Friday, October 26, 2012

Ballard Budget Veto Gives New Meaning To "It's My Way Or The Highway"

Mayor Greg Ballard exercised his line-item veto on the City-County budget to exact punishment against the Democratic-controlled council, which rejected his call for higher property taxes and, instead, took $15 million away from his number one priority-the Capital Improvement Board in the form of a PILOT. The people most harmed by his action today, however, appears to be the City's residents. Despite relatively small differences in the bottom-line budget as passed by the council compared to Ballard's introduced budget, the Mayor declared that it created a $35 million deficit and slashed the budget by that amount to make up for a supposed deficit his own introduced budget failed to address. The budgets hit hardest by the Mayor's veto pen include the Sheriff's Department, Prosecutor's Office, the courts, and the offices of the Auditor, Assessor, Recorder and Surveyor. In a particularly vindictive move, the Mayor axed funding for the City-County Council's legal counsel and CFO. He also killed a plan to fund new classes of police and fire recruits. Although the Mayor has no legal authority to veto the CIB's budget, which included the $15 million PILOT, he issued an edict stating that he would not authorize the release of any funds for what he deems an "illegal action." Fellow blogger Pat Andrews had more analysis on the Mayor's budget action here and here. Andrews notes the difference in appropriations and revenues between the Mayor's introduced budget and the budget passed by the council. The Mayor's budget collected only $3.1 million more in revenues than the Democrat's budget, but the Mayor's budget called for $9.9 million more in spending.

UPDATE: The Star has more on the Democrat's reaction to the Mayor's veto action today, who assert that Indiana law prohibits the Mayor from reducing the budgets of constitutional officeholders and the judicial officers:
City-County Council Democrats and all nine Marion County elected officials -- all Democrats -- released a statement this afternoon blasting Indianapolis Mayor Greg Ballard's budget decision as "the lowest level of 'my way or the highway politics.' "
Ballard, a Republican, used his line-item veto to delete a line allowing spending by county agencies of $32 million in local income taxes, their entire share. His aim was to save money for an expected deficit in the 2014 budget -- and also to entice Democrats back to the negotiating table.
The Democrats' statement focused on the potential severe cuts their offices will face early next year and said the council-passed budget -- approved 18-11 on Oct. 15, with two Republicans voting crossing over -- was responsible. It "protected home owners from unnecessary tax increases and provided critical new funding for public safety," the statement says.
It continues: "The Mayor's action today to divert nearly thirty-two million dollars from critical County government services represents the lowest level of 'my way or the highway politics.' It is reckless, irresponsible, and in fact unlawful for the Mayor to decide to cut critical services like prosecution of crimes, death investigations, court administration and child support. Indiana Code specifically prohibits the Mayor from vetoing any part of the budget for countywide officers specified in the Indiana Constitution or for judicial offices or officers." . . .  
"The Mayor says that public safety is job one," the Democrats' statement says. "Illegally reducing the budget of constitutional and judicial officers and jeopardizing public safety undermines the commitment he has made to voters. The Council and countywide elected officials have been transparent since the budget process began. We passed the City County budget more than two weeks ago. The Council's minor changes to the Mayor's proposed budget have been well-known for some time. The Mayor's eleventh hour veto is an attempt to force the Council to accept his recommendations without questioning the long-term effects."
The Indiana Code does back the Democrats' contention that Ballard's use of the line-item veto to slash the funding of constitutional and judicial officers is illegal. I.C. 36-3-4-14(b)(1) specifically prohibits a veto for the following:  "An ordinance or resolution, or part of either, providing for the budget or appropriating money for an office or officer of the county provided for by the Constitution of Indiana or for a judicial office or officer." In addition, I.C. 36-3-4-14(b)(2) prohibits the mayor from using his veto pen regarding a portion of the CIB's budget: "An ordinance or resolution approving or modifying the budget of a political subdivision that the legislative body is permitted by statute to review."



 

13 comments:

LamLawIndy said...

Gary, a point of clarification: did the Mayor cut the budget for the City's CFO or a Council CFO? If it's the latter, than I just have to ask: why does the CCC need its own CFO?

Gary R. Welsh said...

It's the council's CFO. The Republicans employed Jim Steele as its CFO when they controlled the council.

LamLawIndy said...

Just my own opinion, but I think its kinda foolish for a lawmaking body with 29 members (many of them attorneys who need to know the rudiments of math in their profession) to have a CFO.

Had Enough Indy? said...

Its more than just the CFO, too. The part of the budget he cut for the Council also includes any money to pay rent and utilities.

He just wants the Council on a leash that he will yank whenever they don't do as he dictates.

I'm not a lawyer, but blackmail or extorsion would seem to be the apt word to use here.

I am glad to hear about the constitutional issues. Would someone have to take the Mayor to court - without any funds to do so, mind you? What if the DLGF demands spending cuts equal to the revenue cuts the Mayor made prior to the court action?

Gary R. Welsh said...

It's more than a billion-dollar budget. If the council doesn't employ its own budget person, then it is entirely at the mercy of the person appointed by the mayor to provide truthful information. The council members are part-time officials. The controller's office has historically lied and obfuscated to no end when it comes to transparency with the budget.

The council could absolutely take Ballard to court over the issue, Pat.

Had Enough Indy? said...

Do they do it on contingency? How do they pay for the services with that part of the budget cut?

Gary R. Welsh said...

They've got until January 1 to sort it out.

Paul K. Ogden said...

"If the council doesn't employ its own budget person, then it is entirely at the mercy of the person appointed by the mayor to provide truthful information. The council members are part-time officials. The controller's office has historically lied and obfuscated to no end when it comes to transparency with the budget."

Gary Welsh hits the nail on the head with this statement. Plus many of those attorneys on the council do not have financial expertise. They're lucky if they have legal expertise.

I'm reminded of the school board members that rely on the administration's attorney to provide them with truthful information rather than hire their own attorney. Then school board members are shocked when they don't get honest information from the administration's attorney. Well, duh, he's not the board's attorney.

Jeff Cox said...

Does Ballard even have the authority to line item veto the Council budget? They are a separate branch if government.

Gary R. Welsh said...

The mayor has statutory authority to veto a measure appropriating money or levying a tax by line item.

LamLawIndy said...

Look, if the CCC wants to pay an atty or CPA to peruse the figures, that's fine. I disagree that they need an employee who is paid a salary & benefits - my understanding is that the CFO is an employee & not a contractor - to do the task.

artfuggins said...

The council attorneys are contract employees. In fact, they already have contracts for 2013.

Had Enough Indy? said...

artfuggins - that's interesting, especially since the Controller has to sign off on contracts attesting that there is enough money in the budget.

Now what does he do?