(This week’s civic education and engagement column from Danville’s The Republican newspaper.)
Short answer: because it isn’t one. A local government body, board, or agency is a form of legal organization that is vastly different from a commercial business. People generally start businesses with the goal of making money. Government isn’t allowed to do that. Business owners have the freedom to change aspects of their business, like the products they offer or what communities they’ll serve. Government can’t. Want to raise the price of hot dogs at your hot dog stand? You can do it anytime you want. Local government can’t just decide to increase your taxes on a whim.
Local governments have exclusive authority to perform the functions they were created to provide within a defined geographic area. They don’t have competitors within that boundary. If your water stops running, you can’t call the water department two towns over because you think they have nicer-looking trucks. You can’t call Putnam County’s Sheriff and ask them to patrol your neighborhood in Brownsburg.
State law is very explicit about what towns, school districts, libraries, townships, counties, and other local government entities can and cannot do. It defines why every one of those organizations exists – along with how it’s expected to function and cover the costs of doing what it does.
You thought it was stupid when the town spent all that money to build that park near your house, especially when the school district says it needs a referendum. I’ll tell you what a smart business owner would do: they’d forgo the park and put the money into the schools. Local government isn’t allowed to work that way. Each organization has its own funding sources and strict rules governing how that money may be spent. Even if the fire department finishes the year with money left over, it can’t simply hand that money to the library.
That’s not an example of bad business practices. It’s actually evidence of responsible behavior. Giving local officials unlimited discretion over both spending priorities and funding sources would mean schools would operate very differently in Danville and Mishawaka and New Albany. Pittsboro might not have parks because the town would rather spend money on sewer upgrades. Even though every community in the Hoosier State is unique, state law ensures they all provide many of the same essential services.
People who insist government should simply “run like a business” often underestimate just how dissimilar the two really are. They overlook just how differently local governments are structured, funded, and legally required to operate. There’s a world of difference between voluntarily creating and selling products to willing customers and being legally required to provide essential services to every address within a defined geographic area.
One example illustrates the difference. Public schools don’t get to choose their customers. If a student lives within the district’s boundaries, the district is legally required to deliver what the law calls a “free and appropriate public education” until age 18. That’s true even if the student has significant disabilities, problems at home, or is currently homeless. Public schools are required to accept everyone.
Not being businesses doesn’t mean local governments can’t operate in a businesslike fashion. In fact, Hendricks County residents are fortunate, because “businesslike” is a characteristic shared by nearly all the local examples. In my experience, the people we elect and the professionals they hire genuinely want to provide the best possible services while keeping costs under control. You really are in good hands.