Bauer Budget Bust: No He Can’T and Won Big in Bauer Loses Half Dem Caucus Indiana,” He Said

V14 N35 Thursday, April 30, 2009 Bauer budget bust: No he can’t and won big in Bauer loses half Dem caucus Indiana,” he said. on budget; jobs trust fund OK’d “This is less an en- dorsement than an By BRIAN A. HOWEY instruction. This is INDIANAPOLIS - One year ago, Indiana was less a victory than Ground Zero for change in America. Hillary Clinton, an assignment. former President Bill Clinton, Barack and Michelle And what the peo- Obama crisscrossed the state, packing high school ple of Indiana have basketball gyms and drawing huge crowds at out- said is they want door rallies. us to press forward Simultaneously, Gov. Mitch Daniels had em- with change and barked on re-election, ultimately facing Democrat Jill improvement and Long Thompson, the ﬁrst female to win a gubernato - reform.” rial nomination. The mantra of Daniels and Obama Daniels - despite their ideological and party differences - was added that he the same: change. wanted people to “Change has come to America,” Obama “be a little braver, would say from Grant Park on Election Night a few think a little bigger, hours before Indiana swung into the blue column for promote something the ﬁrst time in 44 years. “It drew strength from the bolder.” young people who rejected the myth of their generation’s The Dan- apathy,” he said. iels and Obama victories came along with voter referen- During his victory speech, Daniels was less exuber- dums that rejected 31 of 44 township assessors hoping to ant about his 18 percent landslide victory as he seemed to keep their jobs. be determined about the task at hand. “Change just won See Page 3 Wages 16% behind

By MORTON J. MARCUS INDIANAPOLIS - Last week the U.S. Bureau of Eco- nomic Analysis released its estimates of county personal in- come and all the detail comprising those data. Just sixteen months after the close of 2007 “To help build a new foundation we have remarkably speciﬁc data on the economic performance of for the 21st Century, we need to each county in the nation. These data are important reform our government so that it because they provide a con- is more efficient, more transparent sistent view over a long period of time. It’s easy to focus on and more creative.” the immediate problems of our economy. However, we do our- - President Barack Obama, selves a disservice when we fail during his weekly address Saturday HOWEY Politics Indiana Page 2 Weekly Briefing on Indiana Politics Thursday, April 30, 2009

to understand that today’s problems Howey Politics of $54,476. Following closely behind in are part of long-term issues. growth were Owen, Boone and Greene Indiana Among the data elements counties. Filling out the top ten were available for each state and county Perry, Jennings,Union and Daviess, is a nonpartisan news- are average wages per job. This is each near 4.0%. not an all-inclusive number, but it is a letter based in Indianapolis The five slowest growing fine estimate of the rewards realized counties grew by less than 2.0% per and published by NewsLink by management and labor. Excluded year; Fayette, Madison, Delaware, are the earnings of business owners Henry, Grant had each been a major Inc. It was founded in (proprietors) as well as the contribu- manufacturing center. 1994 in Fort Wayne. tions that employers make to private Many counties saw little if pension and insurance plans and to any change in their rankings within the government social insurance pro- state. Marion County had the 4th high - Brian A. Howey, publisher grams. est average wage in both 1997 and The latest data show that Mark Schoeff Jr.,Washington 2007 with the 18th fastest growth rate the relative decline of Indiana’s (3.5%). Posey County (Mt. Vernon) Jack E. Howey, Editor economy continues. In 1997, Indiana’s retained third place and Huntington Beverly Phillips, Associate average wage per job ranked 26th in 59th. Howard (Kokomo) fell from first the nation among the fifty states. Ten Editor to second place and Brown (Nashville) years later, in 2007, Indiana ranked stayed in last place. Bartholomew 32nd. Where the average job in the County (Columbus) dropped from 6th Subscriptions: U.S. paid $100 in 1997, an Indiana job to 8th place as Allen County (Fort paid $91; the Hoosier job slipped to Wayne) moved from 12th to 14th and $350 annually HPI via e-mail; $84 by 2007 compared to a national Lake (Gary-Hammond) slipped from $550 annually HPI & HPI Daily $100 average. 10th to only 11th. Wire. Average wages in Indiana Improvements could be found grew by 3.2% per year between ’97 as St. Joseph (So. Bend-Mishawaka) Call 317-254-0535. and ’07, 49th in a nation that saw an advanced from 24th to 20th place. Howey Politics Indiana average annual increase (not adjusted Next door Elkhart County (Elkhart-Gos- for inflation) of 3.9%. Only Michigan PO Box 40265 hen) moved into 15th place from 17th; (2.9%) had a worse decade. In eight Johnson (Franklin-Greenwood) had a Indianapolis, IN 46240-0265. of these ten years, Indiana continued nine place jump from 65th to 56th; to grow less rapidly than the nation. neighboring Shelby County eased into Contact Us Whatever we are doing to reverse the 25th place from 26th ten years earlier. trend does not seem to be working. The spread is growing www.howeypolitics.com While the state trailed the between the county with the highest [email protected] nation in growth of average wages, average wages and the one with the ten Indiana counties exceeded the Main Office: 317-202-0210. lowest. U.S. rate of improvement. First among In 1997, Howard County Howey’s Mobile: 317-506-0883. these was Gibson County (Princeton) enjoyed average wages of $35,990 or Indianapolis Fax: 317-254-0535. where Toyota opened its assembly 117% greater than Brown County’s Washington: 202-256-5822. plant. low $16,561. In 2007, Martin County Gibson advanced from 63rd reigned in the top spot at $54,476, Business Office: 317-627-6746. place in average wages in the state to 143% over Brown County’s state ©2009, Howey Politics 5th in the span of the decade with an low at $22,398. Are these disparities Indiana . All rights reserved. average growth rate of 7.1%. something the state should consider in Switzerland County moved its economic development programs? Photocopying, Internet forwarding, from 86th to 53rd place with a 5.0% v faxing or reproducing in any form, growth rate, probably as a result of a in whole or part, is a violation of casino opening. Martin County, home Mr. Marcus is an independent to Crane technology firms, had the economist, speaker, and writer federal law without permission from third fastest growth rate at 4.4% and formerly with IU’s Kelley School the publisher. moved into first place among Indiana of Business. counties with an average wage per job HOWEY Politics Indiana Page 3 Weekly Briefing on Indiana Politics Thursday, April 30, 2009

relevant. “I can tell you this year, the fiscal sheet says we’re Special Session, from page 1 going to have a $1.35 billion (surplus), and $200 million of that figure evaporated this month. There are 26 months to Through all of this - with a record 2.4 million Hoo - go in that surplus statement,” Bosma said. “This is a recipe siers participating in an election; with some 500,000 people for a big tax increase.” attending 150 presidential rallies by the Clintons, Obamas, Daniels responded to the House budget rejection McCains and Palins - one man didn’t get the message. by saying, “It is far better that the legislature try again His name is B. Patrick Bauer, speaker of the Indi- than to have an irresponsible budget that I would have ana House. Six months after Hoosiers demanded and voted been compelled to veto. “It is critical that Indiana avoid the for change, Bauer stood and declared last January that the fiscal disaster and massive tax increases that would result Indiana General Assembly had time for only two things: from dramatically increasing spending while revenues are passing a budget and fixing the Unemployment Insurance falling.” fund. Over the past week, several observers had ac- Not only did Bauer thumb knowledged the showdown be- his nose at the governor, a former tween Bauer and Daniels, won- governor and the Chief Justice over dering who had the most cloud. the Kernan-Shepard reforms - dis- Indianapolis Star columnist Matt patching them with squirting flow - Tully had described the Daniels ers and exploding cigars through agenda as “in tatters.” an amateur freshman chairman In an HPI Interview published on - he couldn’t even manage the only March 27, Daniels acknowledged, two issues left on the table. “I still see him (Speaker Bauer) While Bauer was able to in a very, very dominant position. get the jobless fund passed out of There are some brave people who the House by a 52-47 vote margin, have been courageous enough to the biennial budget turned out to speak a word or two, but I have be a disaster: a 71-27 route that yet to see anybody vote. Once the saw 24 Democrats (Rep. Teri Aus - law has been laid down, and there tin had been excused before the are many occasions on which we vote) abandon the bill. know there have been many Dem- State Rep. Scott Pelath ac- House Majority Leader Russ Stilwell making a case ocrats who favor a given change cused Gov. Daniels of “negotiating for the budget. (HPI Photo) or a given reform, then it comes in bad faith.” While no one close to down to where people are lined up Daniels was suggesting payback, it like good soldiers every time. By was ironic that Democrats would be complaining after they the way, that’s the mark of effectiveness in a leader. I may refused to bring the property tax caps up for a vote and disagree with the purpose, but you sort of have to admire then killed all the Kernan-Shepard reforms in one of the the iron discipline that doesn’t exist on the Republican side, most clownish committee hearings in memory. I can tell you that.” House Majority Leader Russ Stilwell didn’t mention The defection of almost half his caucus on the Kernan-Shepard by name, but called the House Republicans budget has to be an embarrassment to Bauer. In the March “the party of no” and charged, “The only time the governor HPI Interview, Daniels continued, “One has to admire was engaged was pushing local government reform that the iron hand and the discipline that he has been able to didn’t have any support.” He accused Daniels of failing to impose even if one disagrees with the uses and purposes “go up to Elkhart” (he did in March) or having a jobs plan of the obstruction. In the past, I would say that I strongly (Daniels liked to remind Democrats of Major Moves and the disagree, but at least I understood the political calculation. state’s rapid use of federal stimulus funds). This year, I’m having trouble understanding the political Pelath and Bauer said that Daniels had created a idea. I think they are way on the wrong side of the public “moving target” on the reserves that the governor insisted on blowing the reserves and spending all our money. I’m needed to be at the $1.4 billion level. Numerous legislators out there all the time and I haven’t had one citizen come and old Statehouse hands found it ironic that Daniels would to me and say, ‘Please spend that money. That’s the best stage a fight over $100 million or $200 million, which one thing we can do.’” I think they are way on the wrong side described as a “rounding error.” of public opinion on local government reform. Clearly they House Minority Leader Brian Bosma told the House are on the wrong side of taking away the referendum right that rapidly eroding revenue numbers made the demand and blocking the caps. So these decisions probably are HOWEY Politics Indiana Page 4 Weekly Briefing on Indiana Politics Thursday, April 30, 2009

made for political reasons this year unlike previous years, Daniels on defense but I’m not sure I see the sagacity that is always associ- Some had suggested that unlike the previous four ated with what they do.” sessions, this time Daniels was playing defense, and was struggling. Bauer reacts Now the governor finds himself in his first special Speaker Bauer sent out quotes under a press session and many observers believe a governor - despite release titled “GOP Circular Firing Squad Drives Legislature the constitutionally weak office - is in a much more com - into Special Session,” which ignored the huge Democratic manding position if for no other reason he can dictate defections from a majority caucus that could have delivered parameters and terms and wear down out-state legislators the budget themselves. eager to be back home during the summer. “Today state lawmakers had the chance to com- During the last two special sessions in 2002 and plete our work on time and keep from adding to the burden 1997, Gov. Frank O’Bannon was able to win victories on tax facing Indiana taxpayers by going into a costly special reforms (2002) and the construction of Conseco Fieldhouse session,” Bauer began. “After many hours of negotiation, and historic workers compensation reform (1997) after fail- Indiana House Democrats agreed with Gov. Mitch Daniels ing to achieve consensus on those issues during the regular and Senate Republicans to endorse a biennial state budget session. that placed a higher priority on building and preserving No one in the Daniels sphere is expressing pay- a state surplus than ensuring that schools had the state back, but there clearly is an attitude that the administration support needed to help our children get the education will work toward Kernan-Shepard reforms through other they deserve. We chose this option because we were told means than the legislature. This could come as more cities that the House Democratic budget proposal took away too and towns find themselves before the Distressed Units Ap - much of the governor’s cherished surplus, even though the peals Board after this fall’s budgeting and decisions made House Democratic budget would have provided additional by the Department of Local Government Finance as the state funding to create jobs and help our schools avoid cuts caps pinch local budgets (see the story on Muncie in the in programs, personnel and services.” Ticker on Page 15) Bauer said that he wanted to “make sure that the There are dangers off the legislative front for the House did get a chance to vote on a budget proposal,” governor. He was pressing for a property tax caps vote which was something he denied on the caps and Kernan- prior to an inevitable lawsuit challenging the 1-2-3 caps Shepard. “Let me be clear,” Bauer continued, “This budget which are clearly at odds with the 1851 Indiana Constitu- was crafted by the Senate Republicans and endorsed at tion. one time by the Republican governor of Indiana. However, There are dangers for Bauer, too. He has exposed this Republican budget could not get a single vote from his caucus by rejecting the caps when a recent Public Indiana House Republicans. As best as I can tell, there was Opinion Strategies Poll revealed broad support (in the no effort from the governor to convince them otherwise. 70th and 80th percentiles) across nearly every political He was missing in action, just as he was most of this ses- and demographic group. The way he and State Rep. John sion on issues like finding an answer for Indiana’s bankrupt Bartlett dispatched the Kernan-Shepard reforms brought unemployment insurance trust fund. Now we go to a spe- some pushback from House Democrats like Steve Stemler, cial session, caused by Statehouse Republicans who cannot Mary Ann Sullivan, Ed DeLaney and John Barnes. Clearly even agree amongst themselves.” the Kernan-Shepard and caps will become campaign issues Bauer quickly set some of his own parameters: in 2010 when the stakes for House control will be enor- “In that special session, House Democrats will oppose any mous. budget that does not protect our schools. House Democrats And in wrapping up the budget coverage, there will oppose any budget that fails to provide some kind of was this gem from ranking Republican Ways & Means job creation program that helps nearly 340,000 Hoosiers Chairman Jeff Espich, who responded to Pelath’s claim of get back to work as soon as possible.” bad faith negotitions: “I want to talk about the governor,” Rep. Earl Harris, D-East Chicago, voted against the Espich said. “Give me a break. This governor may be hard package because school corporations in his district fared to love, but he sure doesn’t want unemployed Hoosies, badly under the plan (Post-Tribune). “If we’re going to Rep. Pelath. He doesn’t want tax increases. He’s trying to move forward in this state, it will need to be in a bipartisan save money.” fashion inclusive of everyone, and I didn’t see that here,” Harris said. Kenley reaction Senate Appropriations Chairman Luke Kenley told the Associated Press after the House rejected his budgetL HOWEY Politics Indiana Page 5 Weekly Briefing on Indiana Politics Thursday, April 30, 2009

“I think it only gets gets worse. It’s hard to see how it will tors during the conference committee process, said the get better but maybe it will work.” historic plan comes after weeks of tough, bipartisan talks. “Replenishing our unemployment fund will require contri- Unemployment Trust Fund butions from all of Indiana’s employers,” Hershman said. The Unemployment Insurance fund issue looked as “But just as high-risk drivers pay higher premiums for their if a deal had been brokered on Tuesday. But when House auto insurance than those motorists who rarely have ac- Labor Committee Chairman David L. Niezgodski put out a cidents, businesses that are more likely to lay off workers press release declaring victory, should shoulder more of the burden and the Senate Republicans hit the 40,000 small businesses who never tap into roof. The concessions he said the fund should be held harmless from rate Republicans had made weren’t increases.” the case. By Thursday morn- Employers now pay into the system ing, House Democrats were in premiums ranging from 1.1 to 5.6 percent an apology mode but by then, based on Indiana’s taxable wage base or there was resistance with Sen- the first $7,000 of an employee’s annual ate and House Republicans. Not wage. Under the compromise plan, several only would there be no cuts in changes in premiums would help plug the benefits - as Democrats had fund’s gap: What is known as the taxable promised workers at a 5,000-man labor rally on Monday wage base would be increased from $7,000 - taxes on industry were ratcheted up from $328 million to to $9,500 and the minimum and maximum premium rates $400 million. would range from .70 to 9.5 percent for calendar year By late Wednesday afternoon, business interests 2010, with annual minimum employer contributions per began to dig in. But quickly Senate President Pro Tempore employee ranging from $66.50 to $902.50. David Long and Senate Appropriations Chairman Luke After that year, businesses would begin paying Kenley signed off on both the UI and budget, passing the premiums based on a new rate schedule ranging from Senate 46-3 and the House 52-47. .75 to 10.2 percent, with annual minimum and maximum State Rep. Russ Stilwell said on the House floor employer contributions per employee ranging from $71.25 of HB1379 and the Unemployment Insurance fund, “This for businesses not tapping the fund, while the maximum caucus will not be painted as anti-business,” adding that In- contribution would increase to $969 for those who use the diana’s rates will still be $150 less than neighboring states. fund the most – still below the Midwest average maximum State Rep. Matt Bell said it ultimately would mean contribution of $1041; and employers would be able to a $650 million tax increases on businesses. “We are rear - make contributions over five years beginning in 2010 or ranging the deck chairs on the Titanic,” he said. 2011 to buy down to a lower range of premiums – similar State Rep. Dan Leonard, R-Huntington, who was to paying points on a mortgage – generating up to an ad- discharged as a conferee, said that last summer House Re- ditional $75 to $100 million in extra revenues to jump-start publicans, Democrats, the Indiana Chamber and Manufac- the fund’s balance. turers all agreed there needed to be a “three-legged stool” A Senate Republican press release said that Gov. for a solution: benefits, eligibility and premiums. Mitch Daniels was expected to sign the bill, though there Leonard said that once the session began, the de- was no official word from his office. bate was stifled and essentially it came down to an agree - ment between House Democrats and Senate Republicans. CIB He put the tax hike on businesses at $685 million over two Legislaion that would have helped bailout the years. “It will do nothing but drive unemployment up and Capital Improvement Board died (Abdul, Indiana Barris- will cause more Hoosiers to be unemployed,” Leonard said ter). House-Senate Conference Chair Phil GiaQuinta, D-Fort just prior to the House vote. Wayne, said the legislation could not get the four conferee Earlier in the evening, news reports suggested signatures. The latest version would have raised hotel, that Speaker B. Patrick Bauer needed 20 Republican votes ticket and car rental taxes as well as added the new Mar- for passage as some Democrats feared it would be used riott hotel to the downtown sports district. There was little against them in the 2010 elections. But it turned out to be support for tax increases at the local level. And there was essentially a party line vote. almost no support from outstate lawmakers to give up any Senate Republicans hailed the plan. Tax and Fis - state tax revenue. This now leaves local officials looking for cal Policy Chair Brandt Hershman and Pensions and Labor a way to fill a $47 million operational deficit with no outside Chair Dennis Kruse, Senate Republicans’ chief negotia- support. v HOWEY Politics Indiana Page 6 Weekly Briefing on Indiana Politics Thursday, April 30, 2009

emerge a strong, competitive, viable company.” Chrysler’s D-Day Obama continued, “And that’s my goal in this whole process. I would love to get the U.S. government By BRIAN A. HOWEY out of the auto business as quickly as possible. We have a INDIANAPOLIS - Today is the day Kokomo will circumstance in which a bad recession compounded some learn if it has dodged the proverbial bullet: Will Chrysler great weaknesses already in the auto industry. And it was LLC survive or will 5,000 jobs face liquidation? my obligation and continues to be my obligation to make While Bloomberg News, CNN and MSNBC were re - sure that any taxpayer dollars that are in place to support porting at HPI’s deadline this morning that Chrysler would the auto industry are aimed not at short-term fixes that end up in Chapter 11 bankruptcy, President Obama didn’t continue these companies as wards of the state, but rather mention it during his press conference Wednesday night. institutes the kind of restructuring that allows them to be The Associated Press was reporting this morning that talks strongly competitive in the future. I think we’re moving in between Chrysler LLC’s lenders and the Treasury Depart- that direction. prudent and appropriate thing for Chrysler to ment to reduce the automaker’s $6.9 billion in secured do to engage in the filings that they -- that received some debt and keep it out of bankruptcy protection have disinte- notice a while back because they had to prepare for pos- grated. Chrysler’s fate was in the hands of about 40 hedge sible contingencies.” funds that hold about 30 percent of its debt. Although four Over the past week, Kokomo officials had been in banks holding 70 percent of the debt had agreed to erase it touch with U.S. Rep. Joe Donnelly, Fiat officials and Edward for $2 billion, the hedge funds were holding out for a better Montgomery, the White House liaison to local auto commu - deal. nities. Obama is expected to make the bankruptcy an- On Tuesday, Donnelly was optimistic about nouncement at noon today, MSNBC is reporting. “Chrysler Chrysler, telling the Kokomo Tribune Tuesday that all key will be saved,” reported Chuck Todd. “It will not be broken elements are in place to allow the automaker to avoid up.” bankruptcy. “There were three key ingredients,” Donnelly Obama did say at the press conference, “Let me said of Chrysler’s push to meet today’s deadline set by the speak to Chrysler first because the clock is ticking on Obama administration to secure additional federal loans. Chrysler coming up with a plan. I am actually very hopeful, “There was Fiat, the union and the banks,” he said. “All more hopeful than I was 30 days ago, that we can see a three are now in place.” resolution that maintains a viable Chrysler auto company Last Friday, Gov. Mitch Daniels warned of poten - out there. What we’ve seen is the unions have made enor - tial bad times if Chrysler and GM were to go bankrupt. mous sacrifices on top of sacrifices that they had previously “The auto companies failing to get out of their difficulties made. You’ve now seen the major debt holders come up only means that it could get worse. Perhaps significantly,” with a set of potential concessions that they can live with.” Daniels said. “We are probably headed for that sort of an Obama continued, “All of that promises the possi- adjustment and that is only another reason to be extremely bility that you can get a Fiat- Chrysler merger and that you cautious about government spending here in Indiana.” have an ongoing concern. The details have not yet been Asked if an automotive and steel collapse could put Indiana finalized, so I don’t know to jump the gun. But I am feeling in a position similar to 1982, Daniels responded, “I wasn’t more optimistic than I was about the possibilities of that here in 82. Things have already changed. That’s really my getting done.” message this morning. And we can see they have. How I Bloomberg was reporting that Fiat management wish it were different.” would take over Chrysler, with CEO Robert Nardelli going Still hanging in the balance is Delphi Corp., which the route of General Motors former CEO Rick Wagoner has been in bankruptcy since 2005. It employs more than about a month ago. 3,000 people in Kokomo. Earlier this week, the U.S. Trea- What happens to Kokomo’s three Chrysler trans - sury blocked moves by GM to increase payments to its mission plants remains to be seen, particularly on the eve former parts subsidiary Delphi Corp (Detroit Free Press). of a switch to hybrid and electric vehicles. GM warned in its filing that if Delphi can’t emerge Better news is that Chrysler retirees will likely still from bankruptcy in the near-term, “it may be forced to sell be able to collect pensions and health benefits. all of its assets.” If that happens, GM says it would have “With respect to GM, we’re going to have another to foot the bill to find new suppliers and buy back Delphi’s 30 days,” Obama said. “They’re still in the process of pre- plants to ensure the parts supply is not disrupted (Detroit senting us with their plans. But I’ve always said that GM Free Press). “If they’re going to run out of money, that has a lot of good product there and if they can get through could halt production, that could bring General Motors to these difficult times, and engage in some of the very dif - its knees,” said Birmingham-based restructuring expert Van ficult choices that they’ve already made, that they can Conway. v HOWEY Politics Indiana Page 7 Weekly Briefing on Indiana Politics Thursday, April 30, 2009

As a political analyst, it’s been hard to gauge all Obama’s 100th day? of these things because of the depth of the crisis across the board we face and the gargantuan numbers needed for a response. I’ve gone from writing about “millions” and Ask me in June 2010 “billions” to “trillions.” The first trillion dollar deficits began By BRIAN A. HOWEY under President George W. Bush and have expanded under INDIANAPOLIS - President Obama’s first 100 days Obama. Speaking on MSNBC’s Morning Joe on the 100th is an odometer media event. It is a cursory glance when day, Bayh explained that he “tends to vote with my party” the true substance of this administration cannot be gauged but will not vote for huge deficits. Told the current deficit for months, if not years. represents 13 percent of GDP, Bayh said that even deficits June of 2010 will be the time I will at 3 percent GDP are “a real problem.” take the first substantive stock of where Bayh added, “It’s a breathtaking number. Even the the Obama presidency is and where it Chinese are talking about putting resources in other than is likely to go, both in a policy vein and U.S. dollar assets.” Bayh said that President Obama “is not politically. At that point, we’ll have a oblivious” and added, “Once health care is done, we’ve got much better grip on Obama’s bank bail- to deal with this.” He said that ultimately the bond market out. We’ll know whether the stimulus and foreign lenders will weigh in if the huge deficits contin - package has done what it needs to do, ue. Of the bond markets, Bayh said that “interest rates will or whether it will simply have prolonged go up” resulting in stagflation and foreign lenders bailing an economic out. Bayh explained, meltdown. We’ll know whether “We’ll look for some the Iraq insurgency has made a restraint on domes- comeback or whether the U.S. is tic spending. We’re poised for an orderly withdrawal willing to support of combat forces there. On the the president, but 100th day, three car bombs we’ll look for execu- exploded in Sadr City, killing tive leadership.” hundreds. We will have a much When the first better sense of how bad (or Obama budget good) things are in Afghanistan came out, the num- and Pakistan. bers were so utterly By June of ‘10 we’ll be huge that there able to count the Obama legisla- was no way to write tive successes that began with a knowledgeable the stimulus passage in February, defense. We are in whether his “blueprint budget” new territory with for the next decade is realistic, no applicable scale. whether the deficits are balloon - And yet I felt I’m ing to the point that Sen. Evan suspicious of Re- Bayh will vote against the Obama publicans like U.S. administration further, or whether Rep. Mike Pence, there’s a restoration of fiscal who has denounced sanity. By then we’ll be getting almost all of the the early returns on the Obama Obama initiatives. health care reforms and his President Obama at Wednesday night’s press conference. (White How could anyone energy revolution. We’ll probably House Photo) possibly know? know whether General Motors What I and Chrysler are in any shape to do know is how survive as the new generation of hybrids begin showing up disastrous the last Bush presidency has been, from Iraq on our streets. We’ll know whether the U.S. really intends and Afghanistan, to the fallout from his “ownership society” to own GM. that produced a housing bubble and subsequently the sub- Right now these are all question marks. Huge prime mortgage fiasco. The Reagan era financial deregula - question marks. tions were steadily perverted in the ensuing Bush/Clinton HOWEY Politics Indiana

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dynasty. Lighting that fuse on those sticks of dynamite was If all of these scenarios come true, Indiana stands the Bush-Cheney Oil presidency, which didn’t even try to to be a post-industrial wasteland. build a coherent energy strategy at a time when dozens I pressed Rep. Mark Souder: he and Pence talk of university researchers, industry analysts, and the CIA about how energy prices will escalate in the coming carbon knew that it was only a matter of time before we saw peak credit era, but haven’t they already under the status quo? oil. Fiscal conservatism? I saw none of that from Bush and Didn’t we just have a summer of $4.20 gasoline that set in Capitol Hill Republicans. Entitlements? The Bush presidency motion the RV, auto and steel collapses? expanded those to the greatest extent since LBJ’s Great So- Doesn’t Indiana have immense assets: workforce, ciety. GOP credibility has washed down this gutter. central location, advanced manufacturing potential, great Here in universities, Indiana, just the and perhaps energy malfea- most important, sance has cost water? Can’t the the state dearly. water assets be The auto-based used to offset Northern Indiana the carbon economy has been reforms? pulverized, even if These are GM and Chrysler all issues, ques- survive in some tions and dilem- diminished state. mas that HPI This happened will spend this prior to the age of coming summer Obama. and fall explor- In a ing, for there is conversation I had little doubt that with U.S. Rep. we are entering Mark Souder last a new era. week, there was What do palpable concern I know I like about how the about President Obama initiatives Obama? will impact the First, state. Will down - there is a plan. sized GM and Republicans President Obama as a candidate at an April 2008 press conconference in Indianapolis. (HPI Chrysler end the have no cred- Photo by Brian A. Howey) era of big pickup ible counter. In trucks and SUVs America, there’s rolling off lines in a tendency to Fort Wayne, Marion and Indianapolis? Will a shift to hybrids give the new guy a chance to succeed. silence the three Kokomo transmission plants? Will changes As a member of the press, I like his accessibility, in federal education funding drain thousands of jobs from which has improved over his campaign. I like that he made Sallie Mae and USA Funds? Will the elimination of some his last campaign stop in Indianapolis and presidential stop military systems kill Allison Transmission, Rolls-Royce and in Elkhart, telling folks there that he hadn’t forgotten. AM General? Will health care reforms endanger Eli Lilly, I like that he will try and normalize relations with ZimmerUSA, Depuy, and Biomet? Will the carbon credit Cuba and that he has extended a hand to the Americas, reforms hit coal-produced economies like Indiana’s hard, Iran, and the people of Islam. If we don’t talk to enemies, leaving consumers with huge energy bills? we will always be enemies. I appreciate that he takes the These are the same consumers currently being Nunn-Lugar Act seriously and will put teeth back into the hit hard because of Indiana’s malfeasance on combined program. I like that he has ended torture, which, inciden- sewer overﬂows 30 and 40 years ago. If we don’t shake tally, the Reagan administration prosecuted Arizona cops the rut (sometimes mistaken for the horizon), won’t our for waterboarding a generation ago. children and grandchildren be condemned to repeat these I don’t know how Chrysler and GM will turn out, dilemmas? but Obama didn’t just fork over more tax funds. There has HOWEY Politics Indiana Page 9 Weekly Briefing on Indiana Politics Thursday, April 30, 2009

been an arduous process that will demand more out of all Why Obama should Hoosiers in that field. I like that Obama will expend political capital on enjoy his lofty polls now health care reform, because the current system is simply unacceptable. By DICK MORRIS I like that Obama is a reformer. Last Saturday he The Hill said, “To help build a new foundation for the 21st century, WASHINGTON - When the Obama administration we need to reform our government so that it is more ef- crashes and burns, with approval ratings that fall through ficient, more transparent, and more creative.” the floor, political scientists can trace its demise to its first Yes, I do worry about the debt and deficits. hundred days. While Americans are careful not to consign a But I’m smart enough to know that sometimes you have to presidency they desperately need to succeed to the dustbin spend and invest in things like energy and health care in of history, the fact is that this president has moved — on order to get a new generation of security and savings. issue after issue — in precisely the opposite direction of I am extremely disappointed that Republicans what the people want him to do. have, thus far, responded in a virtual party line fashion (just Right now, Obama’s ratings as I am disappointed in Indiana House and Senate Demo- must be pleasing to his eye. Voters crats for doing the same in Indianapolis). When a country like him and his wife immensely and and state find themselves in crisis, I would rather see the approve of his activism in the face of politics set aside for a year or so to get the house in order. the economic crisis. While polls show I find my Republican friends looking at the world big doubts about what he is doing, the through the old prism. They don’t seem to understand that overwhelming sense is to let him have the new paradigm has come and did so because of their his way and pray that it works. own utter malfeasance and neglect over the past decade. But beneath this superficial sup - President Obama got to spend his 99th day in of- port, Obama’s specific policies run afoul fice by welcoming U.S. Sen. Arlen Specter into the Demo - of the very deeply felt convictions of American voters. For cratic Senate fold, potentially giving him a filibuster-proof example, the most recent Rasmussen Poll asked voters if upper house just as he is getting his budget together and is they wanted an economic system of complete free enter- preparing to forge dramatic health care and energy legisla- prise or preferred more government involvement in manag- tive into a stunning portfolio of change. ing the economy. By 77-19, they voted against a govern- Gov. Mitch Daniels spent his 1,569th day in office ment role, up seven points from last month. watching House Speaker B. Patrick Bauer become a one- And in the Fox News poll — the very same survey man wrecking crew on his progressive agenda of change. that gave Obama a 62 percent approval rating and reported It’s ironic that both Obama and Daniels have, in the most that 68 percent of voters are “satisfied” with his first hun - recent relevant polls, 69 percent approval ratings. While dred days — voters, by 50-38, supported a smaller govern- Obama and Daniels are squarely at odds over spending is- ment that offered fewer services over a larger government sues, there are some fascinating similarities when it comes that provided more. Obama’s very activism these days to energy, infrastructure (i.e. stimulus/Major Moves) and arrogates to himself the blame for the success or failure of education (Supt. Tony Bennett and Sec. Arne Duncan are his policies. Their outcome will determine his outcome, and talking off the same script when it comes to issues like there is no way it will be positive. choice and time spent in classrooms). Why? But the so-called “checks and balances” that a • You can’t borrow as much as he will need to party largely out of power always points to as a rationale without raising interest rates that hurt the economy; for existence is playing out in very different ways. Obama is • The massive amount of spending will trigger reshaping American policy with a Democratic government runaway inflation once the economy starts to recover; and things are happening. Daniels has been thwarted by • His overhaul of the tax code (still in the plan- the Indiana House. ning phases) and his intervention in corporate management By June of 2010, we’ll know much more on all will create such business uncertainty that nobody will invest fronts. v in anything until they see the lay of the land; • His bank program is designed to help banks, but not to catalyze consumer lending. And his proposal for securitization of consumer loans won’t work and is just what got us into this situation. So Mr. Obama should enjoy his poll numbers while he may. v HOWEY Politics Indiana

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the Grand Old Party. Who would have believed that move if Specter’s switch another someone had put $1,000 down on it happening in Vegas? No one I know would have even a week ago. His decision assures the Democrats of a filibuster-proof majority. bizarre Washington twist But Washington has become a place with some By DAVE KITCHELL weird twists, ranging from Democrat Joe Lieberman’s sup- LOGANSPORT - The Help America Vote Act known port of John McCain to Republican Jud Gregg’s decision to as HAVA was passed to prevent situations like the one Min- be Commerce Secretary in the Obama administration and nesotans are dealing with now. then withdraw as the nominee, to Specter’s decision to For months since the November cross the aisle. Maybe all the calls for bipartisanship are re- election, they’ve been struggling with ally being heard after all, so much so that switching parties one of the closest Senate races on just seems like a way to get around all the divisiveness. record between incumbent Republi- Regardless, I have to believe the move would can Norm Coleman and Democrat Al never have happened if Minnesotans simply had their act Franken. Initially it appeared Cole - together. Clearly, their election network that is charged with man had won another term. Then a the responsibility of producing representative government recount with many votes thrown out does not. found Franken ahead. Then a lawsuit That creates a problem that’s larger than one by Coleman threw yet another wrench person winning or losing a race. It means that millions of into the process. people have only half the representation they are entitled This may remind Hoosiers of the hotly contested to under the Constitution of this country. It means that the 1984 race between the late Rep. lone remaining senator has Frank McCloskey and one of to take on all-comers with his many Republican challeng- issues, positions, propos- ers, Rick McIntyre, won “won” als, press conferences and on election night with a 72-vote appearances on behalf of his margin. At one point, McIntyre state. was ready to be seated in Con- It shouldn’t be that way. gress before a recount prevailed What’s happening in and McCloskey was returned for Minnesota should never hap- another two-year term. McIntyre pen in any state. never came that close again. Congress, whether it has The problem with these 99 senators or the obliga- situations is that they all serve as tory 100 as the Constitution examples why Americans have provides under our current lost faith in their electoral system, number of states, should or at least in a valid outcome. If move to require elections to a simple pencil scratch on ballots be finalized and candidates can determine the winner in an seated by the time Congress election, then someone, some- convenes for the spring ses- where will view the intent of the scratch different ways. sion following November elec- With millions of ballots cast, it shouldn’t be tions. hard to find the winner in Minnesota, or at least to expedite After all, if elections don’t really produce elected the process that determines one. Yet in this age of sophisti- officials, the election itself was an exercise in futility that cated communications, the Internet, Twitter, Facebook and was little more than a public opinion poll showing support My Space, the Minnesota Senate has all the speed of maple for both candidates was about the same. syrup flowing down a ski slope in Hibbing in the middle of Indiana officials should move to approve winter. reforms that allow Indiana recounts to be swift and sure This situation may in part explain why one of the and for the process to be as little like Minnesota as Miami most predictable Republican votes in the Senate changed resembles St. Paul. v parties Tuesday. Arlen Specter, a former prosecutor with an unmistakable voice and a battling spirit that has fought Dave Kitchell is a veteran Indiana political colum- off cancer, decided to become a Democrat after decades in nist who teaches journalism at Ball State University. HOWEY Politics Indiana

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a serious organization; clowns have no place here.” Crazies want to create The Observer reported earlier that letters from students were running 73 percent in favor of the invitation to a Notre Dame ‘circus’ Obama - 97 percent support among seniors, the graduates at commencement. By JACK COLWELL Letters from alumni were only 30 percent sup- SOUTH BEND - They’re coming out of the wood- portive. That could drop even more as Terry and company work at Notre Dame. They aren’t from Notre Dame, but at continue to solicit letters and money from alumni. Notre Dame, and their creepy, crawly appearance hurts the It’s not surprising that there is majority support pro-life cause they say they support. on campus for Obama’s appearance. He won the mock Like termites, however, they eat student election handily last fall. Also, graduates welcome a away, achieving their own goals, not car- prominent speaker, not somebody whose name they won’t ing what damage they cause. even recall a decade from now. I’m talking about the likes of While outsiders call for firing Rev. John Jenkins, Randall Terry, the serial law breaker who Notre Dame president, he received an ovation at a campus seeks to turn the May 17 commencement town hall meeting celebrating 60 years of black student- at Notre Dame into a “political mud pit,” athletes at Notre Dame when he said: “President Obama and Alan Keyes, the serial election loser clearly could have chosen any university in the country to who calls the commencement speaker “a give a commencement address, and they would have been radical communist” and warns: “We are just delighted to have him, but he’s coming to Notre Dame, either going to stop him or the United and we’re exceptionally proud.” States of America is going to cease to exist.” Faculty demand for commencement tickets is un - They hear the words of Jesus: “Let us who have precedented, so high that a lottery was turned to in various sinned so much cast the first stone.” Not what Jesus said? departments to determine attendees. Right. But it must be what they hear. My purpose is not Pro-life cause supporters who sincerely seek to to list all the nasty and outrageous things these outsiders change views rather than just attract publicity know that have said and done before coming to South Bend to cast screaming “baby killer,” displaying bloody images or creat- stones. ing a political mud pit won’t bring useful dialogue. But I want to make clear that their tactics for dis- Thus, Bishop D’Arcy, though staying away from rupting commencement are not supported by Notre Dame commencement because of disagreement with Obama, students or faculty or by people around here like Bishop also has urged “all Catholics and others of good will to stay John D’Arcy who support the pro-life cause on abortion. away from unseemly and unhelpful demonstrations against Because some student groups criticize the invita - our nation’s president or Norte Dame” or Father Jenkins. tion to President Obama to be commencement speaker General Electric CEO Jeff Immelt, the 2007 com- - one of only three commencement invitations he accepted mencement speaker, sees Obama’s selection of Notre Dame - and their comments are reported widely in the news as honoring the university and Father Ted Hesburgh, Notre media, there could be a false impression that the campus is Dame president emeritus, “the man who shepherded the rising up in support of Terry and Keyes. U.S. civil rights movement into law 45 years ago.” Well, here are some facts. Not all will agree. But virtually all on campus Jeff Tisak, a football player who is demonstrations/ agree that any show of disagreement should be respectful protest co-chairman for ND Response, a coalition of student and peaceful, not of mud-pit, circus or violent style. Most groups opposed to an honorary degree for Obama, said in important in all this are the graduates. a letter last week to The Observer, the student newspaper, Commencement is for them. They are ND. Those that Response has neither invited nor endorsed outside who will crawl back into the woodwork from whence they protesters. He also referred directly to Terry’s threat: “We came are not. v will make this a circus.” Tisak wrote: “We are motivated by love of Colwell has covered Indiana politics over five de - our university and have no desire to turn commencement cades for the South Bend Tribune. weekend - or the weeks leading up to it - into a ‘circus’ of any kind. We are not agents of any outside organization. We are ND. As such, we will act . . . in a respectful and ma - ture manner. We will not tolerate any other behavior on our campus. Anyone who wants to turn our beloved university into a circus will merely end up looking like a clown. We are HOWEY Politics Indiana

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restore our middle class.” Bayh votes against Bayh added, “President Obama was elected to lead in challenging times. The last time our country faced a crisis of this magnitude was 1932, when Franklin Delano Obama’s budget Roosevelt was sent to Washington with a broad mandate to pull our country out of the Depression. Within 100 days, By BRIAN A. HOWEY he passed a series of economic reforms to restore faith in INDIANAPOLIS - The 10-year $3.5 trillion budget our markets and confidence in our country. Every president blueprint of President Obama passed both the U.S. House since has been evaluated against him for what they’ve and Senate on his 100th day in office Wednesday, though it been able to accomplish in their first hundred days.” didn’t garner a single Republican vote or that of Democratic Indiana Democratic Chairman Dan Parker also U.S. Sens. Evan Bayh or Arlen Specter. released a Hamilton Campaign statewide poll that revealed The bill passed the U.S. House by a 233-193 vote Bayh’s favorable/unfavorable rating was and 53-43 in the U.S. Senate. 74/23 percent, including 89 percent among The budget has a $1.2 trillion Democrats and 61 percent among Republi - deficit. cans. It also showed that 73 percent gave While House Speaker Bayh a positive job rating. Nancy Pelosi hailed it as a President Obama’s job rating was “great day” for America, House 61/36 percent and his personal rating was Minority Leader John Boehner also 61 percent. said, “It puts all of this debt on And the poll showed that U.S. Sen. the backs of our children and Dick Lugar’s fav/unfav was 74/19 percent. grandchildren. This is not the The poll concludes: “Despite American way.” Obama’s victory in Indiana in the 2008 Bayh has yet to release presidential election, the state continues a statement on another vote to be conservative. Voters are split in their against the new president. On opinion on the direction of the country. Both Wednesday, he told MSNBC’s Sen. Bayh and President Obama have posi- Morning Joe that voters “want us to do what’s right, re- tive job ratings statewide. Sen. Bayh’s ratings are higher gardless of parties. People like myself and Ben Nelson will than President Obama’s largely because Bayh is rated more do the same.” Nelson was another Democratic no vote. positively among both Republican and independent voters.” Bayh said that he “tends to vote with my party” U.S. Rep. Mike Pence’s stance on the budget was but will not vote for huge deficits. Told the current deficit predictable. “The truth is, in the eight years of the Bush represents 13 percent of GDP, Bayh said that even deficits Administration’s tenure — under Republican control of at 3 percent GDP is “a real problem.” Bayh added, “It’s a Congress six of those eight years — we did manage to breathtaking number. Even the Chinese are talking about double the national debt, and that was a disappointment putting resources in other than U.S. dollar assets.” to millions of Americans, me included,” Pence said on the Bayh said that President Obama “is not oblivious” House floor. “And I believe it was part and parcel why the and added, “Once health care is done, we’ve got to deal American people in 2006 showed us the door, because they with this.” He said that ultimately the bond market and know that we can’t borrow and spend our way to a healthy foreign lenders will weigh in if the huge deficits continue. America.” Of the bond markets, Bayh said that “interest rates will go Pence added, “According to the numbers — and up” resulting in stagflation and foreign lenders bailing out. I don’t want to get lost in the numbers — this budget will Bayh explained, “We’ll look for some restraint on domestic result in outlays of $3.5 trillion for fiscal year 2010 and spending. We’re willing to support the president, but we’ll $1.2 trillion in deficits in 2010. The deficits in this period look for executive leadership.” never fall below $500 billion — a number that was roundly Bayh and Indiana Democrats were very active criticized when the Bush Administration and Republicans on Wednesday. Bayh put out an e-mail to supporters stat - hit it — now accepted to be the norm. And as I mentioned, ing, “Last November, Indiana made history by voting to put public debt by 2014 will rise to more than two-thirds as a a Democrat in the White House for the first time in nearly a share of the economy. It’s a budget that does not embrace half century. In choosing Barack Obama to lead our country the sacrifice and the resilience and the demonstrated virtue during a time of extraordinary economic upheaval, Hoosiers that millions of American families and millions of small busi- sent a clear message: America is ready for a leader com- nesses are practicing today.” v mitted to taking bold action to protect American jobs and

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Rich James, Post-Tribune: Unless there is a special to vote on a resolution to put property tax caps in the state session, the General Assembly is going to pack up and constitution and said it should move swiftly on a sweeping head home at midnight next Wednesday. proposal to restructure and reform local government. But The 150 legislators have been there since early January more than three months later, Daniels’ agenda is in tat- and have yet to approve a bill that is worth writing about. ters. He has sharply criticized as bloated the budget bills That’s bad. They have, on the other hand, coming out of the Democrat-controlled House killed a host of bills. That’s good. Whether and the Republican-run Senate. His “dol- the legislators will do something to improve lars to the classroom” plan has failed so far. the lives of Northwest Indiana residents House Speaker Pat Bauer -- whom Daniels remains to be seen, but it is highly unlikely. called “the one vote that counts” -- blocked As one who used to ply the hallways of the the property tax and government reform ef- Statehouse, I realize that what has happened forts. So far, the only major item on Daniels’ over the last four months doesn’t much State of the State wish list to see success is a matter. Tit for tat takes over the legislative school-discipline bill that gives teachers more process in the waning days. While I don’t protection from lawsuits. But even one of have much to offer other than an “attaboy,” the governor’s fellow Republicans, Rep. Mike these are some of the things I’d like to see accomplished: Murphy of Indianapolis, downplayed that bill, saying it “is v * The revocation of the operating levy freeze imposed two not the biggest thing since sliced bread.” years ago on all Lake County governmental units except schools. * A financing mechanism for expanded commuter rail in Lake and Porter counties. * The suspension of the Lesley Stedman Weidenbener, Louis- sales tax on beer on Fridays. * The return to a single-class ville Courier-Journal: Legislative leaders pledged last high school basketball tournament. * The appropriation December to take a 13 percent pay cut as part of a larger of enough money to finish the Little Calumet River levee plan to cut costs in the face of declining state revenues. project this year. * A law requiring legislators to check their But it didn’t quite turn out as they had originally planned. Bibles at the Statehouse door. * Whatever it takes to elimi - Concern about whether the Internal Revenue Service would nate highway gridlock in Lake County. * The removal of force them to pay taxes on the full salary as defined by law the wall separating Lake and Porter counties. * Approval of -- rather than the lower amount -- led House and Senate funding to launch the Illiana Expressway across Lake and leaders to take the money anyway. Now, most have either Porter counties. * Implementation of the Kernan-Shepard donated the money -- about $2,800, less what they’ll owe Local Government Reform Commission recommendations. in taxes -- back to the state or have given it to charity. * The end of the charade that riverboat casinos are some- The others plan to do the same. Democratic Caucus Chair thing out of the Huck Finn era. Allow the existing casinos to Connie Sipes, D-New Albany, said she plans to give the convert to land-based. * The suspension of the sales tax on money to her church, Park Christian in New Albany. Senate beer on Saturdays. * The seed money for the construction Minority Leader Vi Simpson, D-Bloomington, said she gave of a convention center somewhere in Northwest Indiana. * her 13 percent to a women’s shelter. Republican leaders, The sanctioning of ice hockey as a high school sport. * An meanwhile, said they decided to give the money back to explanation as to how Indiana became known as the Hoo- the state. Senate President Pro Tem David Long, R-Fort sier state. * The conversion of the entire state to Central Wayne, said he wrote a check to the general fund. “That time. * Whatever’s needed to convert Schererville, Dyer met with the original intent,” said House Minority Leader and St. John into one town. v Brian Bosma, R-Indianapolis. “We wanted to save the state money.” What makes the situation interesting is that other Matt Tully, Indianapolis Star : During his State of statewide leaders, who also agreed to a 13 percent pay the State address on Jan. 13, just as the General Assem- cut, did not go through such machinations. They just took bly session was starting, Gov. Mitch Daniels laid out his less money. House Speaker Pat Bauer, D-South Bend, said wide-ranging legislative agenda. He described it with words previous state leaders had been similarly advised that they such as “momentous” and “historic” and said his proposals couldn’t reduce their pay, so it was no surprise that legisla- offered state lawmakers a “huge opportunity.” “Let’s move tors decided that was their best choice as well. He donated forward together, and boldly,” Daniels said. “The only mo- money to a food bank. “Food banks tell me that for every tion out of order is no motion at all.” As lawmakers listened, dollar you give them they can create $8 worth of food the governor asked them to pass a two-year state budget because they buy in bulk,” he said. “And people are hungry v with tight spending constraints. He touted a bill to increase right now.” spending on classroom activities. He urged the legislature HOWEY Politics Indiana Page 14 Weekly Briefing on Indiana Politics Thursday, April 30, 2009 Vigo Commissioner ana Republican Chairman J. Murray the casino move goes forward. “The Clark also said he would not seek the entire black caucus is solid on this pleads to meth charge post, despite rumors reported on the whole issue,” Brown said. “My heels TERRE HAUTE - Vigo County Hoosier Access blog. Walorski said are dug in on this one.” But discus- Commissioner David W. Decker has that with the closure of manufacturing sions now center on finding House Re - agreed in U.S. District Court, Southern plants in several industries unemploy- publican votes for the budget, which District of ment has been hovering at around could neutralize any Democrat hold - Indiana, to 20 percent. Walorski had been ap - outs. Brown said as many as a dozen plead guilty proached by several people asking her GOP votes could be needed to freeze to distribut- to consider running for Secretary of out supporters of the casino shift. ing metham- State. There was even a draft Walorski movement started on Facebook. phetamine. Teen driver bill passes He also INDIANAPOLIS - Teenagers agreed to FSSA privatization would have to log at least 50 hours resign his of supervised driving and wait longer elected coun- freeze bill dies before receiving a driver’s license un- ty position (Greninger, Terre Haute Tri- INDIANAPOLIS - Legislators der a bill that has passed the General bune-Star). A plea agreement Decker have abandoned an attempt to freeze Assembly (Associated Press). The signed Tuesday and filed in federal the privatization of eligibility determi - House gave final legislative approval court Wednesday shows Decker admit - nation for welfare, Medicaid and food to the bill on Wednesday, the deadline ted to distributing 3.25 grams of a stamps (Berman, WIBC). The Family for the session to end. The bill now mixture or substance containing meth- and Social Services Administration has goes to Gov. Mitch Daniels for consid- amphetamine. The amount is 1/8th already put the privatization rollout on eration. It would ban drivers younger of an ounce, known as an “eight ball.” hold while it addresses glitches in the than 18 from using cell phones and Decker, 53, is scheduled to appear for 59 counties which have already turned other telecommunications devices an initial hearing at 9 a.m. today in over those responsibilities to an I-B-M- while behind the wheel. Teens who federal court in Terre Haute. He will led consortium. But the Daniels admin- take drivers education could get their then appear in a plea hearing, where istration says the system is still an licenses at age 16-and-a-half. Without he will waive his constitutional right to improvement over the one it replaced, drivers ed, teens could get a license at a grand jury indictment, said Assistant and had strongly resisted attempts to age 16 and nine months. U.S. Attorney Bradley A. Blackington. block it. A coalition of labor groups If the plea agreement is accepted by and advocates for senior citizens and the court, Decker will then appear for the poor, which opposed privatization Puppy mill bill to gov a sentencing hearing. Once a plea from the beginning, had been lobby- INDIANAPOLIS - The state’s agreement is accepted, his resignation ing to void the contract with I-B-M and most abusive commercial dog breed- can be enforced, Blackington said. A return those duties to the state. ers (puppy mills) will be held ac- message was left at Decker’s home countable if Gov. Mitch Daniels signs and cellular telephone seeking com- House Enrolled Act 1468 into law. The ment. His attorney, William Smock, Gary casino move Indiana House of Representatives said Decker will resign from his county impacted budget today voted unanimously to approve office today. INDIANAPOLIS - State Senate the conference committee report for leaders have declared dead a bid to the bill after weeks of heated debate. relocate one of Gary’s two lakefront State Rep. Jackie Walorski (R-Jim - Walorski, Clark won’t gambling riverboats to the Little Calu- town), who coauthored the bill, was seek secretary of state met River or a land-based casino near among those who voted to advance JIMTOWN - State Rep. Jackie Interstate 80/94 (Guinane, Times of HEA 1468 to the desk of Gov. Daniels. Walorski has decided against run - Northwest Indiana). “It’s not going to “I’ve been working to pass a good ver- ning for Secretary of State citing the happen,” Sen. Luke Kenley, R-Nobles- sion of this legislation for the past six economic condition of her district as ville, said Wednesday afternoon. “Not months,” Rep. Walorski said. “While the reason. In recent months much this year.” Earlier in the day, Reps. this bill does not include all of the of House District 21, including Elkhart Charlie Brown, D-Gary, and Vernon provisions it contained in its original County, has been hit especially hard Smith, D-Gary, pledged to withhold version, it still has the teeth to come by the economic downturn. Indi- support for the state budget unless down hard on the worst offenders.” Originally, this bill capped the number HOWEY Politics Indiana

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of dogs a breeder could keep and cre- tions before praising Hamilton’s uncle, of time to react. “It’s becoming an ated numerous requirements for the former Indiana Rep. Lee Hamilton, as impossible challenge,” Shirey said. conditions of kennels. In the confer- one of his heroes. “We’ve made some cuts, but $3.8 ence committee process, legislators million is the equivalent of two removed the cap, opting instead for a months of municipal government. sliding scale for license fees on breed- CDC flu supplies We’re looking at everything, but ers based on the number of unaltered arrive in state at this point, I think we’re going female dogs a breeder keeps in its INDIANAPOLIS - State health to have to cut even more, even to operation. The bill retains language ofﬁcials say Indiana has received a new include my position. When you take pertaining to animal abuse and ne- shipment of enough antiviral medica- out all department heads on the civil glect and enhances penalties for these tion to treat 238,000 more people if side, you’re likely to come up with crimes. “This bill takes necessary steps the state develops a swine ﬂu out - a half-a-million bucks.” “I absolutely to hold abusive breeders accountable break (WIBC). State health department feel the impact,” Tyler said. “That’s without burdening hobby breeders spokeswoman Elizabeth Hart says the the reason we implemented those and pet owners,” Rep. Walorski. “This federal drug shipment that arrived property tax caps. Dick Shirey was takes Indiana farther than we’ve ever Wednesday means the state now has part of local government and so was been in taking a stand against animal enough medication on hand for the Mayor (Sharon) McShurley, and not cruelty and in regulating puppy mills.” treatment of 889,000 people. a single one of them spoke down here in opposition to it.”

No vote on abortion bill INDIANAPOLIS - Legislators Monroe urges Former Vanderburgh also never took a vote on a bill that common sense sheriff a sex offender could make it harder for women to INDIANAPOLIS - During a stop FORT MYERS, Fla. - A for - obtain abortions in Indiana. Senate in Gary on Wednesday, Indiana State mer Vanderburgh County Sheriff will Bill 89 would have required doc- Health Commissioner Judith Monroe spend the next 10 years on sexual tors who provide abortions to secure stressed common sense precautions offender probation in Lee County, admitting privileges at local hospitals to help prevent the spread of so-called Fla. after pleading guilty to a felony (Indianapolis Star). Proponents argued swine ﬂu (Times of Northwest Indiana). charge of committing lewd and las- the bill would address patient safety “We need you to play your part,” Mon - civious conduct (Evansville Courier issues, while opponents said it would roe said, urging frequent hand washing, & Press). Clarence Shepard, who cut down on access to the procedure covering of coughs and sneezes and served two terms as sheriff from because most abortion doctors in Indi- other precautions. 1983 to 1991, was arrested last ana do not have admitting privileges. October on accusations he touched Negotiations, however, came to a a young girl inappropriately inside standstill over another provision in the Muncie facing dramatic his Fort Myers, Fla. home. bill: a $23 million program to provide

free breast and cervical cancer screen- budget shortfall MUNCIE - Just when Muncie of- ings for uninsured women. ficials thought the city’s budget problem DUI for Clarksville couldn’t get any worse, it did -- much redevelopment official Short hearing for worse (Muncie Star Press). Already reel- CLARKSVILLE - A Clarksville ing from trying to deal with at least $2.7 official was arrested Tuesday night Judge Hamilton million less in operating revenue this while driving his town vehicle and WASHINTON - Despite year, city officials say they’ve learned was charged with drunken driv- Republicans’ insistence that they the total shortfall will be $3.8 million. ing, according to a police report needed more time to question Hoosier Deputy Mayor Dick Shirey -- who says (Louisville Courier-Journal). “I take David Hamilton, the GOP showed little his position and others could be ex- full responsibility,” Rick Dickman, interest in him Wednesday during the pendable -- lashed out at legislators Clarksville’s redevelopment director. second hearing over his nomination to who last year enacted property tax caps said yesterday. Dickman, a former the 7th U.S. Circuit Court of Appeals that have resulted in less revenue for town court judge and former Town (Indianapolis Star). Oklahoma Sen. cities, counties and other taxing entities Council member, said he called each Tom Coburn, the only Republican who around Indiana, but state Rep. Dennis member of the council yesterday to attended the hearing, asked two ques- Tyler said city officials have had plenty apologize.