One of the top issues confronting the 2009 session of the Indiana General Assembly could take shape Friday when Gov. Mitch Daniels announces his local government reform proposal.

Daniels will be joined by members of the Kernan-Shepard Commission, a seven-member blue-ribbon body he appointed in 2007 to study ways to make Indiana's local government more efficient and cost-effective.

A year ago, it presented 27 recommendations for streamlining Indiana's 1851 government structure.

A few of the commission's recommendations - such as having the state shoulder the burden for school operating costs - were passed in the 2008 Legislature; but most were not.

The commission's co-chairs - Indiana Chief Justice Randall Shepard, an Evansville native, and former Gov. Joe Kernan - are scheduled to join Daniels at the event Friday.

Among the Kernan-Shepard proposals not adopted in 2008 that remain on the table are:

  • Replacing the three county commissioners with a single elected county executive.

  • Replacing elected offices such as county sheriffs with appointees.

  • Consolidating the administrations of school districts with fewer than 2,000 students.

  • Eliminating township governments.

    In the past, the governor has said the commission's report made a very strong case but had not specifically endorsed any of its proposals. During a gubernatorial debate Sept. 23, Daniels expressed interest in having township services provided at the county level.

    "I do believe it's a good idea to move certain functions from township trustees to an elected county executive who is accountable," Daniels said. "Today it is hard for the taxpayer to know who to give credit to and who to assign blame."

    Supporters and opponents of the Kernan-Shepard proposals plan to bring lobbying muscle to the 2009 session of the Legislature.

    The Indiana Chamber of Commerce, Indiana Association of Realtors and other business groups formed a coalition, MySmartGov.org, will lobby for passage of Kernan-Shepard proposals. Associations representing township officials and county sheriffs plan to oppose them vigorously.

  • In the 2008 legislative session, lawmakers agreed to Kernan-Shepard-inspired legislation that ultimately eliminated almost all of Indiana's 1,008 township assessors and shifted their duties to 92 county assessors. Only 13 township assessors remain statewide after a Nov. 4 referendum.

    Debates over how local government ought to be structured will come as the Legislature must pass a budget to fund state government in a recession amid increasing expenses and smaller revenues.

    Major changes could be sidelined by House Speaker Patrick Bauer, D-South Bend, who has said the Legislature will have greater priorities during the session - such as crafting a new two-year budget during tough economic times.

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