Consolidating local government at the county level could cut state costs by about $622 million, according to a new study released by economists at Ball State University.
"Local Government Reform in Indiana," a study addressing the potential impact of consolidation on the costs of local government was released on Jan. 23 by the Center for Business and Economic Research.
The study investigated motivations and potential savings of local government consolidation in addition to government consolidation's role in economic development.
The study also examined the efficiency and cost advantages due to expansion of government services including police and fire protection, sewerage, solid waste, public welfare, administration, health and libraries.
"Based on the analysis we did in this study we can say there is substantial savings that can occur by consolidation," Dagney Faulk, co-author of the report and director of research center for business and economic research said. "The savings are high enough to pay for a portion of the revenue loss from the property tax caps that were instituted last year."
The motivating force for the study was a report titled "Streamlining Local Government" by former Governor Joseph E. Kernan and Indiana Supreme Court Chief Justice Randall T. Shepard, Faulk said.
The Kernan-Shepard report recommended, among other things, to reform counties by creating a clearer, more accountable structure with fewer elected officials.
The only negative aspect of local government consolidation is the difficult process involved in working out the details in consolidation.
"There have been 100 attempts to consolidate government agencies in Indiana," Faulk said. "Only 28 have resulted in a consolidation."
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