Kernan-Shepard report threatens township leaders
By Debbie Lowe Staff writer

Hershman

A front page article in last week's Comet told about Deer Creek Township leaders' desire to divest the township of surplus taxpayer money. The township trustee expressed concern that if the State of Indiana mandates a change in county government structure, possibly the township level of government would be abolished. She expressed fear the township would lose control of the money accumulated over the years.

In July 2007, Governor Mitch Daniels appointed the state Commission on Local Government Reform. The commission, co-chaired by former Democratic Governor Joe Kerman and Supreme Court Justice Randall T. Shepard, made 27 recommendations to streamline local government. The report was released nearly one year ago on Dec. 11, 2007.

One of those recommendations was to eliminate township government.

State Senator Brandt Hershman said Monday he would warn township trustees and advisory boards the money in question is not "township" money.

"It is unfortunate that the Kernan- Shepard Report is viewed as a threat rather than an opportunity," he said. "Ultimately my concern is the apparent feeling is that this is "township" money, because it is really 'taxpayer' money."

Hershman said the report was an "honest attempt to evaluate the effectiveness of our government." He said it developed a "series of observations about Indiana government" which provided "an opportunity to talk about how things could be better" in Indiana.

Hershman said if local government structure would be changed and result in the dissolution of township government, township services and responsibilities would be assumed by another entity. However services would remain intact. He said taxpayers fund those services now and would continue to fund them.

"To empty township accounts will force leaders to go back to the taxpayers to pay for the services," he advised.

Hershman challenged taxpayers to name a business which has not changed to keep step with the times in the past 100 years due to competition. He said local government is the only business which has remained the same.

"Townships were created when it took a half-a-day by horse to reach the county seat," he explained. "That just isn't the case anymore."

Townships operate with structured budgets and spending plans, much like the ones with which the county council works. Townships receive money from property taxes via tax rates for a general fund, township assistance (formerly poor relief), fire fighting, parks and recreation, library, etc. State statute provides for the establishment of line items and the Indiana Department of Local Government Finance approves tax rates for them.

Each township is required by state statute to publish an annual financial report that details the financial history of the township for the previous year. All numbers presented in this article were taken from the townships' 2007 annual reports published in the Comet in the winter and spring of 2008.

According to "Here's Your Indiana Government," townships gener- ally function as "civil corporations for the administration of poor relief, assessment of taxable property and related functions."

The township trustee, with the consent of the township board, may purchase firefighting equipment and employ firefighters. The total township funds across the county for the line item "firefighting" to begin 2008 was $1,018,492.30 and in the line item "cumulative fire" was $451,297.95 for all townships in the county.

No two townships control the same amount of tax revenue and investments. The total amount at the end of 2007 for all townships combined in township assistance, formerly known as poor relief, equaled $326,518.31.

All townships contained $1,113,509.20 combined in their general funds at the end of 2007. Every township, except for Liberty Township, began 2008 with an amount in the tens of thousands of dollars. According to former township trustee and current county council member Ron Slavens, that number represents money available to the township to spend on any item budgeted.

"Townships suffered the same money woes as the council did," Slavens explained. "Most of them just managed it better."

Slavens explained some 2007 township property tax settlements were not received until after the first of January 2008, which skewed the amount of funds available downward on the annual reports.

Hershman said he was not convinced all of the recommendations in the report are needed. He said he did not anticipate all 27 would be addressed this year.

"But let's talk about it," he added. "Why shouldn't we examine these things?"

Hershman emphasized all changes to local government structure would be legislated according to state statute. He said bills are expected to be authored this year, introduced and then sent to committees. Bills with merit would be accepted into committee and then studied, which would include testimony received from local representatives about the benefits and pitfalls of the proposed bills.

Hershman said constituents can become and remained informed about the Kernan- Shepard report by accessing his Web site at in.gov/s7 and clicking on the "Kernan- Shepard Report" link. Hershman said his office distributes a survey at the first of the year to solicit input from taxpayers. He said he reads every personal response personally.

"I ask for their opinions because I want to hear them," he said.

He said he can be reached by E-mail via his web site and encouraged taxpayers to attend Third House Sessions. held in Monticello, for Carroll and White counties' residents. The meetings are held the third Saturday of the month at 9:30 a.m. at the Brandywine Complex, beginning in January.

"I consider the Kernan- Shepard Report a carefully considered effort and a framework for discussion and a very useful document," he concluded.