IBJNews

Ex-bank exec Alley to take over Indiana revenue office

Back to TopCommentsE-mailPrintBookmark and Share

A former bank president will take the helm of Indiana's embattled revenue department.

State budget director Adam Horst says former Fifth Third Bank president Mike Alley will take over as the state's revenue commissioner. He'll replace John Eckart, who resigned last week.

Alley will take over a department hit by revelations that millions of dollars haven't been properly routed.

The state announced last week that nearly $206 million in local option income tax money owed to counties wasn't distributed. Horst has blamed the problem on a programming error.

The state also found in December that $320 million in corporate taxes that were collected over four years hadn't been transferred to the general fund.

Members of the State Budget Committee were discussing the glitches during a meeting Friday in Madison.

Alley was most recently chairman of Patriot Investments LLC, which does early-stage investments.

Prior to that, he was CEO at Evansville-based Integra Bank Corp., which was shut down by banking regulators last July. He had been hired in 2008 to try to save the debt-ridden bank but couldn't raise enough capital to pay off the bank's massive loan losses.

Alley spent 13 years leading Cincinnati-based Fifth Third Bancorp’s central Indiana operations before leaving in 2002 to focus on private investments.

ADVERTISEMENT

  • Not so fast my friend
    On the one hand who with any requisite qualities in tax would take this position until November.Let's face it Alley is an interim Commissioner.

    Mike was a great banker and is a good guy but has NADA tax background.

    IDOR needs to pluck a heavy tax person with great administrator qualities from a Big 4 firm, Katz or Crowe.
  • Good Choice
    This is a good choice. Mike Alley has had an outstanding banking career and is a smart guy. Despite Integra's problems, he's an expert at turnarounds.

    Three things need to happen. First, they need to let him do things his way. Second, he needs to be able to treat the department more like a business, and that will be a challenge because governments can't incentivize things like the private sector. And third, he needs to stay on even if the statehouse changes hands in November. If it does, he will likely be replaced (by someone of lesser capability) and the whole effort might fall apart.

    I hope he gets a chance to fix this mess once and for all.
  • comment
    LOL. This state is full of uneducated incompetent professionals at all levels of business, education, and government.
  • Promoses, Promises, Promises
    For decades, more than 70 state agencies have used dozens of independent accounting systems. This creates duplication of effort and records. But ENCOMPASS (Enterprise Common Processing and Analytics Systems) will change all that. It will combine the state's accounting into one, fully unified system.
  • No Confidence in State Finances
    Clearly the state finances are completely out of control and the checks and balances system is broken.

    The key questions are who conducts this outside audit and what is its scope.

    Doubt the Office of Management & Budget, Auditor of State, State Budget Agency (SBA), Indiana Office of Technology, or State Board of Accounts is up to the task considering they did not uncovered either of these massive errors and wont take any responsibility.

    Should a private firm that has legal & financial consequences for inaccuracy like non-partisan Big Four Accounting Firms, Deloitte & Touche, Ernst & Young, Pricewaterhouse Coopers, or KPMG.

    Half a billion dollars plus in errors justifies the expense.
  • IDOI
    I'm suprised the job did not go to an ex-state legislator. They always seem to be around when a state job is up for grabs as most are not employable outside state government or IVY Tech.
    • PeopleSoft Conversion
      September 16, 2009

      Indiana Converts To Centralized Accounting System

      http://www.in.gov/sba/2570.htm

      State's Oracle PeopleSoft Enterprise Financial Management 8.9 Broken?


    • Great Guy!
      Mike is a great leader and guy who knows what he is doing! He chooses staff well, gives them the tools and lets them do their job. I enjoyed working with him in the past and would do so again if given the chance.
      • Good luck Mike!
        How about finding another 1/2 billion!

      Post a comment to this story

      COMMENTS POLICY
      We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
       
      You are legally responsible for what you post and your anonymity is not guaranteed.
       
      Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
       
      No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
       
      We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
       

      Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

      Sponsored by
      ADVERTISEMENT

      facebook - twitter on Facebook & Twitter

      Follow on TwitterFollow IBJ on Facebook:
      Follow on TwitterFollow IBJ's Tweets on these topics:
       
      thisissue1-092914.jpg 092914

      Subscribe to IBJ
      ADVERTISEMENT