Clinton County Council Backs Sheriff’s Resignation, Moves To Strip Fiscal Control Amid New Charges

Council Demands Change At Sheriff’s Office

Clinton County Council members unanimously endorsed a forceful written statement Tuesday calling for Sheriff Rich Kelly and Jail Matron Ashley Kelly to resign and backed a companion resolution to restrict their access to county financial systems following new felony charges filed in Marion County. The council also asked state lawmakers to strengthen Indiana law so counties have clearer tools to protect public funds and remove or suspend sheriffs in emergency situations.

Council President Alan Dunn opened the discussion by reading a prepared statement that described the situation as “extraordinary and unprecedented” in the county’s history. The statement cited recent fraud, theft and official misconduct charges tied to alleged misappropriation of Indiana State Police pension funds, along with a prior civil judgment of more than 329,000 dollars against the Kellys in a separate commissary case.

Statement Cites Dual Threat To County Finances

In the adopted statement, the council emphasized its fiduciary duty and warned that the Kellys’ continued control over sheriff’s office finances poses both an immediate and structural risk. The statement notes that a Marion County no‑contact order now limits the couple’s ability to enter the jail and sheriff’s office and interact with certain employees, complicating day‑to‑day operations.

Clinton County Council during meeting on Tuesday, April 14, 2026.

“The people of Clinton County deserve honesty, transparency, and accountability in government,” Dunn read from the council’s statement. “The extraordinary and unprecedented events of the last few days involving the arrest of Sheriff Rich Kelly and Matron Ashley Kelly…have resulted in fiscal and operational circumstances never before faced by the elected leadership of Clinton County.”

Council member Carol Price said she “fully” supported both the statement and the specific actions it requested. “We truly are facing serious and unprecedented circumstances for the financial stability of our county,” she said, adding that the recent arrests and prior financial concerns “represent a significant breach of public trust.”

Resolution Shifts Fiscal Management, Appeals To Statehouse

Immediately after voting 5–0 to adopt the statement, the council approved Resolution 2026‑02, which formalizes its position and spells out requested actions by other governing bodies. The resolution:

  • Urges that, to the extent allowed under Indiana law, the Kellys be restricted from the fiscal resources and financial management tools of the sheriff’s department.
  • Directs the temporary transfer of fiscal operational management of the jail and sheriff’s office to the Clinton County Auditor, with a request that commissioners take any steps necessary to implement that move.
  • Calls on the Indiana General Assembly to review and strengthen statutes governing sheriff’s departments, including options for temporary or permanent suspension or removal of sheriffs and matrons when public funds are at risk.

“For these reasons, I support this call for the immediate resignation of Sheriff Kelly and Matron Kelly,” Price said. “Should they choose not to resign, I also support pursuing all the available legal and statutory options to restrict their access to county financial systems and to ensure proper oversight during this interim period.”

Clinton County Courthouse Clock Tower Watercolor

Council member Jeff Chenoweth, who has served during most of the controversies surrounding the sheriff, was more blunt. He said for six years county leaders had been “zigging and zagging and trying to stay in front of everything that they (Sheriff Kelly and wife Ashley) have been doing and just fighting the commissioners and the council.” He added, “Their day is going to come… I’m glad that this is finally going to be over.”

Council member Mary King said she was “disappointed for the employees and the deputies of the county sheriff’s office” and for citizens who have watched the situation unfold. “This council has a fiduciary responsibility to ensure that the Sheriff’s Office is able to continue functioning through this time,” she said, endorsing both the statement and the resolution.

Chenoweth also urged residents to stay engaged. He encouraged taxpayers who believe the Kellys should leave office—or remain—to contact officials and “make some noise, make some phone calls, do what you can.”

Health Department Highlights Transparency, Manages State Funding Cuts

After the sheriff discussion, the council turned to new business from the Clinton County Health Department. Administrator Melissa Osler presented the department’s 2025 annual report, emphasizing what she called a more “holistic” and transparent look at how local, state and federal dollars are used.

Osler said the department kept total 2025 spending to about 67 percent of its approved budget, even as it absorbed a roughly 70 percent reduction in Health First Indiana funding that will continue through at least 2027. “We have managed…to navigate that,” she said, crediting “hard work and wise fiscal management” over the past decade and noting that, unlike many rural counties, Clinton County did not have to lay off health staff when the cuts took effect.

Osler highlighted 173,195 dollars in community health grants awarded to local partners for programs in chronic disease prevention, injury prevention, maternal and child health and school nursing. She also reported that all four of the county’s core Health First Indiana service measures—obesity prevention, better birth outcomes, expanded vaccination hours and immunizations regardless of insurance status—have reached “full completion” status with the state.

“I just want to thank you all for taking the time to allow us to present, to share publicly what the health department does and to show that transparency and integrity,” Osler told council members.

Osler also highlighted details about the upcoming “Heroes of Hope” event to be held Saturday May 2, 2026 from 10AM to Noon at the Clinton County Fairgrounds.  The free event includes health screenings, safety resources, diapers, hygiene kits, free haircuts, family photos, a kid zone and more.

Routine Business: Appropriations, EMS Staffing, Courthouse Work

In other action, the council:

  • Approved a slate of additional appropriations, including funds for a drainage project, a replacement pickup truck for the highway department and small reimbursements tied to snow removal and drain maintenance.
  • Authorized an EMS transfer to bolster part‑time and overtime lines amid continued short staffing, with leaders indicating they may revisit staffing levels if the trend continues.
  • Acknowledged receipt of March financial and budget status reports from the auditor, as required for State Board of Accounts review.

Commissioner Bert Weaver thanked the council “on behalf of the commissioners” for taking firm steps during what he called an “awkward, uneasy, difficult time” and updated the council on courthouse renovation work, saying demolition and preservation of historic features are generally on track even if the overall schedule remains uncertain.