According to the bid, the state could make $750,000 off the deal.
Some of the pardons are for those who've had their records expunged. Others served their sentences decades ago and haven't committed any crimes since.
The charges come two months after the former county highway superintendent was arrested for a similar scheme.
Most of the funding for public defense in Indiana comes from local governments.
Indiana scored poorly in all categories, including its pretrial detention rate.
The income tax increase would help fund additional positions at the county jail.
Some say there should be a higher burden for proof before police seize personal property suspected to be used in a crime.
The request comes after a report released earlier this year called Indiana's system underfunded and unconstitutional.
Last month, President Obama nominated Winfield Ong and Myra Selby to the federal bench.
The Indiana Prosecuting Attorneys Association wants to create a new crime: aggravated drug dealing.