Council pulls back funding slated for JCDC

No JCDC; no need for the funds.

Jay County Council agreed on a split 3-2 vote Wednesday to make a $140,000 appropriation reduction in the economic development income tax (EDIT) fund for the current year. Council members said the dollars had been intended to serve as Jay County Development Corporation’s 2024 budget.

Council also approved the county’s 2025 budget on first reading Wednesday.

Jay County Commissioners and JCDC have been back and forth amid contract negotiations. Earlier this month, after JCDC representatives responded to “points” commissioners asked them to address before moving forward with a contract, a motion from commissioner Rex Journay to give JCDC $140,000 for its budget died for a lack of a second. Commissioners president Chad Aker said he wouldn’t move forward with a contract or funding for the organization until its board agrees to a reduction in its membership. Commissioner Brian McGalliard suggested JCDC wait to approach commissioners in January, when two new members will take McGalliard and Journay’s seats.

Council president Matt Minnich explained commissioners originally requested $140,000 for a contract with JCDC. The money will still be available for officials to use, but commissioners will need to request the $140,000 from council again before they are able to use it.

“To my knowledge, commissioners decided not to engage in the contract with JCDC,” said Minnich. “I would view the goal of county council as oversight (of) funds that are spent on behalf of the taxpayer, so to leave the $140,000 in there simply leaves that money as a blank check to use on whatever.”

He pointed to uses of EDIT funding being a part of the county’s EDIT plan, being recommended by EDIT advisory committee and being made as an additional appropriation by council. 

“So, I think it’s just simply to maintain the robustness of that system instead of just leaving money out there to just be used however,” Minnich said.

“You really think that they would just take that money and blow it?” asked council member Jeanne Houchins. “No, they wouldn’t. They’re responsible — they are as responsible for that money as what we are responsible. They have the same level of responsibility to make sure that money gets spent properly.”

She asked county auditor Emily Franks if council is allowed to make the appropriation reduction, with Franks confirming it is.

Council member Cindy Bracy pointed to responsibilities within the branches of local government. She noted council is the fiscal body for Jay County. Commissioners, per Indiana Code, are the county executive.

“To me, it is a way that we are continuing to have checks and balances,” Bracy said, noting commissioners are still able to ask for the $140,000 as an additional appropriation in the future.

“It’s not going away,” she said of the funding. “We’re not taking it away. We’re just simply putting it in this pot where it’s going to sit, and I’d (say) that’s just part of oversight that is within roles of council.”

Houchins asked if there are other agreements being paid out of the fund. She worried aloud about potential bills coming out of that fund that still need to be paid. Franks said the $140,000 isn’t currently being used to pay for anything, explaining that dollars for contracts with consultant Mike Kleinpeter and East Central Indiana Regional Planning District ($80,000 and $100,000, respectively) are accounted for.

Council members Harold Towell and Bracy voted in favor of the reduction, with Randy May and Houchins dissenting. Minnich broke the tie in favor of the reduction. (Council members Dave Haines and Faron Parr were absent.)

In other business Wednesday, council approved the 2025 budget on first reading. Next year’s budget comes in at $24,108,262.14, roughly $1.6 million more than the current year. (It’s about a 6.6% increase.) It includes nearly $11.28 million in the general fund, which is up by about $600,000 from this year.

Other major fund totals are: just under $3.5 million for Jay County Commissioners, $3.16 million for Jay County Highway Department — it also had an additional $1.9 million from the state in the Local Motor Vehicle Highway restricted fund — $2 million for Jay Emergency Medical Service, $1.956 million for Jay County Jail and $1.356 million for Jay County Sheriff’s Office.

Increases to next year’s budget include at least 3% raises or more for county employees. Other notable changes include adding three correction officer jobs and another nurse position to Jay County Jail and decreasing to four budgeted public defenders. Council also decided on a split vote earlier this month to allocate no specific funding in the EDIT portion of the county’s 2025 budget. It decided commissioners may approach council in January to request additional appropriations for the money.

The second reading and budget adoption are slated for Oct. 9, with council’s regular monthly meeting to follow.

Also, council agreed (with Towell dissenting) to move forward with amending the salary ordinance to increase Jay County Country Living interim director Melissa Blankley’s pay to the full-time rate at $26.45 an hour. (Currently, she’s serving in the role on a part-time basis.) Bracy noted Blankley would like to be paid the full-time rate and suggested allowing it until Blankley leaves the department or a new director is hired.