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Home , Becky Skillman, James Whitcomb, Mitch Daniels

V18, N17 Tuesday, Nov. 27, 2012 Daniels’ book of speeches: Policy seeds Some of the more fasci- ‘Aiming Higher’ begins Words a State Higher: Aiming that Changed nating aspects of the Daniels governorship will soon be con- What others have said about Governor : the governor’s legacy veyed in a new book “Aiming “ e one-time Reagan political director Higher: Words That Changed a and Bushassessment White House budget chief is not with your run-of- the-mill intellectual. His style is to be down-home, but State.” his recordhis of accomplishment own is wordsdazzling.” The book, published by David Broder, Washington Post the Business Jour- “ at Bywas oneBRIAN of the best A. speeches HOWEY I’ve heard as a nal, is a compilation of Daniels’ response to the State ofNASHVILLE, the Union. And I think Ind. it was – We are speeches ranging from 1989 one of the best presentations of the conservative idea against thenow larger down government to of the Obama,” final six weeks of the to 2012, in what he calls his Charlestwo Krauthammer- scintillating syndicated termscolumnist of Gov. Mitch “arc” of public service. In 1989, Daniels. Between now and Jan. 14, “From education to infrastructure, his Daniels would tell a Hanover accomplishments2013, havewhen given Gov.-electhim something rareMike in Pence is College event in Louisville that contemporarysworn politics: into the charismaoffice, of competence.” there will be an ar- “public education in America is George Will – syndicated columnist ray of articles and TV news stories re- still failing” and added that “I

visiting his eight years on the second by Speeches Indiana GovernorSelected Mitch Daniels think the education system is in floor of the Statehouse. need of some anti-trust action. At times, Daniels has brushed Aiming Higher: We think the public education off questions of his “legacy” as an system should fund students, uninteresting topic. Words that not buildings.” But to the rest of us, it isn’t. He called for “fair ac- It presents a poignant case study Changed a State counting” of performance, of how power is attained and used. Selected Speeches by Indiana Governor Mitch Daniels the measuring of “inputs” of We’ve seen governorships constructed achievement, and a reduction around a single issue. Others have of bureacracy. “We’re looking evolved. We’ve watched governors for school systems in which the rule with an eye on bigger prizes. administration is a service cen- We’ve seen others fail to spend the political capital at hand, accepting much of the status quo. Continued on page 3

Missing the indispensible man

By BRIAN A. HOWEY INDIANAPOLIS – President Obama’s reelection victory has been sliced and dissected relentlessly since Nov. 6 and as HPI analyzed last week, part of it came down to ‘‘I have expressed caution to the “female vote” and another cen- tered on the various Republian demo- those who think it’s time to cut graphic and personality dilemmas. our income tax because it throws Washington Post columnist George Will zeroed in on some obvious points: us more out of balance.” The election’s outcome was foreshad- owed by struggling as - House Speaker Brian C. Bosma long as he did to surmount a notably weak field of Republican rivals. His salient deficiency was not of charac- HOWEY Politics Indiana Page 2 Weekly Briefing on Indiana Politics Tuesday, Nov. 27, 2012

www.HoweyPolitics.com

Howey Politics Indiana is a non-partisan newsletter based in Indianapolis and Nashville, Ind. It was founded in 1994 in Fort Wayne. It is published by WWWHowey Media, LLC ter but of chemistry, that indefinable I truly believe that President something suggested by the term Obama’s biggest threat was Daniels. Brian A. Howey, Publisher empathy. Many voters who thought he Mitt Romney tried to become lacked this did not trust him to employ something he really wasn’t, which Mark Schoeff Jr., Washington on their behalf what he does not lack, was a true believing conservative. He Jack E. Howey, editor economic understanding. On Feb. 11, had to churn into a variety of contor- 2011, the person who should have tions during the Republican primary Subscriptions been the Republican nominee laconi- sequence and it left him damaged in cally warned conservatives about a the eyes of independents and mod- $350 annually HPI Weekly prerequisite for persuading people to erates who tend to settle elections. $550 annually HPI Weekly and make painful adjustments to a rickety Romney allowed the Obama campaign HPI Daily Wire. entitlement state. Said Indiana’s Gov. to define him through the lens of Bain 'Call Adrian France Mitch Daniels: “A more affirmative, Capital, with what we now know was a 812.455.4070 or email ‘better angels’ approach to voters is devastating element in his defeat. really less an aesthetic than a practical In watching the two guber- [email protected] one. With apologies for the banality, natorial campaigns Daniels ran and I submit that, as we ask Americans won, the way he cleared the primary Contact HPI to join us on such a boldly different field prior, along with his legacy as Howey Politics Indiana course, it would help if they liked us, political director of the Reagan White just a bit.” Romney was a diligent House, his successful tenure with the www.howeypolitics.com warrior. Next time, Republicans need a Republican Senatorial Committee, and [email protected] more likable one. his 1982 management of Sen. Dick I’m going to assert a dif- Lugar’s first reelection campaign dur- 'Howey’s Cabin: 812.988.6520 ferent angle here: Obama won and ing Reagan’s first mid-term against the 'Howey’s cell: 317.506.0883 Romney lost on the female vote, in backdrop of a deep economic trough, one inconspicuous setting in Carmel, Daniels displayed uncanny political 'Washington: 703.248.0909 Ind. By a 75% to 25% margin, Gov. ability, instinct and timing. 'Business Office:812.455.4070 Daniels lost the Daniels family female The one word I would never caucus. And with that, I’ll agree with use to describe Mitch Daniels is “fake.” © 2012, Howey Politics Indiana. George Will: It may have cost Republi- The guy is not only an intellectual All rights reserved. Photocopy- cans the presidency. powerhouse, he is a master writer, It’s easy for a journalist to strategist and tactician. I’ll agree with ing, Internet forwarding, fax- become a “homer,” deep inside pulling Will in his assessment of Daniels’ CPAC ing or reproducing in any form, for an in-state candidate well known speech - which I attended - that he whole or part, is a violation of to the scribe, with a personal affin- not only emerged as the Republican federal law without permission ity, and a deep understanding of the adult, but one who wouldn’t have to from the publisher. v motivators and turnoffs. change his skin. And as most HOWEY Politics Indiana Page 3 Weekly Briefing on Indiana Politics Tuesday, Nov. 27, 2012

will agree, Daniels steered a steady course. You don’t have can know. Many things can go wrong with any such effort to agree with him in a political or policy sense to at least and something probably would. We would have brought in acknowledge that the governor had complete command of a very broad coalition of allies. I can give you 37 reasons the wheel. His logic and powers of persuasion allowed him why it probably wouldn’t have worked out in the end.” to win friends and clip detractors. “I haven’t spent a minute second guessing my Daniels has been viewed as an “economic” decision,” Daniels added. conservative, but in his book “Aiming Higher: Words That No, that is territory for pundits. Changed a State,” some of his most inspirational oratory If you could have plotted a resume for 2012, the came before the Indiana Family Institute and the First Daniels version or the Romney, I’d have taken the former Baptist Church in Hammond, where he said, “I will not, and over the latter any day. I cannot seek to lead a government that will itself be the And here’s a great reason why. I asked Daniels if adocate of our faith. That is not our system. But I will seek he was on the verge of a “legacy lap” around the state. to lead a government that is the protector of our faith and No, he said, he was content on reminding people all those who will advocate it and that’s as it should be, of what was accomplished and he wanted to push the because the rest is up to us.” reformers. But there was room for some sentimentality. In Daniels, you had a Republican who won 22% “I’m going back to Stroh, Indiana, one of my of the African-American vote in 2008 (while Obama won favorite stops that we made,” Daniels said. “There was a Indiana), who could speak fluent Spanish, whose admin- family with a little boy who was four when he signed the istration was gender inclusive, who refused to campaign RV. So now he’s 13. His name is Mitch, by the way. A lot of negatively but was adroit in contrast, avoided the denigra- people remember him. In the TV show, they watched him tion of demographic subgroups, and was poised to act on painstakingly print his name.” the greatest threat to America, the “red menace” of our Over past decade, Daniels had spent 125 nights in sprawling and unsustainable entitlements. the homes of Hoosiers. You have to wonder if Mitt Romney Does Daniels agree with Will’s assessment of the had done that, he might have come off as more grounded 2012 GOP disaster? “He and some others have said that and in tune with the voters who actually decide elections. sort of thing,” Daniels told me. “No, I don’t think so. No one v

say, produced too few results.” Daniels, from page 1 During his tenure, Daniels over- saw education researchers like Denis Doyle and Lew ter and not a control center, in which decisions are made Perelman reach the conclusion that public education was a by principals and teachers in the buildings who are dealing “failed monopoly.” The course was plotted in a report called with the problems every day.” “Workforce 2000” that laid out a plan of action Gov. Daniels And Daniels called for a “decertification in the was able to achieve almost a quarter century later. teaching profession,” ex- Those were some of the seeds that were plaining, “By that I mean sown and produced the emphatic educa- opening up the profes- tion reforms that occurred between 2007 sion to people who did not when he worked administratively around B. necessarily go to education Patrick Bauer’s Democratic Indiana House, school.” to 2011 when the governor achieved some The debate on of his most profound - and controversial - education transformation reforms with the Republican majorities he had been pushed forward by helped induce in the 2010 elections. President Reagan’s “A Na- I was selected by Gov. Daniels to tion At Risk” report in 1983 write the book’s foreward and came up and in 1987, by Gov. Robert with this observation: By definition, the D. Orr’s “A Plus” initiative. Gov. Daniels returned to Hudson Institute - now lo- word “transformation” is a thorough or dra- “I’m a little weary with the cated in Washington - to receive the Herman Kahn matic change in form or appearance. In a debate that has gone on a Award. Daniels presided over Hudson education political or policy context, the word is often long time, and I think it’s research while the institute was located in India- used in association with war, revolution or been very enlightening in napolis and it helped shape his education reforms economic crisis. And in the experi- many ways, but I regret to a quarter century later. HOWEY Politics Indiana Page 4 Weekly Briefing on Indiana Politics Tuesday, Nov. 27, 2012

ence, the word clashes with 196 years of stereotype: We resulted in vast legislative majorities to winnow and reorga- are a conservative people, cautious, suspicious, resistant to nize the bureaucracy on his first day in office. change. Interrupting this history in key moments has been The portraits of Marshall, Goodrich and Leslie the transformational governor, almost always thrust into adorn the walls of the cavernous Statehouse office occu- that role by the churning events of the day. As Hoosiers at pied over the past eight years by Daniels. the turn of this century, we have witnessed such a gover- With “Aiming Higher,” we find Daniels’ own words, nor in Mitch Daniels Jr. Whether you regard him as a hero crafted without a speechwriter or framed by polling cross- or adversary, few Hoosiers will dispute the notion that his tabs. Many of his speeches were delivered extemporane- eight years at the Indiana Statehouse have been impactful ously, and captured either by video or audio. and have altered the trajectory of the state at a time when In fact, the Daniels administration is the most digi- just about everything is changing on a global scale. tally recorded governorship in history. “Basically, it’s a fairly complete digital record of most public appearances, either A select list of transformational governors video, or audio,” Daniels explained a few days after the Fewer than 10 Indiana governors merit the nota- November election. “I believe we have as complete a set of tion of “transformation.” For Governors printed material, digitized, as probably anyone has. For the and Joseph Wright in the middle of Indiana’s first century, gubernatorial years, pretty much the digital revolution was it resulted from the bankruptcies of public works projects underway at that time. So a lot of it was captured that way. gone awry, the empty coffers and loans they sought to A lot of the ‘04 stuff was at the end of the VHS era. We had send Hoosier soldiers into battle, and the new Constitu- a lot of that transferred. It won’t be completely perfect, tion of 1851. For Gov. Oliver P. Morton, it was the breach but it will be closer than anybody was able to do before of the American Civil War, a Copperhead General Assem- because of the advance of technology. I’m pretty sure that bly that was dispersed, while tens of thousands of young as of some point, ‘06, or ‘07, somewhere in there, we didn’t men streamed from the farms and small towns toward the miss too much.” bloody battlefields in the South. War and innovation prompted Gov. James Putnam A decade with Daniels Goodrich to plan Indiana’s highway system in 1917. Scan- In the past, when a gubernatorial term winds down dal and bigotry brought after eight years, the along Gov. Harry G. sentiment in the press Leslie in 1928 to clean corps is “good riddance.” up the Ku Klux Klan flot- Time for new blood. sam, extending into the It’s different this Great Depression when time. Daniels used RV1 he pioneered what and the 16 months he would become FDR’s campaigned in 2003 and Work Progress Adminis- 2004 to visit just about tration. Two governors every community in the – Thomas A. Marshall in state. He developed a 1909 and Paul McNutt rapport with the press in 1933 – tried to come and opinion shapers. He to terms with the sprawl was accessible. of bureaucracy over And while there decades and challenged were some surprises the status quo with along the way, Daniels a reform agenda. In shaped much of his first Marshall’s case it was an term from a campaign unsuccessful attempt to “roadmap” and used it write a third Constitu- as a scorecard when tion that was eventually seeking a second term thwarted by the U.S. in 2008. Supreme Court, while It’s been more McNutt used the thrust The Indianapolis Star once polled, and in 2006 came to the conclusion that than a decade since of the New Deal election Gov. Mitch Daniels was moving too fast. In the recent October Howey/De- Daniels returned to juggernaut in 1932 that Pauw Indiana Battleground Poll, Daniels had a 58% approval rating. Indiana after his second HOWEY Politics Indiana Page 5 Weekly Briefing on Indiana Politics Tuesday, Nov. 27, 2012

stint in the White House. Standing outside of Hinkle Field- “The wolf is not at the door,” Daniels intoned in house and a boxy recreational vehicle in July 2003, Daniels 2005 in the House Chambers. “He is inside the cabin.” And was prepared to take on an incumbent governor who was he resorted to legendary CBS news pioneer Edward R. a former Notre Dame catcher, a Navy pilot who was shot Murrow to help make his case: “Difficulty is the one excuse down over North Vietnam and held prisoner for years. history never accepts.” “Today we begin a 16-month job interview,” Daniels said As his governorship entered twilight, neighbor- of a day that would trace back Bobby Plump’s all-star path ing states were roiled in labor controversies that he had to tiny Milan, a town with a legendary sporting chapter negated with the stroke of a pen in its earliest hours. He that will span epochs. By the time he addressed the 2004 would advise other leaders at Mackinac: “Do it early, do it Indiana Republican Convention, the gathering steam would fast, do it swiftly, and do it decisively. In the wisdom of the be described as a “freight train of change.” old country song, ‘if I’d shot you when I should’ve I’d be Anyone doubting this would be dazed by the scope out of jail by now.’” of the agenda Gov. Daniels As he leaves office, a key conveyed before a statewide ally - Supt. of Instruction Tony TV audience and the Indiana Bennett - was defeated for General Assembly on Jan. reelection as teachers mobi- 18, 2005, a mere eight days lized against him in a reaction following his inaugural and a to the 2011 reforms. week after he ended collec- “When you look back to tive bargaining rights for state the time we were just talking employees by . about, to all the attempts to The governor was prepared improve education, Bob Orr’s to write checks on his political A Plus program was pretty capital to install Daylight Sav- good for its day,” Daniels ing Time, transform the Bu- explained. “It was systemati- reau of Motor Vehicles, spread cally dismantled over the next charter schools, move ISTEP, 10 or 15 years and we lost reorganize the Commerce another generation of kids, or Department into what would many of them. The reason I become the Indiana Economic don’t think that will happen Development Corporation, this time is because the laws expand full-day kindergarten, are much more sweeping. boost classroom spending Secondly, the legislature is along with a 120-day morato- not going to repeal them. And rium on the issuance of any third, and most important, new school bonds. the intellectual climate has In an era when any changed dramatically.” tax increase was perceived After Democrat Glenda as virtually heretical, the new Ritz’s victory on Nov. 6, governor would call for a one- Daniels observed, “You know time, 1% income tax hike “for there’s a very significant the most fortunate among percentage of the Democratic us” to help end the state’s Party and their allies who fiscally bankrupt ways. There realized they were handicap- would be 50,000 new acres ping low income kids for life. of protected wildlife habi- The absolutely obstructionist, tat, 3,000 miles of new bike reactionary position is very paths, and his administration’s marginalized. If you look at all blackest eye - the first reform at the campaign against Tony, of the Family Social Services it wasn’t based on policy. Administration - gave way to a Gov. Robert Orr (above) during his statewide pitch for the They told thousands of par- “hybrid” system that restored A Plus program in 1987. Below, Gov. Daniels campaigns for ents that Tony would zero out fine confidence in the safety net. Supt. Tony Bennett in 2008. arts funding. They went to Band HOWEY Politics Indiana Page 6 Weekly Briefing on Indiana Politics Tuesday, Nov. 27, 2012

Day and handed out fliers. It was a complete falsehood. He boldness born of risks successfully run and change success- couldn’t have done it if he wanted. From the Anything Goes fully delivered. In overwhelming numbers, Hoosiers have School of Politics, I guess you could say it was an effective declared that we are unafraid to lead, to try the new before campaign. What it wasn’t was a reflection of the policies of others do, and that we like the results of doing so.” reform.” The compelling voices of others The governor’s own words Along the way, Daniels employed the compelling This arc of change that Daniels, with the help voices of others - Winston Churchill, Mark Twain, Henry of former aide Neil Pickett, who headed the governor’s Clay, Louis Brandeis, Lincoln, Washington and Adams, C.S. policy operations for several years, is relayed in this book Lewis, Mayor Daley (the first), William Bradford, Oscar by metaphors, whether it was the Amish community barn Schindler, Michelle Obama, George Carlin and Ken Kesey - building in his first inau- to help make his points. gural, to the Hoosier ship He was adept at of state - a canoe - that making real-time observa- would only go in circles if tions, telling the IU Law one paddled only on his School in 2006, “By any side, or nowhere if the measure, Indiana is a ripe front and back paddled state. Nearing our third against each other. But century, we are constitu- these speeches came tionally, economically and about without speech- demographically show- writers like Peggy ing our age. Our basic Noonan, Peter Rusthoven law pre-dates the Civil or Michael Gerson. They War. Our economic base came from his own pen, remains heavily depen- and often extemporane- dent on the manufacturing ously, with only an audio base of the last century. recorder capturing the Not coincidentally, popula- conveyance of idea. tion growth itself is nearly In his 2007 State stagnant and the aver- of the State address, age age has risen. So the with newly installed Gov. Daniels chats with Hoosier basketball legend Bobby Plump in Milan, question for Indiana going House Speaker B. Patrick Ind., during the last campaign cruise of RV1 in October 2008. (HPI Photo forward is, will we ripen Bauer seated behind by Brian A. Howey) to the point of rot, or see him, he would observe a new spring of rejuvena- that the state went from tion and revival? We can one ethanol plant to 21 biofuel manufacturing sites, pro- plant the right seeds, but the size of the ultimate harvest ducing 1.7 billion gallons. In the coming years, the nation’s will not be up to us.” largest biodiesel plant would produce energy in Claypool, In these speeches of Mitch Daniels, the listener - the second largest wind farm sprouted along I-65 between now the reader - finds a self-effacing messenger, rooted in Lafayette and Lowell, 5,000 state employees would be Hoosier common sense, a folksy manner that belies what cut, 2,000 state employee vehicles (and 12 rocking chairs) George Will described as “never has there been a higher would be jettisoned, and with the new property tax system ratio between mind and mass” in one public servant. He in place, a kid could go to any public school in the state set big goals and in his earlier commencement speeches, while his or her teacher could come from any sector of the urged students to go “make babies,” something he re- economy. frained from doing before the . When this governor said, as he did in 2007, “Let There were the poignant reminders of service me then submit an agenda for greatness, built on items and sacrifice, when he recalled during a 2008 Indianapo- that might unite those who have recently found too little lis 500 Festival Memorial Service, World War II era Gen. common ground,” few would question his audacity. Two Luke Trescot turning his back on an audience, addressing years later, at his second inaugural, he would report with the cemetery and the soldiers resting there. “He said he few taking issue, “A new mentality has taken root, a new apologized to them that their lives had been taken,” Daniels HOWEY Politics Indiana Page 7 Weekly Briefing on Indiana Politics Tuesday, Nov. 27, 2012

said as he remembered the fallen Hoosiers under his watch a sentiment could be expressed on how enduring and suc- - Pfc. Brian Leonhardt, Sgt. Robert Blakely, SSG. Michael cessful this locomotive of public policy and a new brand of Heister, and Joe Proctor. “He said that he knew one might politics will be. It will take at least a decade for an honest pretend the mistakes of leadership never do lead to such assessment to form. And it’s all too reasonable to expect losses but that wasn’t true. He said if any mistake he had that in the decades following that, historians will be reach- made had led to their loss, he apologized for it . . . .” ing for this very collection of speeches to probe the mind Gov. Daniels always had a savvy grip on history, and soul of one Mitchell Elias Daniels Jr. v and he reached for it often, whether it was Lincoln’s “mys- tic cords of memory” or China’s Chou En-Lai being asked if Note: The book can be ordered in the bookstore section at the French Revolution was a success. “Too soon to tell,” the www.IBJ.com. The cost is $10. Proceeds will be donated to Communist leader said. Mitch’s Kids program at the Boys and Girls Clubs. As the Daniels governorship comes to a close, such

ernment worked. A former corporate executive, Daniels Princeton Study: had served as director of the Office of Management and Budget, which, among other responsibilities, helps the US A new approach to the government’s executive branch prepare its version of the federal budget, but he had never held elected office. managing at the center To implement his agenda, Daniels needed new systems and new processes in his office, the center of of government Indiana state government. He created an Indiana Office of Management and Budget and established a new group By MICHAEL SCHARFF within that office to set goals, monitor performance, and link budgets to outcomes. Policy teams in Daniels’s office PRINCETON, N.J. –­ When Indiana Gov. Mitch Dan- reported progress on agency-level reforms and helped un- iels took office in January 2005, he sought to change the clog bottlenecks. And Daniels created a performance-based performance and culture of state government. The state’s pay system to encourage state workers to focus on results. economy was stagnant, and the accumulated budget deficit Daniels’s reforms were not without controversy. was topping $600 million on a total budget of $22.7 billion For example, he scrapped state workers’ rights to col- for 2003–05. (The state legislature passed a new budget lective bargaining, and he privatized services previously every other year.) delivered by government, which led to employee layoffs. By State agen- 2012, the final year of his second term, Daniels’s reforms cies received fund- had produced marked ing without having changes, including a to show results, budget surplus every and when funds year from 2006 to 2012, were available, state and he won praise from workers received both his own Republican pay raises in some Party and opposition years regardless of Democrats. performance. Dan- Note: Scharff iels recognized that drafted this case study the delivery of bold based on interviews con- reforms, including the ducted in Indianapolis, in promise to close the July 2012. Rick Messick deficit and improve provided guidance, edi- economic growth, torial suggestions, and required changing interview support. v the way state gov-

Read: http://www.princeton.edu/successfulsocieties/content/superfocusareas/traps/RT/policynotes/view.xml?id=217 Watch: http://wws.princeton.edu/webmedia/ HOWEY Politics Indiana Page 8 Weekly Briefing on Indiana Politics Tuesday, Nov. 27, 2012

15. Treasurer Time to ponder the 16. Senate Majority Leader Connie Lawson 17. Indianapolis Mayor Greg Ballard 18. Indianapolis Councilman Vop Osili 2013 HPI Power 50 List 19. U.S. Rep. By BRIAN A. HOWEY 20. U.S. Rep. INDIANAPOLIS - It’s time to begin thinking about 21. U.S. Rep. Marlin Stutzman the 2013 Howey Politics Indiana Power 50 list. 22. State Sen. Carlin Yoder It’s our annual exercise to determine who will likely 23. Chris Chocola have the most clout in the coming year. 24. Democratic Chairman Dan Parker With a new 25. Hammond Mayor Thomas McDermott Jr. gubernatorial ad- 26. Supt. Tony Bennett ministration, power 27. AFL-CIO President Nancy Guyott realigned in the Gen- 28. Fort Wayne Mayor Tom Henry eral Assembly, vast 29. Evansville Mayor Lloyd Winnecke changes in the Con- 30. Chris Atkins gressional delegation 31. U.S. Rep. and state and national 32. South Bend Mayor Peter Buttigieg budget issues on the 33. Kokomo Mayor Greg Goodnight front burner, Howey 34. Marion Mayor Wayne Seybold Politics Indiana’s 2013 35. Attorney General “Power 50” list will 36. State Sen. Jim Banks be intriguing. As we 37. Dan Dumezich do every year at this 38. Lt. Gov. time, we invite HPI 39. Gary Mayor Karen Freeman-Wilson subscribers to weigh 40. Dr. Woody Meyers in with nominations, 41. U.S. Rep. Pete Visclosky observations, or sub- 42. U.S. Rep. Andre Carson mit their own list. 42. U.S. Rep. Dan Burton The new Power 50 will be published in the first 44. Luke Messer and Jackie Walorski week in January. It is designed to weigh who will likely 45. Jennifer Hallowell have access to the levers of power and who will actually 46. use them. Submit your nominations to us at bhowey2@ 47. Indiana Chamber President Kevin Brinegar gmail.com. 48. Marty Morris Here’s the 2012 Power 50 and as you can see there 49. State Rep. Charlie Brown will be some major changes coming in the 2013 list. 50. State Sen.

2012 Power 50 Honorable Mention 1. U.S. Sen. Dick Lugar Judge Rosenberg & The Supremes 2. Gov. Mitch Daniels Ken Faulk 3. U.S. Rep. Senate Minority Leader Vi Simpson 4. House Speaker Jim Wallace 5. Senate President David Long Susan Brooks 6. John Gregg David McIntosh 7. U.S. Rep. Dave Crooks 8. House Minority Leader B. Patrick Bauer Tim Roemer 9. Dean White Joe Loftus & Steve Goldsmith 10. Jim Bopp Jr. Monica Boyer Joe Champion 11. State Sen. Vanderburgh Sheriff Eric Williams Bill Smith 12. U.S. Sen. J. Cameron Carter Curt Smith 13. Ways & Means Chairman Jeff Espich Robert Enlow Gary Welsh 14. Republican Chairman Don Villwock Craig Dunn HOWEY Politics Indiana Page 9 Weekly Briefing on Indiana Politics Tuesday, Nov. 27, 2012

the Pence tax cut? Not so much. Bosma, Long not on the “We’ve already done tax reform,” said Long. “Those two areas will put a damper” on Pence’s proposed income tax reduction. “David is setting the right tone,” said Bosma, same tax page with Pence who added that the key word will be “caution” as Indiana By BRIAN A. HOWEY faces a potential decline in gaming revenues while the INDIANAPOLIS - There’s a big difference between economy has an uncertain future. “We’ve cut back where Indianapolis and Washington D.C. we need to. And we absolutely will live within our means. For most Hoosier lawmakers making the transition That’s the key. The fiscal fog is thick.” Bosma suggested - and the list has included Dan Burton, , Birch an income tax cut could throw the Indiana tax equation and Evan Bayh, Ed Pease, Todd Rokita, Marlin Stutzman “further out of balance.” and, soon, Jackie Walorski - it was a trip from the heartland Bosma added that any new tax policy must to the Potomac and most never came back. be “sustainable and conservative.” Both Long and Bosma But for Gov.-elect Mike Pence, it’s contra-flow. The suggested there would be more support for moving up the congressman is leaving Capitol Hill for the Indiana State- time table on the inheritance tax phase-out. Others view house. And within the Indiana center of government, the bringing down the Indiana sales tax - tied with Mississippi, widespread speculation is that Pence views four or eight Rhode Island, New Jersey and Tennessee as the nation’s years at the Hoosier helm as a logical path to the White highest at 7% - as a more prudent priority. House. With Mitt Romney’s But the most revealing in- loss to President Obama formation came when HPI asked on Nov. 6, the big opening the two legislative leaders if they comes in 2016. were in Pence’s loop when he an- Pence is already mak- nounced the income tax cut last ing the broad lists - as July. included him in a photo panel The body language from of potential power seekers. the two legislative leaders was But to follow the tense and the words, terse. Bos- footsteps of Govs. William ma said he had asked the Pence McKinley, Woodrow Wilson, campaign to keep him aprised. Calvin Coolidge, Franklin D. And he wasn’t. Pence and Long Roosevelt, Jimmy Carter, have yet to sit down and talk. , Bill Clinton and George W. Bush in the past Bosma and Pence have, but the century, you have to be successful at leading the state. speaker dropped another little bomblet, saying the income Particularly when you have to transform yourself tax cut didn’t come up. “I think on purpose,” Bosma said. from a legislator to an executive. Contra flow on this isn’t Senate Appropriations Chairman Luke Kenley is always easy. Evan Bayh vastly enjoyed being governor also skeptical, saying that any tax cuts have to be “realis- more than being a U.S. senator. tic” while adding, “There’s a lot of unknowns out there.” The very earliest preamble to a Pence governor- The Pence camp remains committed to the ship has gotten off to a fitful start. On Election Night, Pence tax cut, even though it’s impossible to tell whether it will defeated John Gregg by less than 3% and received less be a budget buster until the December and - ultimately than 50% of the vote. He watched Supt. Tony Bennett’s next April’s - budget forecasts are released. “Gov.-elect upset to Democrat Glenda Ritz. Pence believes allowing Hoosiers to keep more of their And Pence will follow arguably the most popular hard-earned money will create jobs and looks forward to modern Indiana governor in Mitch Daniels. He will find presenting his proposal for income tax relief to members of legislators and the press ready to make quick comparisons. the Indiana General Assembly at an appropriate time in the Last week, Pence discovered that one of his top future,” said spokeswoman Christy Denault. priorities - a 10% income tax cut - is far from a slam dunk. Other than a presser the day after the election, House Speaker Brian C. Bosma, heading a Pence has not been available to talk, though he did do a 69-member caucus, and Senate President Pro Tempore Q&A with the Indianapolis Star, with the first several ques- David Long, leading 37 Republicans in the upper chamber, tions dealing not with jobs and the economy, or even taxes, told an Indiana Chamber of Commerce legislative preview but the social issues Pence refused to discuss during the conference that they are fully committed to phasing out the campaign. v inheritance tax and reducing Indiana’s corporate taxes. And HOWEY Politics Indiana Page 10 Weekly Briefing on Indiana Politics Tuesday, Nov. 27, 2012

voters in Michigan and Ohio that the auto recovery effort Colwell’s 2012 annual was a mistake and Chrysler is moving Jeep production jobs to China. For promotion of teeth whitener during a political Turkey of the Year Awards debate, Joe Biden gets a turkey that smiles and smirks. By JACK COLWELL For marathon competition, gets a slow SOUTH BEND - With Thanksgiving concluded, it’s moving turkey. time to present the annual Turkey of the Year Awards. If the election were held today, would you vote Recipients may cry fowl. But even if they haven’t for the accuracy of the Gallup Poll or ’s perfect been turkeys all year, each winner has done something to projections? With no margin for error, the results are 100 merit this prestigious recognition. percent for Silver and a turkey for Gallup. The awards for 2012: Chris Chocola, the Club for Growth guru whose In mathematics, for proving the early and powerful financial support was instrumental in formula on how vote totals diminish in selection of Richard Mourdock as the GOP senatorial nomi- direct proportion to multiples of political nee, wins a special award: Turkey Producer of the Year. gaffes, the Turkey of the Year Award St. Joseph County Republican Chair Deb Flem- goes to Richard Mourdock. ing gets a turkey for ignoring county political tradition and Now, the award for supporting leading Republicans to capture control of the Board of actor. The envelope please. And the County Commissioners. winner of the turkey is Clint Eastwood’s For devastating the motel, restaurant and bar busi- empty chair. ness in Urbana, Ill., a Turkey of the Year Award goes to Next, the envelope for supporting actress. And the what’s left of the Indiana House Democratic minority. Can’t winner is John Gregg’s mom in her Sandborn beauty parlor visit Urbana to assert relevance after their pathetic election performance. effort left them without enough survivors to even break a Mike Pence gets a turkey for avoiding those nega- . tive TV ads viewers say they hate and darn near blowing For accuracy in breaking news coverage, turkeys his huge early lead as he go to Fox News and CNN for reporting ran nothing but positive that the Supreme Court struck down spots. the individual mandate in Obamacare. For dedication in Diane Sawyer gets a stewed tur- higher education, the 2012 key. Turkey of the Year Award A turkey for bravery in battle with is presented to Ohio State little girls goes to state Rep. Bob quarterback Cardale Jones, Morris of Fort Wayne in his assault on who said on Twitter: “Why “radicalized” Girl Scouts. should we have to go to In baseball, the Turkey of the class if we came here to Year Award goes to the Chicago Cubs. play FOOTBALL, we ain’t Not for losing 101 games but for los- come to play SCHOOL, ing Mayor Rahm Emanuel’s support classes are POINTLESS.” for Wrigley Field renovations with In music, the tur- Ricketts family involvement in discus- key goes to Tony Bennett. Not the one who left his heart in sion of a racist political attack on President Obama. San Francisco. The Tony Bennett who sings the blues after In professional football, a turkey with a concus- his surprise loss for superintendent of public instruction. sion goes to the coaches who say solemnly that they would The turkey for use of modern technology goes to never condone knocking out the opposing quarterback with Raymond Jefferson, charged with armed robbery in tak- a helmet-to-helmet smash. ing $17,000 in merchandise from a Chicago Radio Shack David Petraeus receives a top secret CIA turkey for store. Police quickly tracked him down thanks to the global alerting the nation to heed the oft-cited warning about lack positioning equipment that prosecutors say he stole. of e-mail security: “Don’t put anything in an e-mail that you Winner of the Quayle of the Year Award for perfor- wouldn’t want to see posted on the bulletin board.” v mance in a political debate is President Obama. The Award in fiction goes to Mitt Romney for telling HOWEY Politics Indiana Page 11 Weekly Briefing on Indiana Politics Tuesday, Nov. 27, 2012

our doors. But what does it do for our neighbors? Where you shop Often goods will cost less in a bigger town because the merchants there are able to get deeper discounts by makes a difference buying in greater quantities. You have a choice. Spend time and money traveling to save money on your purchases, or, By MORTON J. MARCUS buy locally and invest in your home town. INDIANAPOLIS - The great shopping season is upon None of this says you should buy inferior goods us. First, Halloween; now, Christmas. Americans tell us or support inferior services just because they are local. You much about what they value, in time and money, as they do no good for yourself, other consumers or the seller by hand over their cash, checks, debit and credit cards. encouraging poor quality. Local sellers have a responsibility Expensive toys for your grandchildren and cheap to offer the best quality goods and services they can. That trinkets for their parents (your children) tell us who is is their investment, not only in their businesses, but in their important and who is an after-thought. If you spend money community as well. on a holiday cruise for yourself while Thus, this shopping season when you buy locally, people in your community go hungry or you will make an investment in your community and in your without proper clothes against the cold, own future. Your purchases are not just for the items you we see what you think is important. take home. They include a commitment to the place you Beyond what you buy is where call home, to the prosperity of that place, to your neighbors you buy. Money spent locally helps your and to the choices you will enjoy in the future. v community. Money spent in another town (in person or on-line) helps that Mr. Marcus is an independent economist, writer and other place. speaker. When you buy from a local merchant, you help employment in your town. Jobs in town increase the likelihood of people living in town or nearby. That helps Gay marriage ban impacts 600 laws sustain property values. More residents mean our schools don’t face the agony of declining enrollment. More income INDIANAPOLIS - More than 600 Indiana laws relate for local residents means a broader base for supporting to marriage in some way, and they could be affected by the both public and private services. passage of a constitutional amendment banning gay mar- The pay of people working locally is usually spent riage, according to a new report released Monday (Kelly, locally, which supports other businesses in town. This Fort Wayne Journal Gazette). For example, the same-sex means survival for those firms and increased choice for you partner of a deceased police officer or firefighter isn’t as a consumer. eligible for death benefits because he or she isn’t a spouse. The more choice we have, the greater our chances And the same-sex partner of a person running for office of living well. Want to go out to lunch or for an anniver- could work as a precinct official at the polls despite a ban sary dinner? You want to have choices among many good against spouses. places. You don’t want to settle for the same place every These situations already exist in Indiana but under time just because there is no suitable alternative. the proposed amendment, lawmakers might never be able Not everything is available locally. Sometimes we to alter so-called conflicts or benefits laws. must travel to find specialty goods and services. Not every “What is clear from this compendium is the ex- town can or wants to support an Armenian, Thai or French tent to which Indiana law uses civil marriage as a way to restaurant. But if your town does not support what it has, classify, grant rights to, and impose responsibilities upon new businesses offering more choices are unlikely to open. couples and families in 614 ways. We hope that it serves No entrepreneur wants to risk investing in a place as a resource for examining how legislative action around where competitors are just barely hanging on. marriage can affect all Hoosier couples and families,” the Improved roads make it possible for us to range far report said. and wide in our shopping. For some of us this is recreation. The analysis also noted, “whether one supports We go off somewhere to shop because it takes us from our or opposes such a proposal, knowing what is involved in everyday world into a different environment. It’s fun. But something as enduring as an amendment to the Bill of what does it do for our choices tomorrow? Rights in Indiana’s highest legal document is critical to Buying from a catalogue or on-line via the Internet enlightened public discourse and decision.” v is easy. The choices are great and the goods come right to HOWEY Politics Indiana Page 12 Weekly Briefing on Indiana Politics Tuesday, Nov. 27, 2012

Eric Bradner, Evansville Courier & Press: An whether Bosma, Long or both are willing to flex their mus- intraparty squabble over taxes and spending could be cles by opposing their own party’s governor. It will also be brewing as Indiana lawmakers prepare to return to the an early look at the pressures the two leaders face within Statehouse in January for their four-month, budget-writing their own caucuses. For now, Long said he and Pence have legislative session. The primary cause of friction among yet to sit down together. Bosma and Pence met, but Bosma Republicans who control the House and the Senate, as well said they did not talk about Pence’s proposal — “I think on as the governor’s office, is a campaign proposal by Gov.- purpose.” v elect Mike Pence He wants to slash Indiana’s individual income tax rate from 3.4 percent to 3.06 percent — a 10 Andrea Neal, Indiana Policy Review: Andrea percent reduction to be phased in over two years. It’s an Neal: It’s ludicrous to equate Tony Bennett’s defeat in the idea he believes would make sense, given that Indiana is school superintendent’s race with public rejection of a on track to hand out $111 in individual tax credits to each school reform agenda, as many in the education bureau- Hoosier income taxpayer next year and still close the year cracy are trying to do. The public wants better schools, with $1.4 billion in the bank, and a surplus expected to top which is why Glenda Ritz, the teacher-Democrat who upset $500 million set to be added to it. But leading lawmakers Mr. Bennett, must be extremely cautious before trying to — especially Indiana House Speaker Brian Bosma, R-Indi- dismantle any reform ingredients put in place by Mr. Ben- anapolis — are persistently and publicly balking at an idea nett and Gov. Mitch Daniels. The public feels about schools that would also drain about $500 million annu- and teachers much like they do about members of ally from a state that spends about $14 billion Congress. They don’t like ‘em, unless they hap- each year. They make the case that while the pen to be their teachers and their schools. In that surplus looks large — large enough to appear case, they’re just fine. No one wants to admit his ripe for a tax cut — there’s some context that own offspring might be getting a second-rate edu- must be considered. First, Indiana is already in cation. Mr. Bennett’s defeat can be blamed on two the process of phasing its inheritance tax out forces. One is the strong word-of-mouth network entirely over a nine-year period, and is step- that teachers operate in this state. That network ping its corporate income tax down from 8.5 percent to 6.5 was solidly behind putting a colleague in the superinten- percent. These changes will chip into tax revenues. dent’s seat. The other was a faction within what should Second, a number of areas — most notably, K-12 education have been Mr. Bennett’s conservative base. These are folks and public universities — have seen their funding reduced, opposed to Common Core, the new curriculum and test- or at least frozen, in recent years as Indiana lawmakers ing initiative coming to Indiana thanks to Mr. Bennett’s and have tightened the state’s budgetary belt to weather the Governor Daniels’s somewhat surprising support for nation- recession. They’re arguing for a slice of that surplus, and alized standards. v advocates of publicly-funded preschool are, too. And third, uncertainty about programs that could carry significant Statehouse File: The calls keep coming. price tags exists. Prisons are overcrowded. The Interstate John Krull, Indiana’s teachers aren’t happy. On Election Day — with 69 extension from Bloomington to Indianapolis must be fi- the help of parents and other Hoosiers — they knocked off nanced. The federal health care law must be implemented. the state’s education czar, Superintendent of Public Instruc- There is also the reality that Bosma pointed out last week: tion Tony Bennett, with an unknown and underfunded Right now, more than half of the state’s tax revenue comes Democratic candidate, Glenda Ritz. Teachers thought they from sales tax collections. Income taxes and gambling had changed the dynamic in the discussion about education revenue are becoming increasingly smaller pieces of the reform and won themselves a seat at the table. It appears state’s financial pie. That, Bosma said, is troubling. “I have they thought wrong. Within hours, Gov. Mitch Daniels, expressed caution to those who think it’s time to cut our Gov.-elect Mike Pence and Indiana House Speaker Brian income tax because it throws us more out of balance,” he Bosma — Republicans all — delivered their own message said. Pence’s now-forming administration has not commit- to teachers. They said that “reform” candidates had won ted to a specific timetable to push for the income tax cut in other races and that those victories constituted the real he has proposed, and Bosma is ruling nothing out — only mandate on election reform. They said that the reforms noting that he wants any proposals the House considers to were not going to slow down or be altered in any fashion. be “sustainable” over the long run. How this issue develops Daniels even said that he appointed a board of education in the coming weeks and months will offer important les- that Ritz would report to. Translation: Teachers and parents sons on how the state’s legislature and chief executive will who aren’t happy about some parts of education reform interact in a post-Gov. Mitch Daniels and Speaker Pat Bauer and voted for Ritz, talk to the hand. v era. It will be a measure of Pence’s political capital and HOWEY Politics Indiana Page 13 Weekly Briefing on Indiana Politics Tuesday, Nov. 27, 2012

Hutton told party officials recently that needs to be a combination of spending Pence names Atkins in March she will step down as Wayne cuts, entitlement reforms and revenue. head of OMB County Democratic Party chairwoman, The issue is, ‘How do you gain that a position she has held for 27 years. revenue?’” Coats and Stutzman have CARMEL - Governor-elect Mike “Actually, I’ve been thinking about said they could back tax-code changes Pence announced that he will appoint (stepping down) for over a year,” Hut- that preserve or reduce current in- Chris Atkins to serve as director of ton said Monday. “There seems to be come tax rates while capping, cutting the Office of Management and Budget a lot of people interested in doing the or eliminating tax breaks. “Taking in the new administration. Atkins will job so it would be a good time for me away incentives, subsidies – I don’t ar- bring a wealth of fiscal policy experi- to step aside.” gue that’s a tax increase. It shouldn’t ence into the Office of Management have been there to begin with,” and Budget. Prior to joining Mike Stutzman said in a recent interview. Pence for Indiana as policy director, On Monday, Sen. Bob Corker (Tenn.) Atkins served as general counsel and Coats, Stutzman tol CBS’s Charlie Rose Show, “I’m not policy director for Governor Mitch obligated on the pledge. I made Ten- Daniels in the Indiana Office of Man- part on tax pledge nesseans aware, I was just elected, agement and Budget. At OMB, Atkins FORT WAYNE - Four Republi- the only thing I’m honoring is the oath helped Governor Daniels craft and can congressmen have made news in I take when I serve when I’m sworn in implement the historic 2008 property recent days by saying they no longer this January.” House Majority Leader tax reform legis- feel bound by a promise they made to Eric Cantor (R-Va.) also suggested lation, the 2011 not raise income taxes (Francisco, Fort Monday that Norquist’s anti-tax pledge corporate tax re- Wayne Journal Gazette). Sens. Saxby would not dictate the GOP’s strategy form legislation Chambliss of Georgia, Bob Corker of on the fiscal cliff. which lowered Tennessee and Lindsey Graham of the corporate South Carolina and Rep. Peter King of income tax rate New York have publicly wavered from Push to begin by 20 percent, their past support of Grover Norquist’s and as OMB general counsel had re- “Taxpayer Protection Pledge.” They online sales tax sponsibility for regulatory oversight of were beaten to the punch by a couple INDIANAPOLIS - Two law- state agencies. Gov.-elect Pence said, of Indiana colleagues who had signed makers say they plan to introduce “Chris’s expertise in fiscal policy and the pledge. Sen. Dan Coats, R-Ind., legislation in the new year that would his background in Governor Daniels’ said at an August appearance in require Amazon.com and other online- Office of Management and Budget Bluffton that he is not opposed to only retailers with a presence in In- will be invaluable to our administra- increasing tax revenue if the federal diana to begin collecting sales tax on tion. Chris will head up our efforts to government cuts its spending dramati- July 1, 2013, six months earlier than expand the Daniels fiscal legacy by cally. And more than a year ago, Rep. a deal brokered by Gov. Mitch Daniels working with the General Assembly Marlin Stutzman, R-3rd, joined 99 last January (). State to pass honestly balanced budgets, other House members in signing a let- Rep. Ed DeLaney said Monday that it’s maintain strong reserves, pay down ter stating that “all options” should be unfair that Amazon and other online our debt and reduce taxes.” Atkins was considered to curb the rising national businesses aren’t collecting the sales policy director for Pence’s campaign debt – although Stutzman later said he tax that businesses with brick-and- and played a major role in developing could not endorse a tax-rate increase. mortar stores are required to collect. 13 policy white papers and the Road- In all cases, GOP lawmakers are part- “There’s no reason to give a tax pref- map for Indiana. ing with Norquist, founder of Ameri- erence to one part of the retail world cans for Tax Reform, on whether the and not to the rest. That’s what we’re elimination of a tax break is the same doing right now,” he said. DeLaney Mayor Hutton steps thing as a tax increase. Republicans said he believes the online companies are resisting Democratic proposals to should already be collecting the 7 per- down as party chair raise tax rates for the wealthy, but cent sales tax, and that the legislation they seem willing to ditch some tax he and Rep. Tom Dermody, R-LaPorte, RICHMOND - Democrats in credits for businesses and people. “It’s will introduce will clarify that. Wayne County are looking for a new how you define tax increase,” Coats party leader. Richmond Mayor Sally said in a recent interview. “There