Bonus fever grips Lake County, Ind., government

Feb 8, 2010 — The Times

Bill Dolan

Feb. 7, 2010 (McClatchy-Tribune Regional News delivered by Newstex) -- CROWN POINT -- Lake County Coroner Thomas Philpot has made "supplemental pay" a dirty word in the eyes of many local government officials after helping himself to more than $24,000 in personal bonuses since 2004.

A Times survey of Lake County officials indicates many supplement their pay, although only Philpot was accused of doing so improperly.

Philpot repaid the county $29,948 in disputed pay and interest Friday after County Attorney John Dull advised Philpot he needed permission from the County Council to divert the state money to himself between 2004 and 2009.

Council members said Thursday they were stunned to learn Philpot had given himself the money without asking them.

The money came from Clerk's Child Support IV-D #428 Fund, federal money the state distributed to county clerks as an incentive for them to better enforce the collection of court-ordered child support payments. Dull said Philpot didn't divert money that was meant for children.

Dull said Philpot received an erroneous opinion from Hammond attorney David Saks, whom the county paid to provide the clerk with legal advice.

Saks advised Philpot in a 2008 letter, four years after Philpot began paying himself, that the money was just another form of supplemental pay many local government workers get.

Government documents indicate Gary Mayor Rudy Clay was paid at least $54,705 a year by the city Sanitary District, in addition to his $88,021 mayoral salary.

Some 265 county and township employees receive some form of supplemental pay in addition to their base pay from $2.6 million in annual user fees charged for specialty government services.

However, Dull indicated that pay was legal because the County Council approved it.

County Sheriff Rogelio "Roy" Dominguez has been receiving tens of thousands of dollars in state incentives for collecting delinquent sales taxes. That bounty will be severely capped next year under legislation authored by Larry Buell, a former Indianapolis state representative who said it was wrong for sheriffs to be paid so handsomely from such an unlikely source.

It makes local property tax advocates wince.

"Transparency and accountability become kind of foggy," said Douglas Grimes, president of Gary's Miller Citizens Corp. "The public doesn't know that they are paying this, too. I think we need to look at legislation that closes these loopholes."

George Janiec of Team Hammond said, "At a time when people are losing jobs and homes, many officials continue to live at the trough, holding numerous paid positions while the average government employee, who has to do the work, hasn't seen a raise in a few years."

Neither Philpot, who shifted from county clerk to coroner last month, nor his attorney, David Saks, returned phone calls requesting comment.

Philpot paid another $16,000 in supplemental bonuses to two top managers and more than $10,000 to another 11 employees from the same fund. Philpot also received $13,437 for being chairman of the county elections board.

Charles W. Pride, an Indiana State Board of Accounts supervisor specializing in municipal government, said state law permits mayors, clerks and council members to be paid from both property taxes and municipal utility funds.

"Most cities and many towns officials do get additional compensation, even if another does the work, since the officials are still responsible for the actions of the person doing the work," Pride said.

Philpot's bonuses irk other officials.

County Treasurer John Petalas, who is running for re-election and was asking council permission last week to move some money from another incentive fund, explained, "There is nothing in there for me."

Crown Point City Clerk Patti Olson said, "It upsets people and makes other communities wonder if their elected officials are getting (bonuses) too. In Crown Point, that is not happening."

The practice may grow, according to Jamie Palmer, a policy analyst for the Indiana University Public Policy Institute who worked on Gov. Mitch Daniels' push to reinvent local government. "Future government consolidation probably will exacerbate the problem. Funds are so limited that officials have to be creative about where the money comes from to get a reasonable salary," she said.

Newstex ID: KRTB-0129-41890691