Townships are the most efficient and lowest-taxing form of government in Ohio, according to a recent report released by the Ohio Township Association.

The study was commissioned in part to push back against recent talks that favor merging Ohio townships with other local governments in an attempt to save money.

“There have been a lot of think-tank studies that have come out over the last couple years that we have too much local government, and we can’t afford it,” said Matt DeTemple, executive director of the Ohio Township Association. “But when you have a lot of small governments, they tend to be very efficient and it actually holds down costs.”

Among the highlights in the report: Despite the fact that 35 percent of Ohioans live in townships, township governments were responsible for only 2.7 percent of $48 billion in local government spending in 2008.

Townships’ greater use of part-time and volunteer employees is a large factor in keeping costs down, according to the study. They also generally offer fewer services, which people can accept in exchange for lower taxes, DeTemple said.

Another factor the study cites that leads to lower taxes and spending in townships: Townships are only allowed to charge property taxes. Voters must approve any property tax hikes past a certain point, with ballot issues that designate exactly what the money will be spent on.

The study was performed by Wendell Cox, a researcher for a number of right-leaning think tanks, and analyzed data from the U.S. Census and the Ohio Auditor’s Office. It found that even the most populous townships of 50,000 people or more spend less, tax less and borrow less than cities and villages.

There are 1,308 townships in Ohio — 90 percent of which have 10,000 or fewer people. That’s compared to roughly 350 cities and 700 villages.

The township study is in some ways a competing report to one issued last year released by the University of Toledo and paid for by the Greater Dayton Mayors and Managers Association. That report found that the large townships in Montgomery County are able to keep their taxes low because of millions of dollars worth of support they get from county and state government.

For example, counties provide townships with law enforcement, legal services, misdemeanor-level courts and some assistance with road projects, while the state government pays for upkeep of state routes that run through unincorporated areas. Cities and villages, on the other hand, are legally required to pay for those services themselves.

“Are they more cost-effective? No, because they have someone else paying their bills,” said Mike Ratcliff, director of the Greater Dayton Mayors and Managers Association.

Township officials dispute that argument.

“Certainly some of the services we get from the county and the state help hold down our costs,” said DeTemple with the Ohio Township Association. “But that doesn’t even come close to explaining the vast differences in expenditures between townships and cities and villages.”

The study is critical of government mergers as a way to save money, noting instances in which efforts to consolidate local governments in the United States and in Canada actually made costs go up.

One way government mergers can make costs go up is a phenomenon the study’s author refers to as “levelling up” of employee salaries. That is, if one government operation offers better salaries and benefits than the one i’ts merging with, employees of the lower-paying government will get raises to match.

The report also opines that township government is more responsive to the needs of local residents. Greg Hanahan, a German Township trustee, administrator for Miami Township, and president of the Ohio Township Association, called townships “grassroots government.”

“I think people feel really comfortable. They’re your neighbors, they come in to see you,” Hanahan said.

Miami Township Trustee Mike Nolan said people aren’t shy about sharing their problems with him directly.

“I’ve had people drive up to my driveway and complain about somebody shooting guns or what’s going on,” Nolan said. “They have my phone number and they can get to me … we’re very approachable.”

Among the recent advocates of consolidation of governments is Ohio Auditor Dave Yost. Last year, he launched a website with a “toolkit” to help townships collaborate and merge with other local governments. This accompanied cuts in the state’s funding for local governments.

When asked about the township study, Yost said government mergers are voluntary and each should be considered on a case-by-case basis, according to his spokeswoman.

“The auditor wants mergers to be quick and easy to do, but only if it makes sense,” said Carrie Bartunek.

Nolan is a proponent of merging some local government services. Miami Township recently combined its fire department with nearby Miamisburg. Township officials project this will save $300,000 a year. Nolan said he’s receptive to the township joining up with Miamisburg in other ways, such as parks or police services.

“It’s effective, and you’re not duplicating service. If we’re going to manage our money right, we have to stop the duplication of service,” Nolan said.