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Township Costs Often Far Outweigh Assistance To Poor

6News Investigation Reveals Lack Of Reporting Standards

POSTED: 1:52 pm EST February 22, 2010
UPDATED: 6:19 am EST February 23, 2010

Within the next couple of months, state lawmakers could decide to give voters the choice to do away with township trustees and other local officials.

If that measure is approved, voters in 1,000 townships across Indiana would have the final say on whether township government should continue.

While primary duties vary from township to township, many run fire services, small claims courts and relief programs for the poor.

The background work to dole out relief to the poor is how some trustees justify the job, but many argue administrative fees far outweigh the benefit to the community and that there are no standards for measuring the effectiveness of assistance given, 6News' Joanna Massee reported.

Whether they know it or not, every taxpayer in Indiana donates to charity. Every year, townships collect tax dollars to help the poor -- sort of a mandatory donation, but taxpayers don't get to choose where the money goes.

A 6News analysis found that in many cases, the majority of the money is funneled to administration of the programs, salaries and supplies that don't make it directly to those in need.

Wendell Brown turned to Washington Township, in Indianapolis, for help after he got laid off in December and couldn't find another job.

"I requested rental assistance. That's pretty much the only thing I really needed help with," Brown said. "I can't find anything. Everybody's really hiring through temporary services, and they're not paying that much."

So, $500 for one month's rent is a lifeline for Brown, but with administrative overhead factored in, the $500 actually cost taxpayers nearly $1,200.

In 2009, for each dollar the township gave out, it spent about $1.25 on administration. Yet, trustee Frank Short argued that the operation is efficient.

"I guess I could charge all the legal fees to my function and none to that, you know what I mean, but is that being fair?" Short said. "Yeah, I think it is (efficient)."

Short points to a different set of numbers -- one in which the township calculates and takes credit for funds donated by other organizations.

"If you use all that, we gave out over $1 million worth of assistance," he said. "We count that because we provided that assistance to folks."

Trustees in many townships use the money spent by organizations to defend the value of their offices to critics who want to eliminate township government.

6News' review found each trustee can add up the numbers using any system they choose.

In Center Township, Chief Financial Officer Al Mizen said he can't take credit for other agencies' donations.

"That's a major endeavor to track down that, and you want to talk about an administrative expense -- that would be a real wasteful endeavor," Mizen said.

For every dollar Center Township officials expect to hand out in 2010, they expect to spend $1.60. That means that about 38 percent of the money will go directly to people in need.

"On the face of it (it doesn't look efficient)," Mizen said. "The problem is understanding what's in the report."

Asked if budget numbers would have to be manipulated for townships to appear efficient, Mizen replied, "I wouldn't say manipulated. I would like to see the reporting model changed."

Debbie Driskell, executive director of the Indiana Township Association, said townships serve their constituents productively and questioned an assertion that charities perform the same amount of work with lower overhead.

According to Charity Navigator, a nonprofit watchdog, 88 percent of funds donated to the United Way go toward programs and 90 percent of money given to the American Red Cross goes to people in need.

"Those (township) numbers are the numbers that are required by the state for our reporting. We're not playing any games," Driskell said.

6News asked state auditor Paul Joyce about how trustees calculate their own value. He replied that Hoosiers can trust the numbers "as much as the taxpayer can trust the trustee that they elected into office. It is very subjective."

Joyce said the state does not dictate how townships come up with the numbers they report and that auditors don't verify the reported numbers during regular audits, which happen every two years.

State Rep. Ed DeLaney, D-Indianapolis, is among legislators pushing for the abolishment of township government, but admitted doing so is an uphill climb because of the entrenchment of those officials.

"It's just simple politics. These are the local clubhouse politicians," DeLaney said.

While townships vary in how much poor relief they give out, requirements for receiving help also vary markedly.

Some township trustees argue that's why administrative expenses are so high, because they must investigate to ensure people who ask for assistance really need it.
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