government financial news stories. She said the DLGF office thought some "historical information (about the current financial situation) was not understood."

Michalak said she and DLGF Commissioner Cheryl Musgrave made the joint decision to issue the press release.

Ron Slavens, council finance committee member, said Tuesday he was not frustrated with DLGF, but with those closer to home.

"I'm blaming the county officials in charge of accounting for errors," he said. "To me, it's inexcusable we've gone on this long."

"This shows the necessity of getting our books balanced to our bank accounts," he added. "This leaves us wide open to errors of this magnitude."

"I'm awestruck," Cripe said Tuesday. "This is a surprise to us. I can't believe it. I think this makes us look bad. I just don't understand."

"I can't imagine we weren't notified - and if we were and nobody said anything, that's even worse," she added.

"I am upset the finance committee was not informed about this," Ann Brown said. "We have met with the DLGF numerous times and we've never been told this. It was never known to us."

A late Tuesday afternoon e-mail to Ann Brown from the DLGF acknowledged several communications between the state office and county officials. An invitation was extended to select county leaders to meet Friday in Indianapolis with DLGF commissioner Musgrave.

The Comet formally requested from DLGF public records "concerning the budget situation in Carroll County, Indiana, from Jan.1, 2004, through March 24, 2008, including, but not limited to, all written communication, both letters and emails, to and from Carroll County Auditor Beth Myers, Carroll County Treasurer Jane Brewington, Carroll County Commissioners William Brown and Loren Hylton, Carroll County Council members Rob Baker, Nancy Cripe, Ann Brown, Steve Ashby and Ron Slavens, telephone communications, facsimiles and memos."

A similar request was made to Myers via e-mail. Efforts to contact Myers by telephone Tuesday for this story were unsuccessful.