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Monday, May 17, 2010

Ind. Gov't. - Twenty special funds diverted in crisis [Updated]

Niki Kelly of the Fort Wayne Journal Gazette has a story today on the Governor's plan to divert dedicated funds to balance the budget. Some quotes:

When state budget officials close the book on the fiscal year next month, they will have to dip into various special accounts to help balance the budget.

Because Indiana’s receipts from sales, income and other taxes have dropped substantially, the General Fund will bring in $13 billion while the state is scheduled to spend $14 billion.

The state is leaning on rainy day funds – similar to a savings account – but also will have to transfer money from several funds dedicated to other specific purposes, similar to when a cash-strapped family decides to pull money from a retirement or college fund. * * *

Ruhl acknowledges that the other funds in question were set up by lawmakers for a specific reason and are generally financed by an outside fee of some kind. But he said in severe recessionary times, nothing is sacred.

“The fact that the funds were purportedly raised for a specific purpose doesn’t condone wasting money or not capturing those funds for a higher priority, such as education or public safety,” he said.

“Our ability to cast the net wider than only general fund spending has greatly enhanced our ability to protect taxpayers and deliver critical government services.”

Still, that means a boater who paid an extra fee for lake and river improvements probably won’t get them.

Landfill tipping fees meant to aid recycling could be diverted. And even court fees paying for DNA testing are up for grabs. * * *

Money from the DNA sample fee is also in question. Anyone convicted of a felony or misdemeanor in Indiana pays the $2 court fee, which is then used to process samples from offenders in prison for the state’s DNA database as well as process DNA in police investigations.

Steve Johnson, executive director of the Indiana Prosecuting Attorneys Council, said he feels this fund should be left alone since it is highly important in solving crime and making Indiana safe.

“I hope they find (money) someplace else because I think DNA is the gold standard in terms of identifying people and also exonerating people,” he said. “If they are taking this money it creates backlogs or takes longer to solve crimes or cold cases and that’s bad for Indiana citizens.”

The Indiana State Police lab is currently caught up on DNA cases.

Two funds that are likely to take large hits because their programs are currently suspended are the Recycling Promotion and Assistance Fund and the Waste Tire Fund. Each one has more than $8 million built up in balances.

The recycling fund is financed through a 50-cent-per-ton surcharge that landfill operators collect from waste haulers. It is sent to the Indiana Department of Environmental Management.

IDEM then gives grants to promote and educate Hoosiers about recycling. An example is a university that uses the money to provide students with recycling bins.

The Waste Tire Fund is financed through a 25-cent-per tire-fee that every person in the state pays when purchasing new tires. The money is then used by IDEM to address the challenges of improperly disposed tires, such as cleaning up waste tire sites before they catch fire or become a haven for mosquitoes. * * *

There is one fund that Ruhl can raid without affecting anything – the Indiana Gaming Fund, which has almost $18 million in it.

Ernest Yelton, executive director of the Indiana Gaming Commission, said any fines assessed to casinos, as well as relicense fees, go into the fund.

Interestingly, no money has ever been taken out of it. That’s because lawmakers have never authorized the money to be spent on anything, so it has just built up over the years.

“It’s not funny. We could use the money,” Yelton said. “But it’s a good source to balance the budget that no one is going to suffer from.”

A side-bar to the story lists some of the funds and how much money is available.

It would be good to see a list of ALL the dedicated funds, and which ones are or have been hit, and which ones have not.

[Updated 5/20/10] "Daniels singing a new tune about budgeting gimmicks" is the heading of an editorial item today in the FWJG.

Posted by Marcia Oddi on May 17, 2010 09:56 AM
Posted to Indiana Government