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BREAKING NEWS Indiana State Board of Accounts Findings

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Jonathon Weinzapfel

City of Evansville/GAGE/Barnett Salary Deal Violates State Code
During the fall of 2009 in our “IS IT TRUE” column, the City County Observer was the first publication to begin to expose the citizens of Evansville to the fact that a back door salary arrangement had been made to sweeten the compensation plan for Department of Metropolitan Development Director Tom Barnett. At the time we had reason to suspect that the size of the deal was around $20,000 per year. When the story was finally made public and picked up by the other media in town nearly half a year later, it was revealed that an outside contract in the amount of $42,000 per year had been arranged for Mr. Barnett through GAGE, the Growth Alliance for Greater Evansville.

This arrangement was both brokered and signed by then Chairman of the GAGE Board of Directors, Jonathon Weinzapfel, Mayor of Evansville. No other officer, director, or board member of GAGE’s name appeared on any contract between GAGE and Mr. Barnett. During that period the City County Observer contacted Joe Wallace, former president and CEO of GAGE to inquire about what the duties and obligations of the Director of DMD had to GAGE under the terms of the contract. Mr. Wallace’s response was that Mr. Barnett was an ex-officio member of the GAGE Board, but had no day to day duties to GAGE and received no direction or review from him or anyone else affiliated with GAGE except of course Mr. Barnett’s boss Mayor Weinzapfel in carrying out his duties as Mayor of Evansville.

Tom Barnett
The Indiana State Board of Accounts released its annual audit of the City of Evansville for calendar year 2009 on Saturday at 7:00 am October 2, 2010. The Audit Results and Comments section specifically cites the pay arrangement that Mayor Weinzapfel brokered to attract Mr. Barnett to the City of Evansville as being out of compliance with two Indiana Codes. The codes that Mr. Barnett’s pay arrangement violates are IC 36-4-7-3(b) and IC 36-7-14-23. These inconsistencies are found in the 89 page report on page 65 under the heading

“Additional Compensation (City)” which is included in full as follows:

The Executive Director of the Department of Metropolitan Development received a salary of $73,997.78 from the City for the year 2009. He also, by contractual agreement, received an additional amount in excess of $40,000 from a non-profit agency. That non-profit agency has a contractual arrangement to provide services to the City. The City Council did not approve the additional compensation.

The City of Evansville Employee Handbook states that, “An employee may not receive any payment, fees, services, vacations, or other unusual favors from any person or business organization that does or seeks to do business with the City.” It also states that “A conflict of interest occurs when an employee’s private interest interferes or even appears to interfere in any way with the interest of the City.”

Each governmental unit is responsible for complying with the ordinances, resolutions, and policies it adopts. (Accounting and Uniform Compliance Guidelines Manual for Cities and Towns, Chapter 7)

IC 36-4-7-3(b) states in part: “Subject to the approval of the city legislative body, the city executive shall fix the compensation of each appointive officer, deputy, and other employee of the city. . . .”

IC 36-7-14-23 states: “Each officer of the unit who has duties in respect to the funds and accounts of the unit shall perform the same duties with respect to the funds and accounts of the department of redevelopment, except as otherwise provided in this chapter. An officer performing these duties is not entitled to any compensation in addition to that paid him by the unit.”

The State Board of Accounts does not offer any recommendations for action and neither Mr. Barnett nor City of Evansville Controller Jenny Collins, addresses this issue in their respective Corrective Action Plans. There is a 3 page letter (85 – 87) from the Law Department of the City of Evansville under the signature of David L. Jones, Corporate Counsel to Controller Collins that essentially states that the State Board of Accounts has taken the Indiana State Codes out of context. He furthermore states that Mr. Barnett’s duties to GAGE are similar to Evansville Police Officers who have off duty part time jobs as security guards.

Whether a contract that was brokered by the Mayor of Evansville between a City of Evansville supported entity like GAGE that he was the Chairman of, and whose by-laws state that the Mayor of Evansville shall serve on the Executive Committee equates to a police officer mowing yards or pulling security duty for a private business that receives no support from the City and no direction from the Mayor is irrational and will be up to public scrutiny.

Clearly a police officer who mows yards off duty is not compromising his duties as a policeman to mow the yard. It is also clear that if Mr. Barnett were to avoid compromising his duties as the Director of DMD that his duties to GAGE would have to be done after hours. As the former president of GAGE stated, Mr. Barnett had no duties and thus could not have compromised his day job by carrying out those non duties to GAGE. The GAGE contract it seems was just a way for the Mayor to arrange for a fatter paycheck for Mr. Barnett through an arrangement that required GAGE to assume the role of alter-ego of the City of Evansville through the actions of Mayor Weinzapfel.

The City County Observer’s position on this is that circular transactions like this just do not pass the smell test, it stinks. The right way to pay Mr. Barnett a competitive salary of over $110,000 per year is do it in a way that does not cause the State Board of Accounts to write the City of Evansville up for code violations. If Mayor Weinzapfel would have done this according to accepted protocol, David Jones, Corporate Counsel for the City of Evansville would have never been put into a position of having to write a letter parsing the law to protect the City of Evansville from any remedy that may come due to code violations. It is a well written letter that should have never been needed. Circumvention of the intent or the will of law really needs to cease as a way of doing business in the City of Evansville.

We advocate strongly for remedying this situation in a way that removes all suspicion of conflicts of interest on the part of Mr. Barnett and clears the history of deceptive practices retroactively and going forward for the City of Evansville. The State Board of Accounts has cited the City of Evansville for doing this in 2009. It is common knowledge in Evansville that this also happened in 2008, is ongoing in 2010, and is part of the budget recommended for adoption for 2011. There are three wrongs to be righted. The best way to right these wrongs is first for Mr. Barnett to return all monies that were paid to him by GAGE to GAGE, and for GAGE to repay those monies to the Evansville Bond Bank from which they came. The second action is for the Mayor of Evansville to go before the City Council to seek approval for Mr. Barnett to have his salary adjusted retroactively back to his date of hiring to reflect all payments that he received through the back door deal through GAGE. That action would make Mr. Barnett whole in this circle of deception that he was drawn into. Finally, Mayor Weinzapfel needs to go before the City Council to adjust Mr. Barnett’s salary to the level that he currently receives from the checks that he gets from the City of Evansville and GAGE. These three actions not only clean the mess that has been made, it keeps messes like this from becoming standard operating procedure when standard City of Evansville salary structures are just not competitive.

Here is a link to the State Board of Accounts Report. The Audit Results and Comments start on page 63 and run through page 65, it includes 12 areas where the City of Evansville has shortcomings. David Jones’ letter is on pages 85 – 87. A local accounting firm is conducting the required annual audit of GAGE for maintaining federal non-profit status as is due to be completed any day.

http://www.in.gov/sboa/WebReports/B37602.pdf

Indiana to receive $636K in settlement with Botox manufacturer

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Greg Zoeller
Zoeller: Whistleblowers who expose Medicaid fraud help recover public dollars

INDIANAPOLIS – Through whistleblower lawsuits that exposed alleged Medicaid fraud, the pharmaceutical company that manufactures Botox will pay Indiana a civil settlement of nearly $636,000, Attorney General Greg Zoeller announced today. It’s part of a larger national settlement with federal and state governments where Allergan Inc. will pay a combined $600 million in civil and criminal penalties to resolve claims that it illegally marketed Botox for unapproved medical uses.

As part of his ongoing effort to raise awareness of whistleblowers’ rights under the False Claims Act, Zoeller noted the important role of company insiders in exposing Medicaid fraud through filing private lawsuits, which state and federal governments later can join after investigating the plaintiffs’ allegations.

“Whistleblowers who file suit to expose the illegal off-label marketing of pharmaceuticals are truly benefiting the taxpayers, because their actions help us to stop the overbilling of the Medicaid program and allow us to recover public dollars fraudulently paid out,” Zoeller said.

Allergan Inc. and Allergan USA Inc. have agreed to pay state governments and the federal government a combined $225 million civil settlement to compensate Medicaid, Medicare and other federal healthcare programs for reimbursements wrongly paid for Allergan’s drug Botox Therapeutic. In a related criminal settlement, Allergan also agreed Tuesday to plead guilty to a misdemeanor charge the U.S. Justice Department filed — for violating the Food, Drug and Cosmetic Act — and the company agreed to pay a $375 million criminal fine and forfeiture. Allergan signed a corporate integrity agreement requiring strict scrutiny of its future marketing and practices.

Under the Allergan civil settlement, Indiana will receive $635,807.25, with $317,903.63 of that for Medicaid restitution only and another $317,903.63 for additional recoveries. Counting both federal and state portions, the total settlement obtained for the Indiana Medicaid program will be $1,699,473.06, the settlement says.

Although best known for its cosmetic version used as a treatment for skin wrinkles, Botox was separately approved by the Food and Drug Administration for medical treatment of rare diseases and conditions, such as strabismus (crossed eyes), uncontrollable eye blinking, cervical dystonia (abnormal head and neck posture) and severe underarm sweating.

Filed in U.S. District Court for the Northern District of Georgia, three whistleblower lawsuits brought by five private plaintiffs – and later joined by the federal and state governments — alleged that from 2001 through 2008, Allergan illegally marketed Botox Therapeutic for uses not approved by the FDA and not eligible for reimbursement under Medicaid, Medicare or other programs.

Based in Irvine, Calif., Allergan was accused of off-label marketing that illegally promoted Botox Therapeutic for headache, pain, overactive bladder and spasticity – all unapproved uses. Allergan’s marketing allegedly targeted prescribing physicians with kickback schemes, honoraria and dinner workshops, and coached doctors to improperly code and bill Medicaid and other programs for off-label uses. The illegal marketing allegedly resulted in over-utilization of Botox Therapeutic for non-covered, medically unnecessary purposes — causing overbilling and fraudulent claims that Medicaid paid out, the lawsuits alleged.

Under the False Claims Act, a whistleblower who exposes Medicaid fraud is eligible to receive a percentage of recovered funds, through what is called qui tam (pronounced “key tam”) litigation. When a whistleblower files suit against a company alleging fraud on a government contract, the court seals the case until the federal and state governments investigate. Once the federal and state governments officially join the lawsuit as intervenors – as happened in the Allergan case — then the suit is unsealed and the original plaintiff shares in any out-of-court settlement or court-ordered damages that result from the case.

The five whistleblowers in the Allergan case from outside Indiana will receive a combined $37.8 million in the civil settlement under their 18 percent share of the recovery.

The lawsuit did not allege any fraud involving the separate use of Botox Cosmetic.

A branch of the Indiana Attorney General’s Office, the Indiana Medicaid Fraud Control Unit (MFCU) investigates false claims submitted to Medicaid for reimbursement and worked with its counterparts in other states during settlement negotiations.

In August, Zoeller kicked off a public awareness campaign to alert workers in the healthcare and pharmaceutical industries to their legal right under the False Claims Act to file whistleblower lawsuits if they learn of Medicaid fraud.

“My staff and I have made presentations to large groups of health care employees and nursing students to explain the potential financial reward available to plaintiffs under the False Claims Act,” Zoeller said. “This law may not be well known to the general public, but it is an important legal right that workers in the health field ought to be aware of.”

Zoeller urges anyone interested in bringing a whistleblower action to learn more about the process by visiting his web site, www.in.gov/attorneygeneral/2807.htm

Anyone who is aware of fraudulent claims on Medicaid also can report them by contacting the Attorney General’s MFCU office at 1-800-382-1039.

WOMEN VETERANS COOKOUT

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Saturday October 9th, 2010
11:00 AM – 2:00 PM
at Wesselman Park

Lunch is provided for Women Veterans by ROLLING THUNDER

**Door Prizes
**Meet Other Women Vets

For information call:
Vet Center
311 N. Weinbach Avenue
Evansville IN 47711
812-473-5993

Winning the Intellectual Property Game in Foreign Markets:

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Tri-State World Trade
How to Use International IP Rules to Your Advantage

Has your company adopted an appropriate game plan to protect its trademarks, copyrights and other intellectual property (IP) rights abroad? Have you instituted internal company procedures to ensure the effective transfer of your company’s know-how to its foreign operations without increasing the risk of loss of its valuable trade secrets and competitive advantage?

The Tri-State World Trade Network (TSWTN) is pleased to announce its upcoming fourth quarter seminar, Winning the Intellectual Property Game in Foreign Markets: How to Use International IP Rules to Your Advantage, featuring Luz Aurora Lettiere. During this informative seminar, you will learn about various types of intellectual property rights and gain a working knowledge of the kinds of IP issues that you should consider and resolve prior to conducting business in foreign countries.

Date: Wednesday, October 27, 2010
Time: 8:00 a.m. – 10:00 a.m.
Location: The Chamber of Commerce of Southwest Indiana (Innovation Pointe, 4th Floor)
Cost: $35
Program includes a continental breakfast.

To register, contact Julie Ko, manager of business services, at 812.425.8147 or via email at jko@ccswin.com.

The mission of the Tri-State World Trade Network is to promote exporting and international trade in the Tri-State Region by sponsoring educational activities, programs, and events designed to increase knowledge, promote understanding, and encourage participation in international trade.

City of Evansville’s First Greenbrick Alley Project Located at Haynie’s Corner near the Fountain at the Cost of $142,000

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EVSC Foundation to Induct 12 Members into First Hall of Fame

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Sunday, Sept. 12, marks an important date for EVSC Foundation. Twelve individuals who have contributed to bettering the Evansville Vanderburgh School Corporation, as well as the community will be honored for their time, work, generosity, and contributions to society during EVSC Foundation’s first Hall of Fame ceremony. The inductees’ ceremony will take place inside the WNIN Studios in a private luncheon. The event will be recorded for future broadcast on WNIN. Following the ceremony, the newly inducted honorees will be publicly recognized outside at the EVSC Foundation’s EVSC Reunion.

Honorees will include:

Brent Beeler, Harrison High School alumnus and recently retired Chief Operation Officer for Berry Plastics

Beeler graduated from Indiana State University with a BS in marketing and management. He dedicated his career to building Berry Plastics into a $4.1 billion business with 75 manufacturing facilities and more than 14,000 employees worldwide. Beeler serves on the executive board of the Rigid Plastic Packaging Group and leads the National Plastics Recycling Stakeholder Group of the American Chemistry Council. He serves on the board of directors of the Boys and Girls Club of Evansville, EVSC Foundation Board of Directors and the EVSC Superintendent’s Business Council. He also is involved in the University of Evansville’s Institute for Global Enterprise in Indiana and the Growth Alliance for Greater Evansville. He chairs the steering committee of the Harrison High Schools’ capital campaign.

Chuck Bundrant, North High School alumnus and founder of Trident Seafoods Corporation

Bundrant revolutionized the fishing industry and now owns the world’s largest seafood processor. He began his career working in a cannery earning $1.59 an hour and leveraged his earnings to purchase his first fishing vessel. Trident Seafoods has a fleet of 40 fishing vessels with 18 locations throughout the world. Among his philanthropic endeavors is support of the American Cancer Society and education in Seattle where he resides. He also provides scholarships for students in Alaska interested in the maritime business.

Gayle Cook, Bosse High School alumna, and founder of Cook Group, Inc., in partnership with her husband

Cook and her husband, Bill Cook, founded the medical manufacturing company Cook Group, Inc. She is dedicated to preserving communities through restoring historic landmarks across America. She worked to restore the West Baden Springs Hotel and the French Lick Springs Hotel, saving a historic structure once considered the Eighth Wonder of the World. She has been honored by the Indiana Landmarks Foundation and received the Distinguished Achievement in the Advancement of Education Award from IU’s School of Education.

Lee Hamilton, Central High School alumnus, and former member of the U.S. House of Representatives for Indiana’s Ninth District

Hamilton served from 1965-1999 as congressman for Indiana’s 9th district. He is a member of the President’s Intelligence Advisory Board, the Homeland Security Advisory Council, FBI Director’s Advisory Board, and CIA Director’s Advisory Board. He also is co-chair of the National Security Preparedness Group. He serves as the director of the Center on Congress at IU and as the president and director of the Woodrow Wilson International Center for Scholars in Washington, DC. He has authored several books including “How Congress Works and Why You Should Care” and “Without Precedent: The Inside Story of the 9/11 Commission.”

Don Korb, Bosse High School alumnus and retired from 38-year career with Crescent Plastics, Cresline Plastic Pipe Company, and Wabash Plastics

Korb attended Wabash College until called into active duty in the Navy. Later he was transferred to the Navy Supply Corps Midshipmen Officers School at Harvard Business School. He also holds an MBA degree from Harvard. He served as a lieutenant aboard the USS Tallulah A050 in the Pacific Theatre/Okinawa Campaign and in the occupations of Japan and Korea. He has been an instructor of economics at Colgate University and worked for many years at Crescent, Cresline and Wabash Plastics companies in Evansville. He serves on the board of directors of numerous agencies and has served on the Evansville Redevelopment Commission, Board of Directors for Family and Children’s Services and Evansville Federal Savings and Loan. He is currently on the EVSC Foundation Honorary Board, Board of Directors of the Historic New Harmony, and is a life trustee of the Nature Conservancy, Indiana Chapter.

William Mays, Lincoln High School alumnus and owner of the Indianapolis Recorder and founder of Mays Chemical Company

Mays holds a bachelors’ degree in chemistry and a master’s degree in business administration from IU. He founded Mays Chemical Company which provides chemical products to the food, Pharmaceutical and automotive industry and owns the nation’s 4th oldest surviving African American newspaper, The Indianapolis Recorder. Mays was the first African American chairman of the Indianapolis Chamber of Commerce and first African American appointed chairman of the Indiana Lottery Commission. He serves on the board of directors of numerous organizations and corporations and is a trustee of the Indiana University Foundation and Indianapolis Museum of Art.

James McCarty Sr., Bosse High School alumnus and founder of Colonial Garden Center, Inc., Colonial Enterprises, and Landel Enterprises

McCarty is a graduate of Purdue University and has exhibited his love of education through the development and oversight of Bosse High School C.A.R.E.S. program which encouraged high school students to pursue their college education. He received the Evansville Rotary Civic Award for outstanding civic, charitable, humanitarian, and cultural service to Evansville and was named “Boss of the Year” by the Evansville Business Women’s Association. He has been a major supporter of Ivy Tech, Purdue and the EVSC, and is a successful real estate investor and developer.

Mattie Miller, retired as principal from Harper Elementary School

Miller is a much beloved educator, who retired from teaching English and language arts at Harper Elementary School. She has served as an adjunct professor of English Composition at Ivy Tech Community College and an adjunct professor of multicultural education at the University of Evansville. She has received the Indiana Sagamore of the Wabash community service award and the Leadership Evansville Lifetime Achievement Award for 2010. She was considered a pioneer and bridge-builder for race relations in the 1960s and is a member of CYPRESS, Alpha Kappa Alpha Sorority, Evansville Rotary, the Fire Merit Commission, Mayor’s Education Roundtable and is active at the Evansville African American Museum.

William Ridgway, Central High School alumnus and retired from long career in ophthalmology

Ridgway attended the University of Evansville and graduated from IU with an MD degree, and completed postgraduate study in Ophthalmology at Northwestern University. He served as the ship surgeon aboard the USS Valencia, AKA-81 in the U.S. Navy from 1945-1946 and active duty with the U.S. Navy as regimental surgeon with the First Marine Division, in Korea from 1953. He had a long career in Ophthalmology and was a former assistant clinical professor at the University of California. He serves on the Board of Trustees for the Evansville Museum and the University of Evansville, and on the board of directors of the Harlaxton Society, as well as the EVSC Foundation Honorary Board. He established Harlaxton College in Grantham England for the University of Evansville and the Ridgway Award to ensure Vanderburgh County graduates have the opportunity to attend UE.

Randall Shepard, Harrison High School alumnus and currently Chief Justice of the Indiana Supreme Court

Shepard was appointed to the Indiana Supreme Court in 1985 at the age of 38 and was appointed chief justice in 1987. He graduated cum laude from Princeton University and holds law degrees from Yale Law School and the University of Virginia. He served as Vanderburgh Superior Court judge from 1980 until his appointment to the Supreme Court. He is chair of the ABA Appellate Judges Conference and of the Section of Legal Education and Admission to the Bar. He teaches courses at Yale, Indiana and NYU law schools and also at the Randall T. Shepard Academy for Law and Social Justice for high school students, now in its first year in the EVSC.

John H. Schroeder, Bosse High School alumnus and founder and current chairman of Crescent Plastics, Inc., Cresline Plastic Pipe Co., Inc., and Wabash Plastics, Inc.

Schroeder graduated from Wabash College and earned his master’s degree in Business Administration from Harvard Business School. He pioneered the plastics industry and developed Evansville as a nucleus of this country’s “Plastic Valley.” Schroeder is a supporter of multiple organizations within Evansville, including: UE, USI, Ivy Tech Community College; and the Southern Indiana Career and Technical Center through in-kind donations to the plastics program. He has served on the Board of Trustees at numerous organizations as well as sat on the board of directors for local businesses. He currently serves on the EVSC Foundation Honorary Board and is the trustee emeritus of UE and Wabash College and Director Emeritus of Welborn Baptist Hospital.

Matt Williams, FJ Reitz High School alumnus, and founder of Wind Dancer Films

Matt (Mark) Williams, a University of Evansville graduate, has had a lucrative television career, including writing and producing The Cosby Show for three seasons, creating and serving as the executive producer of Roseanne, and serving as co-creator and executive producer of Home Improvement, Carol and Company (starring Carol Burnette), Buddies (starring Dave Chappelle), Thunder Alley, Soul Man, and Costello. In addition, he produced and directed the film Where the Heart Is and produced the film What Women Want. During his career, he has directed more than 30 off-Broadway plays, including his first play, based on a high-school project, Between Daylight and Boonville, which appeared on Off Broadway and was recently produced by the Evansville Civic Theatre.

FOCUS on Saving Lives at the Labor of Love Blood Drive

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American Red Cross

(Evansville) – Down the street and across the country, there are patients in need of lifesaving blood. Everyone in the Tri-State area can be a summer lifesaver and make a difference in the lives of others by donating blood through the American Red Cross.

“Every day, blood is needed for people with blood disorders, cancer patients, transplant recipients, trauma victims and many others,” said Matt Bertram, Regional CEO, American Red Cross. “When you give blood, you reach out to help those in need. The need for blood is constant but donations tend to decline around holidays like Labor Day.”

Labor of Love Blood Drive
Tuesday, September 7th
10am – 6pm

American Red Cross of Southwestern Indiana
29 S. Stockwell Road, Evansville
www.redcrossblood.org

Help cut down on your wait time on September 7th. Make an appointment by calling 1-800-GIVE-LIFE (448-3543) or go online to redcrossblood.org. All blood types are needed to help maintain a sufficient supply for patients in need. Donors with type O negative, B negative and A negative blood are especially encouraged to schedule appointments for the important holiday blood drive.

Double red cell donation opportunities will also are available at the Labor of Love Blood Drive. Donors who meet the eligibility requirement should consider doubling the difference they make with a double red cell donation! Plus, all presenting donors will also be entered in “FOCUS on Saving Lives Campaign” for a chance to win a 2010 Ford Focus or one of two $500 gas cards. The Labor of Love Blood Drive is the last day to enter for a chance to win. You don’t want to miss this opportunity!

If you are unable to attend today’s blood drive, please consider making an appointment to give in the very near future as the need for blood is always constant. Call 1-800-GIVE-LIFE (448-3543) or go online to redcrossblood.org to schedule a blood donation appointment and for more information. Individuals who are 17 years of age (16 with parental permission in Indiana), weigh at least 110 pounds and are in generally good health may be eligible to donate blood.

Youth Resources of Southwestern Indiana 23rd Year of Youth-Led Service Project Funding Available!

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Please help us spread the word that for YR’s 23rd year, we have funding available for youth-led community service projects – should they pass the Teen Advisory Council Grant Screening Committee and pending the YR board’s approval! ‎To date, 127,389 local children and teens have been involved in 1,972 youth-led service projects and have received over $692,427 in grants from Youth Resources. More than 700 youth were directly involved in 19 Make A Difference Grants projects in the 2009-10 school year, making a positive impact on nearly 5,800 others in our region!

Over the past five years, 42% of the youth who volunteered with the Make a Difference grant projects were economically disadvantaged and 25% were minorities. We are proud that the Make a Difference (fiormerly named Youth As Resources) grants have reached all youth and taught them the importance of giving back and community service.

Make A Difference Grants address real problems and enhance young people’s brainstorming, planning, budgeting, communication, teambuilding, and leadership skills. During the process youth learn practical applications to academic learning, use cognitive and social skills, develop future job skills, and realize they can solve community problems, which helps to build self-esteem.

To download a Make A Difference Grant application please go to http://youth-resources.org/Make-A-Difference-Grants.aspx!!! Make A Difference Grant Program Manager, Jessica Fehrenbacher, may be reached at 421-0030 or emaiiled at jessica@youth-resources.org!

IS IT TRUE – September 30, 2010

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SPECIAL EDITION

IS IT TRUE that the Vanderburgh County Council had their annual review of civil taxing unit budget? ….that the Evansville-Vanderburgh Airport Authority is on track to lose $2.7 million dollars in 2010 on a $6.0 budget? ….that the Board of Directors of the Airport Authority seemly forgot that this area is battered by a recession and extremely weak economy and should make the financial adjustment accordingly? ….that for 2011, the EVV recommended 3.0% salary increase for employees. ….that the County Council Finance Chairmen, Tom Shelter, Jr. recommends that the request be lowered to 1.5%, same percentage as Vanderburgh County employees are getting this year? ….that County Councilmen also recommends $0.00 for an Assistant Fire Chief position that has been vacant for more than 6 months? ….the County Council voted 6 to 0 to approve Chairman’s budgetary motions with only one abstaining? ….the City County Observer staff congratulates the Vanderburgh County Council for making sound budget decisions in this matter?

IS IT TRUE we wonder how much money the Evansville/Vanderburgh Airport Authority made on it’s Golf Course this year?

IS IT TRUE that the Evansville City Council met yesterday to discuss and vote upon the Community Development Block Grant and Emergency Solution Grant Programs for 2011? ….. that this program is funded by the federal government but is controlled by the Department of Metropolitan Development?

IS IT TRUE that City Councilperson Connie Robinson and Council President BJ Watts surprised at least four Council members by making last minute changes to this program? …..that their amendments passed by a final vote of 5 to 4 to remove funds from established programs that include food for the elderly, food for needy children, funds for homeless shelters, and funds for the Tri-state food bank just to name a few? …..that the majority of the funds recommended for transfer by the above Council members were well over $15,000?

IS IT TRUE that the majority of the funds recommended for transfer, over $15,000.00, were moved to fund a new untested and unproven program that duplicated the efforts of an well established and respected second chance to society program?….specifically monies were moved from the following organizations, $6,037 from Churches Embracing Offenders, $2,283 from the YMCA’s Caldwell Community Outreach Center, $1,000 from Tri-State Food Bank, $4,042 from CAPE for family homeless shelters, $1,775 from meals on wheels, $2,000 from ARK crisis care child care, $1,000 from Needs Weekend Child Care in Ministry, $2,458 from Tri-state food bank program backpacks for kids?

IS IT TRUE that the nine (9) member Community Advisory Committee met for numerous hours over a period of months to recommend to City Council for approval of allocation of the funds to worthy organizations in our city?….that Five (5) Council members (John, Watts, Robinson, Mosby & Friend) arbitrarily cut these programs to give the money to a newly established program called Counseling for Change? …..that none other than the past City Council member and retired city detective Steve Bagbey, who spearheaded the new arena project, a past member of the Alcoholic Beverage Commission and present Chairman of the Evansville Safety Board, and is also the new Social Service Director of Counseling for Change organization?

IS IT TRUE that some of the newly appointed board of directors members of this new organization are Steve Bagbey, retired Fire Chief George R. Flowers Sr. and Evansville City Clerk Alberta Matlock?…. that we hope that Mrs. Matlock has filed her “conflict of interest” statement with the Vanderburgh County Clerk immediately for being on a City of Evansville subsidized board?

IS IT TRUE that the City County Observer congratulates Council members Dan McGinn, Wendy Bredhold, Dr. Dan Adams, and Don Walker for exhibiting courage and wisdom by voting against this last minute presto-chango to redirect money to a long time political ally of Mayor Weinzapfel? ….that the City County Observer and staff are disappointed that there is seemly a blatant disregard of decorum for protocol when reallocating public funds when John, Watts, Robinson, Mosby & Friend vote as a political block.

FINALLY IS IT TRUE that this entire vote represents blatant disregard for good public policy.

EDITORIAL – Tornatta Raises Homestead Tax Credit’s Ugly Head

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Marsha Abell



Troy Tornatta

By: Don Counts, Editor

On April 1, 2008 Mayor Jonathan Weinzapfel invited a carefully selected group of elected and appointed officials to his office. That meeting and the 14 months of silence that followed it resulted in what is now recognized as one of the biggest political mistakes of the century in the State of Indiana. When the scenario played itself out 14 months later it became obvious that this secret meeting had jeopardized the Homestead Tax Credit for the citizens of Vanderburgh County. The intent of the April Fool’s Day 2008 meeting was not to jeopardize the Homestead Tax Credit, the clear intent was to eliminate the Homestead Tax Credit appropriating $5.1 Million from the homeowners of Vanderburgh County into the coffers of local government. However, the invitation specified that the meeting was to discuss ways to save money in the next year. Vanderburgh County was the only county in the entire State of Indiana to do such a thing. Eventually, Governor Mitch Daniels intervened on behalf of the citizens of Vanderburgh County to reinstate the 2009 Homestead Tax Credit correcting and overruling local officials including Mayor Weinzapfel who incorrectly stated that it could not be done. Thankfully, Vanderburgh County homeowners were spared the hardship of having their Homestead Tax Credit vanish like a thief in the night. In the end, it was a visibly shaken Mayor Weinzapfel who appeared on television and told the taxpayers they would get back the homestead tax credit.

At a recent debate between Marsha Abell (R) and Troy Tornatta (D), candidates for the office of Vanderburgh County Commissioner, Commissioner Tornatta brought up the issue of Mrs. Abell’s presence at the now infamous secret Homestead Tax Credit meeting. In that debate Commissioner Tornatta accused Mrs. Abell of being complicit in the attempt to take $5.1 Million out of the pockets of Vanderburgh County homeowners by conveniently “forgetting” to vote to renew the Homestead Tax Credit. Mrs. Abell retorted that her position on that issue was one of no power since the City Council by Indiana State law was the final decision maker on whether a Homestead Tax Credit would be granted to homeowners in 2009 and the Evansville City Council had to present it to the Vanderburgh County Council for a vote, which they did not do.

The secret meeting was hosted by Mayor Weinzapfel and attended by then County Council President Marsha Abell, then County Councilman Lloyd Winnecke, then County Commissioner President Jeff Korb, County Auditor Bill Fluty, Finance Chairman and City Councilman Curt John, then City Council President Keith Jarboe, Mayor Weinzapfel’s chief of staff Rose Young, and then City Controller Lisa Acobert.

Because the meeting contained no agenda or quorum of any local governmental body, it was not required by Indiana’s Open Door Law to be advertised or held in public. Make no mistake, this was never meant to be a public meeting and whomever issued the invitations made sure that it would not be public when the guest list was being formulated.

Fourteen (14) months later this issue has been raised by Commissioner Tornatta in his campaign in an attempt to defame Mrs. Abell and retain his seat as a Vanderburgh County Commissioner. Because of Commissioner Tornatta’s insistence on making this an election issue in 2010, it is very likely that this issue will also be a focus point in the City of Evansville elections for Mayor and City Council in 2011. In fairness to Mrs. Abell who is bearing the full force of this issue, it is a good time to call for some confessions on the part of the attendees and those City and County officials who were not at the meeting, but should have recognized the oversight a few months later. As Commissioner Tornatta has amply pointed out and Mrs. Abell has agreed, transparency and honesty are of upmost importance in the selection of public officials. The details of the April Fool’s Day meeting and the reason(s) that not one person came forward publically to expose this secretive attempt to increase the taxes on Vanderburgh County homeowners by $5.1 Million by deliberately choosing not to act are worth exploring one more time. In fact, nobody came forward until the City-County Observer broke the news about this secret meeting.

It is clear that the Mayor of Evansville, Jonathan Weinzapfel, orchestrates and primarily controls the budget of the City of Evansville that is approved by the City Council. Vanderburgh County’s budget is controlled by the County Commissioners and approved by the County Council. Mr. Tornatta was a member of the Vanderburgh County Commissioners at the time of the April Fool’s Day meeting when the saga of the disappearing Homestead Tax Credit began. The City Council, the County Council, and the County Commissioners along with the Mayor were populated with people who were experienced in the budget process and had formed budgets that included the Homestead Tax Credit in previous years.

It was not only the people who received invitations from the Mayor to the April Fool’s Day meeting who were responsible for including the Homestead Tax Credit into the 2009 budget. Each and every member of the respective City and County Councils and each County Commissioner bear responsibility for this oversight whether it was deliberate or not. As a sitting County Commissioner and a former member of the County Council, Commissioner Tornatta was just as responsible as Mrs. Abell for assuring that the Homestead Tax Credit was included in the 2009 budget. It is very difficult to accept the fact that with over 20 elected officials participating in the budgetary process, not a single one remembered to propose renewal of the Homestead Tax Credit in June of 2008. This oversight had to have been orchestrated both inside and outside the group who were selected to receive invitations to the April Fool’s Day gathering.

The City County Observer refuses to accept political charges from someone who also should have caught the Homestead Tax Credit oversight and come forward to rectify it. Commissioner Tornatta should engage his opponent in the real issues of this campaign like finding a developer to replace the Executive Inn, providing financial oversight to the CVB’s $18M ball field proposal, industrial development, roads, sheriff and fire protection, unified government, funds for entrepreneurship, and other quality of life issues that inhibit Vanderburgh County’s competitiveness for outside investment.

To publically support honesty and transparency but fail to address issues that happened on one’s watch is hypocritical. As a reminder, it was the City County Observer that exposed the Homestead Tax Credit fiasco after confirming the information in an interview with Marsha Abell. Her assertion at the recent debate with Commissioner Tornatta that the City County Observer was the only media outlet initially that would publish her account about the Homestead Tax Credit fiasco is also true.

It is often said that behind every successful man is a strong woman. At the time that the Homestead Tax Credit fiasco occurred, Marsha Abell was the only female elected official on any of the three governing bodies in Vanderburgh County. She is also the only one of the group of over 20 elected and appointed officials to have her presence at the meeting used against her in a political campaign. It seems as though the old saying is reversed here in Vanderburgh County. Behind one strong woman are a herd of men who are fearfully hoping that she will take the heat for them all. In Vanderburgh County politics, the practice of chivalry runs in reverse.

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