V18, N28 Wednesday, March 20, 2013 Oz to Indiana: A Road Map showdown

On Tuesday, before the Indiana Association of Cit- In a twist few had foreseen, ies and Towns, the governor found a crowd of mayors and legislators, many of whom are against the tax cut. Pence a fledgling governor turns up the acknowledged that, saying “I know there is some disagree- heat on legislative Republicans ment within the organization” before he made his case: Tax relief for 4.4 million middle class Hoosiers, a benefit to 83% By BRIAN A. HOWEY of businesses. “I ask you from my heart, keep an open INDIANAPOLIS – Any Hoosier who crosses paths mind.” That night at the Marion County Republican Reagan with Gov. these days knows that the avenue of Dinner, WISH-TV reported that about half of those pres- the future is his 2012 campaign “Road Map.” ent applauded when Pence made his tax cut pitch. House From a policy standpoint, the ultimate destination is Pence’s 10% cut. Continued on page 3 Hershman pushes back By MAUREEN HAYDEN INDIANAPOLIS – If you’re outside the Indianapo- lis TV market, you may not have seen yet the Americans For Prosperity ad that demonizes the House Republicans for resisting “What should we do?” Republican Gov. Mike Pence’s tax cut plan. - Warsaw Mayor Joe Thallemer, But GOP Senate Tax and pressing legislators on a meth Fiscal Policy Committee Chairman Brandt Hershman has. And he’s not bill following a motel lab impressed. explosion in his city last weekend The mild-mannered, measured-worded Hershman de- scribes it as “disingenuous” in content HOWEY Politics Indiana Page 2 Weekly Briefing on Indiana Politics Wednesday, March 20, 2013

and “overheated” in rhetoric. lawmakers who remember that after The ad is part of a statewide Indiana built up a big budget surplus media campaign recently launched by in 1998, a series of subsequent prop- a national Tea Party organization with erty and income tax cuts led to a $1.3 www.HoweyPolitics.com ties to Pence and founded and funded billion deficit six years later, prompt- by the billionaire Koch brothers of ing what Hershman recalls as “painful . “It reminds me of the rhetoric and difficult” decisions about what Howey Politics that takes place in Washington, D.C.,” state services to slash. Indiana Hershman told me last week. “It’s And that those same view- is a non-partisan newsletter very aggressive in its message.” ers might be skeptical of a one-minute based in Indianapolis and The one-minute ad is a rip-off ad funded by an outside organization Nashville, Ind. It was founded of a campaign commercial that former that taps into the anxiety and anger of Gov. Mitch Daniels once ran. It starts taxpayers—emotions that Hershman in 1994 in Fort Wayne. with the muscular “Mutiny on the attributes largely to the dysfunctional It is published by Sea” music and flashes climate of Washington, WWWHowey Media, LLC of newspaper headlines D.C. 405 Massachusetts Ave, touting the state’s budget “It’s not a bad idea to Suite 300 surplus. have aggressive debate Then it abruptly on tax and budget is- Indianapolis, IN 46204 switches to ominous sues,” Hershman said. music and headlines that “As long the debate is Brian A. Howey, Publisher point to the GOP House civil and reasonable.” Mark Schoeff Jr., Washington budget plan – now in the The Americans for Jack E. Howey, editor Senate – that includes $1 Prosperity ad, meant billion more in spending to browbeat reluctant than Pence’s proposed Republican lawmakers, Subscriptions budget and excludes is running at the same $599 annually Pence’s plan to cut the state income time that Indiana’s Republican gover- 'Call Adrian France tax rate by 10 percent. nor is traveling the state, urging voters It ends with words flashing to browbeat their legislators into ac- 812.455.4070 or email on the screen: “Will Indiana grow cepting his plan. [email protected] the economy? Or grow government Hershman said “good pub- spending?” lic policy” needs to drive the debate Contact HPI Hershman (pictured), a fiscal among legislators, not fear that an www.howeypolitics.com conservative with high ratings from outside special interest group will pro-business and pro-tax reform come after them. (The fear is real: [email protected] groups, would like people to believe The Americans For Prosperity brought 'Howey’s Cabin: 812.988.6520 that he and his GOP colleagues in the down Republicans who dared to 'Howey’s cell: 317.506.0883 General Assembly have been working disagree with a similar tax cut plan 'Washington: 202-256-5822 for the first option and against the proposed by GOP Kansas Gov. Sam second. His major criticism of the ad is Brownback last year.) 'Business Office:812.455.4070 the role of the AFP “in misrepresent- “If you start allowing your de- ing the House Republican budget as a cisions or the process to be influenced © 2013, Howey Politics Indiana. billion in new spending,” he said. by fear of any special interest group, All rights reserved. Photocopy- The ad, he said, fails to it diminishes your effectiveness as a ing, Internet forwarding, fax- acknowledge that much of that spend- legislator,” Hershman said. “I’m not v ing or reproducing in any form, ing is the backfilling of prior cuts (to going to do that.” schools and other public services like whole or part, is a violation of road repair) that was due to the sharp Maureen Hayden covers the federal law without permission drop in state revenues brought on by Statehouse for the CNHI news- from the publisher. v the 2008 recession. papers in Indiana. She can be He’s hoping viewers of the ad reached at maureen.hayden@ will understand the reluctance of GOP indianamediagroup.com HOWEY Politics Indiana Page 3 Weekly Briefing on Indiana Politics Wednesday, March 20, 2013

tion in childhood poverty.” Pence, from page 1 Road Map Solutions was described to Political Fiber Speaker Brian C. Bosma and Pence “haven’t fought publicly as “Brownback’s policy organization.” But Kansas Demo- over the issue,” WISH reported, but Pence hinted at ten- crats see Road Map Solutions as an organization prepared sion between the two when he referred to ’s to take on and oust “moderate Republicans” in the Kansas “11th Commandment” that Republicans not fight among Senate, some of whom proved to be obstacles in Brown- themselves. back’s crowning policy achievement, an income tax cut. But in the “who’d a thunk it” Senate Minority Leader Anthony Hensley, category, this road map has now pitted D-Topeka, told Political Fiber, “The plan is the fledgling governor in a showdown for him (Kensinger) to basically run those with Republicans in the Indiana General conservative Senate campaigns.” Assembly, fueled by out-of-state money In 2011, re- from the Koch Brothers and their Ameri- ported: “The departure of Gov. Sam Brown- cans For Prosperity . back’s chief of staff David Kensinger during And there is a “man behind the a bruising legislative session has raised curtain,” a political “Machiavelli” from Oz, questions throughout the Kansas political who didn’t arrive via a hot air balloon world. Last week, Brownback, a Republican, from Omaha. Instead, the key character announced that his longtime assistant and in this Indiana story with a vital link from strategist left to take on two jobs: Work on Kansas is a political operative named Republican U.S. Rep. Mike Pence’s cam- David Kensinger. paign for governor of Indiana and serve as According to the website Political chairman of Road Map Solutions.” Fiber, Kensinger has a long history with On Election Night 2008, Kansas Kansas Gov. , like Pence U.S. Sen. declared, “The true an evangelical conservative Christian Machiavelli of Kansas, David Kensinger, our who returned to his state after more pit bull without lipstick, whose expertise in than a decade in Congress. Kensinger David Kensinger has been de- this new and very different world of political was Brownback’s campaign manager in scribed by Kansas U.S. Sen. Pat campaigns is unrivaled. David mounted the his 1998 reelection bid, became execu- Roberts as the “true Machiavelli parapets, waved the flag, fired the first and tive director of GOPAC Inc., described of Kansas.” He is also a campaign last shots and led our troops to victory.” as “’s premier training ground consultant and “friend” to Gov. Mike Kensinger’s client – then candidate for Republican activists and Pence. Pence – adopted the “Road Map” candidates,” from 1999 to 2001 theme and unveiled his top before he returned as Brown- campaign priority in July 2012, back’s Senate office chief of the Pence 10% income tax cut. staff. And it happened without the Kensinger & Associates imprimatur of Bosma or Senate was formed in 2004 before he President David Long. Pence created the firm Road Map So- was elected in a surprisingly lutions, a not-for-profit corpora- close race last November over tion. As chairman of Road Map Democrat John Gregg, winning Solutions, Kensinger said in a by just 2.7% with 49% of the prepared statement, “In this vote in a race most thought role, I will be free to advocate would be a blowout. There were in the public square for poli- two key reasons for Pence’s cies which will fulfill the goals tight victory. He refused to described in Gov. Brownback’s wage a negative campaign, and Road Map for Kansas: Private he was a victim of the Rich- sector job growth, increased ard Mourdock ticket drag. The personal income, improved Mourdock component is part of fourth grade reading scores, a broader Koch Brothers and expanded opportunities for col- AFP strategy: Remove the GOP lege age Kansans and a reduc- “moderates” such as Sen. Dick HOWEY Politics Indiana Page 4 Weekly Briefing on Indiana Politics Wednesday, March 20, 2013

Lugar, and replace them with ideological Political Fiber reported: The result anti-tax, anti-government Republicans like of the tax cuts is an estimated $327 Mourdock. million budget shortfall between Kensinger also has franchised spending commitments and state his “Road Map” from Kansas to Indiana. revenue. Conservatives insist the The 2010 “Road Map for Kansas” and tax cuts will stimulate long-term the 2012 “Road Map for Indiana” both economic growth and bring in more included increasing personal income, pri- future revenues, but critics aren’t so vate sector employment, improving grade sure. school reading levels, improving the qual- reported that ity of the workforce, and decreasing the moderate GOP senators were number of those who live in poverty. targeted even before they joined At any Pence Lincoln Day speech, Democrats in resisting Brownback’s at any Pence press conference, in his successful push for income tax State of the State address, the Road cuts. The state will decrease its Map – actually a staple in Daniels’ self- individual income tax rates for 2013 scripted 2004 breakthrough gubernatorial and exempt the owners of 191,000 campaign – is a constant point the new Kansas Gov. Sam Brownback pushes his businesses from all income taxes in governor makes. “Road Map” during his 2010 gubernatorial hopes of stimulating the economy, A high ranking Pence adminis- campaign. but critics believe the changes will tration official described Kensinger as favor the highest earners. Also, with “our campaign consultant” and that he “continues to be a legislative researchers projecting that budget shortfalls will friend.” emerge by mid-2014, critics fear that big cuts in education What is troubling for Bosma and Long is the and social services funding will result. prospect of a 2016 Pence presidential bid, one that would Some moderate Republicans saw the Kansas pri- also be funded with the help of the Koch Brothers. The mary as a referendum on what they called a radical conser- one policy peg this potential campaign needs is the Pence vative agenda, and Kansas Democratic Party officials said income tax cut. hundreds of their party’s members were concerned enough Bosma, in an op-ed article in Sunday’s Indianapolis to reregister temporarily as Republicans to help moderate Star, explained, “When Republicans regained the House incumbents. Conservatives defeated Sens. Pete Brungardt majority, our first order of business was to fill that hole of Salina, Bob Marshall of Fort Scott, Tim Owens of Over- through cuts, and not the tax increase proposed by Gov. land Park, Roger Reitz of Manhattan, of Daniels. It was painful and difficult but sustainable in the Wichita, of Stafford and Dwayne Umbarger long run because it avoided the wild shifts experienced in of Thayer. other states. I was uncomfortable being on the opposite Since then, the courts have ruled that Kansas must side of Gov. Daniels’ 2005 tax increase proposal and I am restore $400 million in cuts made to education, part of the not very comfortable being on the opposite side of Gov. fallout of the Brownback tax cut. In a PPP Poll published Pence on the income tax cut proposed in 2013. But com- earlier this year, Brownback’s popularity had plummeted fort isn’t the point; long-term vision is. Gov. Pence points to 37% approve and 52% disapprove, endangering his to Kansas as a model for his tax cut proposal, and I would planned 2014 reelection. encourage you to look online at the fiscal instability result- High ranking Pence administration sources tell HPI ing from Gov. Sam Brownback’s tax cut.” that comparing Indiana to Kansas is an apples and or- anges scenario. They say that the “comparison falls apart” What’s the matter with Kansas? because Gov. Brownback didn’t get his entire tax package What we find in Brownback’s Land of Oz is a fester- through. ing policy and political mess. Brownback and Republicans in “They killed part of his plan and now they charac- the state legislature passed an overhaul of the Kansas tax terize it as a self-fulfilling prophesy. When you look at the code, which significantly reduced income taxes, particularly details, that is pretty clear. Brownback is doing Phase II this on those in the top income bracket and on small business- session,” the source said, adding that at least eight states es. The Kansas City Star described it as a “grand gamble.” are in the process of cutting income tax rates “My faith is in the people of Kansas, not its govern- OMB Director Chris Atkins, who developed policy ment,” Brownback said at the signing. for the Pence campaign in 2011-12, told HPI in a text mes- sage on Tuesday that he has studied the Kansas experi- HOWEY Politics Indiana Page 5 Weekly Briefing on Indiana Politics Wednesday, March 20, 2013

ence. “What happened was that Brownback proposed a big Bosma and Pence have, but the speaker dropped another tax cut, partially paid for by some base broadening, but it little bomblet, saying the income tax cut didn’t come up. “I was still a net tax cut. (The) legislature took his pay fors think on purpose,” Bosma said. out and then dared him to sign it. He did. And this year GOP sources tell HPI that Pence and Bosma com- they are putting the pay fors back with even more long municate regularly – at least weekly – and that at times the term tax relief. They are not turning their backs on tax speaker had encouraged the governor to move away from relief, just making the plan look more like it originally did.” the income tax cut as his top legislative priority and opt for Atkins then made his case for the Indiana tax cut. other legislation that would, for example, help close the “We have gone from one of the lowest tax burden states to skills gap in the labor market while gaining bipartisan sup- (the) top 25,” he said in an email this morning. “Taxes are a port. proven factor in economic development, along with roads, High-ranking Pence administration sources tell HPI quality of workforce, and stability of regulatory climate. that administration agency heads “are meeting with com- And many other states are moving to cut income taxes this mittee chairs every week,” shooting down the notion that year. The governor wants to make progress on all the key was portrayed in the Indianapolis Star last weekend that factors of economic development including taxes. And we the administration has been “silent” on key issues. have an historic opportunity to do that given our $1.2 bil- Rank and file Republicans like sophomore State lion structural budget surplus.” Rep. Jud McMillin and freshman Cindy Ziemke have ex- And in a phone call this morning, Atkins added, “In pressed doubts about the tax cut. “If it’s $62 a year, most terms of continuing the policy of the last eight years, this people are saying they’d rather we keep it and put it on the makes sense. If you look at the size of the surpuse - $1.2 roads,” Ziemke said at a forum in Oldenburg. “If you just billion - we’re wanting to cut $500 million. That leaves $700 ask people if they want a tax cut, they say yes. If you de- million to invest.” lineate what it is, their response is different,” McMillin said in a Richmond Palladium-Item report. Hoosier GOP fratricide? But it’s the McMillins and Ziemkes who are now be- In November at an Indiana Chamber of Com- ing targeted by Americans For Prosperity, as well as Senate merce legislative preview, both Bosma and Long expressed Republicans, when the budget – emerging from the House skepticism about the Pence tax cut. “We’ve already done without the Pence tax cut – will be up for debate and pas- tax reform,” said Long. “Those sage over the next three weeks. two areas will put a damper” on Some believe this could Pence’s proposed income tax be the opening salvo of a GOP reduction. civil war that has already played “David is setting the right out in Kansas. The $102,000 ad tone,” said Bosma, who added campaign bought on Indianapolis that the key word will be “cau- TV stations is aimed at swaying tion” as Indiana faces a potential the votes of the Republicans who decline in gaming revenues while are on a path to deny the presi- the economy has an uncertain fu- dentially ambitious Pence with his ture. “We’ve cut back where we need to. And we absolutely top legislative priority. will live within our means. That’s the key. The fiscal fog is Chase Downham heads the Indiana Chapter of thick.” Americans For Prosperity. His wife, Gloria Downham, is the Bosma suggested an income tax cut could throw executive director of government efficiency and financial the Indiana tax equation “further out of balance.” He added planning at the state’s budget office, headed by Atkins. that any new tax policy must be “sustainable and conser- In announcing the ad campaign at a Statehouse vative.” Both Long and Bosma suggested there would be press conference, which no Republican legislators attended, more support for moving up the timetable on the inheri- AFP President Tim Phillips explained, “I am proud to visit tance tax phase-out. the Indiana Statehouse today to support Governor Pence’s Also reported in the Nov. 27 edition of Howey Poli- proposed tax cut, an important next step in making Indiana tics Indiana was this nugget: HPI asked the two legislative the beacon of economic freedom in the Midwest. Gover- leaders if they were in Pence’s loop when he announced nor Pence’s tax cut will build on Indiana’s leadership in the income tax cut last July. The body language from the the areas of fiscal restraint, lower taxes, school choice for two was tense and the words, terse. Bosma said he had Hoosier families, and right-to-work for Indiana’s workers. asked the Pence campaign to keep him apprised. And he We hope both parties in the Indiana legislature will sup- wasn’t. Pence and Long have yet to sit down and talk. port this important measure and continue down the path of HOWEY Politics Indiana Page 6 Weekly Briefing on Indiana Politics Wednesday, March 20, 2013

economic freedom.” back experience. They fear a scenario where “unsustain- Downham added, “Our activists are ready to make able” tax cuts are passed in 2013, Pence opts for a presi- phone calls, knock on doors and attend town halls to fur- dential bid in 2016 instead of a reelection bid, and if the ther advance the message that Hoosiers have a choice – a economy tanks, the $2 billion surplus becomes a deficit, choice between growing the economy or growing govern- requiring tax increases for the bailout. Newly released un- ment spending. As Hoosiers, we cannot miss this opportu- employment rates have seen Indiana’s spike from 8.2% to nity.” 8.6%. And while Bosma and Long have cautioned their Bosma told reporters after the first half of the ses- caucuses and constituents about the tax cut, fearing it sion that “we’re not having a fight, we’re having a discus- could lead to future budget deficits, beneath the surface sion.” Bosma added that he has had a “long conversation” they are seething. “Some people in the caucus feel be- with the governor and added, “Disagreement doesn’t mean trayed,” one Republican insider told HPI. “It’s just the disloyalty in either direction.” nature of that ad.” These Republicans view Pence as com- ing from Washington, where budgets are not balanced and The political blade bipartisan problem-solving is rare. Through it all, Pence has steadily adhered to the The AFP also produced a “halftime scorecard” that tax cut, a risky policy and political move for a congressman had Republicans shaking their heads and scoffing in ridi- who in his 12 years on Capitol Hill introduced no success- cule. It rated Democrat Reps. like Pat Bauer, Vernon Smith, ful bills, though his staff points out that Pence routinely Scott Pelath and Terry Goodin ahead of venerable conser- influenced legislation. vatives like Reps. Eric Turner, Jerry Torr, Bill Friend and Ron In a Sunday op-ed piece opposite Bosma’s in the Bacon. Indianapolis Star, Pence wrote, “With the state reporting The AFP ad is set, ironically, to “Mutiny on the the largest budget surplus in history, people should be able Sea” – music the Daniels reelection bid used in 2008 – and to keep more of what they earn. As governor, I am just as it features a series of headlines touting the Daniels era concerned about the family budget of every Hoosier house- budget surpluses, followed by other headlines which detail hold as I am about the state government’s budget. When it how the Republican budget doesn’t include the tax cut and comes to excess government revenues, that it spends $1 billion more than the Pence administration it’s not a question of whether the wants. money will be spent, it’s who is best- It prompted Bosma to take an unprecedented step suited to spend it. I will always believe in sending a letter to the 92 Republican county chairmen. that the people of Indiana will spend “I apologize for including you in this ‘family discussion,’” their own hard-earned dollars more Bosma said in a three-page Feb. 19 letter. “While Senator productively than any agency of govern- (David) Long and I encouraged the governor to keep our ment. Lowering the income tax is the discussions in his office while we reviewed options and best way to help the most people. While solutions to any disagreement (as we successfully did on corporate tax relief would benefit 17 percent of our busi- many occasions with Governor Daniels), our members are nesses and estate tax relief would benefit 5,000 estates, 83 now faced with public discussions at Lincoln Day dinners percent of businesses and 4.4 million middle-class taxpay- and with our party leadership, and I felt it best that you ers would benefit under my tax plan.” have all the facts to help us move forward.” In a New York City American Spectator dinner for Bosma then built a case against the income tax Pence in 2010, the Huffington Post reported: The most cut. The Tax Foundation rates Indiana’s income tax as the prominent among them was the controversial billionaire best in the nation among the 41 states that have income and Tea Party backer (pictured), who was taxes. He urged an expedited elimination of the inheritance seated at Pence’s right hand for dinner, a position equal tax. Bosma told the chairs that a “member of our political to his stature. Pence’s choice of aides for the evening also staff” would be contacting them. He gave the chairmen his suggests the event wasn’t purely dedicated to intellectual cell phone number and urged them to keep in touch. pursuits: The lawmaker arrived with fundraiser Lisa Spies, There had been speculation that while Bosma, director of his political action committee, and his chief Long and Senate Appropriations Chairman Luke Kenley and counsel, Josh Pitcock. He also brought GOP pollster Kel- Senate Budget Chairman Brandt Hershman might be ob- lyanne Conway, to whom his campaign paid $23,000 last stacles, the “true believers” in both the House and Senate year for market research. would rally around their newly elected conservative gover- Now Pence finds himself in a political battle with his nor. own party, themed by a Machiavelli from Oz, and funded by What is unnerving these Republicans is the Brown- the Koch Brothers. v HOWEY Politics Indiana Page 7 Weekly Briefing on Indiana Politics Wednesday, March 20, 2013

heard that, they knew he cared and were willing to listen Republicans begin an to his policies on education, jobs, spending, etc. Because his first sentence struck a chord, Hispanic Americans were willing to listen to his second sentence. We heard this from unprecedented level other demographic groups as well. President Bush got 44 percent of the Hispanic vote, a modern-day record for of soul searching a Republican presidential candidate. n the last election, Governor Romney received just 27 percent of the Hispanic By BRIAN A. HOWEY vote. Other minority communities, including Asian and INDIANAPOLIS – Indiana Republican Chairman Pacific Islander Americans, also view the Party as unwel- Eric Holcomb signed off on a scathing self-appraisal by the coming. President Bush got 44 percent of the Asian vote in Republican National Committee. The 100-page “Growth and 2004; our presidential nominee received only 26 percent in Opportunity” book was released 2012.” on Monday and assessed why reported in today’s edi- the party has lost four out of the tions: Republican opposition to legalizing the status of last six presidential elections and millions of illegal immigrants is crumbling in the nation’s is losing young and minority vot- capital as leading lawmakers in the party scramble to halt ers. eroding support among Hispanic voters — a shift that is It was an unprecedented providing strong momentum for an overhaul of immigration self-appraisal by a party that was laws. stunned when it lost to President Holcomb, recently reelected to a second term at Obama last November with the the behest of Gov. Mike Pence, observed, “It is important jobless rate hovering around to constantly reassess, reevaluate and improve in order to 8%. be successful.” In an interview Tuesday with HPI, Holcomb “It has reached the point explained, “It proves we are serious about righting the where in the past six presiden- ship. We need a course correction, but it doesn’t mean we tial elections, four have gone to the Democratic nominee, abandon our principals.” at an average yield of 327 electoral votes to 211 for the Holcomb added, “We know that most Americans - Republican,” the report said. “During the preceding two we may disagree on many different issues - but we know decades, from 1968 to 1988, Republicans won five out of there is one unifying issue and that’s the economy and six elections, averaging 417 electoral votes to Democrats’ jobs. If we’re AWOL to the jobs and economy, if we’re 113. Public perception of the Party is at record lows. Young not relating to the jobs and economy and what it means voters are increasingly rolling their eyes at what the Party to them, then we’re not going to get a chance to go in a represents, and many minorities wrongly think that Repub- defend these positions. We just elected a president with licans do not like them or want them in the country. When record high unemployment rate. Why? Because we were someone rolls their eyes at us, they are not likely to open not sufficient on the issue that united everyone.” their ears to us.” Holcomb continued, “What motivates me was On the topic of minorities, the report noted, there were no constraints on the constructive criticism. this “America is changing demographically, and unless Repub- exercise was meant to bring out as many ideas as possible. licans are able to grow our appeal the way GOP governors There was no stifling because the topics were uncomfort- have done, the changes tilt the playing field even more in able to talk about. There was a move to get people to the Democratic direction. In 1980, exit polls tell us that the contribute what’s on their minds.” electorate was 88 percent white. In 2012, it was 72 percent Republican National Chairman Reince Priebus white. Hispanics made up 7 percent of the electorate in came to Indianapolis on March 5 and met with Gov. Mike 2000, 8 percent in 2004, 9 percent in 2008 and 10 percent Pence, Holcomb and a couple dozen other Republicans. in 2012. According to the Pew Hispanic Center, in 2050, “There’s no one reason we lost,” Priebus said when he whites will be 47 percent of the country while Hispanics unveiled the report. “Our message was weak, our ground will grow to 29 percent and Asians to 9 percent. If we want game was insufficient, we weren’t inclusive, we were be- ethnic minority voters to support Republicans, we have to hind in both data and digital, and our primary and debate engage them and show our sincerity. process needed improvement.” President George W. Bush used to say, “Family The GOP report added, “At our core, Republicans values don’t stop at the Rio Grande and a hungry have comfortably remained the Party of Reagan without mother is going to try to feed her child.’” When Hispanics figuring out what comes next. Ronald Reagan is a Republi- HOWEY Politics Indiana Page 8 Weekly Briefing on Indiana Politics Wednesday, March 20, 2013

can hero and role model who the Republican and Democratic was first elected 33 years parties “are a spectrum” with a ago - meaning no one under continual “tug of war” between the age of 51 today was old the center and the two ends of the enough to vote for Reagan spectrum. “That will continue and when he first ran for Presi- that’s OK,” Holcomb said. “There dent. Our party knows how will always be activists who want to appeal to older voters, but folks to agree with them 100% of we have lost our way with the time and there are those who younger ones. We sound are more forgiving. That’s why it’s increasingly out of touch.” important for the national party to The report quoted Republican Chairman Eric Holcomb with 2012 presidential have a clearly understood national Mike Gerson (a former aide hopeful Jon Huntsman and Republican HQ in Indianapolis platform. And have a good game to U.S. Sen. Dan Coats) and in 2011. (HPI Photo by Brian A. Howey) plan that folks can rally around. We Pete Wehner wrote recently, had a plan and we had folks buy “It is no wonder that Repub- into that plan. They didn’t agree lican policies can seem stale; they are very nearly identi- with it all. In the absence of the plan, people wander off.” cal to those offered up by the Party more than 30 years Asked if Hoosier Republicans are “soul searching” ago. For Republicans to design an agenda that applies to in the wake of the report, he responded, “I think so. I think the conditions of 1980 is as if Ronald Reagan designed his everyone is reassured that there was follow through and agenda for conditions that existed in the Truman years.” that this loss was not swept under the carpet. We constant- The report added, “The Republican Party needs ly need to reassess and figure out how to connect.” to stop talking to itself. We have become expert in how to Howard County Republican Chairman Craig provide ideological reinforcement to like-minded people, Dunn read the report and told HPI, “I agree with the vast but devastatingly we have lost the ability to be persuasive majority of the report. As Reince Priebus stated when he with, or welcoming to, those who do not agree with us on visited Indianapolis, ‘Politics is the art of addition.’ We every issue. Instead of driving around in circles on an ideo- must grow the Party. The statistics do not lie and they are logical cul-de-sac, we need a party whose brand of conser- ugly and challenging. Our great challenge will be expand- vatism invites and inspires new people to visit us. We need ing our Party while at the same time not losing existing to remain America’s conservative alternative to big-govern- segments. We must decide what are our core beliefs and ment, redistribution-to-extremes liberalism, while building adhere to them. We have waged war against ourselves on a route into our party that a non-traditional Republican will many issues. We have many people in our Party who would want to travel. Our standard should not be universal purity; rather lose elections than compromise on anything. Unless, it should be a more welcoming conservatism.” we view the world through a fresh set of glasses, we risk Indiana recently sparred over the “purity” permanently becoming a minority party on a national basis. question, with the Indiana Republican Central Committee I predict that the mere issuance of this report will bring a electing John Hammond III to the national committee over firestorm down on the RNC. This is the year to thoroughly Terre Haute attorney Jim Bopp Jr., who had proposed a debate these issues and plan for the future.” purity test for the RNC. In the Indiana General Assembly, a vote on a Zody ascends to Democratic chair constitutional amendment that would prevent gay marriage John Zody was elected chairman of the Indiana was shelved this session, ostensibly while awaiting a U.S. Democratic Party on Saturday. Zody replaces Dan Parker, Supreme Court ruling on the matter. who held the post for around eight years, one of the lon- But a Washington Post/ABC News poll released gest tenures at the chair in modern times. today show a record 58% favor same sex marriage. An “I’m excited to lead the Indiana Democratic Party, October 2012 Howey/DePauw Indiana Battleground Poll build on our past successes and continue to grow support found that 48% favored the constitutional amendment and for our candidates and campaigns,” he said. “I look forward 45% opposed. On such policy issues, Holcomb said, “They to working with this new team and our supporters across will be hashed out in the statehouses and in Congress by the state to make that happen. After all, our party is only elected officials. What I tend to be most focused on is as strong as those who are part of it.” equipping our candidates and officeholders with the infor- Zody was unavailable for an interview for this story. mation they need regardless of the topic.” v On the “purity” scenario, Holcomb noted that both HOWEY Politics Indiana Page 9 Weekly Briefing on Indiana Politics Wednesday, March 20, 2013

blew his first interview. That should have gotten the politi- Clowning around with cal hurricane flags flying, but gave Mour- dock a mulligan, invited him back in and he handled the second chance well enough that they decided to chip in $4 Chocola and Mourdock million. By BRIAN A. HOWEY Because of Chocola and all the other Super PACS, NASHVILLE, Ind. – Chris Chocola is not a clown. there was $51 million - FIFTY-ONE MILLION DOLLARS - He doesn’t wear a bulbous red nose or a bright raised and spent on this one Senate seat. And some $32 orange bozo wig. His shoes aren’t two feet long. He doesn’t million of that money didn’t come from Hoosier voters, but drive a little yellow taxi filled with other clowns, who from rich people in New York City - NEW YORK CITY! - and tumble out at the first sounding of a Chinese fire drill. Washington, Texas, and beyond. And here’s the real Chocola is a former Indiana Re- kicker: Almost none of that money went to Indiana busi- publican congressman who, when in nesses. Club For Growth and the other Super PACSs spent office, collected earmarks for his district, its money on cable TV broadcasters/Fox News and Wash- voted to go to war and the ington-based TV, direct mail, and email production firms. prescription drug plan. The wars in These Super PACs don’t care about Indiana busi- and Afghanistan along with Medicare - nessmen and women or their firms. They just saw a chance the biggest entitlement expansion since of buying a U.S. Senate seat and they treated us as rubes. LBJ’s Great Society - helped produce They don’t know this state or its people and they don’t America’s first trillion budget deficit care. before ever became You would think that after the Mourdock fiasco president. He is also president of Club that resulted in “U.S. Sen Joe Donnelly, D-Ind.,” Chocola For Growth and it is in this latter capacity that Chocola is and Club For Growth would have been embarrassed, would acting . . . like a clown. have sent letters of apology to Indiana Republicans for Since Chocola became Club For Growth’s chief, he staging the sacrifice of a Senate seat. has become a born again deficit hawk. He is now against But no. earmarks and wasteful spending and is seeking Republicans Chocola and Club For Growth are back. They have to punish for things he did himself. shamelessly targeted U.S. Rep. Larry Bucshon, a second Chocola is also a terrible judge of temperament. term Republican from Newburgh, for defeat in the 2014. Club For Growth - an organiza- They’ve set up the www. tion of rich, Republican white primarymy congressman. guys - decided to target U.S. Sen. com website to list Bucshon’s Dick Lugar for defeat sometime in transgressions. 2010. They consigned Lugar, who And the sins of Bucshon? had a Republican voting record His debt ceiling vote (he approaching the 90th percentile wisely decided against risk- and who had received 7.5 million ing a U.S. credit downgrade), votes - a Hoosier record - over another to bail out the his 36 year career as a “RINO.” Highway Trust Fund and a Chocola and his merry band of vote for blocking an ethanol bundlers spent close to $4 million backing Indiana Trea- blender pump. They claim that surer Richard Mourdock, who defeated Lugar in the Repub- Bucshon, a vociferous critic of Obamacare, voted a budget lican primary. extension that funded the . And we all know what happened next. Mour- “We’ve been planning this for awhile but we’ve dock took that Senate nomination, started shooting his really wanted to release it in (context with) our scorecard mouth off, disappeared from the campaign trail for a couple because it really kind of drives who qualifies for the list,” of months because he needed adult supervision, and then Chocola said. “We came up with this idea and started made what was the epic blunder of the television age of developing the website and everything long before (Karl) Indiana politics. His “God intends” rape remark at the New Rove started developing his Victory Project.” Albany U.S. Senate debate with Joe Donnelly was a fiasco And who has a home in Darmstadt deep inside that gift wrapped a reliable GOP seat for the Democrats. the 8th CD? Richard Mourdock! When Mourdock first met with Club For Growth’s If he takes the bait, Mourdock will have a chance PAC, he was unprepared, became testy and essentially to lose his fifth Congressional race (he’s already waged three unsuccessful races in the 8th CD). As one Republican HOWEY Politics Indiana Page 10 Weekly Briefing on Indiana Politics Wednesday, March 20, 2013

noted after the treasurer told Vanderburgh County Republi- percent margin in his last election. He has confidence his cans that he was thinking of a comeback and he needed to constituents in Indiana will continue to assess his record of have his voice heard, “Mourdock is a recovering campaign- consistently fighting to cut spending, keep taxes low, bring er who has fallen off the wagon.” good pay jobs to Hoosiers, and reform healthcare and not We are now witnessing Mourdock traveling the rely on a D.C. based organization to assess it for them.” Lincoln Day Dinner circuit. No, Chris Chocola and Richard Mourdock are not Bucshon spokesman Nick McGee responded to the clowns, or at least they are not dressed as such. bullseye on the back of his boss, saying, “Club For Growth But if you see either one of them on the rubber is a Washington, D.C. based organization that certainly has chicken circuit, and they reach out to accept your check a right to their opinion. Dr. Bucshon has a strong conserva- and shake your hand, you might check and see if there’s a tive voting record and was successfully reelected by a 10 buzzer under the bird. v

fund-raising – not all Lake County Republicans have em- Lake County GOP now braced him over the years. The late John Curley, when he was county GOP chairman, had a disdain for Dumezich because of the large powered by Dumezich amounts of money he raised locally and sent downstate. By RICH JAMES Curley’s point was that Lake County Republicans struggled MERRILLVILLE — If it wasn’t clear earlier, it is now. to build a competitive party largely because they couldn’t Former state Rep. Dan Dumezich, a Schererville Republi- compete with Democrats financially. can, engineered the election of Dan Dernulc as chairman of Dernulc’s appointment of Dana to the Election the Lake County Republican precinct Board raises Dan’s visibility tremendously. It also is like organization. of the closet politically. That became evident over With Dumezich becoming much more visible, the the weekend when it was reported question is whether he will take an active role in raising that Dernulc had named William money for the local organization. Fine and Dumezich’s wife, Dana, to I suspect that will depend in part on the direction the Lake County election board. Dernulc wants to take the party. Dernulc thanked Katz and The two replace Allan Katz and Kim Krull for their service and said, “They were good people, Krull. but I want to move in a new direction.” Krull decided not to seek Maybe at a later date, Dernulc will expand about re-election as chairman and sup- that “new direction.” ported Katz. Krull would have been It is hard for two members of an Election Board to Katz’s vice had he won. establish a new direction in that their duties and powers Being a member of the election are somewhat limited. board provides some clout and means easy access to elec- I guess that simply is the easy way of dumping tion materials. Krull and Katz. It also means a nice chunk of change – somewhere I guess it also is how Dernulc caters to Dan Du- around $15,000 a year – for doing little work or spending mezich’s wishes. little time. Although his wife sits on the Election Board, When she was chairwoman, Krull had named her- Dan will be directing the action. And having a piece of the self to the board, which is somewhat unusual. county Election Board, while sitting on the State Election Fine, by the way, lost a bid for state representative Commission, is a tremendous amount of power. last year. He is an attorney. Dan wouldn’t have been allowed to sit on both Dumezich, who serves on the State Election boards. But he figured out how to do it without creating a Commission, has been a behind-the-scenes force in local conflict.v Republican politics for years. He also won the appointment to the State Election Rich James has been writing about state and local Commission largely because he raises tons of money for government and politics for more than 30 years. He the state Republican organization. is a columnist for The Times of Northwest Indiana. While Dumezich is good at what he does – largely HOWEY Politics Indiana Page 11 Weekly Briefing on Indiana Politics Wednesday, March 20, 2013

at all levels,” Thallemer said. “The cost of these crimes Mayors press for solutions includes big dollars spent for toxic cleanup, medical care, investigation, prosecution, incarceration, rehabilitation, family social services, etc. The real cost of these crimes, as methamphetamine however, is the human toll on the victim, their families and our community.” labs engulf their cities “What should we do?” the mayor asked at the Indi- ana statehouse. By BRIAN A. HOWEY Just minutes before, Gov. Mike Pence had lauded INDIANAPOLIS — Warsaw Mayor Joe Thallemer local officials who presented the first line of service to 70% held up a box of Sudefed in the north atrium of the State- of the state’s population that live in cities. “When I meet house Tuesday, his head bowed, and he related what hap- someone in local government, I feel very humble,” Pence pened in his city last weekend. said, adding that his door is open. That’s when a methamphetamine lab exploded As fellow mayors attending the Indiana Association at a Days Inn motel on Saturday, injur- of Cities and Towns event at the Statehouse and legislators ing a 36-year-old man who, Thallemer milled about, Thallemer explained, “Unless you choke off explained, had a lengthy meth-related the supply of Sudafed, it will only get worse. Something rap sheet. The blast was strong enough has to be done.” to “blow the toilet off the floor” while He noted that SB496 restricts the annual over- displacing the ceiling by four inches. A the-counter purchase of Sudafed to “85 boxes a year.” He 22-year-old bystander was also injured added, “While that’s a step in the right direction, it doesn’t when he attempted to put out the ensu- do what needs to be done.” ing blaze. Evansville Mayor Lloyd Winnecke said there have By the time Warsaw police located Brad Luna, his been 111 meth lab busts in his city and in Vanderburgh clothes and skin were smoldering and his hair, the mayor County in the past year. He noted that State Rep. Ron said, had been burned down to his scalp. “We had to send Bacon had pushed for a four-month supply, and not the the addict to a Fort Wayne hospital in a helicopter where eight-month supply in the current legislation. “My hope is he’ll be for a long time,” Thallemer said. “Who pays? The for a four-month supply,” Winnecke said. motel owner will pay. The hospital will pay.” State Rep. Re- The story, Thallemer becca Kubacki, noted became “just another R-Syracuse, remem- story buried on page 5 in the Fort bered former Gov. Wayne newspaper.” Mitch Daniels calling The new trend in smaller for a meth-free Indiana cities is for meth labs Indiana. “We have to operate in hotels. The crime made inroads,” she spree runs a course from homes said, noting that and garages, to vehicles, shop- Indiana ranks third ping carts and hotels, similar in the nation in meth to how the crack cocaine crisis production. “But we in places like Fort Wayne went don’t make a differ- through phases, with hundreds ence until we make of crack houses popping up, then Sudafed a prescrip- crime sprees such as burglaries, tion drug.” turf wars and drive-by shootings. She noted that po- Last November, Thalle- lice have made meth mer observed the meth produc- busts where chil- tion moving into motels and he dren roam around wrote hoteliers asking them to be the lab in diapers. diligent in efforts to prevent meth “What are we doing manufacturing, according to a Warsaw Mayor Joe Thallemer holds up a box of over-the-counter for children in our local Warsaw . “The battle to Sudafed and pleaded with legislators and Gov. Pence to help cities community,” Kubacki end this scourge must be fought combat the methamphetamine crisis. (HPI Photo by Brian A. Howey) HOWEY Politics Indiana Page 12 Weekly Briefing on Indiana Politics Wednesday, March 20, 2013

asked. today passed a bill 42-7 that would require restitution from In the next six weeks, these answers should be those who kill or harm police dogs (Indianapolis Star). The forthcoming from 150 legislators and Gov. Pence. bill would require a court to order restitution of a person convicted of harming or killing a police dog or interfering KENLEY WON’T SPONSOR MASS TRANSIT BILL: with the actions of a law enforcement officer while the ani- Already skeptical of a mass-transit plan for the Indianapolis mal is assisting. Police dogs can cost more than $8,000. metro area, influential Sen. Luke Kenley has dropped his The legislation comes after several police dogs were killed sponsorship of a related bill that’s due for its first Senate or injured last year, including two killed in Anderson. The hearing today (Indianapolis Business Journal). Kenley, R- bill passed the Indiana House by an overwhelming 97-0. Noblesville, said he decided it was inappropriate to be listed as a sponsor without giving the bill his unqualified support. SPECIAL COURTS BILL ADVANCES: Legislation au- “I’ve never been too persuaded by the need for this,” he thored by State Sen. Brent Steele (R-Bedford) to promote said Tuesday morning. House Bill 1011 would allow Marion rehabilitation in the state’s justice system by expanding and surrounding counties to hold an advisory referendum problem solving courts passed the Indiana Senate today by on whether to raise local income taxes to help pay for a a 49-0 vote. Steele said problem solving courts are courts new transit system. If the bill passes this year, Marion and created to assist individuals with special needs or unique Hamilton counties could put the question on ballots in circumstances that may not be adequately addressed in the 2014 general election. The Senate’s local government a traditional court setting, such as mental illness or drug committee is scheduled to hear the bill at 1:30 p.m. today. addiction. House Bill 1016 would expand the circumstances The debate is to center on “policy issues only,” according to under which a person can participate in a problem solving a note on the committee calendar, adding, “Tax and fiscal court and allow these courts to provide rehabilitative ser- issues to be discussed in another committee if bill passed.” vices to individuals. “Problem solving courts are designed Ron Gifford, executive director of Indy Connect Now, the to not only seek justice, but also to address the reasons group promoting the transit plan, declined to comment on behind why these crimes are committed in the first place, Kenley’s position, since he hadn’t spoken with the senator such as drug abuse, mental illness and domestic difficul- himself. Based on conversations with members of the local ties,” Steele said. “These courts serve as an important government committee, Gifford said the bill should survive tool in tackling the problems that plague our society and the Wednesday hearing. “I’m not aware of any significant in helping rehabilitate individuals so they do not become opposition at this point,” he said. repeat offenders.”

UTILITY INFRASTRUCTURE BILL PASSES: Hoosiers ALLEN GOVERNMENT REVAMP PASSES: Allen County could see incremental bumps in their gas and electric bills voters would get to decide on the structure of county as utilities upgrade power delivery infrastructure under a government under a bill passed 9-3 Tuesday out of a House measure approved Tuesday by the Indiana House (Evans- Committee – if it ever gets to them (Kelly, Fort Wayne Jour- ville Courier & Press). The bill allows for “trackers” to cover nal Gazette). “It’s time we give folks in Allen County good the costs of power lines, substations, transformers, pipes government if they want it,” said Sen. Travis Holdman, and more. After a shortened regulatory process, utilities R-Markle. He authored Senate Bill 475, which has already could tack those costs onto ratepayers’ bills. That would passed the Senate and now moves to the full House. It be a departure from the state’s current requirement that affects only Allen County and is being viewed by some to adjust their rates to cover such costs, power companies lawmakers as a pilot project for the rest of the state. Under first go before the Indiana Utility Regulatory Commission the legislation, if at least two county commissioners adopt for a “base rate case” that can last more than a year. Under an ordinance to change the executive and legislative struc- Senate Bill 560, utilities would have to get the commission’s ture of county government, it would trigger a public ref- approval for a seven-year plan that includes tracking the erendum. At least one commissioner, Nelson Peters, is on costs for those infrastructure improvements — and they’d board. But counterparts Linda Bloom and Therese Brown have to go through another base rate case before the end have serious reservations. “The whole initiative makes a lot of that seven-year period. “This is a balanced bill. It allows of sense to me,” said Peters, who has supported the mea- utilities to replace and upgrade aging infrastructure while sure for years. “Maybe it’s my business perspective. Things doing as little as possible to consumers’ pocketbooks,” said move quickly and efficiently in that environment.” He was Rep. Eric Koch, the Bedford Republican who chairs the the only county commissioner to attend Tuesday. In fact, House Utility Committee and sponsored the measure. Bloom and Brown – reached by phone in Fort Wayne – said Peters did not tell them of the hearing or that he would be SENATE PASSES K9 MURDER BILL: The Indiana Senate testifying. HOWEY Politics Indiana Page 13 Weekly Briefing on Indiana Politics Wednesday, March 20, 2013

LONG HEARS OWN BILL: The Senate Rules and Leg- attending state colleges may soon gain access to special- islative Procedure Committee got a rare workout Tuesday ized services under legislation sponsored by two Northwest -- hearing a bill (Fort Wayne Journal Gazette). Senate Indiana lawmakers that was approved 96-1 by the House President Pro Tem David Long, R-Fort Wayne, chairs the Tuesday. State Reps. Shelli VanDenburgh, D-Crown Point, committee and assigned a bill he is sponsoring for a hear- and Vernon Smith, D-Gary, are co-sponsors of the “Combat ing. House Bill 1002 sets up a statewide career council to to College” program in Senate Bill 115. The plan calls for gauge worker skills. Long was so out of practice he moved universities with more than 200 veteran students to provide right past testimony on the bill to a vote -- until House special admissions, registration and financial assistance to Speaker Brian Bosma reminded him people had signed up. veterans; veteran-relevant courses; medical care; and ad- “It’s not my committee,” he said sheepishly. ditional job search programs for veterans. The legislation, which passed the Senate 50-0, is expected to be signed VETERANS BILL HEADS TO GOV. PENCE: Veterans into law by the governor. v

Kokomo. County population Does the legislature or the administration have any policies for reversing urban decay? They seem happy to let changes raise alarms matters take their course. During the past ten years, six Indianapolis metro counties have accounted for 59 percent By MORTON J. MARCUS of the population growth in the state. We hear no discus- INDIANAPOLIS - With all the hoopla about basket- sion of this increasing centralization of economic, social, ball, several important issues are being neglected. But what and political power. else can arouse the passions of our citizens? People and power are flowing to central Indi- OK. Forget passion. What piques our interest, ana and leaving the balance of the state. Between 2002 stimulates our concerns? Clearly the high-handed machina- and 2012, 67 Indiana counties have seen more people tions of our political leadership don’t do the job. moving out than moving in. This net out-migration totaled The governor wants to lower the income tax rate. nearly 111,000 persons. At the same time, we have seen If he wants to keep spending down, he 171,000 moving into our other 25 counties. could give each taxpayer a one-time Most of this churning of population is county-to- fixed sum of money ($30). He need county, with the difference of 60,000 providing net growth not, however, lower the tax rate and for the state. make financing state government even This kind of movement has important benefits and more difficult in the future. costs that deserve attention and possibly policy responses The Republican-dominated from the state. Benefits include the basic freedom to live legislature wants to decide three things where one has the best opportunities consistent with the for Indianapolis instead of leaving them one’s desired life-style. Yet they come at a cost we often to the people of our largest community. call urban sprawl. 1) They want to give $100 million to Communities that lose population have growing the Indianapolis Motor Speedway from fiscal problems as they must maintain the infrastructure of state money. 2) They plan to change a larger population. When houses become empty or have the structure of the city-county council to favor the GOP, fewer residents, the same miles of streets need to be main- and 3) they assume the right to tell the people of metro tained and plowed in winter. Growing communities typically Indianapolis whether they can decide for themselves the have an increasing tax base; contracting places suffer from future of public transit in the area. declining revenues. All the while, no one pays attention to a sentence No one recommends the state take action to retard buried in the middle of a recent news story out of IU: “54 the growth of population in central Indiana. However, we of Indiana’s 92 counties lost population last year.” Doesn’t could consider how to revive our slowly decaying urban this send alarm signals to all of us? centers before they deteriorate further. v All right. You don’t want to take one year’s evi- dence as cause for concern. Try this: Over the past ten Mr. Marcus is an independent economist, writer and years, 39 of our 92 counties have lost population. The speaker. Contact him at [email protected] biggest losers include the urban counties home to the cities of Muncie, Marion, Richmond, Anderson, Logansport and HOWEY Politics Indiana Page 14 Weekly Briefing on Indiana Politics Wednesday, March 20, 2013

Ditto that message to the Indiana delegation in Congress, Ballard misses point who would have been able to schmooze colleagues from both sides of the aisle with ring-side seats for the Dream Team games at Bankers Life Fieldhouse. of Indy identity Had Ballard studied the example of the former By DAVE KITCHELL White River Park State Games and the effort made to LOGANSPORT – It was just a short story at the bot- incorporate Indiana cities across the state into the competi- tom of an inside page in the Indianapolis Star last month, tion, he might have realized 12,000 more beds in places but one word could have made it a front page story. like Lafayette, Fort Wayne, South Bend and Michigan City. Indianapolis Mayor Greg Ballard acknowledged his He might have found that an Indiana Olympics, if not an city had been among those asked to submit bids to host Indianapolis Olympics, would more than be able to accom- the summer Olympic games. Keep in mind, this is some- modate international crowds thanks to airports in Chicago, thing Chicago coveted so greatly Indianapolis, Fort Wayne, South Bend and smaller regional just five short years ago that it cities. For that matter, Grissom Air Reserve Base, which sent Oprah Winfrey, former Mayor has the longest runway in the state, might have been used Richard Daley and presidential for secure transport of Olympic teams and dignitaries. He nominee Barack Obama to cam- would have found dorm rooms at two dozen colleges and paign for it – and Chicago lost to universities and plenty of smaller cities willing to adopt Rio de Janeiro. Olympic delegations from small countries. Ballard took a pass on the He might have found out what visitors from other greatest international exposure countries have known for decades when they visit the Indianapolis would ever have, Indianapolis 500 – Indiana knows how to host major sports in part because it lacked about events and shows its true colors when it does. 12,000 hotel rooms of being able Plenty of foreign drivers have taken the checkered to meet the minimum require- flag at Indianapolis, but Ballard was the first mayor in over ments. If that’s all that stood in 40 years to raise a white flag when Indianapolis was under the way, there should have been a consideration for a major event. more public dialogue about the potential the games would With this kind of thinking, Bill Hudnut would have provided not only for Indianapolis, but for Indiana. never have built the Hoosier Dome. Robert Irsay would This isn’t a folly that will probably be on Ballard’s have moved the Colts to Florida, or Los Angeles. tombstone, but it’s one that Indianapolis and Indiana lead- The Pacers wouldn’t have applied to join the NBA and gone ers should have taken more seriously and deliberatively. For the way of the Kentucky Colonels. Tony Hulman would have starters, the point of Indianapolis being a sports destination sold the Indianapolis Motor Speedway to a shopping center is that it is a city that has branded itself as the amateur developer after World War II and Tony Hinkle would have sports capital for the past 25 years. scheduled Division III opponents instead of State, It’s not just about hosting the NCAA men’s bas- Notre Dame and UCLA. For that matter, Marvin Wood would ketball tournament or the Big Ten championship football have looked at Bobby Plump in the Milan locker room in the game, but having the NCAA move to Indianapolis as well as 1954 state finals and said, “Guys, we don’t have a prayer of hosting the Pan Am Games and the National Sports Festi- beating Muncie Central.” val. In short: This is what Indianapolis has been building Ballard has a world class swimming facility in his itself for all along. Once Indianapolis made it to the altar, it jurisdiction, the IUPUI Natatorium. But when it comes to jilted the Olympics. attracting major events to Indianapolis, the mayor’s office Had Ballard rallied city leaders to submit and has become a “Not-atorium.” v secure a bid, he could have put the frosting on the cake of the amateur sports capital. As it is, he is content to have Kitchell is an award-winning columnist based in something Chicago has never had, a Super Bowl. Logansport. But the overriding problem with the decision to take the easy road out is that Ballard ignored all the poten- tial that joining forces with the rest of the state could have provided him in political capital. First, it would have provid- ed him with the best reason to go to the Indiana General Assembly and say, “If we’re going to host the Olympics, we need your help in bringing mass transit to Central Indiana.” HOWEY Politics Indiana Page 15 Weekly Briefing on Indiana Politics Wednesday, March 20, 2013

Perpetuation of polarizing views leads to polar- What would have ized voters who send polarizing figures to Congress, where compromise becomes a dirty word. Thinking back again to the Founding Fathers, it’s a good thing they would compro- Lincoln done today? mise. There would have been no Constitution, no United By JACK COLWELL States without great compromises. SOUTH BEND – With focus now on Lincoln and Lest this be misunderstood, I’m not suggesting other celebrated figures in American history, we hear dis- that folks should never listen to opinionated commentators cussions of what they would think, do or say today. on cable TV and talk radio and never even glance at the Since they can’t speak now for themselves, no wild stuff on Internet . certain answers are to be found. That doesn’t stop discus- Neither nor should be sions, even arguments, over whether Lincoln could be silenced. Each can be entertaining. Really funny, sometimes elected today, whether he would when not intending to be. Nor am I suggesting that con- be a Republican or a Democrat and servatives should listen nightly to or that whether the Founding Fathers would progressives must hear . be pleased or dismayed if they could There would be less divisive stalemate in the na- see America now. tion, however, if they didn’t always listen to and believe Here is something Thomas one side, never thinking for themselves about the possibil- Jefferson said: ity of finding truth somewhere in the middle. They don’t “The man who reads noth- have to make themselves sick listening to someone they ing at all is better educated than the can’t stand, but they can at least turn to more objective man who reads nothing but newspa- presentations of actual news. They could sometimes listen pers.” to mainstream fact-checkers without concluding that any Nasty political attacks challenge to “facts” they want to believe can’t be factual. didn’t just start. Jefferson was at- Internet sites can not only polarize but also spread tacked viciously at times. He no doubt disliked seeing that flat-out untruths. A partisan website told a story of Chuck stuff printed. Hagel, then in the midst of confirmation hearings for de- I’ve suggested in some recent talks that Jefferson fense secretary, taking a large fee for speaking to “Friends quite likely would revise that quote today to include women of .” The rumor flew across the Internet and onto as well as men and to reflect the decline in the influence cable news and drew critical comments from senators. of newspapers and the rise of the opinionated cable news There’s no such group. Hagel never spoke to any group commentators. Here’s what he might now say: even remotely similar. It begun as a joke that was spread “The men and women who view nothing at all are as “news.” better educated than those who view nothing but cable Some Americans list and Stephen news commentators.” Colbert on Comedy Central as prime sources of news. At That would be updated wisdom if referring to least they don’t pontificate like cable news commentators, people who listen only to the most outspoken spielers and expecting to be taken seriously. But then there was a study spinners for one side, the side they want to believe, no showing that a sizeable portion of viewers take Colbert’s matter the facts. Those folks don’t want facts; they want to mock conservative comments seriously. know their side is right, always and completely, and those I bet Lincoln, with his sense of humor, would today who disagree are stupid or evil or probably both. understand that comedy satire. And he would warn that They don’t want objective news; they want “news” you can’t believe all of the cable commentators all of the they believe. time. v They want “news” reinforcing that the other side must be lying, must be cheating, must be stealing the elec- Colwell has been covering Indiana politics over five tion and, thus, must be defeated. decades for the South Bend Tribune. Listening to polarizing views as gospel leads some Americans to believe that the candidate on the other side really does hate women, hate the poor and favor only the filthy rich billionaires who bought him. And leads other Americans to believe the candidate on the other side really does hate business, hate real Americans and favor only blacks and his fellow Muslims. HOWEY Politics Indiana Page 16 Weekly Briefing on Indiana Politics Wednesday, March 20, 2013

Greg Sargent, Washington Post: For all the con- posal hasn’t had a warm welcome in the Indiana General tinued chatter this morning about the sincerity and limits Assembly, however. House Speaker Brian Bosma has been of presidential schmoozing, the real reason for the fiscal particularly cool to the idea. In a recent letter to county impasse is hiding right there in plain sight, and it can be Republican chairmen, Bosma said he’s willing to work with summed up in two sentences: 1) Obama can’t sell entitle- Pence but remains unconvinced the tax cut is right for ment cuts to his base, or indeed Democrats in general, Indiana. “The most important job of state government is to without Republicans agreeing to new revenues, and has be lean, efficient and, most importantly, sustainable in the offered them a straightforward compromise — one that long run, avoiding wild shifts in one direction or another,” would anger the base on both sides — based on the prem- Bosma wrote. Republican governors in a number of states ise that total victory for the GOP is not an acceptable or are making a bid to lower the income tax rate, or eliminate realistic outcome. 2) Republican leaders can’t even begin to it, to become more business-friendly. The idea is that exec- acknowledge that Obama has offered them a real compro- utives would be more likely to move to a state that doesn’t mise, because they can’t sell their base on the idea that the take as much of their money. But cutting one tax rate President is being flexible, let alone get them to seriously generally means raising another. Some of these governors entertain accepting any compromise with him, because are talking about raising the sales tax to compensate for the base sees total victory over Obama as the only accept- the lower income tax rate. Indiana Democratic Party Chair- able outcome. In essence, a variety of political man Dan Parker offered his own idea last month constraints prevent Republican leaders from when he met with The Times Editorial Board. If acknowledging the reality of the situation. That Pence wants to cut taxes, Parker suggested, the makes any reality-based dialog impossible. The sales tax would be a better option. “We have the press has largely failed to reckon with this basic highest sales tax rate in the Midwest,” Parker said. disconnect, which is why the discussion contin- I looked up those rates, and he’s right. v ues to spin its wheels around irrelevant ques- tions, such as whether the president’s outreach David Orentlicher, Indianapolis Star: is “sincere” enough, as if hurt feelings have anything at all As Indiana and other states decide whether to participate to do with the stalemate, or whether Democrats have gone in the Affordable Care Act’s expansion of , they quite far enough with their offer to Republicans, when the remind us that federal-state partnerships can compro- latter won’t even say whether there’s any compromise they mise the effectiveness of national benefit programs. Local could accept. In his meeting with Republican Senators, control may respect differences in community values, but it Obama reportedly presented them with a choice: They can also prevents fair access to essential government services. accept a deal that includes Chained CPI for Social Secu- In states that expand their Medicaid programs, every poor rity and means testing of Medicare in exchange for new person will be eligible for benefits if family income does not revenues, or end up with no entitlement reform. Republi- exceed 138 percent of the federal poverty level. The poor cans continue to respond by claiming the President is being person in Arkansas will have the same level of access as inflexible — by pretending he hasn’t offered them what the poor person in Massachusetts. (Currently, 138 percent he has offered — while refusing to say what could induce of the poverty level is about $32,500 for a family of four.) them to compromise. Ultimately, though, the GOP’s reality- In states that do not expand their Medicaid programs, it denying strategy is self defeating, and will make it harder often will not be sufficient to be very poor. Traditionally, for Republicans to agree to a way out of the impasse. In Medicaid has provided coverage to people who not only addition to refusing to acknowledge what Obama has of- are poor but who also fit into an eligibility category — chil- fered on entitlements, Republican leaders also continue to dren, parents with dependent children, pregnant women, refuse to acknowledge all the spending cuts ($1.5 trillion or persons with a disability. In addition, states set different in 2011) Obama and Dems have already agreed to. This income levels for eligibility. A parent may lose eligibility in is partly because admitting to all of this would reveal the one state when family income exceeds 20 or 30 percent of GOP’s own intransigence to the public with too much clar- the federal poverty level while retaining eligibility in an- ity. But there’s another reason for it, which is aptly spelled other state with a family income above 150 percent of the out by Steve Kornacki. John Boehner can’t admit to any of poverty line. As a result, eligibility always has varied from it for his own self-interested political reasons. v state to state. In terms of access to , it is much better to be poor in Arizona or Minnesota than in Texas or Doug Ross, NWI Times: Indiana Gov. Mike Pence Indiana. And because some states will opt out of Medic- insists a 10 percent income tax cut would create Hoosier aid expansion, the variations in eligibility will widen even jobs, which would make this tax cut pay for itself. His pro- further. v HOWEY Politics Indiana Page 17 Weekly Briefing on Indiana Politics Wednesday, March 20, 2013

court last month (NWI Times). Phil- would pay for most of the $700 million Obama arrives pot’s arrival was confirmed by James local share. Americans for Prosperity, in Dunn, executive assistant to the war- a national tea party group founded den at the low- and minimum-security by the billionaire Koch brothers, is TEL AVIV, Israel (AP) — Presi- facility in Milan, Mich. Milan is a facility becoming increasingly involved in dent Barack Obama plunged into the of about 1,500 inmates located in state politics throughout the country. turbulent Middle East on a mission southeastern Michigan, some 45 miles Downham will meet today with Indi- aimed primarily at assuring America’s south of Detroit. Philpot, 55, initially ana lawmakers individually to discuss top ally in the region and its friends had been ordered to surrender April the group’s concerns about transit. back home that it will not be forsaken 3 to a federal facility in Pekin, Ill. “We amid bitter domestic political squab- generally don’t have anyone arriving Rally denounces bles and budget crises in Washington. early,” he said. Obama arrived Wednesday in Israel for voucher expansion his first visit to the country — and only INDIANAPOLIS - A proposal his second to the Middle East, outside Obama picks IU to expand Indiana’s private school of a quick jaunt to Iraq — since taking voucher program was denounced dur- office. He will also be making his first to win NCAA crown ing a Statehouse rally on Tuesday as a trips as president to the Palestinian WASHINGTON - In his an- step that would take millions of dollars Authority and Jordan this week. But nual NCAA bracket exercise, President away from the state’s public schools on an itiner- Obama has picked Indiana to win the (). About 500 people ary laden more title this year. “I think Indiana will applauded and chanted “Yes to public with symbolism pull it out,” Obama said, while picking schools!” and “No more vouchers” as than substance, Louisville, Ohio State and Florida for speakers attacked the Republican- an Israel that the Final Four. backed bill to expand Indiana’s 2-year- is increasingly old voucher system, which is already wary of develop- the nation’s largest. ments in Syria AFP opposes and is Obama’s main focus. Air Force One touched down in Tel Aviv mass transit Assault gun ban early Wednesday afternoon after an overnight flight from Washington. INDIANAPOLIS - Tea party out of bill Among those there to greet him were activists are organizing the first formal President Shimon Peres and Prime opposition to expanded mass transit WASHINGTON - Senate Major- Minister Binyamin Netanyahu. After an in Central Indiana, and they’re willing ity Leader Harry M. Reid on Tuesday arrival ceremony at the airport, Obama to spend cash to defeat a proposed declared politically dead the effort to will head to Jerusalem for meetings referendum on the issue (Indianapo- ban military-style assault weapons, a with Israeli leaders. Obama arrived to lis Star). “Our concerns are not only setback for President Obama and gun- face an Israeli leadership and public about the local tax increase, but about control advocates who are pushing the anxious to hear the president affirm the overall cost of such a proposal,” Senate to move quickly on bills to limit America’s commitment to the security said Chase Downham, president of gun violence (Washington Post). Reid of the Jewish state while standing on the Indiana chapter of Americans for (D-Nev.) is preparing to move ahead their soil. Prosperity. “We think this particular with debate on a series of gun-control plan is costly for our city, and we are proposals when the Senate returns concerned about the impact on the from a two-week Easter recess in early Philpot reports budget going forward.” The group April. Although he has vowed to hold opposes legislation that would allow votes on measures introduced after early to prison residents to decide through a refer- the Sandy Hook Elementary School endum whether to raise their income massacre in Newtown, Conn., in De- MILAN, Mich. - Former taxes by up to 0.3 percent to pay for cember, Reid told reporters Tuesday Lake County Clerk Thomas Philpot most of the local portion of a 10-year, that the proposed assault-weapons surrendered Tuesday at a federal $1.3 billion transit expansion. That tax ban isn’t holding up against Senate prison in Michigan to begin serving an would amount to roughly $10 to $15 rules that require at least 60 votes to 18-month sentence imposed by the per month for the average worker and end debate and move to final passage.