Township trustees, by the numbers

In the four counties of northeast Indiana, 51 townships are holding $1.56 million surplus in their poor relief accounts, nearly three times the $553,124 they gave to recipients in 2010.

Township trustees have other duties, but it costs 85 cents in trustee salaries for every $1 they distribute in poor relief.

Twelve townships hold enough surplus in their poor relief accounts to operate 10 or more years without collecting any more taxes.
Dave Kurtz and Matt Getts, Herald-Republican

Craig Bassett knows the township trustee system in Indiana needs changes.

Bassett, the trustee for Union Township in Auburn, is among a dozen area trustees who have built up huge surpluses in their accounts for assistance — commonly known as poor relief.

Over decades of spending conservatively, dating back long before Bassett took office in the last decade, Union Township has built up $133,315 in its assistance account. Bassett gave out $7,582 in assistance last year.

Across the four counties of northeast Indiana, 51 townships are holding $1.56 million surplus in their poor relief accounts, nearly three times the $553,124 they gave to recipients in 2010.

Much of the surplus has concentrated in the bank accounts of a few townships. Bassett’s is one of 12 townships holding enough in reserve to give assistance for 10 years or longer — at present rates — without collecting another dime in taxes.

Bassett said the township finance system encourages trustees to collect as much in tax revenue as possible, even though they don’t expect to spend it.

“If we do not take our maximum tax levy, and we reduce that tax levy, we are told we cannot get it back,” Bassett said. “In a perfect world, allow me to not take any taxes for a period, so that I may spend down my excess.”

In a partial answer to Bassett’s dilemma, a new state law will allow trustees to cut their tax income for one year without losing it permanently.

Bassett said he thinks one year’s worth of assistance is enough to hold in reserve. He now has enough for 17 years.

Barbara Donley, trustee for Perry Township in Ligonier, finds herself in a similar predicament. At the end of 2010, Perry Township was sitting on a balance of $156,021 in poor relief funds. Last year, Donley handed out $9,738 in assistance.

Donley said she told the state Department of Local Government Finance she wanted to reduce her assistance budget.

“I have asked,” Donley said. “They tell us not to do that. They tell us not to lower our budget.”

While some trustees have more assistance cash than they can spend, former Keyser Township Trustee Sue Blotkamp said she had problems getting enough poor relief money for her township in Garrett.

For her first two years in office, “I kept saying, ’Why am I not getting any poor relief money?’” Blotkamp said.

Each year, Blotkamp submitted a budget proposal that included a line item request for poor relief. In the first two years, the Department of Local Government Finance returned a budget with no money for assistance.

In her final two years, Blotkamp did receive poor relief funding. In 2010, the township was allowed to collect $3,744. Drawing on reserves, Blotkamp spent $10,778. The year ended with Keyser Township carrying a $2,907 balance. Frustrated, Blotkamp did not run for re-election in 2010.

Mary Jane Michalak, spokeswoman for the Indiana Department of Local Government Finance, said the agency does not tell trustees how to spend their money, but serves more as an advisor on state laws.

“We kind of function as a bank,” Michalak said. “The bank will tell you if the money is there, not if you should buy a car or groceries” with it.

“Poor assistance is something that is hard to budget for. You do not know who is going to walk in with a need and how much it is going to cost to help,” Bassett said.

In Union Township, Bassett provides emergency cash for basic needs such as housing, food and medical care. As the most immediate source of help for many people, he tries to handle all requests within 72 hours.

“We’re able to help people quickly, but we also have the pulse of the community,” Bassett said about the wisdom of using trustees for public assistance.

Most trustees try to limit assistance to once a year for any individual, Bassett said. He often pays partial rent or utilities and helps people work out a financial plan. He directs people toward help offered by other agencies such as food pantries and Community Action of Northeast Indiana.

“We want people to help themselves, too. … We are not long-term assistance,” Bassett said. “But we don’t turn anyone away.”

Bassett said he tries to follow the advice of Auburn attorney John Martin Smith, who told him when he was first elected: “Always be compassionate to people needing assistance and be conservative with the taxpayers’ money.”

Despite Bassett’s prescription, only 15 of the 51 townships in northeast Indiana are holding fewer than two years worth of poor assistance in reserve. Bassett said he believes that needs to change.

“If we can get our tax levy to be suspended or lowered for a period of time with the ability to reinstate it, then we can spend it down and get it to a livable level,” he said.

The state is starting to make modest cuts to the amount Bassett can collect in taxes for assistance. Union Township collected about $12,000 in most years until 2006, but the amount has declined gradually to $8,914 last year.

“One thing that needs to be said is: Township trustees are not bad people,” Bassett said.

“We’re playing by the rules, but we’re getting a black eye playing by the rules,” he added.

“It’s a good job, it’s fun and it’s fulfilling,” Bassett said about serving as a trustee. “We do take pride in it. But there’s definitely room for reform — and I’d like to be part of it.”