Under new law, a major merger of township governments in Indiana is likely coming soon

With backing by the state’s association of township governments, a new law in Indiana sets in place a process for analyzing the performance of townships and, likely, consolidating hundreds of them. The Indiana Capital Chronicle notes that this year’s signing of SB 270 comes after failed legislative efforts over the past two decades to reorganize township government in the state.

By the end of this year, the Indiana Department of Local Government Finance will compile data for a points system detailing the work and performance of each township. This includes measures of township assistance services for the poor, fire and emergency services, budget management, and the presence or lack of candidates for trustee positions.

Townships that meet a certain threshold on this “scorecard” must dissolve by January 2029, merging with a neighboring township or reorganizing with an overlapping municipality. Indiana currently has about 1,000 townships; a consolidation of hundreds of them is possible under SB 270. The Indiana Township Association supported the compromise legislation and says its passage marks “a significant milestone for township government.”

Legislative trends, numbers on local governments

This kind of push for local government consolidation and efficiency is the goal of other recent measures in the Midwest. For example, two governors have voiced support for the idea: Illinois Gov. JB Pritzker has proposed township consolidation in counties with populations of under 5,000 (township functions would be taken over by overlapping county or city governments), while Iowa Gov. Kim Reynolds this year sought a $10 million grant program to encourage consolidation and shared-service agreements among local governments. Ohio’s HB 574 would create a two-year, $25 million grant program for townships, cities and villages to merge.

Most states in the Midwest rank high nationally for their numbers of local governments, according to the U.S. Census Bureau. For example, Illinois has the highest number among all 50 U.S. states, and Ohio, Kansas and Minnesota rank among the top 10. On a per capita basis, North Dakota and South Dakota have the highest number of local governments; Nebraska and Kansas are in the top 10.

Outside the region, several mid-sized and larger states are notable for their relatively small number of local governments, a CSG Midwest analysis of federal data shows.

Arizona has only 15 counties and no township governments. Florida has a smaller number of “special purpose” districts than most states, including only 95 local school districts. It has no township governments. Maryland also doesn’t have township governments, and it and Virginia have county-based school systems. Hawaii has the smallest number of local governments, only 21. Its unique structure includes having a statewide school district.