The 2009 Session of the Indiana General Assembly came to a close on April 29th - sort of. With the conclusion of the regular session, we are pleased to report that none of the Kernan-Shepard proposals to consolidate local government units, including the proposal to eliminate township government, were successful this year.

However, because lawmakers were unable to agree on a biennial budget, the Governor will be forced to call legislators back in the next couple of weeks for a special session in order to pass the two-year spending plan for the state.

Though the budget is the only piece of legislation that must be enacted during the special session, any other issue can be considered, including the Kernan-Shepard proposals.

But before we turn to what may or may not happen this summer, let’s revisit the last four months. As you all now, legislation was introduced that would have enacted the recommendations stemming from the Governor’s Commission on Local Government Reform, more commonly known as the Kernan-Shepard Commission. Though a variety of bills were filed in both the House and the Senate, it became clear early on that five Senate bills would be he primary vehicles for these proposals:

- SB 348- Library consolidation
- SB 452- K-S election provisions
- SB 506- County consolidation
- SB 512- Elimination of townships
- SB 521- School consolidation

As originally introduced, SB 512, authored by enator Connie Lawson (R-Danville), would have eliminated
township government effective January 1, 2013 and transferred township duties to the county executive. To assist in the transition, the bill would have created a township assistance transition advisory committee in each county, consisting of local trustees and representatives from other community service organizations. The committee would have only six months to develop a plan to deliver township assistance countywide before the state was given the authority to develop a plan of their own.
SB 512 would also have transferred fire protection responsibilities to the county and created a public safety planning board in each county to coordinate public safety services.

On February 11th, the Senate Local Government Committee heard SB 512 as well as SB 482, this year’s
attempt to eliminate township government in Marion County and consolidate the township fire departments into the Indianapolis Fire Department. Your ITA lobbying team met with each of the committee members in the weeks leading up to the committee hearing and provided them with information explaining the important role played by Indiana’s township trustees. The ITA also worked with representatives from the Indiana Volunteer Firefighters Association, Indiana Fire Chiefs Association, and other community organizations in preparing testimony for the committee. A special word of thanks to Frank Mrvan, Jean Lushin, and Christina Holtzleiter for their willingness to testify in support of township government after Debbie Driskell started things off.

After much consideration and discussion, the Local Government Committee significantly altered SB 512
before passing the bill out of committee on a 9-2 vote. The version passing the committee kept township government in place but would have required county approval of township budgets. It also would have banned the hiring of relatives in township offices but would have “grandfathered” in current employees. This version was agreed to after the Committee defeated an amendment that would have kept township trustees but eliminated township boards. The Committee also significantly changed SB 482, again keeping all township officials in place in Marion County and only calling for the consolidation of fire departments in the county. That bill was approved on a close 6-5 vote.

As SB 512 moved to the Senate floor for potential amendments, we worked with Senator Dennis Kruse (RAuburn), a former trustee and strong supporter of township government, on an amendment that would allow the county to review and make recommendations on township budgets, but would leave the ultimate responsibility of budget approval to the elected township officials. A separate amendment was filed by Senator Brent Waltz (RGreenwood) very similar to the language that was defeated in Committee calling for the elimination of township boards. Despite our best efforts, Senator Waltz’ amendment was adopted while Senator Kruse’s amendment was defeated.

With these changes, the Senate had before them a bill that would have kept trustees in place, eliminated township boards, and would have subjected township budgets to county review and approval. We spent the next 24 hours talking to members of the Senate and explaining the important role played by township board members, but the bill was ultimately approved on a close 28-22 vote. SB 482, on the other hand, was defeated 24-26.

Though disappointed that the bill passed the Senate, we were encouraged that SB 512 had been significantly watered-down from the introduced version, as had the other Kernan-Shepard bills (the school consolidation bill even failed to make it out of committee). This sent a clear message to the Democrat-controlled House of Representatives that the Governor’s local government consolidation agenda lacked broad support, even in the Republican-controlled Senate.

SB 512 was assigned to the House Committee on Government and Regulatory Reform, along with the other remaining K-S bills. In an effort to give the proposals a fair hearing, Representative John Bartlett (D-Indianapolis), Chairman of the Committee, amended all of the K-S bills as originally introduced into SB 452 and held a hearing on the proposals as a whole on March 10th. Again, the ITA organized testimony for the committee hearing, and after hours of testimony and numerous procedural motions, the Committee adjourned without formally taking action on the bill. The bill, along with the other K-S bills, never passed out of Committee and was thus dead for this session.

That is not to say that there weren’t efforts made to revive this language as session continued. Several amendments were filed on other bills during the last few weeks of session that would have eliminated township boards and required county approval of township budgets. An amendment was also filed calling for fire consolidation in Marion County. However, these amendments were never adopted, and none of the local government consolidation proposals were enacted this session.

In fact, a relatively few number of bills were passed by the General Assembly this year that affect township government- quite a change from the last couple of years. An omnibus tax bill that would have made several technical changes to local government units, HB 1447, also failed to pass on the last night of session. This bill would have made changes to the budgeting timeline for local units and also included certain provisions requested by individual townships. It is expected that at least some of the provisions from this bill will be debated during the special session.

Here is a brief summary of pertinent bills that were enacted into law this session:

• - HB 1230- Allows the officers of a political subdivision publishing notice to publish in only one newspaper in the political subdivision (instead of two newspapers), if only one newspaper is published in the political subdivision. After December 31, 2009, allows a newspaper or qualified publication to annually increase the basic publication charges that were in effect during the previous year by not more than 2.75%.
• - HB 1432- Requires the county auditor to distribute local income tax revenue to other taxing units not later than ten working days after the county treasurer receives the distribution from the state.

As previously mentioned, the legislature must reconvene this summer in order to pass the State’s biennial budget, and they can consider any other piece of legislation. Legislative leaders recently announced a timeline for the special session, which is expected to formally begin on June 15th. We fully expect the proponents of government consolidation to make some effort to revive the Kernan-Shepard proposals, and will continue to work with our allies in the General Assembly to ensure that they are not enacted.

What is going to happen next?

What can we be doing?

The answer to the first question is almost impossible to predict - other than to say “something” because we have too much evidence that this fight is far from over. There are rumors that there might be attempts to revive Kernan-Shepard provisions during the special session. If we hear anything of certain, you will be alerted.

The second question is easy: More of the same. More contact with legislators; more educating the general public as to what they have to lose under Kernan-Shepard; more rallies; more signatures at
www.hoosiersfordemocracy.org . The ITA is preparing for one of its greatest undertakings to date: a formal task force whose mission will be to develop best practices for townships. These “best practices” will likely take the form of proposed legislation next session. We must reform ourselves or look to be reformed or eliminated!

In other words, we must reform ourselves from the inside out! The Task Force for Township Reform will not only include trustees from varied demographics, but also several state legislators and leaders from
other “service delivery” organizations. Please watch your mail for details as they unfold as we will prepare a formal announcement once the Task Force is ready to commence.

Reform is coming one way or another.