The recession has hit Hoosiers hard, and government isn’t immune; there’s been a lot of attention over the past two weeks about the state’s plummeting revenues, short more than $250 million over the last quarter.

But even closer to home, local government is facing the budget ax, too. The recession and the property tax caps passed by the General Assembly last year are a one-two punch that have forced Indianapolis to cut funding for parks, the arts, correctional facilities (raising the specter of early inmate releases) and other public services.

During times like these, there can be no sacred cows. As Gov. Mitch Daniels recently said, everything has to be on the table, including the operations and oversight of township government.

A few weeks ago, the City-County Council held a hearing on the financial practices of Marion County’s township offices. I attended to learn more, and came away more convinced than ever that we desperately need reform. Tough times demand an informed public, but when it comes to township officials, taxing and spending happen largely out of sight and out of mind.

I heard several troubling facts during the council hearing that led me to do additional research:

Marion County township governments are hoarding more than $48 million in unused surpluses. We’re being overtaxed, and townships are sitting on more than enough excess cash to plug the budget deficit for the entire county. Instead of maintaining our parks, restoring arts programs and keeping criminals behind bars, we’re padding the bank accounts of township trustees.

Washington Township, for one, holds a $5.4 million surplus, enough to operate for two years without taxing citizens another cent. You may recall that the Washington Township advisory board voted itself a 69 percent raise last year.

In Franklin Township, the trustee’s office held a surplus of more than $5.5 million at the end of 2008. Wayne Township has an amazing $12.7 million surplus! Imagine if these funds could be spent on public safety, economic development or mass transit — or used to cut property taxes for homeowners.

The townships also are inefficient in administering the money they did spend. In Center Township, less than half of spending related to poor relief went directly to those in need. In Warren Township, the trustee’s office spent $12.20 in administrative expenses for every $1 dedicated to poor relief and fire protection. In Washington Township, the figure was $9.44 in overhead for every $1 in services.

It’s incredible that tens of millions of our tax dollars continue to be funneled through this largely ignored layer of bureaucracy during a fiscal crisis, while the council has little authority except to hold hearings.

It’s time to push for oversight and accountability, and a real public debate over whether townships have outlived their usefulness in providing services that could be more effectively provided at the county level.

This debate starts with taxpayers getting informed and speaking up.