Sen Kenley’s SB 98 would give counties flexibility to use their general funds for highway maintenance even in the absence of an emergency. Currently, the general fund is available to pay personnel expenses for the highway department but not for other costs of maintenance.
My understanding is that the other funding sources, currently used for highway maintenance, have been declining in recent years (not that county general funds are exactly overflowing). The state distributes to the counties revenues from gasoline tax, special fuel tax, and the motor vehicle registration fees. In addition, counties may have and use county motor vehicle excise surtax; county wheel tax; county adjusted gross income tax;
county option income tax; riverboat admission tax; and/or riverboat wagering tax.
OK, not trying to be thick, but why does the state have so many restrictions on how tax revenue can be spent at lower levels of government?
Sure, I know “because they can” is the answer, but wouldn’t the limited government approach be to give counties/townships/cities the ability to tax/spend as they see fit?
Probably a question that deserves a comprehensive answer; but I think it has to do with the legislature wanting to establish the priorities. Policies with segregated funds don’t have to compete with other priorities come budget time.
I don’t know off hand what the policy was behind precluding the use of general funds on highway materials.
If you have never been a local government official working with the various “funds” and their allowed uses required by Indiana law–it would be hard to comprehend. Even well meaning local officials often require calls to state officials (particularly state board of accounts) to get an “official” interpretation of what is allowed. Give a wild example: Parking meter fees can not be used to purchase a car for the meterpe rson, BUT IF there are “excess income” in the parking meter fund those funds can be transferred to the city general fund and then allocated to buy a car for use by the meterperson–and this a very small example of the regulations locals must live (and die) with.