The Indiana Senate Tax and Fiscal Policy Committee passed multiple bills to the Senate floor on Tuesday, including one that shifts how library budgets are approved and another that could merge some townships statewide.
Both bills will be heard by the entire Senate at a later date.
State Sen. Rick Niemeyer, R-Lowell, authored Senate Bill 270, which would require the Indiana Department of Local Government Finance to compile data on each township, except those in Marion County, by Dec. 31. The data will then be used to merge townships statewide.
“This is a merit and data-driven plan for townships out there to make sure that we keep that form of government closest to the people,” Niemeyer said. “They do so much stuff for public safety and assistance for people that get in a difficult spot. … Townships can jump in and help the same day they come in and fill out an application.”
According to the bill, the department will assign points to each township, and one with at least four points would merge with one that has less than four points. The department will assign points for various reasons, including if a township did not provide assistance in 2023 or 2024, if it doesn’t manage fire protection or emergency medical services on Jan. 1, 2025, or if it didn’t file an annual finance report to the State Board of Accounts in 2023 or 2024.
Township mergers are to be in effect by Jan. 1, 2028, according to the legislation, and the merged township will have an interim government until a new trustee and legislative body are elected in the 2030 general election. The bill will not affect township assessors if passed.
The Senate Tax and Fiscal Policy Committee had no amendments on the legislation.
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“I think it’s a constructive bill for where we need to go with township government,” Niemeyer said. “I believe this is a strong bill about where townships need to go.”
During the 2025 legislative session, state Rep. Karen Engleman, R-Georgetown, authored House Bill 1233, which aimed to dissolve township government and give an elected county trustee powers and duties regarding township trustees, fire protection and emergency services, according to Post-Tribune archives. The bill also said that on Jan. 1, 2027, all fire protection districts and territories would dissolve, and fire services would be provided in accordance with a county plan.
The bill was sent to the House Local Government Committee but was never heard further.
In 2011, former Gov. Mitch Daniels and the Kernan-Shepherd report called for the complete elimination of township government, spotlighting ways to make government more cost-effective and efficient, according to Post-Tribune archives. The proposal was never passed by the legislature.
Library budget approval
Authored by state Sen. Gary Byrne, R-Byrnesville, Senate Bill 8 would require a county, city or town fiscal body to review the proposed budget and property tax levy of a public library. The bill applies to libraries that do not elect the majority of their board members.
The Senate committee also passed an amendment that would make various changes to the legislation, including one that would require libraries that plan to increase their budget by more than or equal to 50% of the maximum levy growth quotient to get approval from a county, city or town fiscal body.
Previously, Byrne said he considers it taxation without representation if an elected body doesn’t need to approve a library budget. He said that, as of Jan. 1, 2025, libraries had an outstanding debt of $367.6 million and $59 million in debt payments due that year, according to Post-Tribune archives.
Julie Wendorf, director of the Crown Point Community Library and past president of the Indiana Library Foundation, previously testified against Byrne’s bill. Wendorf believes the legislation could lead to insufficient funding for libraries over a shorter period of time.
Senate Bill 8’s changes are concerning as libraries are facing financial uncertainty because of the 2025 session’s Senate Enrolled Act 1, Wendorf said during her testimony.
“Public libraries are not abstract budget lines,” Wendorf said. “They are community anchors. When funding becomes unstable, services are reduced, hours are cut and access is lost. (Senate Bill 8) does not strengthen libraries — it introduces instability.”
Lake County Public Library Executive Director Carol Daumer Gutjahr responded to Senate Bill 8 in a previous statement, saying the current budget adoption process for the library system works well.
“…there is existing oversight from the county council as, in addition to appointing library board members, the council has the ability to review and interrogate our annual budget recommendation,” Daumer Gutjahr said. “The Department of Local Government Finance has additional oversight and the State Board of Accounts conducts regular audits to ensure accountability, maintain internal controls, and confirm that the tax dollars entrusted to LCPL are used appropriately.”