When it comes to consolidation of government services, Howard County has made a lot of progress in the opinion of Larry DeBoer, an economics professor at Purdue University.
DeBoer, an expert on government finances, met with the Concerned Citizens for Consolidation Monday at the Howard County Administration Center.
DeBoer said limits on local government finances are driving discussions of consolidation around the state.
He described what can be considered a “perfect storm” when it comes to revenues for the operation of local government as a result of the property tax caps, limits on growth in the maximum tax levy and the shortfall in local income tax collections.
DeBoer said the property tax caps are resulting in a 5 percent loss in revenues for Howard County taxing units, which is about the state average.
He said the growth in the property tax levy for 2011, based on the years from 2004 through 2009, is 2.9 percent, the lowest level since the program was started in the 1970s.
DeBoer said Howard County has a negative balance in local income tax collections of between $3.8 million and $4 million through 2009.
“The pay back will depend on the growth of local economies,” he said of the income tax collection shortfalls.
DeBoer said government can cut services or find additional revenues through local income taxes or fees.
Since no local government wants to increase taxes or fees, office holders are looking at becoming more efficient.
DeBoer said Howard County has 24 local governmental units, which ranks 59th among Indiana’s 92 counties. He said for a county its size, Howard County has relatively few local government units.
“Howard County is already fairly consolidated when compared to the rest of the state,” he said.
DeBoer said the information he provided to CCC members is meant to be a guide. Needs must be looked at locally, he said.
“There will be real limits to government finance in the future,” he said. “I can see why people would want to look at consolidation.”
He said the ultimate consolidation took place in the 1970s when Indianapolis and Marion County consolidated, before a referendum vote was required.
A referendum failed in Evansville and Vanderburgh County in the 1970s, DeBoer said. He noted Allen County and Fort Wayne looked at consolidation in the past, and Muncie and Delaware County are studying the possibility.
DeBoer then asked if the local dispatch center, health departments and parks departments already were consolidated. In Howard County, they are – along with Planning and Emergency Management.
“You have already made a lot of progress,” he said. “Continue to see what could be consolidated. Determine what services city and county residents want to see consolidated.”