Tuesday, June 15, 2004  Volume 10, Number 43 Page 1 of 9 he Kernan, Democrats T ready for a fight Howey Tew replaces Hogsett as chairman By BRIAN A. HOWEY in As the 1,882 Democratic delegates began filing in the Murat Theatre Saturday afternoon, the venerable Sarge Political Visher looked around and observed, “This is the first time we’ve ever had one of these in a place with carpet on the floor.” Report By the time Hoosier Democrats left, there was little evidence of blood or brew staining the rug, but notice was The Howey Political Report is published by NewsLink served that the Kernan-Davis ticket was not about to go Inc. Founded in 1994, The Howey Political Report is down without a fight, if it goes down at all. an independent, non-partisan newsletter analyzing the political process in . Every time Hoosier Democrats gathered in the past three years, they found a vastly different gubernatorial sce- Brian A. Howey, publisher nario. At French Lick in August 2002, Lt. Gov. Mark Schoeff Jr., Washington writer was preparing to assume the mantle of the party (and a soon- Jack E. Howey, editor to-be indicted party chairman). On Dec. 9, 2002 -- 41 years to the day Studebaker Corp. dropped a bombshell on his The Howey Political Report Office: 317-254-1533 PO Box 40265 Fax: 317-254-0535 South Bend when it closed -- Kernan did the same with Indianapolis, IN 46240-0265 Mobile: 317-506-0883 Indiana Democrats, abruptly pulling out of the race. [email protected] That set off a wild merry-go-round that at one www.howeypolitics.com time or another had John Gregg, , and eyeing the prize, only to be followed by and Washington office: 202-775-3242; Business office: 317-254-0535. State Sen. Vi Simpson, and then a brief lieutenant governor bid by Bren Simon (of that group, only Bayh was present Subscriptions: $350 annually via e-mail; Saturday). In September 2003, there was the death of Gov. $550 annually including the HPR Daily Frank O’Bannon, Simon’s repudiation of Andrew, the his- Wire. Call 317-254-1533 or 254-0535. toric emergence of Lt. Gov. , and then Kernan’s © 2004, The Howey Political Report. All rights re-entry. All of this came during months of relentless attack reserved. Photocopying, Internet forwarding, faxing or by Indiana Republican Chairman Jim Kittle Jr. and, in the reproducing in any form, in whole or in part, is a viola- “good cop” role, gubernatorial nominee . tion of federal law and is strictly prohibited without On Saturday, Kernan put his foot down and declared consent of the publisher.

Ticker: Daniels ‘disciplines’ GOP p. 2 “The only Daniels liked in this state is a Horse Race: Kernan, Daniels ducking Daniels named Jack.” the Con-Con; early line on AG, - House Speaker B. Patrick Bauer Supt; Borst concedes defeat p. 6 Columnists: Colwell, Gerard p. 9 HPR Forum Will Feature Dr. Larry Sabato on Oct. 1 at the Downtown Marriott Tuesday, June 15, 2004 Page 2 of 9

a race -- a fight -- was at hand. we want is a fair fight.” “It’s been 39 days since I sent a Whether it’s fair or not, Hoosiers letter to my opponent offering to sign a are on the brink of a Kernan vs. Daniels fair campaign pledge, to be specific about donnybrook. how we will pay for the programs we pro- pose, and to have three debates,” Kernan Kernan and change DANIELS ‘DISCIPLINES’ said. “The silence is deafening. More than And as with Daniels, who GOP: Marc Lotter, one-tenth of a year has passed, and still no promised a “freight train of change” last spokesman for Republican response. But I think we know why. We gubernatorial nominee week at the GOP convention, Kernan, too, Mitch Daniels, said Daniels have heard the claim that he will run a was talking about the same. has been nothing but posi- clean campaign,” Kernan said of his Kernan began by taking on the tive (Niki Kelly, Fort Wayne Republican opponent, Mitch Daniels, notion that there isn’t much difference Journal Gazette). “They’ve holding up the GOP booklet Legacy of between him and Daniels. “I made the been watching another cam- Neglect. “Then they distribute thousands decision to get in this race for governor paign. Mitch has been of copies of this trash, their version of the because I believe there’s an extraordinary unfailingly positive for 11 National Enquirer, all over Indiana. opportunity to lead Indiana to greatness,” months,” Lotter said. “The Distorted, demeaning and distasteful.” Kernan said. “To build on our successes. Democratic party has put Kernan also took issue with Daniels over out similar things calling To meet our challenges head-on. To work the “irresponsible charge that Indiana is Mitch a liar. Mitch has disci- together and make the changes that matter plined the Republican party. bankrupt.” Kernan said, “I have decided to Hoosiers. To make it clear that there is When is Gov. Kernan going that as we work our way through financial nothing we cannot achieve. That’s why to do the same for his challenges I will not seek advice or coun- I’m running. That’s my mission. You may party?” sel from anyone whose budget lost more hear some people say that ‘it’s fortunate than half a trillion dollars.” that we have two qualified people running McDERMOTT SEEKS While Kernan was jabbing back at for governor. We win either way.’ If I PEACE WITH BAUER: Republicans over the “Legacy of thought that were true, I’d be heading House Democrats seek to Neglect,” Democratic counsel Shaw back to South Bend in January to buy a hold their slim majority, as Friedman was distributing talking points local Democrats vow to baseball team.” work together after a con- about the Daniels record at OMB and Kernan sought to make the case tentious primary. Democrats IPALCO. The ’s for change, as Daniels did last Monday, are trying to keep control of Martin DeAgostino observed, “The mater- and highlighted his job creation efforts. the House of ial -- available in camera-ready format for “In this time of change for our state, we Representatives, where newspaper ads -- is based on opposition will meet our challenges in the same way. Democrats control the 100- research that combines selected facts, We won’t leave it to chance that better member House by a single quotations and independent reporting on days are ahead; we choose to make it hap- vote. Earlier in the week, at various aspects of Daniels' record. Ironic- pen,” Kernan said. “And that’s exactly the state Republican ally, the materials resemble a Republican what we’ve been doing. Together, we Convention, House Minority Leader Brain Bosma handed compilation of Democratic failures, called have accomplished many great things, out “54 in ’04” buttons, hop- A Legacy of Neglect, that Kernan held with bipartisan leadership from Democrats ing to pick up five seats in aloft during his speech and labeled ‘trash.’ and some enlightened Republicans.” the next election (Steve The moral of the story? With five months That last sentence is key. For Walsh, Post-Tribune). “We left until Election Day, both parties seem while it was Kernan who launched the tax don’t need a catchy slogan. locked and loaded for a long, hard con- restructuring initiative in October 2001, We can run on the issues,” test.” the man who actually crafted the final said House Speaker R. The governor then took aim at deal -- much to the objections of then- Patrick Bauer, D-South Daniels’ Washington career. “Working in House Speaker Gregg and then-Ways & Bend. Bauer said Washington must be like living on Mars,” Means Chairman B. Patrick Bauer -- was Democrats are running on a platform of jobs and educa- Kernan said. “No oxygen. No water. No Republican Senate Finance Chairman signs of intelligent life. Hoosier workers Larry Borst, who, ironically, was finally Continued on page 3 can compete with anyone in the world. All defeated in his primary re-election battle Page 3 of 9 Tuesday, June 15, 2004 the day before Democrats met. thing at once. We cut inventories, we Republicans have been trying to tag made parts to the assembly schedule. We Kernan with the fallout, particularly in implemented statistical process control. Democratic bastion Lake County, even We stopped adjusting fuel systems in test though Borst wrote the final plan and cells. We modernized the paint system House Minority Leader Brian Bosma and shipped to our customers’ schedules. allowed it to pass out of the House when These changes made the difference. tion. In the final week before he instructed State Rep. Mary Kay Budak, Mitsubishi never became a supplier to the May primary, the speak- R-LaPorte, to vote aye. Ford.” er toured Lake County, Kernan continued, “We have She said that Gov. Kernan works where incumbent Reps. proven that when we work together, we in a similar mode. “Joe Kernan looks Chet Dobis, D-Merrillville, get the job done. We took action, by squarely at what needs to be done and Linda Lawson, D-Hammond changing government, cutting waste, and does it. He offers a plan. He brings people and John Aguilera, D-East , all faced primary controlling spending. We cut property in. He listens. Ideas get better. Joe Kernan challengers. Lawson faced taxes to give homeowners needed relief decides and takes action. The right the closest race against from the effects of court-ordered reassess- changes get made and we get results. Joe Hammond City ment. And we cut business taxes to create Kernan competes and wins against adver- Councilwoman Kathy a better climate for our companies to sity, against bureaucratic inertia, and Pucalik, who was supported grow and create good jobs.” Kernan said against anyone who would have him fail. by Hammond Mayor his administration has “laid a strong foun- Joe Kernan is the real thing at the right Thomas McDermott Jr. dation” trying to ward off a national time.” Behind the scenes, state recession. “Our work is paying off: It offered an interesting contrast Democrats told McDermott We’re attracting more businesses and to State Sen. ’s speech to not to push a primary chal- lenge, when Democrats more investment, we’re seeing more Republicans the week before. Skillman were expected to need growth and creating more jobs, and we’re broke little new ground, essentially serv- money to hang onto the turning the corner toward the great days ing notice that “help is on the way” with majority in the fall. “To me that lie ahead. We will not tolerate the sta- Daniels. it’s over, I move on,” Bauer tus quo. We will embrace change and The rap on Davis in some said. Lawson didn’t come to shape it. We will lead, not follow.” Democratic circles prior to the convention the convention. McDermott was that she flourished in economic shook Bauer’s hand and Davis talks action development circles, and stumbled in said he told the speaker that he planned to work for In her first major political political settings. On Saturday, it was a technocrat-turned-politico coming out for Lawson in the fall. “It was address, Lt. Gov. Kathy Davis tried to nothing personal. I’ve talked Davis that was well-received from the convey a “been there/done that” attitude. to Linda and said I would do She elaborated on her role at Cummins delegates (as was Skillman’s speech from everything I could to get her Inc. that Kernan had spotlighted when he the week before). Skillman’s greatest elected,” McDermott said. chose her in October 2003. value will be the relationships with leg- “The country was in the worst islative power brokers that a “Gov. GOODALL CITES DANIELS manufacturing downturn of recent times, Daniels” would need to forge an aggress- BUDGET DEFICITS: Hurley until the one we’ve just come through,” rive program. Davis was show-cased as a Goodall admits Indiana has lost some ground when it Davis explained. “Mitsubishi offered to problem solver who is already rolling up her sleeves and seeking solutions. comes to manufacturing sell Ford a tractor-trailer diesel engine for jobs. However, Goodall, $7,000. We were selling ours for $10,000. secretary of the Indiana Cummins set out to keep overseas com- Plan of attack Democratic Party for 20 petitors out of the heavy duty engine mar- Unlike the GOP convention that years, is not ready to put ket. To do that, we needed to build our seemed scripted with Reagan-Deaver state government in the engines for 30 percent less cost. At the panache, Democrats actually were pro- hands of Republican guber- Columbus engine plant, with the help of ducing controversy on both the political natorial candidate Mitch our union partners, we changed every- and public policy fronts. Both came with Daniels, a former White continued on page 4 Tuesday, June 15, 2004 Page 4 of 9

Thursday’s announcement that nominee , with devas- Democratic Chairman would tating results, though Goldsmith himself run for attorney general and former and the Indianapolis Meridian Street Indianapolis Councilor Susan Williams riot helped in his demise. would seek the top education post. While Williams’ spice of controversy there is no question that the two are was announcing she was running for an House budget director. "I personally like Mitch, but he extremely strong, credible candidates office she had no intention to hold, saying would leave Indiana in the (each was on many LG short lists before she would resign if elected and allow Gov. same hole that he left the Davis was chosen), the circumstances Kernan to appoint a superintendent. government," were controversial. Many Democratic delegates fret- said Goodall, referring to With Hogsett, Democratic insiders ted about this move. Early editorials on the $500-billion federal were quickly saying that Gov. Kernan, the subject are mixed. The Kokomo deficit (Yencer, Muncie Star worried about the constant broadsides Tribune editorialized on Saturday, “It Press). Democratic Gov. Joe from Kittle and the GOP, and was con- would be quite a bit easier for the state¹s Kernan told a cheering con- vention crowd Saturday that cerned that Hogsett’s state party operation voters if accountability for the state¹s edu- most people would never was too scaled down and not defending cation system were vested in one person -- know that Indiana led the the governor. The solution was to “pro- the governor. So we really don¹t care who Midwest in job growth and mote” Hogsett to the ticket, where he gets credit for this idea; it¹s a good one.” made unprecedented invest- would be a handsome, energetic cam- The Indianapolis Star wrote on ments in job training, edu- paigner, and rejoin his buddy Evan Bayh. Monday, “Her strategy comes off as a cation and creation by lis- One influential Democrat told HPR that cynical manipulation of the system. It's tening to Daniels speak. the “days of the open field for better to work through the necessary leg- "You would never know that Republicans are over. With Joe Kernan’s islative process, as frustrating and slow as one of my first actions as governor was to create high personal popularity and job approval it may be, than to circumvent the spirit of Opportunity Indiana, an ini- and the state on economic rebound, there the law and the election.” tiative that fights back should be no way this race should be a And this morning, the Fort Wayne against the tide of shipping dead heat.” Journal Gazette editorialized, “It is ill- jobs and money overseas Hogsett, with the reputation of conceived and almost certainly will strike and out of state," Kernan turning a turnip farm into a dairy opera- many voters as a gimmick.” said. Mike Brown, president tion (i.e. milking a turnip), normally The risk here is that Republicans of United Auto Workers would have planned out a campaign for will use this as an example of the normal- Local 287, said the econo- my had picked up because months (as well as raise money). He told ly straight-shooting Kernan looking of steps taken by Kernan's the press on Thursday, “Candidly, I would manipulative. administration to create have enjoyed to lead our party as chair But the immediate upshot was jobs. Tim Southworth, through the campaign. But after careful clear: Kernan and the Democrats are Democratic Party chairman consideration of all the options, I have about to rev up the kind of opposition in the 6th congressional decided to be a candidate.” response that Frank O’Bannon used in district, said people had to He was really being a good sol- cunning fashion to upset Goldsmith. "wake up" and see dier, and no one on the Kernan campaign Tew immediately came out swing- President Bush's economic and trade policies were begged to differ with the assessment. ing, telling delegates, “When Mitch costing manufacturing jobs Hogsett is risking a third loss, and joked Daniels got to OMB, we had the largest in East Central Indiana. "We that he has been “a rising star in three dif- surplus in the country’s history, thanks to have some of the highest ferent decades.” . Now we’ve got the largest unemployment in Jay and Kernan’s second ticket solution budget deficit.” Randolph counties," said was to tap former Marion County chair- Gov. Kernan let it be known early Southworth, laid off from man Kip Tew as the new state chair. Tew on that he was in an Irish fighting mode. Union City Body Co. and Williams were part of the 1996 A couple of hours before his speech, he Goodall, a retired firefighter Democratic “truth squad” that took oppo- told 6th CD Democrats, “This is the most and former state lawmaker, said Daniels was directly sition research into a statewide travel important election in our history. Maggie mode against Republican gubernatorial and I aren’t packing our bags and we continued on page 5 Page 5 of 9 Tuesday, June 15, 2004 aren’t going anywhere.” present and past, we shall be in danger of 16 years losing the future.’ That’s not something Perhaps the greatest challenge for I’m going to do, and neither will Hoos- Kernan and Indiana Democrats is to iers.” answer the notion of “16 years is long enough.” Epilogue tied to Bush's economic Democrats tried on Saturday. That, of course, remains to be policies. And without some help undoing federal trade U.S. Sen. Evan Bayh put a differ- seen. policies allowing jobs to go ent historical light on the “16 years is too Both parties have now filled their overseas, "Our working long” equation in the governor’s race. He tickets. Both gubernatorial campaigns will people are in for a tough recalled the 1948 presidential election that have ample money. Both have reassessed time," Goodall said. came after 16 years of Democrats in the performance and responded by moving White House, an embattled incumbent key people into campaign and party posi- LUGAR REPORTS TAURUS: with Harry S Truman, and difficulties with tions. Senators' financial disclo- the economy. “People didn’t give him a Both have embraced “change” sure reports showed anew chance,” Bayh told delegates. Bayh said and attempted to make a case that they are Monday how wealthy most of them are, with quirky the proper agents thereof, though both that Truman took his case to voters. He nuggets like a $1,059.75 quoted Truman as saying, “I haven’t come Kernan and Daniels seem content to work Taurus and the gift of a sled here to ask you to vote for me. I am ask- around the margins (i.e. appoint a dog buried amid trust ing you to vote for yourselves. Vote for a Commerce secretary; appoint the superin- funds, blind trusts and real sound budget and a strong national tendent, instead of supporting a more estate holdings (USA defense.” Bayh explained, “And that’s our comprehensive notion such as a Constit- Today). Sen. Edward heritage.” Truman went on to upset a utional Convention). Kennedy, D-Mass., who heavy favorite, New York Gov. Thomas And despite Gov. Kernan’s words reported from $8 million to Dewey. to the opposite, Hoosier voters will find $40 million in family trust funds, listed up to $2,500 in the best gubernatorial nominee either Former First Lady Judy rental income for a single O’Bannon, speaking to delegates after a party had to offer at the top of the ticket. parking space in . video tribute to her husband, raised the The critical question is who can Senate Foreign Relations 16-year question and said, “Well, baloney. lay out the vision that Hoosier voters will Committee Chairman Why change a good thing? Now we know buy into? And can they do it without the , R-Ind., said we've got one: Candidates that are smart coming rhetoric over opposition research he had a 1993 Ford Taurus and caring and capable and determined shadowing that vision, or overwhelming it worth $1,059.75. His assets and dedicated and experienced. We've got altogether? included his $766,000 home them. But it takes the will to win,” she It’s a tough proposition. in northern Virginia. Indianapolis Mayor , in said, pointing to the delegates. “Do we LUGAR, BAYH NET WORTH have the will today?” The delegates derailing a 30-year Republican dynasty REVEALED: Thanks in large cheered. “DO WE have the will today?” back in 1999, did it by strictly sticking to part to his wife's corporate she called again. such a vision, never going negative, and board work, Sen. Evan Davis tried to accent the positives allowing the details to carry him to a huge Bayh's family assets sub- of Kernan’s nine-month tenure. “Joe victory. stantially increased last Kernan created a cabinet form of govern- Daniels thought he could easily year to at least $3.3 million ment. Joe Kernan reorganized Commerce prevail if Gov. O’Bannon hadn’t died, or and possibly more than $9.1 million, according to annual into regions. Joe Kernan created if Andrew or Simpson had been the nomi- financial disclosure state- nee. Indiana@Work. Joe Kernan created ments made public Monday Opportunity Indiana.. Joe Kernan has laid But it’s Daniels vs. Kernan, in (Indiannapolis Star). That's the foundation.” perhaps the most scintillating gubernatori- up from a maximum of $2 Kernan himself put it like this: al election this state has ever seen, with million reported by the “This election is about tomorrow, not much at stake. Indiana Democrat for 2002. about yesterday. As Winston Churchill Hold on to your seat.This could said, ‘If we open a quarrel between the be a wild ride.  continued on page 6 Tuesday, June 15, 2004 Page 6 of 9 2004 Racing Form TREND LINE: Charlie Cook observes: Soon after the death of former President , there was a buzz around town that this event could have a lasting effect on the presidential race. Some suggested that the “right Sen. Richard Lugar's net direction” polling numbers might bump up, due to a wave of nostalgia. Others worth also increased last year but only slightly, speculated that Republican Party identification numbers might even jump up a according to a more bit. I must admit that I was extremely detailed accounting he skeptical. The country is as highly revealed. Lugar, R-Ind., and polarized as it has been in my five his wife, Charlene, reported decades on this planet. Attitudes about a net worth at the end of last year of $1.75 million, up President Bush, this presidential campaign and the direction of the country are slightly from the $1.55 mil- formed in large degree on big things like voter attitudes toward Iraq, the econo- lion reported at the end of my and domestic issues, such as health care, education, the environment, and 2002. which side one believes would create more opportunities for citizens. Roughly half the country has reached one set of conclusions and the other half has come ROBERT TEETER DIES: Robert Teeter, an influential down on theopposite side -- and these conclusions were reached on big things Republican pollster who that aren't likely to be changed by the passing and celebration of a president worked in several presiden- who has been out of office for 16 years. tial races and was a long- time member of former President Bush’s campaign Indiana 2004 Gubernatorial, Statewides brain trust, has died after a Republican: Mitch Daniels. Democrat: Gov. Joe Kernan. battle with cancer. He was Governor 2004: 65 (Associated Press). Libertarian: Kenn Gividen. 1996 Results: O’Bannon (D) 1,075,342, Goldsmith (R) 997,505, Teeter died Sunday night at Dillon (L) 35,261. 2000 Results: O’Bannon (D) 1,230,345, McIntosh (R) 906,492, Horning (L) his home in Ann Arbor, his 38,686. 2004 Forecast: When it comes to government restructuring, both Kernan and Daniels company said Monday. are half pregnant. Both talked to their party conventions about the need for change ... as Daniels Teeter played an important put it, “We must earn the right to do great things for Hoosiers -- not marginal things, incremen- role in American politics tal things, not tweaks or adjustments or small-caliber things, but great things. We must insist on over the past 30 years, the right of every Hoosier to dream great dreams.” But when it comes to the topic of a working with Republican Constitutional Convention to reshape Indiana’s 1851system of government, both major party presidents beginning with nominees are dancing around the fringe. Last Thursday, Kernan announced that Susan Williams Richard Nixon and serving will run for superintendent of public instruction and would resign if elected, giving him the right as national chairman for to make the appointment. Kernan explained, “It doesn’t make any sense to elect a superintendent Bush’s unsuccessful 1992 of public instruction. Even if you are of the same political party, to have those different respon- re-election campaign. He sibilities without the line of authority, I think it is important to have a continuity of policy, for also handled polling for the message, for the resources that both offices have control of to be pooled together. Susan Bush in his 1980 presiden- gave us the opportunity to make this point very clearly and to not just make the point, but to tial run and was a top advis- also put it into practice. This goes beyond rhetoric as to how important it is for there to be an er in the 1988 campaign that appointed position. The governor will be able to make the decision on who serves the next term. landed him the White It should be an appointed position and we are doing it in such a way that that is something we House. More recently, can achieve.” When HPR asked Kernan if he would support a Constitutional Convention to Teeter was involved in the recalibrate all of state and local government, he responded, “I don’t know if we need a discussions that led to Dick Constitutional Convention. We just went through a process in the last session of the Indiana Cheney becoming George General Assembly where the clerk of the court should be an appointed position. That’s the right W. Bush’s running mate in thing to do. It just makes sense. If we can do it there, when you talk about education and the 2000. Teeter was president unfortunate circumstannces where politics end up being part of those discussions, it should be a of Market Opinion Research position appointed by the goveror, whoever the goveror is.” Kernan, in choosing Lt. Gov. Davis before forming his consult- to head up the Peak Performance initiative, told the in January that it would be more than just “kicking the tires and looking under the hood; we might just redesign Page 7 of 9 Tuesday, June 15, 2004 the whole car.” But Keran seems reticent to haul out the block of clay and actually begin a thorough redesign. In his April debate with Eric Miller televised on WTHR-TV, Daniels also seemed to agree there was a problem, but skirted the issue. “We do have too much govern- ment,” Daniels said. “It’s a strange thing to contemplate that we elect more people than just about any other state. This might be someting we should be tackling in 2005. We should con- tinue the conversation. of what government we might be able to do without, combine and be more effective. I think this is a second burner issue, after we tackle our immediate economic problems.” Our view is that in order to appropriately tackle the economic, education and secu- rity issues that face us, there is no more paramount issue that reshaping Indiana government to ing and research firm, Ann reflect 21st Century realities. Both Kernan and Daniels seemed to be preparing their party reg- Arbor-based Coldwater Corp. ulars for change. Our read on delegates is that they are ready. So why are Gov. Kernan and He also conducted a national Daniels so gun shy in proposing a bold, inclusive step -- a Constitutional Convention -- that polling program for NBC could inject the Hoosier political and public policy establishments with historic energy? And News and The Wall Street why won’t they do it in the context of the 2004 governor’s race? We’ll be asking. As for how Journal together with Hart. we perceive this race now that the teams are in place, we see it as a pure tossup at this point. The critical question is whether it stays on a high plain and becomes a true constrast of LAKE COUNTY TAXPAYERS visions, or whether it gets mired in allegations, charges and counter-charges consumed with the WILL GET TO VENT: A panel past. While a sitting Indiana governor has never been defeated, Kernan faces the “end of the of state legislators will ask dynasty” dilemma that allowed Evan Bayh to sideline in 1988. Status: Tossup. taxpayers about the plight of Attorney General 2004: Republican: Attorney Gen. Steve Carter. Democrat: Lake County today at the Genesis Center (Post- Joseph Hogsett. 2000 Results: Carter (R) 1.077,951, Freeman-Wilson (D) 978,713, Harshey Tribune). Tax activists (L) 45,490. 2004 Forecast: Democrats were buzzing about the decision of Hogsett to leave his expect a crowd of thousands post as state party chairman to run for attorney general (Steve Walsh, Post-Tribune). Hogsett to show up Saturday for a had brushed aside rumors that he was considering the job. In the days leading up to the con- presentation from Indiana vention, Kernan announced Hogsett’s decision, just prior to the party’s 48-hour deadline. economists that will target “When Gov. Kernan asked me to join the ticket three weeks ago, I had to talk it over with my legislators’ missteps. The family. I had to consider my private law practice,” Hogsett said. Lake County Party Chairman five-member Commission on Stephen Stiglich said Hogsett is a tireless campaigner and provides energy to the ticket. State Tax and Financing Stiglich said he isn’t concerned about Hogsett’s relatively late entrance into the race. “We Policy will meet with resi- know who Joe Hogsett is, up our way.” What’s our assessment? Carter will have a huge money dents at 3 p.m. today to lead, the Republicans usually enjoy an advantage in the statewide races, and he’s got perhaps address taxpayers and gath- the best consumer issue an Indiana AG has ever had with the no-call list. Having said that, er “input” from homeowners Hogsett is extremely credible. He’ll be able to raise money to get a message out. He’s a great about the impact of campaigner and he’s been a giant killer before, when he knocked off Indianapolis Mayor Bill statewide tax reassessment. Hudnut in 1990 for secretary of state. And there are all sorts of scenarios where if President The input likely will be pretty Bush or Daniels fade and Kernan rolls to victory, Hogsett could get swept in. The early advan- harsh, said David Allen tage goes to Carter, but we’ll be watching this one. Status: LEANS CARTER. Jordan, media director for Superintendent of Public Instruction: Republican: Supt. Suellen Reed. the Family Christian Center Democrat: Susan Williams. 2000 Results: Reed (R) 1,181,678, McCullum (D) 814,658, in Hammond. The church will Goldstein (L) 81,722. 2004 Forecast: Gov. Kernan asked Williams to run for superintendent open its 4,000-seat auditori- of public instruction, so he could then make the appointment, some believing that if Kernan is um to experts from elected it would be his chief of staff Mary Downes, a former principal at South Bend Adams Operation Tax Education High School. “The governor is asking me to make change that matters,” Williams told cheer- Now for an informational ing delegates. “Education and politics should not mix. It is far too critical to be tied up in the session and rally at 9 a.m. political apparatus.” Williams said that 36 states appoint a superintendent. “I pledge to make Saturday. “Our phones are Indiana the 37th,” she said. Many Democratic delegates we talked to were nervous about the going psycho,” Jordan said. idea of Williams running for an office she had no intention of serving. We’ll be watching the “Apparently, the people are editorial pages in the coming days to see if any kind of consensus is building. The Kokomo starting to get their tax bills Tribune came supported the idea. The Indianapolis Star wrote on Monday, “Williams is right now and they’re wanting on her basic point that the position should be appointed, rather than elected. But her strategy some answers.” comes off as a cynical manipulation of the system. It's better to work through the necessary legislative process, as frustrating and slow as it may be, than to circumvent the spirit of the law COUNCILMAN HEADING TO and the election.” The normally Democratic Fort Wayne Journal Gazette opined, “The KOSOVO: Columbus city Democratic Party’s nominee for state superintendent of public instruction has a sound goal: Councilman Craig Hawes The position she’s seeking should be appointed instead of elected. But her pledge to resign if Tuesday, June 15, 2004 Page 8 of 9

elected is not the way to achieve it. Until the General Assembly sees fit to change the way the state’s top schools official is chosen, the stated intent by the nominee, Susan Williams, has the effect of defying the will of voters who make the choice. It is ill-conceived and almost certainly will strike many voters as a gimmick.” While we think Williams is a very credible candidate, she is at a huge disadvantage here. Reed will have a big fundraising lead. She has led the GOP tick- et every time she’s been on the ballot since 1992. We see Reed as a heavy favorite. Status: will temporarily leave his LIKELY REED. municipal duties to serve in NATO peacekeeping opera- tions in Kosovo (Columbus Republic). Indiana 2004 Legislative Senate District 36: Republican: Johnson County Council President Brent Waltz. PENCE TO OPPOSED STEM Democrat: Terry Rice. 2000 Primary Results: Borst 7,513. 2000 General Results: Borst (R) CELL RESEARCH: Agape 24,621, Reno (D) 12,120, Williamson (L) 1,026. 2004 Forecast: Borst’s legislative career is Press reports: Nancy Reagan, widow of the late over. Borst lost his bid for a 10th four-year term by 38 votes, beaten in the primary by Johnson President Ronald Reagan, County Council President Brent Waltz (Louisville Courier-Journal). Borst wasn't there to see the has also called for an eas- end come. He made a brief appearance Thursday morning in Franklin, where the Recount ing of restrictions on using Commission began meeting to re-tally the votes and consider his request that members order a human embryos' stem cells new election because at least a few people didn't vote when their precinct temporarily ran out of to seek cures for diseases ballots. But Borst didn't return Friday, when the commission wrapped up its work on the race, such as Alzheimer's, which turned down his request for a new election and declared Waltz the winner. Afterward, by phone, took the life of her husband. Borst said he was done. He would not appeal the decision to the courts. He was ready to move But Republican on. He seemed upbeat. He joked that he might go to law school. In an interview with another says embryonic stem-cell reporter, he said he would go back to school to become a journalist. First up, though, is a trip to research would violate the Florida, he said. Borst has a home there, and his father, who lives in Sarasota, is preparing to 40th president's faith. celebrate his 101st birthday. With such longevity in the family, many believed Borst would be in Speaking to the Eagle the Senate for years to come. “It was kind of fun to do things for the state,” Borst said (Johnson Forum Collegians County Daily Journal). “I don’t know what he (Waltz) can do with it.” He charged Waltz with Leadership Summit on running a negative campaign but said voters in District 36 were drawn to it. “I guess people like Capitol Hill, the Indiana law- negative campaigns,” Borst said. When Waltz extended his hand to Borst on Thursday at the maker said Reagan's long commission hearing in Franklin, Borst did not shake it. Many at the Statehouse didn't want him battle with Alzheimer's to go (Lesley Stedman Weidenbener, Louisville Courier-Journal). They saw Borst as a brilliant should not be used to justi- financial mind and tactician who had steered the state on a conservative fiscal path for years. fy embryonic stem-cell Others were ready. They viewed him as a roadblock to this program or that project. Many of research. “Those who them had been “Borsted,” as it came to be called in the Statehouse hallway. The term refers to would erode the sanctity of the times the chairman had offered an opportunity for a new lawmaker or lobbyist to present an human life in the law by idea, only to cut it to pieces, leaving the newcomer humbled, even humiliated. But even some of advancing embryonic stem- Borst's private and public critics seem unhappy about the way his political career has ended. The cell research in the name of loss likely sent a shiver down the spine of nearly every incumbent in the Indiana General Ronald Reagan would do Assembly. Many lawmakers have been asking: If Larry can lose, who is safe? No one. And more to desecrate his mem- Waltz proved that. Last year, Borst wrote a book reviewing his public life. "Gentlemen, It's Been ory than I could possibly My Pleasure" looks back at nearly four decades of legislative work. Borst describes how some imagine,” Pence said. “He of the state's most significant laws and changes -- the merger of city and county government in was devoted to the sanctity Indianapolis, the advent of the lottery and legalized gambling, and various tax cuts and increases of human life.” According to -- came about. In the book, Borst says that he has “been more than fortunate in my life. I more Pence, it was the former or less flow along with the stream and take and enjoy what comes along in life,” he writes. “I president's commitment to have enjoyed it all.” And he seems to have no regrets. “All in all, I would recommend my leg- life that the American peo- islative and political experiences to most everyone,” Borst writes. “I have learned that one per- ple found attractive. son can make a difference.” Weidenbener ended the story by saying, “You said it, Senator.” "Understand who Ronald Waltz will be a heavy favorite to defeat Democrat Terry Rice in the general election as the dis- Reagan was and understand trict is overwhelmingly Republican. General Status: LIKELY WALTZ why he connected to the Senate District 44: Republican: , John Noblitt. Democrat: Open. 2000 American people. Results: Skillman (R) 33,125. 2004 Forecast: The Republican caucus to choose a nominee to Understand the foundation replace Sen. Becky Skillman has been scheduled for 7 p.m. Friday at the Spring Mill Inn in of his house," he said. Mitchell. Steele is the prohibitive favorite. Republican Caucus Status: LIKELY STEELE  "Understand that he built on Page 9 of 9 Tuesday, June 15, 2004

Jack Colwell, South Bend Tribune - tion twice to the presidency and ability to snatch victory from the jaws of a As a political writer, I've had opportuni- the Rock of Christ Jesus in his ties to see presidents up close, Ronald Democratic-controlled House.” His style life." Reagan more often than any of the others made him believable even when he was going back to Lyndon Johnson. Johnson, wrong, as sometimes he was, such as CONSUMER CONFIDENCE the only time I met him, stepped on my when his economic policies brought on RISES: U.S. consumer senti- foot. He was a big man. So it hurt. But it record deficits instead of the balanced ment staged a surprise upturn was accidental. He couldn't have been budgets he was promising.  in early June, defying analysts' predictions for a decline on the displeased with my reporting. I hadn't back of high energy prices and written a word yet about his tour of areas Gary Gerard, Warsaw Times-Union - the turmoil in Iraq, according devastated by the Palm Sunday tornadoes. You can argue on a theoretical scale to a survey on Tuesday In addition to covering Reagan's Notre whether these ideas are valid, but I can (Reuters). The University of Dame appearances and meeting him as far tell you from a factual standpoint what Michigan's preliminary survey back as at a National Governors' happened to the economy and budget dur- of consumer confidence for Association conference when he was ing Reagan’s years in the White House. June showed its sentiment index rose to 95.2 from a final California's chief executive, I was invited On Dec. 19, 1980, the prime rate reached reading of 90.2 in May, accord- five times to the White House for lunch 21.5 percent. The average prime rate in with President Reagan. About 70 or so ing to sources who saw the 1980 was 15.26 percent. The prime rate is subscription-only report, reporters, editors and broadcast journalists defined by the Wall Street Journal as the breaking a two-month decline. from around the nation joined the presi- base rate on corporate loans posted by at Economists polled by Reuters dent on those occasions. We all were least 75 percent of the nation’s 30 largest had forecast a fall to 89.9 as based outside of Washington. These banks. Mortgages were in the 13 to 14 record-high gasoline prices lunches usually followed briefings by percent range. Inflation was running at 13 and geopolitical concerns off- Cabinet members and in most cases percent. That’s the climate when Reagan set some of the recent opti- included fairly lengthy question-and- took office. His budgets and economic mism over the improvement in the jobs market. The expecta- answer sessions with the president. The policies were so demonized by Democrats tions index rose to 86.9 in June purpose was quite clear: Enable the presi- and the media that most people believe dent to carry his message beyond the from 81.6 in May, most likely in the tax cuts he enacted were the cause of line with the dramatic pick-up White House press corps, which most the huge deficit amassed during his in the jobs market over the presidents come to regard as too negative administration. But the critics ignore the past few months. The current and too focused on the “in” topic inside facts. During Reagan’s presidency, the conditions component rose to the Washington Beltway. Despite con- nation’s economic growth rate was a 108.1 from 103.6, its best since tentions by some critics that Reagan was- robust 3.9 percent, unemployment January this year. n't always focused on the issues, at all of dropped from 9.6 percent to 5.3 percent the lunches at which he spoke and and revenues into the Treasury increased.  answered questions, he always seemed to In 1983, revenue to the Treasury was be on top of the issues -- ready, willing $601 billion. In 1989, revenue was $1.1 and more than able to explain and argue trillion. OK. Take a moment here to his side. In the middle of his second term, understand. Reagan cut taxes. Revenue to at a time when there were suggestions the Treasury from taxes increased from that he was slipping, he gave an impres- $601 billion to $1.1 trillion during his sive presentation, skillfully handling presidency. It’s fact. It’s history. It can’t questions with the wit and charm that be denied. Those who call supply-side were characteristic. In a column then, I economics voodoo simply ignore those wrote: “The man is amazing. Some oppo- very basic, fundamental facts. nents still underrate him, despite his elec-