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Kernan-Shepard Likely to Take a Back Seat in 2010

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Dorothy Schneider, writing for the Lafayette Journal & Courier, and with an assist from Mary Beth Schneider of the Indianapolis Star has an article suggesting that lawmakers view Kernan-Shepard reforms as unlikely for this year. Kernan-Shepard is the report released by Chief Justice Shepard and former Governor Kernan just over two years ago with recommendations for local government restructuring.

Among other things, it basically advocated getting rid of townships, revamping County government into something that looks a lot like Unigov, replacing elected officials like Sheriff, Coroner, and Assessor with appointed officials, and increase the size of school districts.

There was a fairly big push last year that couldn’t get past the Senate Republicans. Getting past the House Democrats probably would have been even tougher. So, this election year it looks like everyone is going to cite more pressing issues and try nibbling around the edges. Townships will get some attention – they are probably the lowest hanging fruit since your average citizen doesn’t really understand what they do. I doubt counties or sheriffs will get any attention at all.

Instead of seeking to eliminate township governments, during the legislative session that begins Tuesday they’ll try to change how they work. One Senate bill, for example, would do away with township advisory boards. A House bill would replace township trustees with a single countywide advocate for the poor.

Instead, legislators seem likely to work on property tax reforms, legislative ethics and lobbying reforms, and state finances. Seems to me the General Assembly has worked over our property tax situation pretty thoroughly over the past couple of years and they should just let it work a little while to see where the bugs are. I’m skeptical, but I don’t see the lobbying reforms going anywhere. But, figuring out what to do with our state finances looks like a fairly pressing problem. Maybe there will be more budget balancing on the backs of local government. That will lead to more state lawmakers righteously bemoaning the overspending of local government. And, maybe that will, in turn, give new life to the Kernan-Shepard recommendations.

The upcoming sesson

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Lesley Stedman Weidenbener, writing for the Louisville Journal Courier, has a lengthy article on the upcoming session. For the House Democrats, the state budget appears to be the primary focus. Revenues are expected to be essentially flat, following two years of declining revenues according to the article. The General Assembly will be forced to deal with an insolvent unemployment system that has recently been limping along only on the strength of federal loans.

Meanwhile, Republicans want to tackle local government restructuring and limiting the state’s future tax flexibility by enshrining property tax caps in the Constitution.

The already grim budget projections are based on the assumption that the economy doesn’t tank much further and that something catastrophic, like the collapse of one or more of the Big 3 auto makers doesn’t occur. Gov. Daniels does not want the General Assembly to consider tapping into the “rainy day” funds. (A while back, Rep. Bauer quipped something to the effect of “guess what, it’s raining.”)

Republicans want to push for second passage of a proposed Constitutional amendment that would cap property taxes at 1% for residential property; 2% for rentals; and 3% for all other property. Because this would affect local government budgets more than state government budgets, it is local government officials urging state officials to slow down. Rep. Bauer appears to be siding with local government officials in this. Second passage of the Constitutional amendment does not have to take place until 2010. As a matter of law, the caps are already in place, just not in the Constitution. The Republicans appear ready to plow ahead with the Constitutional provision, presumably before any problems with the tax caps fully materialize and public opinion shifts.

Finally:

Daniels has proposed a nearly complete overhaul of county government, asking lawmakers to consolidate the board of commissioners and several elected county offices into a single, elected executive position, similar to a city mayor. The governor also wants to eliminate township government and force small school districts to consolidate.

But while Republicans in the Senate appear to have embraced the proposed changes, House Democrats are wary and many local officials are irate.

Following the jump, I’m just going to repost my summary of the Kernan Shepard report (pdf) upon which the Daniels’ restructuring proposals are based.

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