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September/October 2012 September/October Volume 18 Number 5 5 Number 18 Volume 92 ws N ana i Ind e
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ATLANTA CHICAGO DeLAwAre INDIANA LOS ANGeLeS mICHIGAN mINNeApOLIS OHIO wASHINGTON, D.C. What’s Inside
Vol. 18 Number 5 September/October 2012
Sugar Creek
Features 4 Department of Revenue Update: Financial Operations and Risk Assessment, and the Ad Hoc Committee General Lew Wallace Study & Museum By David Bottorff
6 Some Facts about Personal Property Tax Calendar By Andrew Berger November 8 County Officials rainingT Fund: 20 AIC Institute Class – Legislative Affairs A Work in Progress (Organization Day, Statehouse) By Danielle Coulter 21 AIC Board Meeting 27-29 IACC Annual Conference – Sheraton 10 On the Cover: Montgomery County Keystone at the Crossing, Indianapolis 14 AIC Institute for Excellence In County December Strawberry Festival Government Awards Certificates to 15 Indiana County Officials 14 AIC Board Holiday Luncheon 16 2012 Annual Conference Wrap-Up By Shawna Schwegman Extras 20 Changing of the Guard: How Much Change is Legal? 22 Professional Services Directory By Michael A. Blickman, Ice Miller LLP
www.IndianaCounties.org September/October 2012 Indiana News 92 3 The Director’s Chair
Department of Revenue Update: Financial Operations and Risk Assessment, and the Ad Hoc Committee
By David Bottorff, Executive Director [email protected]
Earlier this year, the Office of Management and Budget issued a request for information to solicit proposals for an independent risk assessment and performance audit of the Department of Revenue (DOR). Around the same time an ad hoc study committee was established to review the results of the risk assessment and begin to identify areas of improvement for the DOR. These actions were taken after the DOR had identified internal errors that resulted in distribution issues for the state’s general fund and local option income taxes.
Deloitte and Touche was selected as the company to review the DOR processes and perform a risk assessment. Deloitte and Touche’s report was completed in late August. The report identified some positives: low risk areas at the DOR, specifically taxpayer assistance, appeals and investigations.
The report identified some high risk areas as well. A few high risk areas include resolving unallocated payments, collecting on overdue accounts and developing compliance strategies. If the Deloitte and Touche report identified an area as high risk that does not necessarily mean an error has occurred, but that the potential risk is high for an error to occur. This risk assessment from Deloitte and Touche provides the DOR with a great starting point for reviewing the agency. The report can be found on the AIC’s website www.indianacounties.org under DOR report.
4 Indiana News 92 September/October 2012 Association of Indiana Counties Inc. The Director’s Chair
Indiana News 92 The ad hoc committee is reviewing the distribution of local revenues and the DOR’s The official magazine of operations as it pertains to collection and distributions of local taxes and fees. The committee Association of Indiana Counties, Inc. has made progress throughout the summer and will continue into the fall. There was a great 101 West Ohio Street, Suite 1575 discussion at a workshop on the progress of the ad hoc committee during the AIC Annual Indianapolis, Indiana 46204-2051 Conference in September. A PowerPoint presentation from the workshop can be found on (317) 684-3710 the AIC’s website www.indianacounties.org under DOR report. FAX (317) 684-3713 www.indianacounties.org The ad hoc committee has been reviewing the distribution process at the local level of Karen Avery, Editor several revenue streams. The AIC’s appointment to the committee, Allen County Auditor Tera Klutz, has been a valuable resource for the committee by explaining how revenue is OFFICERS distributed to local units of government once it is collected or received by the county. The President: Therese Brown, Allen County Commissioner committee is reviewing more than just income taxes, though. The review includes nearly First Vice President: Penny Lukenbill, Marshall County Auditor Jeff Quyle, Morgan County Council every tax or fee that flows through the DOR that is shared at the local level. The committee is Second Vice President: Third Vice President: Al Logsdon, Spencer County mapping these fees and taxes from collection to distribution. Commissioner Treasurer: Jane Grove, Randolph County Treasurer The ad hoc committee intends to provide a list of recommendations to the Indiana State Budget Committee before the end of the calendar year for the collection and distribution of STAFF local fees and taxes. From all accounts, it seems progress is being made on this review of David Bottorff, Executive Director the DOR. [email protected] Andrew Berger, Director of Government Affairs & General Counsel [email protected] Danielle Coulter, Deputy Director of Government Affairs [email protected] Karen Avery, Director of Public Relations [email protected] Shawna Schwegman, Director of Planning & Professional Development [email protected] Alicia Ramer, Finance & Business Development Coordinator [email protected]
The Association of Indiana Counties, Inc. (AIC) was founded in 1957 for the betterment of county government. Each of Indiana’s 92 counties are members of the AIC. The AIC Board of Directors is made up of elected county officials and is responsible for overall AIC policy and management. AIC serves it members through lobbying, education, publications, research, and technical assistance.
Indiana News 92 is published bi-monthly by the AIC at 101 W. Ohio St., Suite 1575, Indianapolis, IN 46204-2051. It is distributed to county elected officials, county employees, state and federal legislators, state agency personnel, National Association of Counties (NACo), universities, non-profit associations, media, and organizations interested in the betterment of county government. For advertising rates and other information, please contact Karen Avery, Editor.
All county members receive annual subscriptions to Indiana News 92 magazine through payment of county dues. Stay Connected. Subscription Rate: $25.00 per year.
Postmaster: Send address corrections to: Follow the AIC on Twitter, AIC 101 West Ohio Street, Suite 1575 Facebook and YouTube! Indianapolis, IN 46204-2051
www.IndianaCounties.org September/October 2012 Indiana News 92 5 Politics & Policy
Some Facts about Personal Property Tax
By Andrew Berger, Director of Government Affairs & General Counsel [email protected]
Expect to hear a lot about personal property in the months ahead. The point of view that personal property tax can be eliminated Calls have been made by the business community and political or drastically reduced cannot ignore the consequences to local leaders to examine personal property taxation with an eye towards governments that would result. The argument that this particular tax, reducing the tax burden and increasing Indiana’s competitiveness for if cut back, will have a positive impact on Indiana’s economic vitality economic development. also requires some scrutiny.
Three general proposals have been made: the outright elimination First, some general points: In 2011, more than $950 million in of personal property tax, a full tax exemption for all new personal personal property tax was collected for local units of government property assessed value, and the elimination of the 30 percent and schools statewide. This amounts to 15.5 percent of property floor on depreciation of personal property value. It has also been tax collections. These taxes are largely concentrated in 20 counties, discussed that a local option, county by county, for each of these which account for 69 percent of all collections. Obviously, a actions is appropriate. statewide 100 percent exemption would have major consequences for local units and schools.
Second, the tax base for personal property has, over the last few years, been steady. Personal property is self-assessed, though counties do have authority to audit those taxes. Personal property gross assessed value (AV) has on average declined 0.6 percent from 2005 to 2011. During that same period the net AV has also on average declined 1.3 percent each year. If new personal property is exempted or the 30 percent floor on depreciation is removed, a steeper decline in personal property AV will result.
Third, there is significant tax relief already provided to personal property taxpayers. In 2011, $5.4 billion personal property AV was abated by local units of government. $2.3 billion of personal property AV was exempt from property taxes. $200 million in taxes were deducted and nearly $62 million in taxes were credited back to taxpayers due to the tax caps.
The primary motivation for eliminating or reducing personal property tax has been to improve Indiana’s competitiveness with regard to business attraction and economic development. Personal property tax, other than mobile homes, is primarily a business tax and one
6 Indiana News 92 September/October 2012 Association of Indiana Counties Inc. Personal property tax, other than mobile homes, is primarily a business tax and one that some other states, including Ohio and Illinois, do not have. that some other states, including Ohio and Illinois, do not have. On its face, this is an area where Indiana could make some positive changes. But that is not the whole story.
Fundamentally, the General Assembly needs to take a critical look to see if any more progress can really be made in the tax code. Indiana already has the most friendly business tax climate in the Midwest and fifth best in the nation. At some point the negatives associated with reduced local government and school revenue outweighs any marginal tax considerations. In the end, businesses and workers do not move to a taxing district; they move to a community.
When Illinois and most recently Ohio eliminated personal property taxes, those legislatures raised other business taxes to offset the loss to local units. Illinois collects $1.4 billion in corporate income and capital investment rates and sends to local units. Ohio collects $1.6 billion in a gross receipts tax and sends to local units, though the non-school portion of that replacement began declining in 2012. Michigan, which in 2012 debated but did not pass a personal property tax elimination proposal, also included $470 million in replacement spending for locals and schools.
Exempting or reducing personal property AV shrinks the tax base and shifts the burden to other taxpayers, including business real property not yet at the tax caps. If local governments are forced to respond to revenue shortfalls by raising local income taxes, the burden shifts once again away from corporations (C-corps do not pay local income tax) to individuals. If only new personal property is exempted, those businesses are given an advantage over business with personal property tax that would still be taxed.
State action would take economic development decisions out of the hands of local units of government. As already mentioned, more than $5 billion in abatements were granted in 2011 for personal property. These benefits are made locally, often with specific investment or job requirements. The local decisions can be more directed, project by project, and do not provide blanket exemptions for investment that would occur anyway or without any additional employment. Local officials now, with legislation passed in 2011, have greater flexibility in structuring abatements to best suit their needs.
Yes, cutting business taxes seems like it would help economic development, but when examined in detail, the consequences could be worse than the benefits. It also may not make much difference. www.IndianaCounties.org September/October 2012 Indiana News 92 7 Politics & Policy
County Officials Training Fund: A Work in Progress
By Danielle Coulter, Deputy Director of Government Affairs | [email protected]
By now all county auditors, county commissioner presidents, and training courses, there are other expenses associated with training county council presidents should have received a letter from the AIC in which funding allocations are necessary – lodging, mileage, and with regard to the county elected officials training fund and which other travel costs. Fortunately, such additional expenses can be paid elected offices have access to it – clerks, recorders and surveyors at for out of either the county elected officials training fund or the county the present time, and then auditors and treasurers who are elected or general fund. This does not include expenses for all State Board of reelected beginning November 6 of this year. While the establishment Accounts-called meetings, however; these meetings must still be of this fund has certainly providing an additional funding mechanism paid for through unappropriated funds and not the county elected for those elected offices, the majority of Indiana counties will soon officials training fund, as directed in IC 5-11-14-1. feel the financial strain on this fund, if they have not already. In an effort to clarify that all training expenses do not have to be Currently, the county elected officials training fund is solely funded paid from the county elected officials training fund, the AIC will seek by a portion of every county identification security protection fee to amend the training fund statute (IC 36-2-7-19) during the 2013 charged by the county recorder’s office for the recording or filing legislative session to read: Each county legislative body shall before of a document. For every $2 dollar county identification security July 1, 2011, establish a county elected officials training fundto protection fee charged according to IC 36-2-7.5-6, $0.50 is supplement appropriations that may come from the county deposited into the county elected officials training fund. For the larger general fund to provide training of county elected officials. The counties that have numerous filings and recordings in the recorder’s county fiscal body shall appropriate money from the fund.” office every day, relying on this training fund to pay for the training expenses of five county elected officials is a very easy task; in fact, Since a portion of the county identification security protection fee a handful of counties could likely pay for all of the required training of each recording or filing is the only current dedicated source of in their county out of this fund alone. For the smaller, more rural funding for the county elected officials training fund, the AIC also counties, however, a lack of consistent filings and recordings in the anticipates amending the training fund statute (and other appropriate recorder’s office could mean a balance of only a few hundred dollars statutes) to include one or more new dedicated funding sources. We in the training fund. are currently exploring ways in which perhaps a small portion of the revenue coming into one or more of the county elected offices can With five elected offices eventually using the fund to meet their be redirected into the training fund, without placing an extra financial training requirements, this amount is obviously not enough to burden on these offices and their already-constricted budgets. When sufficiently cover all training expenses; this is why it is important to many of the auditors and treasurers begin utilizing the training fund recognize that the county elected officials training fund is merely later this year (depending on if and when they were first elected), we a supplemental fund, and not the only source of funding to help will have a better understanding of how much additional revenue these elected officials fulfill their training requirements. Despite now is needed to meet the demands of each elected office’s training having the training fund, elected officials may still need to request requirements. Please check the AIC website and AIC eNewsletter appropriations from the county general fund in order to pay for for updates in the weeks ahead, as we work to improve the financial some of their training expenses. In addition to the costs of the actual resources available to you for training.
8 Indiana News 92 September/October 2012 Association of Indiana Counties Inc.
On the Cover: Montgomery County
Indiana is a state full of fascinating variety, both in natural beauty and historical achievement, but in only one Indiana county can a visitor discover so many surprising superlatives that can’t be found anywhere else in the world. Montgomery County Montgomery County, nestled in west central Indiana just an hour west of Indianapolis along the banks of picturesque Sugar Creek, houses the only rotary jail in existence that still turns; one of the largest collections of armored vehicles outside of the U.S. military; famous fossil beds that date back 345 million years; and the birthplace of the best-selling novel of the 19th century that gave rise to the 1959 motion picture that won a record number of Academy Awards®.
Once known as the Athens of Indiana,
Crawfordsville, the seat of Montgomery Sugar Creek
County, was celebrated as the home Study & Museum & Study Photo courtesy Gen. Lew Wallace Wallace Lew Gen. courtesy Photo of noted authors, statesmen, military men and business magnates who influenced the world. Maj. Gen. Lew Wallace distinguished himself as adjutant general during the Civil War, recruiting all of Indiana’s volunteer soldiers and leading the 11th Indiana Volunteer Infantry. Becoming the youngest major general in the Union Army, Wallace served valorously during the major battles of Forts Henry and Donelson, Shiloh, and Monocacy.
After the war, he wrote his masterwork, “Ben-Hur: A Tale of the Christ”, under a tree in the backyard of his Crawfordsville home. “Ben-Hur” became the best-selling novel of the 19th century and Inside the the first work of fiction to be blessed by theV atican, Gen. Lew and gave rise to three motion pictures in 1907, 1925 Wallace Study and 1959. The 1959 movie, starring Charlton Heston & Museum. ® Inset: Gen. in the iconic title role, earned 11 Academy Awards , Lew Wallace including Best Picture, an accomplishment that was
10 Indiana News 92 September/October 2012 Association of Indiana Counties Inc. Montgomery County Calendar of Events
November 24, 2012 Downtown Party Night 7:00-10:00 p.m Downtown Crawfordsville
December 2, 2012 Crawfordsville Christmas Parade 2:30 p.m. Downtown Crawfordsville Lane Place December 7, 2012 Holiday High Tea & Fashion Show not equaled until “Titanic” in 1997 and “The Lord 3:00-6:00 p.m. of the Rings: The Return of the King” in 2003. Historic Elston Homestead & DAR House Visitors can stand at the spot where “Ben- March 16, 2013 Hur” was born at the Gen. Lew Wallace Study Pi Day at the Carnegie & Museum in Crawfordsville, which features Museum Wallace’s personal study building filled with Montgomery County original artifacts. The Carriage House Interpretive Crawfordsville Center, restored in 2006, contains changing May-October exhibits that highlight particular aspects of Farmers’ Market Wallace’s life and legacy. 8:00 a.m.-2:00 p.m. Montgomery County Courthouse parking lot, Wallace’s brother-in-law, Henry Smith Lane, was a Crawfordsville U.S. Representative, Senator, and 13th Governor April 27, 2013 of Indiana who chaired the first Republican 50th Annual Sugar Creek Canoe Race National Convention in 1856. In 1860, Lane 11:30 a.m. was influential in the Republican nomination of Elston Park, Crawfordsville Abraham Lincoln for President, and he remained June 14-16, 2013 a steadfast supporter of Lincoln and his policies 39th Annual until 1865, when Lane served the president a final time as pallbearer at Lincoln’s Strawberry Festival funeral. Lane Place, Crawfordsville
The Henry Lane home, known as Lane Place, July 12-18, 2013 Montgomery County Fair is the jewel of Crawfordsville’s Elston Grove Historic District and has been a museum and July 4, 2013 home to the Montgomery County Historical New Richmond 4th of July Society since 1931. The verdant grounds Celebration host Montgomery County’s most popular New Richmond summer festival, the Strawberry Festival, August 24, 2013 every year in early June. 7th Annual Taste of Montgomery County An engineering and architectural marvel of Lew Wallace Study, Crawfordsville the Industrial Age, the Rotary Jail Museum was constructed in Crawfordsville in 1882 as Call the Montgomery County Visitors Bureau at 800-866-3973 to confirm dates and locations. a solution to the problem of housing prisoners safely Strawberry Festival www.IndianaCounties.org September/October 2012 Indiana News 92 11 On the Cover: Montgomery County
and efficiently. By rotating a hand crank on which the Rotary Jail Museum two-tiered turntable pivoted, a jailer could bring one of 16 pie-shaped cells to the opening, allowing one prisoner in or out. Its unique structure as a rotary jail was the first of its kind ever built in the United States. Today, it stands as the only operational rotary jail structure in the country.
Attached to Montgomery County’s unique jail also stands a two-story home of architectural interest. The sheriff and his family occupied the main and second floors of the Eastlake-style home. Today, the Rotary Jail Museum and Tannenbaum Cultural Center houses the Montgomery County Cultural Foundation, and hosts a myriad of art exhibits, classes and special events throughout the year.
Just east of the city of Crawfordsville Wabash College stands a collection of armored vehicles and militaria so impressive, Hollywood directors regularly borrow Ropkey Armor Museum pieces to use in their films. The Ropkey Armor Museum is a 50-acre site that illustrates the harmony of man, machine and emotion. Incorporated in 1982 by Fred Ropkey and his son, the museum moved to Montgomery County in 2004 where the collection is now housed in a climate- controlled facility. Various vehicles of different types and ages are on display from Fred’s first, an M3A1 scout car, to several WWII era Shermans to a modern day M109 155mm self-propelled howitzer. Many of the vehicles have been restored to like new condition.
In total, Montgomery County boasts seven museums, Shades State Park, Lake Waveland, several walking trails and recreation areas, ample canoeing and kayaking along scenic Sugar Creek and a myriad of art galleries and studios. The Montgomery County Visitors & Convention Bureau can help you find the inspiration, respite and revelation you can only get in west central Indiana. Call us today at 800-866-3973 for itineraries that will delight the whole family, or visit www.crawfordsville.org for more getaway ideas.
12 Indiana News 92 September/October 2012 Association of Indiana Counties Inc. TheThe onlyonly Title IV-D vendorvendor endorsedendorsed by the AssociationAssociation of Indiana Counties.Counties. ServicesServices WeWe Offer • • TitleTitle IV-DIV-D Reimbursement;Reimbursement; • • CostCost AllocationAllocation Plans;Plans; • • CostCost ofof ServiceService Studies;Studies; • • IndirectIndirect CostCost RatesRates for Grants; • • JailJail PerPer DiemDiem Analyses;Analyses; and • • BudgetBudget andand SettlementSettlement AssistanceAssistance ContactContact Us 1.800.618.73641.800.618.7364 JohnJohn MallersMallers [email protected]@maximus.com KenKen MoellerMoeller [email protected]@maximus.com JacqueJacque ClementsClements [email protected] [email protected] www.IndianaCounties.org September/October 2012 Indiana News 92 13 AIC Institute for Excellence Graduates
Aic Institute for Excellence in County Government Awards Certificates to 15 Indiana County Officials
The Association of Indiana Counties (AIC) has awarded 15 • Institute Certificate – To earn an AIC Institute certificate, the certificates to county officials for completing requirements in the student must accumulate 30 credit hours of AIC Institute courses. AIC Institute for Excellence in County Government, an ongoing 25 of these credit hours must be from full day courses and must professional development program established in 1993. include the three CORE courses. Students have two consecutive years to complete the 30 hours The AIC is dedicated to assisting county government officials and • Continuing Education – Because education is a never-ending employees in becoming more efficient, solving tough problems, process, we have many people who continue their participation in and finding the resources they need to serve their constituents well. the Institute program. Students who earn Continuing Education The AIC believes that education is the beginning of any successful certificates must have previously earned an AIC Institute and endeavor, especially within the public service sector. completed 20 hours of additional Institute courses within one calendar year. AIC and Vectren Corporation are helping county officials to continue pursuing their educational goals through webinar classes. Offering • Master Pins – To reward those who have truly made education a classes via a virtual classroom helps county officials to reduce the priority, the different level of Masters Pins are given to those who burden of travel expenses and time out of the office. To learn more have accumulated 75 to 180 credit hours in the program. about the AIC Institute visit www.indianacounties.org. • Lifetime Achievement – This award recognizes those individuals who have accrued at least 240 total credit hours since the The following are the four types of certificates that were awarded: inception of the program in 1993.
Pictured in photo left to right are in the front row are: Jennifer McGuire, Whitley Co.; Sandy Cain, Brown Co.; Pamela Kivett, Morgan Co.; Susan Bodkin, Hancock Co.; Queenie Evans, St. Joseph Co.; Julie Fox, Marshall Co.; Back row left to right: Jane Grove, Randolph Co. (Institute Admin.); Angie Lawson, Owen Co.; Lorie Hurst, Fulton Co.; Mary Ann Beard, Rush Co.; Phillip Dotson, St. Joseph Co.; Michael Brown, Lake Co.; Therese Brown, Allen Co. (AIC Pres.).
14 Indiana News 92 September/October 2012 Association of Indiana Counties Inc. 2012 INSTITUTE AIC Institute for PROGRAM GRADUATES Excellence in AIC Institute Certificate Ruth Beer – Steuben County Council Susan Bodkin – Hancock County County Government Surveyor Sandy Cain – Brown County Recorder Now Offering Cathy Ginther – Fulton County Recorder Pamela Kivett – Morgan County Classes Recorder Jennifer McGuire – Whitley County Auditor via Webinar Yvonne Walton – Ohio County Recorder Brenda Weaver – Miami County Recorder
Continuing Education – Level II Lorie L. Hurst – Fulton County Treasurer
Continuing Education – Level II and Silver Masters Michael A. Brown – Lake County Save time and travel Clerk Queenie Evans – St. Joseph County Human Resources Director costs with just a click!
Continuing Education - Level II and Gold Masters Attend an AIC Institute for Exellence in County Phillip Dotson – St. Joseph County Government class online via webinar, Recorder and get the training you need. Julie Fox – Marshall County Clerk Angie Lawson – Owen County Auditor For more information or to find AIC Institute Sponsored by Lifetime Achievement webinar class schedules, go to: Vectren Corporation Mary Ann Beard – Rush County Treasurer www.indianacounties.org “click on the training/education tab”
www.IndianaCounties.org September/October 2012 Indiana News 92 15 2012 AIC conference wrap-up
Conference Sponsors (Includes Golf Outing)
Platinum ($4500+) Ice Miller LLC NACo Caremark Rx Nationwide Retirement Services Thomson Reuters
Gold ($2500 - $4400) London Witte Group LLC MAXIMUS, Inc Umbaugh
Silver ($1500 - $2400) Apex Benefits Group Barnes and Thornburg Boyce Systems/Komputrol Casino Association of Indiana Crowe Horwath LLP IN State Building & Construction Trades Council Krieg DeVault LLP SRI, Inc. Tyler Technologies
Bronze ($500 - $1400) AIC 2012 39 Degrees North ACS, A Xerox Company American Structurepoint Beam, Longest and Neff, LLC annual conference Bingham Greenebaum Doll LLP BNY Mellon Trust Company Christopher B. Burke Engineering, Ltd. wrap-up Doxpop, LLC Emergency Radio Services, Inc. (ERS) INdigital telecom By Shawna Schwegman, JP Morgan Chase Bank NA Director of Planning and Professional Development Low Associates, Inc. [email protected] Nexus Group PNC Bank The AIC would like to thank all who attended, sponsored and donated time during Software Solutions the 2012 Annual Conference! Your participation made this a wonderful event, and the STAR Financial Bank conference was a great success. We truly hope that all who attended will take back Tax Management Associates, Inc. great information to their counties and new contacts for their companies. The Marion Thomas Assessment Professionals Company County Host Committee was such a great help to the conference and we appreciate Waggoner, Irwin, Scheele & Associates, Inc. all of their hard work. XSoft As the largest gathering of county officials and county employees in the state, the Thank You To Our Host AIC’s Annual Conference provided attendees with the opportunity to visit with old Gift Sponsors friends and make some new ones during three days of exchanging ideas, workshops Bredensteiner Printing and social events. GovPayNet.com RBM Consulting We will see everyone next year in Switzerland County for the 2013 Annual Umbaugh Conference, September 23-26.
16 Indiana News 92 September/October 2012 Association of Indiana Counties Inc. wr ap-up 2012 AIC conference
Marsh Receives Aic’s Highest Honor
The Association of Indiana Counties (AIC) has named Hendricks County Treasurer Nancy Marsh as the 2012 Himsel Award Winner. The Arthur R. Himsel Award is the AIC’s highest honor and is named for an individual who dedicated his/her public career as an elected county official. Himsel was also one of the AIC’s founding members. For many years, Himsel served as Indiana’s representative on the National Association of Counties (NACo) Board of Directors. Since the inception of the Himsel Award in 1984, it has been given to an elected county official who has served the interests of county government through involvement with the AIC. The award was presented last night during the AIC Annual Conference, the largest gathering of county officials in the state. The conference was held in Marion County September 23 – 26 and included meetings designed specifically for each elected county office.
Nancy Marsh currently serves as the Hendricks County Treasurer and Hendricks Co. Treasurer Nancy Marsh (c) receives Himsel Award from 2011 Himsel has served in that capacity for five years. She previously served as Recipient Judy Anderson (l), Vigo Co. Commissioner and AIC President Therese the County Auditor for seven years. Marsh Brown (r), Allen Co. Commissioner. has clearly demonstrated her commitment to serving the citizens of Indiana through her work in advancing the work of the AIC’s mission to continue bettering Indiana County A ic Developing Natural Gas Government. Marsh is a longtime member of the AIC board of directors; she has served Program to Provide Counties as vice president of the Indiana Treasurer’s Opportunities! Association, and the Indiana Auditor’s With Savings Association. She currently serves as the AIC’s West Central District President. The Association of Indiana Counties has partnered with ProLiance Marsh is a recipient of the Auditor’s Energy to provide natural gas services to its members. Association Auditor of the Year award, and has received a Lifetime Achievement Pro Liance Energy is a full-service natural gas marketing diplomas from the AIC’s Institute for Excellence in County Government. In company that purchases natural gas from a variety of supply addition to her service with the AIC, Nancy basins and transports the natural gas on many different pipelines has improved services at the county level by to provide competitively-priced natural gas to its customers. This introducing several programs that make the payment of property taxes less burdensome same economy of scale purchasing strategy will greatly benefit the for taxpayers. Among those programs include members of the Association of Indiana Counties. an installment program to pay taxes, direct deposit, and payroll deduction. Nancy also took the lead in helping citizens save money How Can We Help? on prescription drugs by introducing the Send the AIC your county’s natural gas NACo prescription drug discount program in bills (from July 2010 – June 2011) for all county-owned property the county. Volunteer to join the Advisory Committee which will oversee the program The AIC congratulates Nancy on her accomplishments and recognizes her for her F or more information, contact David Bottorff at (317) 684-3710 faithful service and dedication to serving the [email protected] citizens of Indiana and Hendricks County.
www.IndianaCounties.org September/October 2012 Indiana News 92 17 2012 AIC conference wrap-up
2012 Outstanding County Officials Announced
Congratulations to the 2012 Outstanding County Officials! The award winners below were nominated by their affiliate organizations for providing effective leadership and other important contributions to county government. The awards were presented during the annual awards banquet at the AIC’s Annual Conference in September.
Assessor: Vicky Kent Haire – Clark County Auditor: Angie Lawson - Owen County Clerk: Shirley Van Meter – Pike County AIC President Therese Brown (l), Allen Co. AIC President Therese Brown (l), Allen Co. AIC President Therese Brown (l), Allen Co. Commissioner, and Assessors’ Association Pres. Judy Commissioner presents award to Angie Lawson (r). Commissioner presents award to Shirley Van Meter (r). Sharp (r), Monroe Co. Assessor present award to Vicky Kent Haire (c).
Commissioner: Ken Paust – Wayne County Coroner: David Hunt – Montgomery County Council: Linda Sanders – Shelby County AIC President Therese Brown (l), Allen Co. AIC President Therese Brown (l), Allen Co. AIC President Therese Brown (l), Allen Co. Commissioner and Commissioners’ Association Pres. Commissioner presents award to David Hunt (r). Commissioner and Council Association Pres. Larry Ron Smith (r), Steuben Co. Commissioner present Hesson (r), Hendricks Co. Council, present award to award to Ken Paust (c). Linda Sanders (c).
Recorder: Lois Endris - Floyd County Surveyor: Susan Bodkin - Hancock County Treasurer: Joe Wray - Brown County AIC President Therese Brown (l), Allen Co. AIC President Therese Brown (l), Allen Co. AIC President Therese Brown (l), Allen Co. Commissioner (c) and Recorders’ Association Pres. Commissioner (l) and Surveyors’ Association Pres., Commissioner presents award to Joe Wray (r). Mary Jo Phares (r), Shelby Co. present award to Lois Chris Knochel, Newton County Surveyor (r) present Endris (l). award to Susan Bodkin (c).
18 Indiana News 92 September/October 2012 Association of Indiana Counties Inc. wr ap-up 2012 AIC conference
Local Government Cooperation Award
Just one Indiana County was awarded the 2012 Local Government Cooperation Award. Monroe County was chosen for its community energy conservation project.
Monroe County – Community Energy Conservation Project Pictured in photo left to right are: Erin Cerwinske, Teacher – University Elementary; Jason Carnes, Commissioners Administrator; Iris Kiesling, Monroe Co. Commissioner; Ashley Skooglund, Monroe Co. Grants Administrator; Kevin Dogan, County Attorney. Highway Engineer: Jim Neal – Hamilton County AIC President Therese Brown (l), Allen Co. Commissioner and Hwy. Association Pres. Dwight Smith (r), Bartholomew Co. Hwy. Superintendent present award to Lucy Neal (c), the wife of Jim Neal who is on a military deployment. County Achievement Awards
The AIC awards committee chose two counties this year to receive the County Achievement Award. Jefferson County was chosen for its courthouse fire response and rebuild efforts, and Marion County was chosen for its yVote program.
Jefferson County – Courthouse Fire Response and Rebuild Pictured left to right: Julie Berry, Commissioner, Wil Highway Superintendent: Dwight Smith - Goering, County Bartholomew County Attorney, Mark Cash, AIC President Therese Brown (l), Allen Co. Commissioner, and Commissioner presents award to Dwight Smith (r). Tom Pietrykowski, Commissioner.
View the awards video presentations from each project by visiting the AIC’s Marion County – yVote! You Tube page: Program Pictured left to right: www.youtube.com/aoinco Beth White, Clerk and Angie Nussmeyer, Clerk’s Office Communications Director.
www.IndianaCounties.org September/October 2012 Indiana News 92 19 Legal Insight Legal Insight
Changing of the Guard: How Much Change is Legal?
By Michael A. Blickman, Ice Miller LLP
Every newly elected official considers “changing the guard” to assure The leading Seventh Circuit Court decisions defining the policymaker that the individuals who work in the administration’s key positions will exception state that the test to determine if a person is a policymaker be loyal and actively supportive of the official’s public agenda. Can an requires the official to ask this question: Does the position authorize, incumbent employee be terminated legally? The answer is that there either directly or indirectly, meaningful input into government decision are restrictions, but the basic rule to remember is that employees making on issues where there is room for principled disagreement may be dismissed if they can be classified as “policymakers” or on goals or their implementation? This is obviously a very subjective “confidential” employees, as the courts have defined those terms. standard. The analysis that a newly elected official must make is Although this classification will be simple in some cases, in others it also difficult because the high court has stated that the job analysis will be problematic. must focus on the powers of the office, not on the activities of the person holding the office. This means that some positions in which Legal Issues individuals have informally functioned as policymakers, appearing The First Amendment prohibits a public employer from making otherwise to meet the test for the exception, may not, in fact, be an employment decision about an employee – or an independent policymakers because the inherent or statutory powers of the office contractor – based on political affiliation, unless party affiliation is an are not that of a policymaker under the test. However, no one factor appropriate requirement for the position involved. The U.S. Supreme is conclusive as to whether an employee is a policymaker. A few Court has established the general proposition that a public employer examples of positions found to be policymaking are as follows: can dismiss an employee for political reasons only if the employee is in a policymaking or confidential position. The high court has also A deputy county auditor was a policymaker as a function of the acknowledged that there may be circumstances under which political office since a deputy has the same power and authority under affiliation may be an appropriate consideration though the position is state law as the auditor. neither policymaking nor confidential in nature. Nevertheless, most cases ultimately turn on whether the employee fits into either the An executive director of a county housing authority fit the policymaking or confidential category. description of an official whose political views can promote or defeat a political program and, as such, he was found to be a Determining whether a position is a policymaking or confidential one policymaker subject to political firing. is difficult and the result has been a rapid increase in litigation. The Supreme Court has stated that the ultimate question is really not The courts consider a “confidential employee” as a person in a whether the above labels fit a particular position, but “whether the position that has special access to and close communications with hiring authority can demonstrate that party affiliation is an appropriate an elected official or appointed policymaker. For a person to be requirement for the effective performance of the public office considered in a confidential position he or she would likely need to involved.” be a party to politically sensitive communications and information which are critical to the policymaking process. The official can also
20 Indiana News 92 September/October 2012 Association of Indiana Counties Inc. consider whether loyalty is such an issue for a position that the described above. You can then begin to make plans as to how you individual might, if disloyal, interfere with a given political program. want to fill those positions. Personal secretaries, agency heads, and policy making supervisors are generally deemed to be in positions in which loyalty is a 4. Gather all job descriptions for non-merit employees and categorize reasonable requirement. them into three groups: clearly ministerial, clearly policymaking/ confidential, and those involving mixed functions. Individuals For both policymaking and confidential positions the courts will holding jobs in the clearly ministerial category may not be usually allow elected officials to rely on official job descriptions to dismissed merely because they are affiliated with the other party. determine whom they may replace on political grounds. However, Dismissals of these employees for competency or budgetary the job description represents only a provisional safe harbor. Elected reasons should be well documented before being implemented. officials may rely on job descriptions only to the extent that they are In order to have sufficient time to review personnel records objective and reliable, as shown by the methods by which they are and investigate financial considerations, you should consider created and updated. The courts will not allow an elected official postponing termination decisions until after you take office. Those to rely on the official job description if evidence suggests that it has holding jobs in the clearly policymaking/confidential category may been altered not to reflect actual changes in the duties of a position be dismissed simply because they belong to the other party, as but, rather, to allow him or her to fill the position with a political the newly elected official will want to have the policymaking team favorite. on board from the first day in order to set the tone for the new administration. Practical Recommendations for the Newly Elected Official 5. The mixed function category will be the largest and, by far, the The newly elected official can take certain precautions and steps to most problematic. The job descriptions should be studied to reduce the likelihood of litigation: determine the duties for which political affiliation is an appropriate requirement for effective 1. Don’t make any public statements, or private ones to the performance. There may be opportunities to extent possible, about replacing, demoting, or transferring revise job descriptions, and the development people upon being elected to office. You can talk about of these descriptions should stress formal improving government efficiency and performance by job related criteria. In order to rely making personnel changes, but you should indicate on that job description in making that these decisions will be based on non-political job future employment decisions, any performance criteria. revisions must be justified by actual changes in duties. Any 2. Don’t promise anyone a job, promotion, salary increase, or reasons for discharge other than other benefit. Such promises may be used as evidence political affiliation should be clearly that subsequent employment decisions were documented before the discharge made on the basis of impermissible political is initiated. If performance or considerations. competency is doubted, there should be documentation to 3. After the election, prepare a support that conclusion. list of all positions and analyze The record should show which ones fall within the how the transition team exceptions to the anti- found the employee patronage principles to be incompetent,
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as compared to the superior qualifications of the person’s replacement. Before employees are terminated for budgetary reasons, a financial plan should be available showing that decisions were made irrespective of the political affiliations of the affected employees. Study and discussion of all of these factors must occur Stay informed. before any talk of terminations begins. Let the AIC know your preferred mailing and email 6. It would be useful to compile a record of campaign promises address, phone and fax number today. If you want your and acknowledged areas of disagreement between the newly mail directed to a different address let us know! Also, the elected official and the prior administration. This record will assist in AIC frequently uses email to provide notices and updates substantiating the defense that a particular position involved duties to our members. Make sure we have your email on file so for which political affiliation was an appropriate requirement to you can stay up to date. implement the public’s mandate. It’s Easy! 7. Legal advice should be sought before any employment decisions V isit www.IndianaCounties.org to update your contact are made by any individual who is given the authority to make information those decisions, especially when the position change could be viewed as politically motivated. Fax your contact information to (317) 684-3713 attn: Karen Avery. 8. Once in office, the newly elected official should be encouraged Email your contact information to to establish and follow a system for making all employment Karen Avery at [email protected]. related decision making as objective as possible. This includes establishing and updating personnel policies and job descriptions and implementing all procedures necessary for ensuring conformance with those policies. Job descriptions should be detailed and reflect the policymaking or confidential nature of Stay Connected. a position and specifically designate whether that position is considered policymaking or confidential. Follow the AIC on Twitter, Ice Miller LLP serves as legal counsel to the Association of Indiana Facebook and YouTube! Counties. For further information on this topic, please contact Michael A. Blickman at [email protected] or (317) 236 2298.
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