Board budget cutting attempt results in more legal fees

by: Dann Veldkamp Wednesday, December 7th, 2011

At the November 29 White River Township (WRT) board meeting the board acted to cut the compensation of the township assistance investigator from $35 to $20 per case. Indiana statute IC 12-20-4-3 states that the trustee sets the compensation of the assistance employees. When questioned about the board’s authority to take such action board chair Greg Rainbolt cited state statute IC 36-6-6-11 (d) which states “The legislative body [that is the board] shall include in the budget: (1) provisions for the payment of existing debt of the township as it becomes due; and (2) the salaries fixed under section 10 of this chapter.”

The board was meeting for what by looking at the agenda would seem to have been routine end of year housekeeping meeting. Trustee Mark Messick was not able to attend due to illness. Shortly after the meeting opened board member Dave Pollack made a motion, seconded by Peggy Young, to cut the compensation of the investigator of claims for assistance. The investigator compensation was $35 per case in 2011 and the trustee had set the same level for 2011. Pollack suggested that was too much for the work required. The motion passed with Pollack and Young voting yes, and Rainbolt voting no.

The role of the investigator is not simple even though the listed requirements, (1) a high school graduate or possesses an equivalent degree; (2) is at least eighteen (18) years of age; and (3) is a resident of the county where the township is located [IC 12-20-4-4]. In addition to these minimal requirements to be effective the investigator must also be a good observer when visiting those in need, be able to keep clear and accurate records of his or her findings, and be tenacious, often having to visit the same aid requestor a number of times before the investigation is complete.

The matter was resolved the next day when Trustee Messick contacted the county attorney who explained that the two statutes do not conflict, as Messick had told CenterGroveInc when contacted the morning after the meeting. The trustee has the authority to set the compensation for all employees who just deal with township assistance, the board sets salary for all other employees. The lawyer agreed to send his legal opinion in an email to Messick and Rainbolt. Greg Rainbolt says the board will act at their next meeting to correct the mistake.

What began as an attempt by Dave Pollard to save a little money resulted up costing the township money when his actions required legal advice to get the board to act in accordance with Indiana law. It goes to show that it is not just federal regulation and the IRS tax code is confusing.

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