Proposals to improve transparency, accountability in state government spending 
Today State Senator Karen Tallian (D-Portage) announced the Indiana Open Government Initiative, a plan to increase transparency and accountability in state government in order to safeguard taxpayers, foster better budgeting practices, promote good jobs and garner savings. Tallian will co-author the package of proposals during the 2011 legislative session.
Also announced under the initiative is an online forum where individuals can submit their own ideas for increasing transparency in Indiana state government. Tallian said she encourages Indiana residents to submit their ideas at www.senatedemocrats.in.gov/OpenGov where they can be considered for inclusion in the final legislative package.
Citing Indiana’s recent grade of “F” for transparency in government spending in the U.S. Public Interest Research Groups’ (U.S. PIRG) report “Following the Money,” Tallian said the state needs to improve public access.
“An ‘F’ in government transparency simply isn’t good enough for Hoosiers, and it’s a bad way to do business,” said Tallian. “It is my hope that this proposal will not only help us catch up with what other states are doing, but also make room for more public scrutiny of how state money is allocated.”
The Indiana Open Government Initiative includes specific proposals within three primary areas of focus:
1. The Indiana OpenGov web site providing one-stop public access to state budgets, spending and contracts
- A searchable web site accessible to the public providing information on state, agency and program-level budgets, actual expenses and funding cuts, and contracts
- Public commenting opportunities on changes to administrative rules and business regulations
- Reporting on state economic development incentives and their fiscal impact, including uncollected or diverted state tax revenues
- Tracking of federal stimulus awards and funding opportunities
2. Corporate accountability laws for state economic incentives
- A short, standardized form for businesses to annually report the number of jobs created or retained, employee pay, and other uses of a state incentive
- Required recapture of funds from businesses that receive state incentives but fail to make the level of capital investment, create the number of jobs, or pay less than wages specified in the agreement
- Reports on the Indiana OpenGov website of all recapture activities and taxpayer dollars recouped from unfulfilled economic development incentives
- Records related to taxpayer-funded economic development incentives subject to disclosure under the state's Open Records Act
3. Ending “pay to play” in state contracts
- Ensure that state contracts are awarded based on qualifications, not contributions
- Prohibit individuals with state contracts from making political contributions to state office holders or candidates
- Information about individuals and businesses with state contracts available in a searchable database on the Indiana OpenGov web site
- Prohibit state employees who have purchasing or procurement authority from soliciting political contributions
Open government initiatives can save millions of taxpayer dollars through more efficient government operations, more competitive contracting bids, fewer manual information requests, and lower risk of fraud. Transparency also allows states to track how well subsidies and tax incentives deliver results. Coupled with corporate accountability laws and greater public input, transparency allows the state to recoup funding from underperforming projects and programs and reinvest those dollars into more successful programs.
Thirty-two states allow residents to access detailed information about government expenditures online, including neighboring states Illinois, Kentucky and Ohio. According to the U.S. PIRG report, in the two years following the launch of its transparency web site, the Texas Comptroller reported $4.8 million in savings from more efficient government administration.
More information on the Indiana Open Government Initiative, including greater detail of the proposals, links to other state transparency web sites and the public forum, is available at www.senatedemocrats.in.gov/OpenGov .
For more information on Sen. Tallian, her legislative agenda or other State Senate business visit www.in.gov/s4 or call 1-800-382-9467.