2/6/2018

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Purdue University Cooperative Extension Service is an equal access/equal opportunity institution.

Follow us on Twitter @INTaxRockstars

Larry DeBoer

Tamara Ogle

Purdue University

February 7, 2018

On Local Government

The State Budget and Township Consolidation

2/6/2018

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FY18-FY19 Revenue Forecast Update, December 2017

(Change from April 2017)

Percent Change

Total Revenues -176 -1.1% -219 -1.4% Sales Tax -46 -0.6% -48 -0.6% Ind. Income Tax 26 0.5% -74 -1.2% Corp. Income Tax -174 -18.4% -104 -10.7% Gaming 3 0.7% -14 -3.4% All Other 16 1.7% 20 2.1%

2018 Change (mil $)

Percent Change

2019 Change (mil $)

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FY17-19 Revenue Forecasts, December 2017

(millions of dollars and percent changes)

Actual 2017 2018 2019

2016-17

2017-18

2018-19

Total Revenues ($mil) 15,274 15,413 15,961 1.5% 0.9% 3.6% Sales Tax 7,490 7,584 7,838 2.5% 1.3% 3.3% Ind. Income Tax 5,435 5,687 5,923 3.5% 4.6% 4.1% Corp. Income Tax 979 775 871 -7.3% -20.8% 12.4% Gaming 442 422 388 -7.5% -4.6% -8.0% All Other 928 945 942 -3.2% 1.8% -0.3%

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2015 2016 2017 2018 2019Pct. GUT to Gen. Fund (FY) 100% 100% 86% 71% 64% GUT Revenue to General Fund ($mil) 481 380 331 304 285Individual Income Tax (FY average) 3.35% 3.30% 3.27% 3.23% 3.23% Percent Change -1.5% -1.5% -1.1% -1.1% 0.0%Corporate Income Tax (FY) 7.00% 6.50% 6.25% 6.00% 5.75% Percent Change -6.7% -7.1% -3.8% -4.0% -4.2%

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Revenues 15,497 15,636 16,186 2.2%

Sales Tax 7,490 7,584 7,838 2.3%

Ind. Income Tax 5,435 5,687 5,923 4.4%

Corp. Income Tax 979 775 871 -5.7%

Gaming 442 422 388 -6.3%

All Other 1,151 1,169 1,166 0.7%

Avg Chng

2017-19Actual

2017Budget

2018Budget

2019

Avg Chng

2017-19Appropriations 16,008 15,861 16,430 1.3%

K-12 Education 8,117 8,218 8,375 1.6%

Higher Education 1,902 1,935 1,962 1.6%

Medicaid 2,242 2,107 2,365 2.7%

Health/Social Svcs 1,267 1,353 1,407 5.4%

Public Safety 983 1,003 1,021 1.9% All Other 1,497 1,246 1,300 -6.8%

Budget 2019

Actual 2017

Budget 2018

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Avg Chng

2017-19

Start of Year Balances 2,244 1,777 1,720Revenues 15,497 15,636 16,186 2.2%Appropriations 16,008 15,861 16,430 1.3%Surplus/Deficit -511 -225 -244Reversions/Transfers 471 168 150Excess Balance-Roads -428 0 0

End of Year Balances 1,777 1,721 1,627Balances % of Rev 11.5% 11.0% 10.0%

Budget 2019

Actual 2017

Budget 2018

2019:Balances$1,627 mil.10% of Revenues

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“Requires all townships with a population of less than 1,200 (as determined by the 2010 federal decennial census) to merge with other townships, effective not later than January 1, 2023.”

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“Requires all townships with a population of less than 1,200 (as determined by the 2010 federal decennial census) to merge with other townships, effective not later than January 1, 2023.”

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North Township, Lake County: 162,855The next 5 are in Marion County

Wabash Township, Gibson County: 30Boone Township, Crawford County: 175

307 Townships with fewer than 1,200 people or fewer in 2010

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Number of Townships with Fewer than 1,200 People, 2010

0

Brown

0

Delaware

0

Elkhart

0

Floyd

0

Hamilton

0

Hancock0

Hendricks

0

Johnson

0

Lagrange

0

Marion

0

Noble

0

Porter

0

Scott

0

St Joseph

0

Wabash

0

Whitley

1

Blackford

1

La Porte

1

Lawrence

1

Marshall

1

Monroe

1

Switzerland

1

Tipton

1

Vanderburgh

1

Vermillion

1

Vigo

2

Allen

2

Bartholomew

2

Boone

2

Clark

2

De Kalb

2

Dubois

2

Fulton

2

Gibson2

Harrison

2

Howard

2

Kosciusko

2

Madison

2

Morgan

2

Ripley

2

Shelby

2

Spencer

2

Starke

2

Tippecanoe

3

Dearborn

3

Grant

3

Henry

3

Knox

3

Martin

3

Montgomery

3

Ohio

3

Putnam

4

Clay

4

Crawford

4

Decatur

4

Jackson4

Jefferson

4

Lake

4

Perry4

Posey

4

Steuben

4

Sullivan

4

Union

4

Warrick

4

Wells5

Cass

5

Daviess

5

Huntington

5

Newton

5

Owen

5

Randolph

6

Adams

6

Fayette

6

Orange6

Pike

6

Washington

6

Wayne

7

Carroll

7

Fountain

7

Franklin

7

Greene

7

Jasper

7

Jennings

7

White8

Benton

8

Clinton

8

Jay

8

Miami

8

Parke

9

Rush

10

Pulaski

10

Warren

Small TownshipsNone

1

2

3, 4 or 5

6 or More

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Townships (1,200 people) Budget Levy

Assessed Value

Rate (per $100)

Smaller per person 72.94 40.01 76,127 0.0526

Larger per person 56.87 37.09 43,267 0.0857

Townships (1,200 people) Budget Levy

Assessed Value

Rate (per $100)

Smaller per person 72.94 40.01 76,127 0.0526

Larger per person 56.87 37.09 43,267 0.0857

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Township Population Appro-priations

Levy Assessed Value

Rate

Small #1 800 73 40 76,127 0.0526Small #2 800 73 40 76,127 0.0526x Pop & Summed

Total 116,706 64,022 121,803,887

Township Population Appro-priations

Levy Assessed Value

Rate

Merged 1,600 57 37x Pop & Summed

Total 90,988 59,348 121,803,887 0.0487

-22% -7% -7%

Township Population Appro-priations

Levy Assessed Value

Rate

Smaller 800 73 40 76,127 0.0526Larger 1,600 57 37 43,267 0.0857

x Pop & Summed

Total 149,341 91,359 130,129,443

Township Population Appro-priations

Levy Assessed Value

Rate

Merged 1,600 57 37x Pop & Summed

Total 136,482 89,022 130,129,443 0.0684

-9% -3% +30% -20%

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District Tax Rates, 2017

PercentileAll

DistrictsCity/Town Districts

Rural Districts

10% 1.2723 1.7067 1.1547

25% 1.5096 2.0946 1.3409

50% (median) 1.9343 2.5977 1.5905

75% 2.6279 3.2638 1.9102

90% 3.4308 4.0663 2.3573

Indiana Commission on Local Government Reform, “Streamlining Local Government” (Kernan-Shepard Report), Center for Urban Policy and the Environment, Indiana University, 2007.

Indiana Township Association, “Government Consolidation in Indiana: Separating Rhetoric from Reality,” 2009.

Faulk, Dagney and Michael Hicks, “Local Government Reform in Indiana,” Center for Business and Economic Research, Miller College of Business, Ball State University, 2009.

Krupa, Olha, “Government Consolidation in Property Tax Administration,” State and Local Government Review, 2017, Vol. 49(1) 27-36

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Purdue University Cooperative Extension Service is an equal access/equal opportunity institution.

Follow us on Twitter @INTaxRockstars

Larry DeBoer

Tamara Ogle

Purdue University

February 7, 2018

On Local Government

The State Budget and Township Consolidation