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Indianapolis Star
05-05-2025
- Business
- Indianapolis Star
Lawmakers acted to rein in fellow state officials on no-bid contracts, luxury cars and more
From new rules over out-of-state travel to restricting luxury car purchases, lawmakers took steps this session to assert more oversight over other state officials. Some Republican lawmakers who supported the proposals were reticent to call out the behavior of specific officials, saying the moves weren't an "attack" on anyone. Secretary of State Diego Morales has been scrutinized since taking office in 2023 for issuing millions in no-bid contracts, hiring his brother-in-law to a six-figure job, and a 10-day India trip. A Democratic state lawmaker, Rep. Carey Hamilton of Indianapolis, says the oversight moves appear to be in response to a series of embarrassing headlines. From banning most no-bid contracts to restricting state officials from using tax dollars to buy luxury cars, the Republican-dominated legislature this session appeared eager to send a signal to constituents they weren't thrilled with some of the recent actions from their fellow GOP state officeholders. Secretary of State Diego Morales' no-bid contracts were not visible in the state's transparency portal? Senate Enrolled Act 5 put an end to that, requiring most contracts to be publicly bid and disclosed to the public within 30 days. Lieutenant Gov. Micah Beckwith and Morales are driving around in $90,000 SUVs provided by the state? House Enrolled Act 1518 made sure that from now on, public officials will have to settle for standard- or government-trim vehicles. Morales takes a 10-day economic trip to India but won't reveal who covered his travel costs? The new state budget requires annual travel reports for separately elected officials. And then lawmakers fixed their eyes on the budgets of many state offices. Beckwith's office, for example, ended up with about $3.7 million annually, less than half of what he requested, and about $500,000 less each year than his predecessor Suzanne Crouch received two years ago. Likewise, Morales' office was allocated $8.3 million for each of the next two years, less than the $10.7 million the Secretary of State's office got in the last two-year budget. To lawmakers who spearheaded the efforts, including state Sen. Scott Baldwin, R-Noblesville, the moves aimed to restore the legislative body's power, which some believe has waned in recent years. "We approve the budgets ... then we send everybody off into the wild to spend the money," Baldwin said when he introduced Senate Bill 5. "There is no legislative oversight." Democratic state Rep. Carey Hamilton of Indianapolis said lawmakers this year made "small steps in the right direction" but it wasn't enough. She credited a series of "embarrassing headlines" with convincing lawmakers to take action. "I was truly stunned to learn that a statewide elected official could put out a large no-bid contract, let alone that it could go to a campaign donor," said Hamilton, referring to Morales' contracts. "We've discovered over the past few years that there are significant holes in transparency in state government spending and also in campaign finance reporting. We definitely have work to do to stave off corruption with public dollars." 'This isn't an attack on anybody' The moves to rein in some state officials followed a year of unflattering headlines, from Morales giving spot bonuses to his brother-in-law, who has a six-figure job in the Secretary of State's Office to influential Southern Indiana former sheriff Jamey Noel's corruption scandal, which lawmakers addressed with another bill. "These are unprompted, unprovoked, unnecessary scandals and headaches," said Greg Shufeldt, an associate professor of political science at the University of Indianapolis. "When we think about political parties as brand labels, I think these scandals and headlines are bad for the brand. Efforts that the Indiana General Assembly does at reform, regardless of their efficacy or whether they have teeth, provide voters the bare-bones appearance of oversight." Some Republican lawmakers have been reticent to tie the changes to any one elected official. Rather, they said, more accountability would shield taxpayers no matter who is in office. "It's not an indictment of previous performance in any way; it's simply an effort to do better," said Baldwin, during discussions about Senate Bill 5. "This isn't an attack on anybody." Other Republicans also dodged naming names. State Sen. Blake Doriot, R-Goshen, who sponsored a bill banning taxpayer-funded luxury car purchases, was somewhat coy when IndyStar asked him earlier this session about whether he approved of Beckwith's $87,000 SUV purchase. "I really wouldn't like to step in that bear trap," Doriot said, before saying he wouldn't personally choose to drive that kind of vehicle. Others have been a bit more direct. State Sen. Chris Garten, R-Charlestown, directly criticized Morales' office at a budget hearing in March after the office printed Indiana road maps with the secretary of state's name in large lettering. "Quite frankly, to me, it looks like a campaign sign," Garten said. "I will be asking we decrease your budget by exactly that amount." It's not just Morales and Beckwith Nor were Morales and Beckwith's offices the only ones scrutinized. Lawmakers trained their sights on other government officials too. For example, lawmakers took away some control of TrustINDiana, the state's local government investment pool, from state treasurer Daniel Elliott, putting a board in charge of overseeing the program. Elliott, however, remains the administrator of the program at the direction of the board. While Elliott at first called foul on what he described as a "backroom deal" to give banking executives more control over the fund, proponents of the change said the $3.4 billion pot of money needed more eyes on it. At the end of the legislative session though, Elliott seemed more amenable to the board, praising lawmakers and Gov. Mike Braun for standing up to special interests and safeguarding TrustINdiana. The treasurer's office said the final version allows the board to not be entirely run by bankers. "We appreciate the work done ... to help the board be more representative of the beneficiaries of the program," his office said. Lawmakers also approved more oversight on jail commissary funds, requiring quarterly reporting, more audits, and new record-keeping training requirements. That followed a scandal involving Noel, the former sheriff who last year was sentenced to 15 years in prison related to taking improper payments from one such fund. 'Fox guarding the henhouse' It remains to be seen what impact the legislation will have in the long run. Hamilton, the Indianapolis Democrat, pointed out that even Senate Bill 5, which aimed to increase transparency, was watered down throughout the legislative session via amendments. One amendment exempts state agencies from disclosing legal services contracts in the state transparency portal, such as the one Beckwith signed with a law firm closely connected to the church where he still works as a pastor. Hamilton said she would like to see the legislature go further in coming years. "We have the fox guarding the henhouse," Hamilton said. Indiana generally scores low on rankings of transparency and oversight in state government. A 2020 ranking by the nonpartisan Coalition for Integrity called the S.W.A.M.P. Index, which measured the efficacy of state ethics rules, had Indiana ranked in the bottom six states on anti-corruption standards. The group in 2022 rank ed Indiana dead last when it comes to campaign finance transparency. Shufeldt said he couldn't comment on the specifics of this session's legislation but was "skeptical" that any of it would result in a big change. "The Indiana Generally Assembly themselves are regulating industries they financially benefit from or are working in," Shufeldt said. "When there isn't this drip, drip, drip of bad news or scandals or unforced errors, do they return to this or add teeth to this?"
Yahoo
24-04-2025
- Business
- Yahoo
Slew of bills dealing with state contracts, health care, casinos and more head to Indiana governor
Rep. Matt Lehman, R-Berne, sits with his grandson on his lap before session April 23, 2025. (Whitney Downard/Indiana Capital Chronicle) Among the bills sent to Gov. Mike Braun Wednesday was a Senate Republican priority measure to increase transparency — and scrutiny — around state government contracts. Sen. Scott Baldwin's Senate Enrolled Act 5 advanced for a final time from both the House and Senate with almost unanimous bipartisan support. Across both chambers, only Rep. Ryan Dvorak, D-South Bend, was opposed. Included in the final draft of the bill are new rules for contacts awarded by state agencies and offices — including a ban on non-public, no-bid deals — and steeper expectations for vendors paid with taxpayer dollars. It also mandates 'unfilled' government positions be eliminated, and requires state offices to more closely monitor and publicly report on spending, as well as in-flow and out-flow of federal funds. Last-minute conference committee negotiations carved out exemptions for agreements between the Indiana Department of Correction (DOC) and private employers. Baldwin noted that some 1,300 offenders are currently employed through 13 DOC 'joint ventures' with companies like Cummins, Goodwill, the Indianapolis Motor Speedway and the Indiana Pacers. 'These are very difficult to bid out. They're very specialized, and so we've excluded them for that sole purpose,' the senator said Wednesday morning. All other reporting requirements will still apply, though. Another exception was made for child support contracting between Indiana's Department of Child Services and local prosecutors. Certain health care entities will additionally be required to report ownership information to the state as part of a transparency effort to detangle potential conflicts of interest under House Enrolled Act 1666. It passed the House on a 78-13 vote, with opposition from both Democrats and Republicans. The proposal had an easier journey in the Senate, where it had unanimous support. Providers like hospitals, insurers, third party administrators and pharmacy benefit managers will need to detail ownership stakes to either the Indiana Department of Health or the Indiana Department of Insurance, depending on their services. The Secretary of State's Office will also be involved in collecting and reporting data. Senators urged their House counterparts to exclude owners with less than a 5% interest in the entity at the behest of small-time providers seeking anonymity — particularly dentists, who are no longer impacted by the bill. That language survived conference committee edits. But House authors disagreed with the Senate's additional confidentiality provisions, though bill does give overseeing agencies some discretion when it comes to public reporting. 'The Senate added so much confidentiality that it was no longer a transparency bill,' author Rep. Julie McGuire, R-Indianapolis, concluded. The proposal, along with Senate Enrolled Act 118, both head to the governor, who previously signaled his support for such transparency measures. The latter moved with minimal opposition and would compel certain hospitals and health care providers to provide detailed reporting on their participation in the 340B drug program, which pairs drug manufacturer discounts with hospitals caring for underserved populations. Some critics say large health systems unfairly profit, prompting additional scrutiny from the state. The initial bill was amended to exclude certain Health Resources and Services Administration grantees. 'When it came back from the House, there was a concern that it may have excluded some hospitals that we wanted to report,' said author Sen. Ed Charbonneau, R-Valparaiso. 'The conference committee report simply clarifies that.' The Senate approved the measure unanimously but it had two opposing votes in the House. Legislation to study relocating a poor-performing casino — or adding a new casino — will soon cross Braun's desk, too. Senators on Wednesday concurred with House changes in a 37-11 vote. Senate Enrolled Act 43 would require the Indiana Gaming Commission to contract out for a study to assess the top two regions, revenue-wise, for a casino license. Author Sen. Andy Zay, R-Huntington, initially sought to relocate a failing casino operating near the Indiana-Kentucky border to the Fort Wayne area. When that effort failed, Zay overhauled an empty vehicle bill to create the study. 'Destabilizing' Indiana casino relocation study could also recommend new license During its trip through the House, the legislation was narrowed from three regions, but expanded by striking relocation-specific language. The study would only take place 'subject to available funding,' despite a new November deadline. As he introduced that amendment, Rep. Ethan Manning, R-Logansport, noted 'the biggest hole in the market is northeast Indiana.' He indicated another possibility is Indianapolis. Sen. Lonnie Randolph, D-East Chicago, said Wednesday that he'd heard a location has been 'earmarked' for Fort Wayne. Zay rejected that. 'Nothing has been earmarked. And that's why we're doing the study, to determine where the best locations might be — independent of any influences,' Zay replied. Randolph also suggested a set-aside for South Bend, but Zay said the city is 'already under compact' with the Potawatomi tribe and its Four Winds Casino. Senate Enrolled Act 43's text mandates an 'impact assessment of a potential tribal casino in the region' and consideration of the 'impact of a potential tribal casino on revenues.' Another measure seeking Braun's signature, Senate Enrolled Act 146, will raise minimum public teacher pay to $45,000 and bump the minimum percentage of tuition support that schools must spend on teacher pay. The bill — part of the governor's priority agenda — passed out of the House a final time in a 90-1 vote, and 47-0 from the Senate. The average teacher salary in Indiana during the last school year was recorded at $60,557, according to the latest state teacher compensation report. The lowest teacher salary reported was $40,000 — the current state-mandated minimum. The highest was $110,000. Teacher pay is ultimately set by local school districts. The original Senate bill, authored by Sen. Linda Rogers, would have additionally provided 20 days of parental leave to teachers who have worked for a school district for at least six months. That provision was ultimately removed, however, due to budget constraints. 'It was for fiscal reasons, not for policy reasons,' said Rogers, R-Granger. 'It's something I'm sure that we all want to work towards, but it is something that in local school corporations, they can still do today as part of the bargaining process. … I just don't think this is the right time. There are a lot of reasons to do it. Unfortunately, dollars play into it, and I'm trying to be cognizant of the budgets of local school corporations.' SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX
