STATE REVIEW OF BUDGETS-(DLGF) DEPARTMENT OF LOCAL GOVERNMENT
The county tax adjustment board is not the final reviewing authority for municipal budgets. All local budgets are rountinely reviewed by the DLGF. This routine review of budgets is mainly of an audit character, in which the board checks each budget for mathematical errors and as certain that the county board has fulfilled it's duties in reducing budgets to legal levels.
The DLGF may also make "post abstracts" adjustments in tax rate as may be necessary to produce the desire levy in light of any changes in assessed valuation occuring after the rate is fixed by the local bodies. The auditor is responsible for certifying each budget to the DLGF subsequent to final action by the board.
Of greater concern to municipal taxing units, however, is the fact that under certain circumstances the DLGF may also make a special review and modification of local budgets following tax board action. There are three basic circumstances under which this special review takes place:
1. If the county tax adjustment board specifically recommends that the maximum aggregate (composite) tax rate be exceeded because it is inadequate for taxing units within the county.
2. If any unit's tax rate is fixed by the county auditor (IC 6-1.1-17-9) because the county/city tax board has failed to take action on its budget or has failed to reduce the budget within legal limits.
3. If a specific appeal is filed with the DLGF by ten or more taxpayers or the affected taxing unit protesting the action of the city/county tax adjustment board and or requesting relief from state property tax levy limits.
However, even the DLGF may not increase the budget over the amount originally fixed and published by the council, except as necessary to meet certain legal obligations. Local officials should therefore be aware of the pitfall of thinking that one can fix a budget within levy limits and then appeal for a larger levy later. If an excessive levy is desired, it must be built into the budget as orginally established, advertised and adopted by the city or town.
