Indiana Democrats call for broader audit, additional legislative oversight

Indiana House Democratic Leader B. Patrick Bauer and Indiana Senate Democratic Leader Vi Simpson  today released the following statement on learning of the state’s latest mismanagement of taxpayer funds:

“It’s unfortunate that these announcements are becoming all too common. This marks the third instance of financial mismanagement by Republican officeholders in five months.

“With every accounting blunder, the administration continues to erode what confidence Hoosiers have in state government to manage Indiana’s finances responsibly.

“This is just another example of a system lacking thorough and comprehensive oversight.

“Hoosier taxpayers expect better. This latest flap only reinforces the need for both an exhaustive independent audit of the state’s accounting practices and additional oversight of all fiscal offices.

“The administration needs to act quickly to restore the public’s trust in state government. Hoosiers can’t wait any longer.

“We call on the administration to fast-track an independent audit and broaden the scope to all fiscal offices to ensure that local governments are given accurate, timely budgeting information.

“In addition, steps need to be taken to enhance legislative oversight and restore a system of checks and balances.

“These examples of fiscal mismanagement should serve as a clear indication that the legislature should be more involved in making certain the executive branch is properly managing the state’s finances.”

The comments from House Democratic Leader Bauer and Senate Democratic Leader Simpson come after the announcement of an April excise tax distribution error by the Office of the Auditor. This announcement comes after two other major mistakes of fiscal mismanagement by the administration that involve more than a half billion dollars. Following a motion made by Indiana Senate Democrats, the State Budget Committee unanimously agreed to begin the process of conducting an independent audit of the state’s fiscal practices.

2012 Session in Review Slideshow

The second regular session of the 117th Indiana General Assembly wrapped up in the early hours of March 10. Over 800 bills were filed and just over 150 passed a legislative session marked by protest over the so called “Right to Work” legislation. Watch to review this session’s key legislation and highlights.

Indiana unemployment rate dips to 8.2%

Today, the Indiana Department of Workforce Development (DWD) announced that Indiana’s unemployment rate for March 2012 fell slightly to 8.2 percent, even with the U.S. rate also at 8.2 percent.

Indiana’s unemployment rate remains lower than neighboring states Illinois (8.8 percent), Kentucky (8.6 percent) and Michigan (8.5 percent) however, is now higher than the unemployment rate in Ohio (7.5 percent).

• County with the highest unemployment rate: Vermillion: 12.1%
• County with the lowest unemployment rate: Hamilton: 5.8%

Employment Report (LAUS)

• Labor Force Estimates for U.S., Indiana, MSAs, Counties, Cities
• Ranking of Indiana Counties by Unemployment Rate
• Indiana County Map with Unemployment Rates

Jobs Report (CES)

• Seasonally – Adjusted Employment Table for Indiana
• Non-Seasonally – Adjusted Employment Table for Indiana
• Detail Employment Listing – Statewide & MSAs

Senate Democrats secure commitment to comprehensive, independent audit

The State Budget Committee met on Friday to discuss the follow up on the $320 million in misplaced corporate tax revenue and the recent discovery of $206 million mistakenly withheld from local governments across the state. State Senator Karen Tallian (D-Portage) offered a motion to increase oversight and transparency and restore a system of checks and balances within state fiscal matters. Despite objections to Senate Democrats call for an independent audit last December, the proposal was met with unanimous and bi-partisan approval.

Sen. Tallian expressed disappointment that it took a second multi-million dollar error however she said she is happy the legislature is finally stepping up and taking the action Hoosiers expect.

“Legislative leaders have come around to the idea of an independent audit, but we need to make it a reality before the next budget cycle,” said Sen. Tallian. “This isn’t money between the cushions; we’re talking about over a half billion dollars in mishandled taxpayer money.”

Sen. Tallian’s proposal is a response to last week’s Indiana Department of Revenue announcement that $206 million in state revenue had been mistakenly withheld from Indiana counties. The department claimed the hundreds of millions of dollars in oversight was the result of a programming error and that immediate action would be taken to repay counties with interest. The latest mistake comes five months after Democrats called for an independent audit to determine the cause and impact of the mishandling of $320 million in state funds.

“Last year, our call for an independent audit was shirked off twice as unnecessary,” said Sen. Tallian. “This new agreement is imperative to determining how these errors went undiscovered for so long. “

On Friday, Democrats again called for legislative oversight proposing clear steps to be taken by the committee and outlined what the audit should entail.

LISTEN to Sen. Tallian’s comments from the meeting:

SEN. TALLIAN: “I think we need to send someone back with a clear message that we want an outside auditor…”

LENGTH: (00:42)

The first portion of the proposal aims to scrutinize the technological basis of how the state collects revenue. Programming and data collection would undergo extensive examination to confirm that revenue is being accurately accounted for. The second part of the audit would ensure that the Department of Revenue maintains best practices when interpreting revenue data and would review internal policies and procedures.

“This audit is to make absolutely clear that we’ve turned over every rock, confirmed every account to demonstrate to the public that there will not be an error of this magnitude again,” remarked Tallian. “It’s about restoring the public’s trust in state government.”

Members of the committee suggested that additional hearings should be held by the Interim Commision on Tax and Financing Policy to further discuss the impact of the under-distribution of the Local Option Income Tax revenue to local governments. The State Budget Committee is expected to meet again in May.

National Child Abuse Prevention Month

Sen. Rogers with Governor Daniels signing Erin's Law.

April is National Child Abuse Prevention Month, promoting awareness of child sexual abuse, physical abuse and neglect. The month is dedicated to educating the public, building  community support and strengthening public awareness activities and programs.

Numerous organizations join together this month to spread the word on this serious issue and to encourage more people to join in the fight against child abuse. For more information on work being done across the country and how you might get involved, visit the Child Welfare Information Gateway page.

Indiana Senate Democrats work especially hard on behalf of children and their safety. This legislative session, there were a number of initiatives proposed and approved by the General Assembly to strengthen child safety measures in the state. However, there is still much work to be done.

State fumbles again, shorts counties $206 million

The Indiana Department of Revenue (DOR) announced today that $206 million in state revenue had been mistakenly withheld from Indiana counties, dating back to 2011.  The department claimed the hundreds of millions of dollars in oversight was the result of a “programming error” and that immediate action will be taken to repay counties with interest. DOR Commissioner John Eckart also announced he plans to resign from his position and said that an independent audit will be necessary. This most recent “programming error” combined with the discovery of $320 million in misplaced funds in December pushed the total amount of state revenue mishandled by the administration to over half a billion dollars.

Democrat leadership reacts

Indiana Senate Democratic Leader Vi Simpson and House Minority Leader B. Patrick Bauer released a joint statement this morning expressing their frustration and disappointment over the avoidable $206 million mishap.

Read more: The joint Senate and House Democrat statement regarding latest mishandled revenue (PDF) >>

Senator John Broden echoed Leader Bauer and Sen. Simpson’s comments, noting that local governments had to make difficult budgetary decisions and as a result of the misinformation, may have made unneeded cuts to public safety.

SEN. BRODEN: “Several months ago, I along with others called for an independent and bi-partisan audit…”

(Length: 00:32)

State’s first mishandling of revenue

The Indiana Senate and House Democrats jointly called for an independent investigation four months prior to today’s incident after the administration announced it had “discovered” $320 million in state revenue that was unaccounted for.

Read more: Democrats call for independent audit of misplaced funds>>

At that time, Sen. Broden believed the only way to guarantee that the mishandled $320 million was in fact a onetime occurrence was to initiate an outside audit. Broden and members of both the House and Senate Democrats’ budgetary committees wrote to State Budget Committee chairmen Jeff Espich (R-Uniondale) and Luke Kenley (R-Noblesville) requesting they approve an independent audit.

Copy of the letter Senate and House Democrats sent to the State Budget Committee Chairmen>>

The independent audit was rejected and the responsibility for a review of the state’s finances fell to the State Board of Accounts, the agency under which the original $320 million error had occurred.

Read more: Republicans reject independent audit>>