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.
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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.
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.
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.
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