Cotterill Asks Take Home Cars or Crime Prevention in Marion County?

By Chris Cotterill in INForefront.com:

Unfortunately, recent reports from township government in Marion County reveal that only 19 cents of every tax dollar meant to assist the poor actually went to those in need.  The other 81 cents went somewhere else, and that added up to more than $36 million that could be put to better use in our community every year.

Though I’m relying on the numbers townships report to the State, let’s say I’m off by 100%.  That’s still only 38 cents per dollar and still more than $18 million per year that could be dedicated to better programs for job assistance, crime prevention, early childhood care, and other programs that improve lives. But, what do we get for the income tax and property tax you pay to your Marion County township?

Last month, I sent a public records request to our trustees, and here are some things that stood out in the responses:

• In addition to having the highest paid trustee in the county at $94,094.82, Center Township also has a “CEO” who is paid $70,000.  (Don’t forget their prior CFO who was found to have been paid $173,236 in 2010….)
• Last year, Decatur Township paid its trustee more than the office provided in assistance to those in need.
• The Wayne and Center trustees have a “take home” car, which is a car paid for with taxpayer funds and used as a personal car.
• Center Township has more than 50 employees.  Compare this with Warren Township’s 7 employees who provide assistance to a very similar total population with similar socio-economic factors.
• The Franklin Township small claims court judge makes $105,000, which is about $30,000 more than any other township small claims court judge.
• Wayne Township’s seven part-time board members are each paid $8,664 annually, which is 288% higher than their counterparts in Decatur are paid.

On top of all this, Pike, Wayne, and Decatur townships spent more than $69 million collectively on fire protection that could have been provided by the Indianapolis Fire Department (IFD) at a lower tax rate.  If Wayne Township consolidated into IFD, for example, Wayne Township schools would recognize a $3.4 to $4.6 million annual increase in funding because of the way property tax caps work.  Imagine what several million dollars could do to help families in Wayne Township.

Trustees do make good decisions too, of course.  For example, the Washington Township trustee used funds left over from the days of having a fire department to build a new fire station for IFD in the township.  The Lawrence Township trustee opened a new food pantry recently.  There are other examples.  But, as well-intentioned as the public servants in townships are, we have a shortage of money and an excess of need.  We must put our limited resources to better use.

...

http://www.indianaforefront.com/take-home-cars-or-crime-prevention-pick-one/?doing_wp_cron=1406678911.3225278854370117187500

Tribune Reports St. Joseph County Leaders Slash Budgets

From the South Bend Tribune:

Citing a multi-million dollar property tax revenue shortfall, St. Joseph County leaders have asked department heads to slash their 2014 budgets by 3 percent by next Friday.

A memorandum dated Thursday and signed by Board of Commissioners President Andy Kostielney, County Council Board President Rafael Morton and county Auditor Pete Mullen asked for a hiring freeze in all departments that get funding from the General, Health, Park and Recreation, Reassesment, Cumulative Capital Development, Cumulative Bridge and Major Cumulative Bridge funds.

“It is estimated that St. Joseph County will lose an estimated $7.2 million, with nearly $6.2 million in the GeneralFund alone for 2014.”

Officials also are requiring a mandatory pay freeze for county employees in those departments.

Kostielney said he, Morton and Mullen made the decision a few days ago to slash budgets.

"We were hoping that the property tax collection would be higher than it was," he said by phone Friday. "We're trying to take proactive measures. We do this now to avoid drastic measures later."

As for the 2015 budget, there’s a mandatory 5 percent reduction on top of the 3 percent requested for 2014. Kostielney said he thinks most departments will be able to make the cuts, as departments had just submitted budgets for review in the past few weeks.

"What folks had already submitted was a good base," he said.

If possible, departments could also move the 5 percent to another revenue stream that doesn't come from property taxes, such as user fees.

"We are trying to remove the pressure on property tax revenue accounts," he explained.

Nothing's off the table for consideration, Kostielney added. There's even possibility that the county could consider axing the leaf pickup program, but probably not for this fall.

...

http://www.southbendtribune.com/news/local/county-leaders-slash-budgets/article_a8ca1c1e-1430-11e4-92e0-0017a43b2370.html

Riley: Dramatic Reductions Needed in Delaware County Budget

By Larry Riley in the Muncie Star-Press:

Proposed budgets for the various offices of Delaware County government, a government that has spent more money than it’s taken in for three consecutive years, have been submitted.

For the 28 offices paid for out of the county’s general fund, which supports most of the routine functions of government, the bottom line is this: requested amounts are 7 percent higher than this year’s.

That’s $1.8 million more in total proposed funding than this year, and this year’s revenues look to be $3 million short of expenses. Given little reason to think additional revenues will come next year, if all requests are granted, we’d be $4.8 million short in 2015.

The Delaware County Council won’t approve all those amounts — members always make some cuts — but nothing short of draconian reductions will align revenues with expenses.

The county, if it doesn’t run out of money this year, will be close, and the gap between revenue and expenses will be bridged only because the year’s beginning balance was $3.5 million.

The year-ending general fund balance — which equals 2015’s starting balance — is projected to be $300,000, less than one-tenth of where we started 2014. With luck, that balance may swell to $500,000.

Yet the general fund needs $536,000 to meet the first payroll of the year.

Borrowing will be needed under any scenario, but without dramatic reductions in the 2015 budget or cuts from 2014 (or both, though time has pretty much run out on making significant reductions this year), revenues won’t suffice to pay back loans.

You simply can’t indefinitely keep spending millions more than you take in. Eventually the money runs out.
...

http://www.thestarpress.com/apps/pbcs.dll/article?AID=2014307270031

Daily News Reports Greensburg Schools Expect $200K Budget Cut

From the Greensburg Daily News:

Greensburg Community Schools expect to see their budgets decline by about $200,000, or 0.8 percent, for the next school year.

Superintendent Tom Hunter said that he expects tax rates, which help determine local property tax bills, to be about the same as last year.

At a special budget workshop on Monday evening, Hunter told school board members that the school corporation would advertise a budget of $26.4 million, down from $26.6 million last year.

The corporation’s advertised budget has to be approved by the Indiana Department of Local Government Finance, and the agency typically reduces the budget that local officials request. Local schools’ budgets also have to be approved by the Greensburg City Council.

Hunter said he expects that the school will be allowed to spend in its General Fund, the main operating fund that pays for teacher salaries and benefits, about $17.7 million, down from $17.9 million last year. The GF is paid with state revenues. Schools get money depending on the number of students they have. The figure is adjusted by the number of special education students, honors diplomas, vocational students and other factors.

Hunter emphasized that the school likely will spend only about $14 million in its General Fund next year — but it has to budget for about $17.7 million because the school has a cash balance of about $3.5 million. If the corporation were to budget only the $14 million it planned to spend, Hunter said the state likely would cut the school’s funding to $10.5 million — rather than the $14 million the school plans to spend — because the school could make up for the shortfall by using its cash balance.

...

http://www.greensburgdailynews.com/local/x1927879654/-200K-budget-cut-for-GCS/print

Star Press Reports Delaware County Wrestles with Money Issues

From the Muncie Star-Press:

Delaware County’s ongoing financial crisis is again a primary topic for county council. In Tuesday’s meeting of the fiscal body, council members talked about the county’s continuing money problems and the potential effect on pensions for retired sheriff’s deputies, a sore point among officials in the past.

Council also talked about the continuing expense of housing prisoners from the Delaware County jail in other counties in an effort to avoid overcrowding.

For a few years now, council members have noted the loss of county funds due to decreased tax revenue, declining investments and the statewide Circuit Breaker property tax cap.

“Circuit Breaker hit us in the mouth,” council member Ron Quakenbush said Tuesday. “We lost our operating balance.”

The county auditor’s office recently told council members that the county’s operating balance was several thousand dollars in the red this year, although recent changes and any unspent money could have the balance in the black by the end of the year.

In recent meetings, council has been turning down requests for new funding and approving only transfers. In some cases, the transfers of existing funds were approved only after scrutiny.

During Tuesday’s meeting, council President Mike Jones noted that the county had bolstered money on hand by reducing, by $200,000, the $800,000 set aside this year to fund pensions for retiring deputies.

Jones referred to a letter from the investment firm that manages the pension fund, warning that funding was not sufficient.
...

http://www.thestarpress.com/apps/pbcs.dll/article?AID=2014307230018&nclick_check=1

News Sentinel Reports Allen County Departments Seek $1.3 Million More

From the Fort Wayne News-Sentinel:

Twelve departments want to spend a total of nearly $1.3 million more in 2015 than they will this year – a request Allen County Council members will review and probably reduce when they begin their annual budget deliberations Wednesday.

In one sense, that challenge will not be as daunting as it seems. Thanks to 2015 revenues that are expected to exceed this year's county budget by nearly $2 million and four departments requesting a total of $97,230 less than they expect to spend this year, council would have plenty of operating cash to approve every requested increase if it chooses to do so.

Still, an additional $1.74 million in capital equipment requests, coupled with the size of some of the departments' proposed day-to-day budget increases, could give council members plenty to discuss – especially if they want to give the county's 1,300 employees a raise next year.

“I don't think we can approve everything. I am in favor of giving at least some raise, and every 1 percent costs $500,000,” Council President Darren Vogt said. “(Department heads) say they want to give raises, but they keep asking for more and more money.”

...

http://www.news-sentinel.com/apps/pbcs.dll/article?AID=/20140716/NEWS/140719752/0/SEARCH

Vandenack: Recession and Tax Caps Continue to Chip Away at Property Tax Funding in Elkhart County

By Tim Vandenack in the Elkhart Truth:

Jobs weren’t the only casualties of the recession that clobbered Elkhart County and much of the rest of the nation.

Limits went into effect in Indiana in 2009 on how much homeowners and others pay on property taxes and, compounded with the recession, turned a dip in funding into a giant plunge for schools, cities and other Elkhart County entities. Consequently, three school districts asked voters’ help through local tax increases. 

Property taxes are tied to the assessed valuation of homes, businesses and other property, as determined by the county assessor’s office. The down economy and the parallel hit to the real estate market pushed the assessed valuation of property down (see the sidebar to find out more about the tax caps). That, in combination with tax caps, resulted in reduced property tax funding.

The losses, at least of for the largest units, have gradually increased each year since the new tax caps were phased in starting in 2009. Since, there has been plenty of hand-wringing and debate among many elected leaders, faced with trimming and slashing operations as a result.

Five years after the end of the Great Recession, the situation doesn’t appear to be letting up. Officials worry the losses will mount in 2015. And it’s renewed on-and-off discussion among some leaders about creating a new local option income tax — basically hiking the income tax rate here to offset the shortfall.

"If we don’t get extra revenue, we’re going to have to start cutting some services,” Goshen Mayor Allan Kauffman said.

Most germane, perhaps, is the level of property tax funding actually received after factoring tax cap losses. Property tax funding is the single biggest source of revenue for many taxing entities.

Elkhart Community Schools, judging by that parameter, saw the biggest loss in dollar terms. The system generated $32.78 million in property taxes in 2009 and that fell to $28.07 million a year later — a decline of $4.71 million.

Cumulative losses due to caps to county government and the cities, towns, townships, library systems and schools in Elkhart County totaled $42.63 million in 2014, up from $2.58 million in 2009.

...

http://www.elkharttruth.com/hometown/2014/07/13/Great-Recession-and-tax-caps-continue-to-chip-away-at-property-tax-funding-in-Elkhart-County.html

Daily News: Consultant Says Greensburg's Spending will Exceed Revenues

From the Greensburg Daily News:

The city of Greensburg is projected to operate in the red this year, by about $1 million, according to a financial consultant — but a city official said she expects the city to operate in the black because it will spend less than budgeted.

According to Reedy Financial Group, the city of Greensburg this year is expected to spend about $8.1 million on its operations, including police and fire protection, local streets and capital improvements.

That’s about $1 million more than the city expects to generate in revenues this year. Reedy discussed the report with the Greensburg City Council Monday evening. The city is weighing whether to contract with the consultant to help the city improve its fiscal situation.

According to the report, the primary culprit for this year’s deficit spending is projected overspending of Economic Development Income Tax money: The city plans to spend about 1.1 million of its Economic Development Income Tax revenues, though that tax this year is projected to generate only about $408,000.

However, City Clerk-Treasurer Bridgett Weber said Reedy’s projection assumes that the city will spend all of the EDIT money it is budgeted to spend, which, she said, will not happen.

Weber said the city’s budget includes spending $400,000 of EDIT funds on road repair, which the mayor and city council will not approve or even propose. Through the first half of the year, the city has spent less than $200,000 of its EDIT revenues, Weber said. And though the city is projected to use some EDIT funds this year to pay part of its $280,000 match on the $1.4 million Vandalia Road project, Weber said EDIT spending for the full year likely will be below EDIT revenues.

...

http://www.greensburgdailynews.com/local/x1927851455/Consultant-spending-will-exceed-revenues/print

WRBI Reports Franklin County Hires Coonrod for Budget Assistance

From WRBI Radio:

Franklin County Council has agreed to hire a consultant to assist with the county’s ongoing budget woes.

Council members voted 4-3 in favor of hiring Curtis Coonrod of C.L. Coonrod of Indianapolis, according to the Franklin County Observer.

Coonrod is a certified public accountant whose practice involves services to Indiana local governmental financial management. He is a member of the Government Finance Officers’ Association, the Association of Indiana Counties and the Indiana Township Association.

Council members agreed to hire him for $175 an hour for services to the county. Council member Becky Ogelsby suggested Coonrod to begin by looking into increasing the county’s cumulative capital rate.

http://wrbiradio.com/franklin-county-adds-consultant-to-help-with-budget/

Times Reports Portage Budget in Good Shape after Tax Draw

From the Northwest Indiana Times:

The city's financial situation is "good, not great" after officials received word of the spring tax draw.

Clerk-Treasurer Chris Stidham said this week that there likely won't be any adjustments to the city's budget after the city received word that it has won its excess levy appeal and tax collections seem to be up.

"It's good, not great," he said.

The city won the $650,000 excess levy appeal based on previous year's shortfalls due to property tax appeals.

In 2013, the city received about 90 percent of its tax money. Both Stidham and Mayor James Snyder said if the spring draw is any indication, taxes collected in 2014 will be above that mark.

"Last year the two draws were less than the four previous years," Snyder said. "I believe the appeals have finally been settle and we took the brunt of it last year."

"Last year was a pretty big hiccup," he said.

Stidham said assessments lag behind the economy and they had been declining, which hurt the city's collections. However, he believes the assessments have bottomed out and will be able to help counter the effects of tax caps.

Stidham said they based this year's budget on 90 percent collection rates.

"We have enough to pay for our budget," Stidham said.

...

http://www.nwitimes.com/news/local/porter/portage/portage-s-budget-in-good-shape-after-tax-draw/article_68124561-69e3-5b16-9dec-c14971198444.html

Journal-Gazette Reports Allen County Could Have Surplus

From the Fort Wayne Journal-Gazette:

Even though Allen County will continue to lose revenue due to property tax caps, for the first time in years projections for Allen County do not show a shortfall in next year’s budget.

Projected revenues for 2015 could outweigh projected expenses by $2 million.

“I was surprised,” County Auditor Tera Klutz said Thursday. “I think it may be due to an uptick in the economy and more revenue from income taxes.”

In explaining the breakdown of projected revenue for 2015, Chief Deputy Auditor Nick Jordan cautioned that figures could change, including the estimated 3 percent increase in income tax revenues.

“There are some circumstances pending out there that could have significant impact on the expected revenues,” Jordan said.

Allen County Council members will begin planning next year’s budget for the county’s 33 departments in July.

http://journalgazette.net/article/20140619/LOCAL/140619269/0/SEARCH

Times Argues State Constraints Limit Local Government Innovation

From the Northwest Indiana Times Editorial Advisory Board:
...

So much of the environment in which local governments operate are highly affected by the body of rules, reforms and constraints that the Indiana General Assembly has adopted over many years, and it may be arresting innovation in local governance.

Home rule generally describes the nature of local government authority. Its opposite, Dillon’s Rule, basically was the way all local governments in the United States were operated in the late 19th and early 20th centuries. In short, the rule was unless the legislature says you can, you can’t.

Home rule reverses Dillon’s Rule. Its basic tenet is unless the legislature says you can’t, then you can. Home rule in some form was adopted by 49 of 50 states over the course of the mid to late 20th century. It was adopted in Indiana in 1980.

However, since its adoption, Indiana’s home rule as a force for innovation has been eroding. The list of exceptions in the law grows. Local governments cannot regulate door-to-door solicitors. Local governments cannot compel compliance or code inspections on rental properties. In fact, most local ordinances that prohibit littering are technically in violation of Indiana home rule because there is already a state law that prohibits it and does not expressly confer local power to regulate it.

While it’s true to say Indiana is a home rule state; it seems increasingly Dillon’s Rule in practice.

Recent public finance reforms such as those that cap property taxes through the use of a circuit breaker, in effect fix the price of certain services in local government rather than cost.

While some of these reforms are welcome, the Indiana General Assembly has focused on modifying the inputs of government with the objective to improve governance. If I read Jim Collins correctly, too much focus on inputs and insufficient focus on outputs will not get us to great.

While these erosions in home rule and other limits on local government’s ability to innovate, invent and serve well are troubling, this explains the challenges rather than excuse we local elected officers face.

We should help our state Legislature understand the effects the undue emphasis on inputs has on local innovation and imaginative public service.

...

http://www.nwitimes.com/news/opinion/columnists/guest-commentary/editorial-advisory-board-state-constraints-limit-local-government-innovation/article_b18e2ee7-1440-522e-bb78-4d433ce60851.html

IBJ: School Districts Can't Charge for Transportation

From the Indianapolis Business Journal:

Franklin Township Schools violated the Indiana Constitution when it stopped busing for students and then contracted with a private group to provide the service for a fee, the Indiana Appeals Court ruled Tuesday.

But the decision will have little practical impact in the state. The Indiana General Assembly has already passed legislation that bans schools from charging fees to transport students to school and the district has resumed busing.

In its decision Tuesday, a three-judge panel relied on a previous Indiana Supreme Court ruling that says “absent specific statutory authority, fees or charges for what are otherwise public education cost items cannot be levied directly or indirectly against students or their parents.”

And the appeals court said the General Assembly “has determined that transportation to and from school qualifies as a part of a uniform system of public education.”

The Indiana Constitution’s Education Clause – which is in Article 8, Section 1 – calls for a system of common schools that are free and open to all.

Franklin Township Schools in Indianapolis has been among the districts hardest hit by recent property tax caps that limit revenue based on property values. The district – trying to balance its budget with less money – eliminated busing for the 2011-2012 school year.

It then contracted with a not-for-profit group to provide the service for an annual fee of $475 for one child. Parents could pay the fee or provide their own transportation.

In November 2011, two parents in the township filed a class-action lawsuit against the school corporation, challenging the constitutionality of its actions.
...

http://www.ibj.com/court-school-districts-cant-charge-for-bus-rides/PARAMS/article/48059

Court of Appeals Finds School District Acted Unconstitutionally by Discontinuing Bus Service and Contracting with Provider for Fee

Excerpts of the Court of Appeal's Decision follow:
...

In summary, we affirm in part and reverse in part. We affirm the trial court’s conclusion that Hoagland is not entitled to legal relief, as there is no right of action for monetary damages under the Indiana Constitution. However, we conclude that the ITCA does not apply to Hoagland’s state constitutional claim, and we reverse the trial court on that ground. We also conclude that Franklin Township acted unconstitutionally by
discontinuing student transportation to and from school and by later contracting with CIESC to provide that transportation for a yearly fee, and Hoagland is entitled to declaratory judgment to that effect. We therefore reverse the trial court’s denial of declaratory judgment and remand to the trial court with instructions to enter a declaratory judgment consistent with this opinion.

...

See the full decision here:

http://www.in.gov/judiciary/opinions/pdf/06101402nhv.pdf

Times Argues that Lake County Must Pinch Pennies

From the Northwest Indiana Times:

An Indiana University Northwest report for Lake County recommends fiscal restraint. That's like shouting at the horses after leaving the barn door standing open.

The 67-page study of county government finances by IUN's Center for Urban and Regional Excellence looked at county finances now that a 1.5 percent income tax has been established.

The County Council asked for this study to ensure the income tax rate is the right solution even as other revenues dwindle.

The money has been a windfall, to be sure.

As much as residents love to hate the income tax, it was inevitable. Property tax caps and low collection rates, in some areas, reduced revenue. 

The county shed 300 jobs — a good start — to balance the budget, but other expenses increased. The Lake County Jail, for example, is much more expensive to operate now because of improvements to meet federal standards. 

But without exercising restraint in the future, Lake County could be in another fiscal emergency.

Showing restraint is not the county's strong point, however. Nor is it a strong suit for the county's municipalities.

Raises should not have been granted so quickly with the new income tax revenue.

The report urges the county to provide mayors forecasts of the impact each of the county's 73 taxing units will see from the property tax circuit breaker.

What Lake County needs — and Porter County, too — is long-term forecasting for both revenue trends and capital and other needs.

That, and fiscal restraint. That cannot be overemphasized. Now is not the time to embark on spending sprees. Caution must be the watchword while finances remain in flux.

http://www.nwitimes.com/news/opinion/editorial/editorial-lake-county-must-pinch-pennies-harder/article_fc61372d-e14e-57be-82e2-efdc3537312d.html

Trib-Star Reports Terre Haute Redevelopment Commission Contends City Took TIF Money

From the Terre Haute Tribune Star:

A fight over money and authority seemed to be at the root of a inter-City Hall dispute aired before the public at Wednesday’s meeting of the Terre Haute Redevelopment Commission.

Cliff Lambert, executive director of the city’s Department of Redevelopment, opened the 4 p.m. meeting by reading a nine-minute statement to the five-member commission, which manages the city’s tax increment finance (TIF) districts.

In his statement, Lambert said the Mayor Duke Bennett Administration has withdrawn approximately $3.4 million from Redevelopment Commission bank accounts in the past few weeks.

By withdrawing funds from those accounts without consulting with the Redevelopment Commissioners, the administration has “violated your trust, the public’s trust and mostly likely state of Indiana statutes,” he stated.

Lambert, who sat at the head of the commissioner’s table and before a room of about 27 people, said the “story goes back to” 2010 when the city attempted to “borrow” TIF money for cash flow reasons. Lambert said he angrily rejected that attempt at that time.

Now, the city is doing the same thing, Lambert said. This time, however, the Redevelopment Department has turned over its check books to Leslie Ellis, city controller, in accordance with a new state law widely seen as weakening the autonomy of Redevelopment Departments around the state. Soon after getting the books, Ellis began withdrawing TIF and other Redevelopment funds, he said.

In all, there have been at least three withdrawals, Lambert said. Two of them coincided with “employees pay periods,” implying the money was needed to make payroll.

TIF money cannot, by law, be used for city operating expenses, Lambert insisted.

After Lambert’s statement, Commissioner Brian Conley made a motion that the commissioners ask Ellis to return all of the money to the Redevelopment Department’s checking accounts. Ellis agreed to begin the process. Speaking after the meeting, she said she would do her best to return the funds to those accounts.
...

http://www.tribstar.com/local/x1760073827/Redevelopment-Commission-City-took-TIF-money

Daily Journal Reports Caps Reduce Funding

From the Johnson County Daily Journal:

Snow takes longer to plow in New Whiteland because the town has fewer workers. Many Clark-Pleasant students ride buses longer because the school had to consolidate routes. Some class sizes grew by 25 percent in Franklin when the school district couldn’t afford to hire new teachers.

But in the city of Greenwood or Center Grove and Indian Creek schools, services for residents and students haven’t changed much in the past few years.

The difference is due to tax caps, which limit how much local governments can collect in property taxes. Areas with higher tax rates, such as Franklin, Edinburgh and the Clark-Pleasant school district, lose 15 to 20 percent of the taxes they expect to collect each year because of tax caps. Clark-Pleasant Schools can’t collect more than $4 million in taxes each year, so administrators have had to make cuts such as putting off building maintenance, not buying new buses and not replacing staff members who leave or retire.

http://www.dailyjournal.net/view/local_story/Caps-reduce-funding-pinch-gove_1399855225/#.U3FqtPldWSo

Truth Reports Local Governments Anticipate Further Budget Deficits

From the Elkhart Truth:

Elkhart County is anticipating another multimillion dollar budget deficit next year.

During the Elkhart County Council and Board of Commissioners' annual summit Friday, May 9, county auditor Pauline Graff estimated up to a $7.6 million shortfall in the 2015 county budget. Official numbers won't be available until later this year.

Deficits have become the new normal in local governments since the state of Indiana implemented personal property tax caps in 2008. The total deficit for 2015 is partially dependent on the outcome of the county commissioners' fiscal policy goals for 2015.

Those goals include:

• Increasing the balance of the general fund, projected to total $5 million next year. Before 2008, the fund was usually between $11 million and $13 million.
  
• Fully funding the general fund without the use of Economic Development Income Tax (EDIT) or landfill revenues. EDIT funds are typically used to fund construction projects or to match federally funded projects.
  
• Increasing the County Adjusted Gross Income Tax (CAGIT) to build a new juvenile detention center. Tom Byers, county administrator, said utilities and maintenance issues at the current center are causing the county “major headaches.”
  
• Starting to rebuild the rainy day fund. The current balance is $277,804.
  
• Providing a market adjustment to wages for county employees. Areas such as the Elkhart County Sheriff’s Department are facing high turnover rates due to stagnant wages. A 3 percent wage adjustment for county workers would have a $555,790 impact on the general fund and a $355,355 impact on other funds.

During the summit, Todd Samuelson of Umbaugh Associates laid out several local option income tax models the county could implement to help offset deficits caused by tax caps.

http://www.elkharttruth.com/hometown/elkhart/2014/05/09/Local-government-leaders-anticipate-further-budget-deficits-in-2015.html

Trib-Star Reports Terre Haute Hires Financial Consultant

From the Terre Haute Tribune-Star:

It was debate night for the Terre Haute City Council.

During its regular May meeting, the nine-member body spent about an hour thrashing out the pros and cons of spending city money to hire a financial consultant to advise it.

Last year, also after significant debate, the council appropriated $20,000 for a consultant to assist with budget matters. This year, after at least as much discussion, the council approved spending $10,000 for the same services.
...

The Taxpayers Association of Vigo County got the ball rolling Thursday night by submitting a letter to the council in favor of hiring a consultant. A consultant helps council members understand the budget better, saves time and “brings clarity to complex financing quickly,” the letter stated.

In response, All said he is able to receive financial information directly from the City Controller’s office. “In the future, if we all have any questions, let’s ask,” he said. The lines of communication with the city aren’t “fully open” but are not as bad as many people believe, he said. “Common sense tells us, if we work with [city officials] and they work with us,” he said.

Several councilmen, principally Garrison, Mullican and Nation, have been pushing for a consultant, saying they are concerned about the city’s budget, especially in light of consistent deficits in the “general fund,” which covers much of the city’s day-to-day costs.

The council approved a $4.5 million tax anticipation loan in 2012 to help cover the general fund. In December, Mayor Bennett requested – and the council approved – a $5 million loan for the same purpose.

“Maybe, just maybe, if we’d have spent $15,000” on a consultant in 2011 “we might not be in the mess we’re in today,” Mullican said.

The council has not formally hired a consultant for 2014. Last year it hired Sackrider & Co., a Terre Haute CPA firm, for the work.

http://www.tribstar.com/local/x1535595480/City-Council-hires-financial-consultant

Tribune Reports Mishawaka Schools Hire Consultant for Finances

From the South Bend Tribune:

 Mishawaka schools could soon get a second opinion on its financial woes.

Because of Circuit Breaker tax caps, officials say, the district needs to save or cut upward of $10 million by 2020.

A $28 million referendum was attempted last fall to upgrade schools and technology. But, voters rejected it rather than pay higher property taxes.

Superintendent Terry Barker said he intends to ask the school board at its meeting next week to approve the hiring of the firm Speicher Fields & Associates to study the district’s finances and ultimately recommend a strategy for going forward.

“One complaint (voters had) of our referendum campaign,” Barker said, “was that we did not communicate … So this is a second go-round to just kind of provide that greater opportunity for a broader spectrum of input.”

At least two school board members will support Barker’s request.

“I think it’s a good idea,” board President Dennis Wood said Monday. “I just feel like if we get a second look at it, the board would be really comfortable … (Though) it’s not like anybody is doing anything wrong.”

The end result of the consultants’ work could be a recommendation to cut the budget and save the money, implement revenue-generating tactics or pursue a second referendum, Barker said.

Asked if that means all money-saving options are now back on the table, the superintendent said, not exactly.

“Obviously,” he said, “If we’re looking at repairing furnaces at Hums (Elementary School) and replacing ceiling materials, I’m not going to put Hums back on the (chopping) block.”

Months ago, the school was pegged for closure, but after a public outcry by parents and others, Barker decided to keep it open.

“But, if we still have to save money when we go into next year,” he said, “we will have to take a look at the facilities that we do have. Do we keep them all open or shut one down because of operational cost? Does it mean we push centralized kindergarten (again)? We might study it.

“Our intent is to just bring a fresh set of eyes, a fresher process,” Barker said. “Let somebody else take a look at this.”

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