Thursday, Nov. 13, 2003  Volume 10, Number 15 Page 1 of 9 he Daniels to seek T sweeping changes Howey Open to Constitutional Convention By BRIAN A. HOWEY in The two Republican gubernatorial candidates are open to significant restructuring of Indiana government, going as Political far as convening a constitutional convention. “There are a number of changes we need to make,” said in an interview with HPR on Wednesday. Report As for a convention to change Indiana’s 1851 constitution, Daniels said, “I wouldn’t be afraid of it. One thing draws The Howey Political Report is published by NewsLink me very much to it and that is our state setting the pace. We Inc. Founded in 1994, The Howey Political Report is are so nondescript ... I want the rest of the nation to take a an independent, non-partisan newsletter analyzing the political process in Indiana. second look at Indiana.” “I can think of a second great reason,” Daniels said. Brian A. Howey, publisher “It would be a fabulous exercise in citizenship. I can envi- Mark Schoeff Jr., Washington writer sion bringing people into the process who aren’t taking part Jack E. Howey, editor today.” In the first sequence of the 2004 gubernatorial race, The Howey Political Report Office: 317-254-1533 PO Box 40265 Fax: 317-968-0487 State Sen. Murray Clark, 2000 GOP nominee David Indianapolis, IN 46240-0265 Mobile: 317-506-0883 McIntosh and State Sen. Vi Simpson indicated they were [email protected] open to restructuring state government. Democrat Joe www.howeypolitics.com Andrew embraced the constitutional convention. Gov. Joe Kernan was not available for an interview before the HPR Washington office: 202-775-3242; Business Office: 317-254-0535. deadline and has not stated a position on the “con-con.” HPR asked Daniels the same question we posed to Subscriptions: $350 annually via e-mail; then-gubernatorial contender Murray Clark, now Daniels’ $550 annually including the HPR Daily campaign chairman: If you added up all the taxes collected Wire. Call 317-254-1533 or 254-0535. from state to local government in Indiana, would there be © 2003, The Howey Political Report. All rights enough to meet the challenges of a 21st Century state? reserved. Photocopying, Internet forwarding, faxing or “I would answer that I think we are, if you add it all reproducing in any form, in whole or in part, is a viola- together. We are a moderately low tax state. That’s about tion of federal law and is strictly prohibited without where we want to be in terms of future economic growth,” consent of the publisher.

“The next time a woman wants to run for Ticker: Lewis new clerk of courts p. 2 higher office, I hope the three words she Ticker: Roemer protests 911 info p. 3 hears are ‘come on in’ and not ‘you can’t win.’” Horse Race 2004: Borst v. Waltz p. 5 Legislature: A time for tweaking p. 6 - State Sen. Vi Simpson, as she withdrew Columnists: Colwell, Howey p. 8 from the governor’s race Covering 10 years of Indiana politics Thursday, Nov. 13, 2003 Page 2 of 9

he said. “First, we need to take a real hard Daniels said, “There’s the old saying of look at how we’re spending our money don’t mistake the edge of the rut for the and how many layers and fragments of horizon. When I look at the General government we have. We need to look at Assembly I see a lot of places where peo- ways to spend less and be more efficient.” ple have been in the same rut for so long, Daniels was asked if Indiana really they haven’t even thought about options.” DAVID LEWIS NEW CLERK needs 92 counties, when geographically Daniels is on a second 92-county OF COURTS: Gov. Joe bigger and more populous states suchas tour, visiting dozens of mom and pop Kernan today announced Florida and New York have only 67 and cafes, businesses and schools. He has met that David Lewis of with more than 60 sheriffs, dozens of Indianapolis will be the next California has only 58. “I think all those clerk of courts for the state questions should be on the table,” the for- teachers and has the endorsement of most of Indiana. "David is bright, mer White House budget director said. GOP members of the Indiana House and capable and extraordinarily “There are already counties that share Senate, including President Pro Tempore responsible," said Kernan. offices. It’s not a radical notion. Ohio or Robert D. Garton and Senate Finance "And above all, you can Switzerland or Franklin ... don’t ask me Chairman Larry Borst. trust him. I have every con- the combination, but there’s a prosecutor fidence in the world in this that serves two. A court that serves two. Hoosiers ready for change young man, and am thrilled It’s not the same two. We already have to appoint him as a Daniels said of the mood of the some. We have townships that share ser- statewide official." Lewis is Hoosier people, “They’re the same great currently the Central Indiana vices. So these are practical questions. We people, but there is lots of suffering and regional director for U.S. have a structure that was designed not lots of fear.” He said he believes Hoosier Sen. (D-Ind.), one, but two centuries ago.” citizens are ready for change, even dra- where he has served as the And Daniels called for further matic change. senator's liaison to 26 coun- sweeping changes at the Indiana State- “Now when the subject is economic ties for the last year and a house. development and jobs, I have not seen a half. Prior to the position in “This is more about the who than lot of people who shrink back and draw Bayh's office, Lewis spent the what,” Daniels said, repeating a phrase away from substantial change,” Daniels nearly two years as a he used when releasing his first public deputy director in the said of the hundreds of Hoosiers he has Community Development policy positions late last summer. “Indiana talked with since July. “There’s a call for Division of the Indiana will not get out of this fix with the same leadership. There hasn’t been any plan. Department of Commerce, people in charge. I am now convinced of You know, legislatures aren’t known for led by then-Lt. Gov. Kernan. this. There’s too much discussion by the innovation. That’s got to come from the Before that, Lewis was a people who fill the leadership roles in top. I have infinite respect for all the folks special assistant for legisla- state government and how they approach in the legislature. In a citizen legislature tion in the lieutenant gover- their leadership. I will insist on new peo- people make sacrifices.” nor's office. ple, fresh people, idealistic people, people Daniels said that in many small to who have a clear direction from the top medium Indiana towns, he asks about the BUSH APPROVAL AT 51 PERCENT IN NBC POLL: that growth is what we’re interested in. economy and major employers. “A lot of Although doubts about Growth that will put people back to work these towns have been downsized,” he President Bush's handling and generate tax dollars for the state trea- reported. “I ask who are the big players? of the Iraq war keep rising, sury so we can pay our bills and do the They’ll tell you the school system, the improving economic news things we want to do. hospital and local government. What that has stemmed the slide in “If we get there, there will be all really is is cross-subsidization.” overall views of his perfor- sorts of changes. We’ll try to bring the “We were so slow,” he said of a mance, a new Wall Street legislators along, get them out of these lack of leadership at the Statehouse and its Journal/NBC News poll boundaries that they’ve been thrashing impact on scores of Indiana cities and found. The survey, con- around for years.” towns. “Nobody saw this coming. We had ducted amid news reports of robust third-quarter eco- Asked if this change in leadership not encouraged a different attitude, best I would be limited to the executive branch, can tell. We didn’t have any policy at all.” Continued on page 3 or extend into the legislative branch, Daniels said he has even found that Page 3 of 9 Thursday, Nov. 13, 2003 major agriculture operations are moving Out of 117 cities, that is dramatic to other states. turnover, particularly if you put it in the “Republic Airlines wanted to come context of 125 legislative seats that will here, but the Department of Commerce be up for election in 2004. A change of a told them, ‘We’ve got nothing for you,’” third of those legislative seats would be Daniels said. “They’re in Kentucky now. I viewed as a sea change. hear that story all over the place, from the “With the difficulties many of these nomic growth and a bright- small to mid-sized towns. We’re seeing communities have suffered, they were ening jobs picture, shows large scale livestock operations expanding looking for an outlet somewhere,” Daniels 50% of Americans approve out of state. is saying, ‘Here’s five explained. “I wasn’t surprised to see that of the president's handling things you need to do and we’ll get you kind of turnover.” of the economy -- his best showing in more than a an answer in seven days.” The only thing that might prevent -- year. That helped halt the Asked if the O’Bannon-Kernan might -- that kind of barn cleaning at the recent decline in Mr. Bush's administration and the Indiana General is that so many overall job rating. Some Assembly had waited too long to restruc- districts are uncompetitive. 51% approve of his perfor- ture the Indiana tax code (it finally Other than the couple of public pol- mance as president, com- occurred in June 2002) and if that wors- icy pronouncements late in the summer, pared with 49% in ened Indiana’s economy during the reces- one of which included the governor head- September. sion, Daniels said, “It would have helped ing up economic development, Daniels us,” if tax restructuring had occurred in was asked when Hoosiers will find a com- ROEMER DENOUNCES 911 DEAL WITH WHITE HOUSE: 1997 or 1999, “but I doubt it would have prehensive plan distilled down from his The commission investigat- ended all our problems. When I say it’s “92-county job interview.” ing the Sept. 11 attacks said the who in state government not the what, Daniels responded, “First of all, on Wednesday that it had I really mean that.” we’re a full year away. In it’s time, people reached agreement with the Including the legislative branch? will know enough to make a judgment on White House to give the Daniels responded, “We are going to have the direction I want to go.” panel access to copies of a house cleaning across state government. the daily intelligence briefin- I’m thinking the executive branch, but gs sent to President Bush's Kernan over his shoulder desk shortly before the there are folks in the legislature who are At noon last Friday, Daniels was at attacks (New York Times). still blind to the urgency of the situation. Don and Donna’s Cafe in Franklin, a city The accord was reached I don’t want to get into bashing anybody. that just lost 800 jobs at an ArvinMeritor after months of talks over My objective is to just get people to act. plant, talking to a lunchtime crowd. As he the reports, known as the Going back to your first question, they spoke, over his shoulder on a TV set was President's Daily Brief, (Hoosiers) know we’re in bad shape. They Gov. Joe Kernan (volume turned off) which the Central Intelligence Agency pre- know we need to get better. It will be my announcing his re-entry into the gover- job to get the legislature to deliver. The sents to Mr. Bush and his nor’s race. senior aides every morning. people will want us to act, because they “We came to the conclusion that in The bipartisan commission know what’s happened to the company the next year, we will be able to get a had threatened to subpoena down the street. But the folks who were at great start to achieve our goals,” Kernan the reports. "We believe this the helm when this started will not be the said on TV as Daniels spoke. “But there agreement will prove satis- folks to get us out of it.” wasn't enough time to get the job done factory and enable us to get and I don't want to sit on the sidelines.” our job done," the panel said in a statement that 30 mayors defeated The governor presented a “vision lacked details on the agree- Daniels only has to point to the of every child will be healthy and have a ment. Although the agree- defeat of 30 incumbent mayors between world class education and every Hoosier ment appeared to have the the May primary and last week’s munici- will have the opportunity to earn a good support of most of the com- pal elections. There were also a number of living.” He pledged to take care of “senior missioners, it was open seats that will change administra- citizens” and those with disabilities and denounced by a Democrat tions in almost 50 cities. said that “Hoosiers will be safe from continued on page 4 Thursday, Nov. 13, 2003 Page 4 of 9

threats both inside and outside of of a Daniels-Kernan race. “I don’t think Indiana.” Eric Miller can just be brushed aside as a Daniels told the Franklin crowd nonfactor. I think he’ll still try to wage a that he welcomed Kernan’s entry. “No one serious challenge to Mitch Daniels.” can predict the ultimate political effect, Miller adamantly claimed he will but from a citizen's standpoint, this is deliver 200,000 votes and win the on the panel, former absolutely for the best,” he said. “It makes Republican primary next May. “People are Representative Timothy J. Roemer of Indiana. Mr. the questions before us completely plain. looking for new leadership and are gravi- Roemer said in an interview Do we have the kind of economic oppor- tating to our campaign,” he said. He noted that the White House was tunity we want for our kids and for the that 800 showed up at his campaign kick- continuing to place unac- least fortunate among us, or should we off on Oct. 27 at Danville. ceptable limits on access to aim higher? As taxpayers, are we satisfied He claims a network of 3,500 the briefings. "In paraphras- with the quality and performance of state churches, 1,600 businesses and 34,000 ing Churchill, never have so government, or should we expect more? families and said he believes he can turn few commissioners After 16 years of one-party rule by career out more of a vote than the 32 percent reviewed such important politicians do we want to start fresh, or documents with so many conservative John R. Price delivered in restrictions," said Mr. not?” the 1998 U.S. Senate race. Price, Miller Roemer, who was a member Daniels said he did not comment said, is not playing a role in his campaign. of the joint Congressional on a Kernan re-entry during the month- “You’re going to see our support- committee that investigated long speculation. “I waited to comment ers at every polling site in every precinct,” the Sept. 11 attacks. "I am in hopes we would hear some note of con- Miller promised. “We believe we will not happy with this agree- cern or at least awareness of the damage have many more than the 200,000 votes ment, and I will not support and the suffering Hoosier communities needed to win the primary. Whoever gets it." like Franklin have experienced, some their voters to the polls will win. There is STATE DELAYS RELEAS- regret for past failures and a promise to do a lot of anxiety and fear and people are ING NCLB LIST: The state better,” Daniels said. “Instead, what we ready to vote for change.” As for his Jan. list of schools failing to have heard is a purely political announce- 15 financial report, Miller said, “People meet the federal No Child ment. They are saying: ‘We own this will be shocked at the amount of money Left Behind requirements place and we plan to keep it.’ The people we’ve raised.” will not be released this of Indiana deserve better, and our job is to Miller said he would support a week, state officials said offer a positive alternative to a tired restructuring of state government and will (Fort Wayne Journal regime that has run its course.” address a constitutional convention when Gazette). Fort Wayne Kernan campaign communica- Community Schools offi- he gets more information. cials said Monday that the tions director Steve Bella noted that He said that former Gov. Otis list was expected to be out Daniels did not extend the courtesy of Bowen and economist Bill Styring and this week after a many- “waiting for 24 hours” after what was a State Sen. Kent Adams are developing an months delay. But Indiana political announcement. economic recovery plan in the near future Department of Education As for the loss of 30 incumbent which will feature spending caps. spokesman Marc Steczyk mayors, Bella pointed out that none of As for Gov. Kernan’s re-entry, said Wednesday that is not those included Democrats in the major Miller said, “He still has to run on his the case. "It's going to cities. Democratic mayors now control come out sometime, but record. Indiana leads the nation in job eight of the top 10 populous Indiana cities there's no definitive loss, mortgage foreclosure, a decline in timetable," he said. The and 20 of the top 30. personal income and spending has gone release has been delayed as up 50 percent in the last eight years. state officials review hun- Eric Miller’s campaign Daniels said that while he takes dreds of appeals from dis- Veteran the Miller campaign seriously and, like tricts regarding the place- columnist Jack Colwell had two words of Miller, believes the primary race will be ment of some schools on caution when it comes to a Daniels- good for the party, he will continue to the list. On Monday, FWCS Superintendent Wendy Kernan showdown: Eric Miller. “That’s seek out a broad spectrum of voters. the conventional wisdom,” said Colwell  continued on page 5 Page 5 of 9 Thursday, Nov. 13, 2003 2004 Racing Form Indiana 2004 Gubernatorial, Legislative Governor 2004: Republican: Mitch Daniels, Eric Miller, Petersburg Mayor Randy Robinson said the district's Harris, Bob Parker. Democrat: Gov. Joe Kernan, Roy Graham. 1996 Results: O’Bannon (D) six high schools, all but two 1,075,342, Goldsmith (R) 997,505, Dillon (L) 35,261. 2000 Results: O’Bannon (D) 1,230,345, middle schools and all but McIntosh (R) 906,492, Horning (L) 38,686. 2004 Forecast: State Sen. Vi Simpson dropped out five elementary schools of the 2004 gubernatorial race and endorsed Gov. Kernan Monday morning. “From the very would be on the list. beginning I told him that I would support him Schools are expected to without question, without hesitation,” Simpson make adequate yearly said to Kernan. “And I am a woman of my word. I progress to ensure all stu- will do everything I can to see that he's elected in dents meet state and federal 2004.” Simpson also noted her role as a ceiling learning standards by 2014. crasher. “Some said that Indiana wasn't ready to elect a woman governor. We proved once and for all that when it comes to elected officials, Hoosiers want the best man for the job, even if KERNAN TERM LIMIT that happens to be a woman.” Simpson said that “the next time a woman wants to run for higher UNCLEAR: KERNAN TERM office, I hope the three words she hears are 'come on in' and not 'you can't win.’” Simpson told LIMIT UNDER DEBATE: It is the Bloomington Herald-Times that had Kernan not run, “We absolutely would have won the unclear whether Gov. Joe primary.” Andrew said he was “surprised” at Kernan’s entry into the race, making him perhaps Kernan can serve more than the only one in the Hoosier political establishment to be in that state. Kernan’s entry is actually one term. The Indiana good news for Andrew, allowing him the chance to withdraw from a race that turned out to be a Constitution says a gover- true fiasco for him after the Bren Simon withdrawal. Most believe his campaign was mortally nor is not eligible to serve wounded. “I plan on doing this again,” Andrew said. He has yet to formally endorse Kernan. more than eight years in a Republican Primary Status: LIKELY DANIELS. General Status: TOSSUP 12-year period. Including Senate District 36: Republican: Sen. Larry Borst, Johnson County Council President the 15 months of the late Gov. Frank O'Bannon's Brent Waltz. Democrat: Open. 1996 Results: Borst (R) 26,593, Satterthwaite (L) 2,035. 2000 unfulfilled term, two terms Results: Borst 24,621, Reno (D) 12,095, Williamson (L) 1,061. 2004 Forecast: The powerful would exceed that limit (Niki Senate Finance Committee Chairman is in for a real battle in the Republican primary, his first in Kelly, Fort Wayne Journal three decades. Waltz will announce that former Republican state Chairman Rex Early and Gazette). There is some Indianapolis Councilor Bill Schneider will chair his campaign. Borst is looking at an erosion of precedent in Indiana histo- political assets. His son, Phil, is no longer president of the Indianapolis City-County Council and ry, dating back to will not have the clout to press for party discipline, particularly in Marion County’s Perry Republican Oliver Morton, Township. Waltz’s uncle is Mayor of Greenwood and that political organization fresh off a re- who served more than six election campaign last week will be in play for Waltz, who has led the Johnson County GOP years from 1861 to 1867. He ticket. There are some 12,000 Johnson County homeowners who saw their property taxes go up. took over as governor when That is fertile door-to-door territory for the energetic Waltz. Bad economic news such as the his predecessor resigned to closing of the ArvinMeritor plant, Alpine and the Chrysler Foundry in Indianapolis is bad news take a seat in the U.S. for Borst, who has essentially shaped Indiana’s economy over the past three decades, often hav- Senate. He then ran and ing more influence than even the governor. The chairman will try to address some remedies for served his own four-year the property tax reforms in the upcoming session, but Waltz is indicating that he will press Borst term. At the time, the on an array of other issues that he believes have piled up on Borst after 30 years in the Senate. Constitution held that no Plus, Borst is used to controlling events in the Senate and he will find himself in an arduous governor could hold office campaign that will be beyond his control. Borst has told insiders he can raise $250,000, but more than four years in any Waltz counters that he can effectively run his campaign for less than half that amount. And period of eight. Most - here’s the kicker: Waltz believes he can win the primary with only 5,000 votes. When it comes including Kernan - said to knocking off legislative titans, Waltz comes into this fight with far more assets than Marc there isn't a clear answer to Carmichael did when he defeated Speaker J. Roberts Dailey, or Sally Rideout Lambert when she the question, which would upset Speaker Michael K. Phillips. Borst can still win this one -- he will probably win this -- but likely wind up before the he’s going to have to muster all his political resources and recognize that he will have to keep Indiana Supreme Court. "I his cool under pressure. And here’s a sure prediction: This race will likely command more atten- think it's questionable," said tion come next April and May than even the gubernatorial primary. Primary Status: TOSSUP.  continued on page 6 Thursday, Nov. 13, 2003 Page 6 of 9

Worried legislators coming back to session By BRIAN A. HOWEY instance, last summer, State Rep. Chet INDIANAPOLIS - With the Dobis publicly lashed out at the Merrill- knowledge that frightened voters took out ville Town Council for attempting to float frustrations on 30 incumbent mayors over a bond issue, fearing that it would add Senate President Pro Tem the past six months, the Indiana General more to the levy. It is legislators such as Robert Garton, R-Columbus Assembly convenes for its prolonged Dobis, who have long held safe seats in - who is somewhat of a con- “Organization Day” next Tuesday, with stitutional scholar. Democratic urban areas, that are fearful of plans to stay, perhaps, until early a voter backlash in 2004. McCLOSKEY WAKE December. Thus, powerful lawmakers such SCHEDULED: A funeral It’s likely to take a historic, tragic as House Speaker B. Patrick Bauer, hop- mass and wake for former and dramatic autumn of 2003 and bring an ing to preserve his two-vote majority, are Congressman and unpredictable year to an equally unpre- seeking remedies to help blunt the kind of Bloomington Mayor Frank dictable finish. outrage that was expressed in some areas McCloskey will take place at There is an undercurrent of such as Indianapolis last summer. There, 1 p.m. Saturday at the St. “don’t just stand there, do something,” Paul Catholic Center, 1413 hundreds of angry homeowners rallied to even if a number of major counties such E. 17th St., in Bloomington. protect property tax rates that sometimes At 3 p.m., a wake will take as Allen, Elkhart and St. Joseph have yet went up by as much as 300 percent. place at the Buskirk- to come to grips with the final impact of Chumley Theater of property tax reassessment. Borst’s limited plan Kirkwood Avenue with In Lake County, which is expect- One of the most vulnerable legis- song, Chris Sautter’s video ed to face the biggest “sticker shock,” the tribute and reflections. new property tax statements were sent out lators is Senate Finance Chairman Larry to homeowners in Hobart, Ross and St. Borst, R-Greenwood, who told Mike KELLEMS JOINS CHENEY John Township, home of the tax battle that Smith of the Associated Press that the bill TEAM: Over the course of brought about the reassessment. Senate Republicans introduce next week 24 hours, Kevin Kellems Reporter Steve Walsh of the Post- will not include additional deductions and traded his office in the exemptions for some homeowners and bowels of the Pentagon for Tribune reported, “The assessment notices for those three townships were mailed rental properties. one in the Eisenhower Borst, who will be fending off a Building with a view of the Friday. Higher assessments are expected West Wing. As press secre- for many homeowners because the figures credible challenge from Johnson County tary for Vice President Dick now reflect a property’s market value. For Council President Brent Waltz (see Horse Cheney, he has had little others, particularly in pockets north of Race, page 5) told the Associated Press time to get ensconced in his U.S. 30, the reassessment will correct that those proposals by Democrats who new digs. He hit the ground years of underassessment, identified in a control the House would shift tens of mil- running. "It will be fast 1998 state study. Because of the potential lions of dollars in tax burdens to other paced, no question about for a kind of widespread sticker shock homeowners, businesses or farmers, and it," he said in an HPR lawmakers should wait until the regular interview late Wednesday (the county) and the state chose to break night after concluding his the news gently by notifying Lake County session in January to consider them. first day on the job. As in stages, starting in early October with “There is no way we can do recently as Tuesday, Center Township, where in 1998 state wholesale changes and wholesale shifts,” Kellems was press secre- auditors found some of the best assess- Borst said (Smith, Associated Press). tary for Deputy Defense ment records they had seen in Indiana. Borst said the Senate Republican Secretary Paul Wolfowitz, a Homeowners in North Township, which bill likely would contain some proposals job he had held since scored the worst in the 1998 state study, Bauer wants, including stricter limits on August 2001. Kellems is no will begin seeing their notices next week.” local levy increases. And both plans are stranger to high-profile likely to extend application deadlines for bosses. Wolfowitz has fig- It is in Lake County where legis- ured prominently in formu- lators have been terrified of the impact some tax breaks and allow counties to and potential political results. For waive late-payment penalties. Page 7 of 9 Thursday, Nov. 13, 2003

Borst said non-elected boards erty tax burden around within the tax dis- that oversee taxing units such as libraries trict. People need to recognize how much and airports should not be allowed to of a bind the state is in (economically).” raise taxes without approval from elected city or county councils (Associated An end to property taxes? Press). Other legislators, such as Rep. Jeff Espich of Uniondale, Republican State Rep. Sue Scholer of lating U.S. policy toward the ranking Republican on the Ways and West Lafayette, are open to more dramat- Means Committee, warned taxpayers that Iraq. Previously, Kellems ic proposals. was press secretary for Sen. the proposals now under consideration Appearing before an “Eggs n’ Richard Lugar and the gov- are “by and large cosmetic” and would Issues” breakfast hosted by the Chamber ernor of Ohio. "It really is an do little to cut taxes for people who expe- of Commerce, Scholer told the 30 people honor to be on the Bush- rienced big increases (Louisville Courier- gathered, “We have a lot on our plate” Cheney team," said Kellems. Journal). He pointed out that some of the "I look forward to doing what (Max Showalter, Lafayette Journal & proposals -- those that would cut taxes on I can to help Hoosiers, the Courier). “There's going to be a lot of older homes and houses owned by low- American people, and others discussion about getting rid of property income seniors -- would actually increase understand the work Vice taxes for other people. That's because the taxes or finding another way to reassess. President Cheney is doing proposals call for deductions, which sim- We're looking at all kinds of combina- on their behalf." Kellems' first impressions of the ply shift tax burden from one payer to tions that might be available.” Scholer said those alternatives nation's second-in-command another. have been indelible. "Based “We're not going to reduce the could include shifting property taxes to income and sales taxes (Showalter, on my first day watching bill of someone whose bill went up 200 him, it is clear that he has to 300percent,” Espich told those gath- Lafayette Journal & Courier). an enormous grasp of the ered at IU-South (Courier-Journal). But there will be plenty of econo- issues, a clear sense of mists who will warn legislators that when direction and obviously a DeBoer sees tweaking economies become recessionary, sales very strong and effective and income taxes are far less reliable than working relationship with Prof. Larry property taxes. Look no further than the and in support of the DeBoer hopes the General Assembly will October revenue report that Budget president," said Kellems. be content with some “tweaking.” Director Marilyn Schultz released last That relationship extends to “The average assessed value of the two press offices--the Thursday. The State's revenue numbers homes across the state doubled. Most of president's and the vice them were a 75- to 125-percent increase. for October are $24.1 million, or 3 per- president's. "It's very much a If you have a home built in the 1940s or cent, less than anticipated for the team effort. We are part before, then the average increase was 150 month. For the first four months of of the Bush team. I look for- to 175 percent,” said DeBoer (Trevor FY04, the state is $152.2 million, or 4.5 ward to learning from and working with and for Wendzonka, Elkhart Truth). “The reasons percent, below forecast. “This is another disappointing people who are on the presi- for that is simple: The old system applied dent's staff." a terrific tax break to older homes month that continues to make us very cautious and appears to indicate our through depreciation. I can tell you I'm FRIEDMAN TO HEAD INDI- ecstatic about the changes. I live in an economy is not picking up speed as ANA DEAN CAMPAIGN: 18-year-old house and my taxes went quickly as the economic forecast commit- Shaw Friedman of LaPorte down 15 percent. I think this is great! We tee had estimated,” Schultz said. has been named chairman of should have done this years ago!” Through the first four months of FY04, Democratic presidential can- DeBoer told the Elkhart Truth, revenue from sales, individual income didate Howard Dean’s “If they decide to give additional tax and corporate income taxes was below Indiana campaign. Friedman is counsel to the Indiana credits, they don't have the money in the forecast by a total of $147.2 million. Democratic Party (HPR). That’s a warning sign for legisla- state budget to make up the difference to Friedman said that Dean will local government. If they enact more tors to tread carefully, lest the eggs on address more than a dozen exemptions, then that just shifts the prop- their plates end up on their faces.  Thursday, Nov. 13, 2003 Page 8 of 9

Lesley Stedman Weidenbener, Frank O'Bannon. And now further change: Indiana campaign chapters Iouisville Courier-Journal - (Gov. Joe) Kernan has decided to run rather than to this weekend via the inter- Kernan will need to move fast if he wants walk away. Democratic leaders desperate- net. Dean is expected to ly wanted him to run. They believed, announce soon the support to distinguish himself from O'Bannon, whose second term was crippled by eco- probably accurately, that Kernan was the of the 1.6 million member only Democrat who could win the office Service Employees nomic recession and resulting budget next year. Now we know what he will do. International Union and the woes, and give voters a taste of what a 1.4 million American full Kernan term would be like. There's no He will be in what is likely to be one heck Federation of State County doubt Republicans are going to try to of a race for governor. No sure thing now and Municipal Employees force Kernan to run on what they believe for Republicans. No sure thing either for  which will cap months of is an unimpressive record. That's why this Kernan. intense behind-the-scenes next year is so important for Kernan. He's competition between the Gary Gerard, Warsaw Times-Union - Democratic presidential already showing voters how his personali- contenders and could stand ty and his leadership style differ from Yale economist Ray C. Fair, who wrote a as an enduring turning O'Bannon's. Where O'Bannon liked to book called “Predicting Presidential point in the contest (Los work quietly behind the scenes to accom- Elections and Other Things” forecasts a Angeles Times). plish his goals, Kernan has a far more comfortable Bush victory if economic direct style. He's clearly taking a more trends continue, according to the THREE EYE WEINZAPFEL’S hands-on approach to governing. He has Associated Press. He uses a model that HOUSE SEAT: Three men created a cabinet-style government, where tracks presidential races back to 1916. It have expressed interest in agency heads report directly to him in reg- takes into account inflation and economic taking over Evansville growth rates and gives extra points for Mayor-elect Jonathan ular meetings. O'Bannon, on the other Weinzapfel's seat as hand, had little direct contact with agency spurts of higher-than-usual growth like the Indiana's District 76 state heads, at least not regularly. He let his one this week. Republicans get a slight representative. "(Posey executive assistants and chief of staff han- historical edge. The model gives points County Prosecutor) Trent dle many issues and problems. There's for incumbency and deducts them if the Van Haaften is interested," already evidence of what the change president’s party has held the White said Vanderburgh County means. Within weeks of becoming gover- House for two terms or longer. As a one- Democratic Chairman term GOP incumbent, with low inflation Stephen Melcher (John nor, Kernan met with his Department of Correction commissioner, who told him and rising growth, “Bush has the best of Martin, Evansville Courier & all possible worlds,” Fair said. It’s more Press). "I know there is that the state's crowded prisons were than a coincidence that the last time there another person in Posey reaching a crisis. Kernan immediately County - (former County acted. Last week, he took Indiana Chief was this big a jump in the GDP was in Commissioner) Randy Justice Randall Shepard, House Speaker 1984. That was after , pre- Thornburg. And there's one Pat Bauer and Senate President Pro Tem siding over a sluggish economy with high person in Evansville, (new- Robert Garton on a tour of two overpopu- inflation numbers, urged a massive tax cut comer) John Paul Josey." through Congress. The idea is that if you lated prisons. All three clearly came away Van Haaften, who also is the let people keep more of their money, they moved by what they saw.  Democratic Party chairman will spend it and stimulate the economy. in Posey County, said he The economy grew and Reagan won 49 has considered seeking the Jack Colwell, South Bend Tribune - states in the following election. Right now position since Weinzapfel announced his mayoral can- Joe Kernan's announcement that he will we have all nine Democratic candidates didacy. run for governor in '04 was not the star- telling us that we have to roll back W’s tling surprise it would have been if he had tax cuts. Tax cuts are bad, they say. Might DAVIS CHOOSES BILYEU: made the statement right after being thrust be time for a change in strategy. Lt. Governor Katherine into the governor's office by the death of  Davis today announced that Page 9 of 9 Thursday, Nov. 13, 2003

Brian A. Howey, Indianapolis Eye - U.S. Sen. Dick Lugar was forced to do in That night in March 2000, after Sheriff 2000. That costs money that could be bet- Jack Cottey and Lawrence Mayor Tom ter spent elsewhere and on other pressing Schneider had greased the skids for his things. victory, newly elected Marion County Let’s look back on what newly Republican Chairman John Keeler elected Chairman John Keeler said on the crisp March might in 2000. Keeler Amy Small Bilyeu will serve as explained, “I don’t believe in dictatorship. chief of staff in the Office of stressed the need to heal “festering I will lay out a plan and head in a com- the Lieutenant Governor. Most mon direction.” wounds.” Perhaps with old allies Cottey recently, Bilyeu worked as “Only the Democrats are laughing and Schneider now headed for oblivion Director for City/County when our misfortunes are on the front that might be the good news for the GOP Council and Legislative page," Keeler said more than three years outside the Neanderthal wing. Relations for Mayor Bart ago. Keeler pledged to fulfill the Peterson. "For the past two Well, John, let me tell you some- “basic” role of raising money, recruiting years, Amy and I have collabo- rated on numerous projects for thing. The Democrats are not only laugh- good candidates, and bringing the once the city. I admire her integrity, ing, they are on the floor, screaming with proud organization up to speed. Was Greg Jordan the best candidate that could have leadership abilities and impec- the kind of glee an unherniated gut allows cable work ethic," said Davis. been recruited for mayor? Did Greg uttering. "Amy's extensive knowledge of What occurred this past year Jordan and the City-County Council state and local government is should be the antithesis of the political Republicans have the money needed to an asset to our team." Prior to career John Keeler was once lauded for. retain the council and wage a fighting joining the mayor's office, When he was Rep. Keeler in the Indiana chance against Mayor Bart Peterson? Bilyeu served as corporate House, he earned the reputation as a mas- Without a strong candidate at the counsel for Cummins, Inc. in ter strategist and a consensus builder. But top of the ticket, Peterson was able to pull Columbus, Indiana. She also held various positions in what Marion County Republicans ended in the four at-large council seats as well as Indiana state government, up with last Tuesday night was a mix Curt Coonrod’s district seat and get con- trol of the council. He was able to lead the including serving as a legisla- between a Chinese fire drill and tive aide to both the late Democrats into a 6,000 straight ticket vot- Napoleon’s death march out of Moscow. Governor Frank O'Bannon and Before Keeler’s election as chair- ing edge. former Governor Evan Bayh. man, Marion County Republicans lost the But the most amazing aspect to Unigov mayorality in 1999 and watched this spectacle is Keeler’s deal with Mayor BOLLING NEW PRESIDENT OF Frank O’Bannon carry the county in 1996 Peterson that keeps him from criticizing THE INDIANA NAACP: A Gary over . There was a the Democratic administration. Former woman has taken the helm of trend developing, but nothing that couldn’t Republican State Chairman Rex Early, in the Indiana chapter of the National Association for be stabilized with good progressive lead- a Saturday letter to the Star wrote, “The Advancement of Colored ership. Under Keeler’s watch, in 2002, seeds of defeat in the GOP mayor’s race were probably sown four years ago when People, marking its passage to they lost the sheriff. And, if you look at a new generation of leaders Bart Peterson insisted that … John Keeler, the county GOP organization’s impact on (Associated Press). Barbara Rep. Jim Atterholt’s race, they lost the sign a legal agreement that he would not Bolling ran unopposed for the Indiana House of Representatives (now criticize the mayor. The basis of this Indiana presidency at the orga- controlled by the Democrats, 51-49.). And bizarre arrangement stems from Keeler’s nization's annual convention in then last Tuesday, the City-County full-time job as a lobbyist with a local law Fort Wayne last month. Council and the mayor of Lawrence (Tom firm that represents the city. Peterson "Barbara will be speaking for a Schneider’s second loss in a year). guaranteed himself, in writing, four years new generation," said Anthony Copeland, who became presi- And what is next, the Mitch of silence from the opposition party. The dent of the NAACP chapter in Daniels gubernatorial bid? Essentially, Republican Party made a big mistake going along with this cozy arrangement; East six months ago. Daniels is going to be forced to create his "She will bring youth, a fresh an arrangement, by the way, that is still in own shadow organization in Marion vision and new vitality to the County to do the functions of what the place.” state level." Republican Party should be doing, just as