Thursday, June 24, 2004
Volume 10, Number 44 Page 1 of 10 he Kernan, Daniels T and the glass half ... Howey Site Selection magazine data contested By BRIAN A. HOWEY in Indianapolis It’s almost certain that in your living room, your doctor’s office, or on your dining room table you won’t find Political a copy of Site Selection magazine. Until this March, most Hoosiers had never heard of the publication. But since it ranked Indiana No. 1 for its competitive Report business climate for 2003, it has become a centerpiece of Gov. Joe Kernan’s re-election campaign, mentioned in two The Howey Political Report is published by NewsLink Kernan TV ads. At the party convention on June 12, Lt. Gov. Inc. Founded in 1994, The Howey Political Report is Kathy Davis said in her acceptance speech, “Joe Kernan an independent, non-partisan newsletter analyzing the political process in Indiana. decides and takes action. We make the right changes and we get results. Indiana has just earned the No. 1 ranking from Brian A. Howey, publisher Site Selection magazine. We’re recognized as the best state Mark Schoeff Jr., Washington writer for business investment based on our economic climate, our Jack E. Howey, editor outstanding system of higher education, and our low cost of doing business.” The Howey Political Report Office: 317-254-1533 PO Box 40265 Fax: 317-254-0535 In the March 2004 edition, Site Selection listed 102 Indianapolis, IN 46240-0265 Mobile: 317-506-0883 new manufacturing facilities in Indiana for 2003, and 401 [email protected] total facilities that expanded to create at least 50 new jobs or www.howeypolitics.com $1 million in investment. Those numbers were generated from two lists, one Washington office: 202-775-3242; Business office: 317-254-0535. submitted by the Indiana Department of Commerce that detailed 50 “state-assisted projects,” and one from the Subscriptions: $350 annually via e-mail; Indiana Chamber of Commerce, which had sent a list of 700, $550 annually including the HPR Daily of which 241 occurred in 2003. “The combined lists total of Wire. Call 317-254-1533 or 254-0535. 291 is well short of the 401 figure cited by Site Selection,” © 2004, The Howey Political Report. All rights said Daniels campaign manager Bill Oesterle. reserved. Photocopying, Internet forwarding, faxing or The 102 new manufacturing projects were better reproducing in any form, in whole or in part, is a viola- than the 98 in New York, 51 in Texas, 22 in California, 39 in tion of federal law and is strictly prohibited without Florida, 68 in Michigan, 80 in Illinois, and 75 in Ohio. consent of the publisher.

Ticker: Nader won’t be on ballot p. 2 “I’m not going to be casting votes to make HPR Interview: Bill Oesterle p. 4 anybody in the hallway happy. I’ll do what’s Horse Race: Governor’s update p. 6 right to try and get this state fixed.” Columnists: William Safire p. 9 - Brent Steele, the new Republican nominee Photos, words & Reske’s courage p.10 in SD44, to the Louisville Courier-Journal HPR Forum Will Feature Dr. Larry Sabato on Oct. 1 at the Downtown Marriott Thursday, June 24, 2004 Page 2 of 10

“It’s absolutely inconceivable that the legislature, along with a diverse group Indiana, with a tenth of the population of of people from business, universities, edu- some of those states, would out-perform cation, labor unions and statewide associ- them,” Oesterle said. “There has been no ations, as well as the governor and lieu- change in business activity. There was no tenant governor, took bold steps that have change in the business climate. There was made Indiana stand out among its peers.” KERRY UP 3 POINTS IN a change in how the Chamber counted. It Monger’s article takes issue with RASMUSSEN TRACKING: A turns out they just counted differently.” Oesterle’s assessment that there has been Rasmussen Reports poll Site Selection failed to return “no change in business activity” in the (6/23) of 1,500 likely voters phone calls and e-mails to answer HPR’s nationwide, conducted over only state to restructure its taxes in recent June 10-22, (+/- 3%) using questions about its data base and criteria years. an automated polling sys- for its list. Monger explained, “From our his- tem, shows 47% would vote toric tax restructuring – which, among for John Kerry; 44% would Shared database other things, eliminated the gross receipts vote for George Bush; 4% Cindy Monnier, director of the tax and the inventory tax – to the unprece- would vote for another can- Chamber’s Business Research Center, dented investments made through didate; 5% were not sure. provided HPR with the Chamber list, but Energize Indiana, we have taken initia- tives that will pay off for years to come. KERRY COMING TO INDI- when asked about how Site Selection The outcomes speak for themselves. ANAPOLIS ON JULY 6: came up with its final numbers, she Democratic presidential referred HPR to Dennis Paramore of the When Indiana stepped to the table, the pri- candidate John Kerry is Department of Commerce. vate sector in turn invested nearly $3 bil- scheduled to be in But in a May 11 e-mail to the lion in 2003, compared to only $900 mil- Indianapolis July 6 to Chamber staff, Monnier explained, lion in 2002. Those investments were laid address the worldwide con- “Indiana’s rank in Site Selection maga- out in data that Site Selection used to vention of the African zine’s Governor’s Cup was around 30th in determine its ranking of the states, data Methodist Episcopal 1999, before I began to share our library’s that included investments by new and Church, say church officials New Plants & Expansions database with expanding businesses of all sizes.” (Indianapolis Star). Kerry Monger also noted that last year plans a morning appearance them.” Monnier also said, “I started giv- at the Indiana Convention ing Commerce our data about three years Indiana reached a record $16.4 billion in Center, where about 30,000 ago because I realized that they were only export sales, more than $2 billion higher church members will attend submitting those projects where the state than the totals calculated in 2002. That the event, which runs from had given financial support, about 30 (in puts Indiana at 12th in the nation for June 30 to July 7, officials 1999). Hundreds of other projects were export sales and demonstrates the state’s said Wednesday. "He's not being submitted because no one was ability to compete globally. reaching out and trying to collecting it. This data was just what we Monger continued, “Some have touch all the constituents in had in our New Plants & Expansions data- expressed concern that the bulk of this the nation," said Bishop base here. They accepted my offer to con- investment came from existing Indiana Philip R. Cousin, who will become the senior bishop tribute and it has raised Indiana up into companies. Yes, the state did pay attention of the AME Church at the the top 10 ranking each year since.” to its ‘existing customers,’ and therefore convention. "There's noth- When Paramore was contacted, he strengthened our base in a way that earned ing wrong with appealing to referred HPR to an article written by us a first-place national ranking in a mag- faith-based groups and Dept. of Commerce Director Tim Monger azine read by 45,000 business executives, denominations." Kerry cam- that was published in Indiana Business site consultants and economic developers paign officials wouldn't con- Magazine. Of the No. 1 ranking, Monger worldwide. The qualified submissions to firm the trip. Democrats explained, “It reflects the fact that in Site Selection included over 400 new and Jimmy Carter, Bill Clinton recent years we have taken significant existing companies from life sciences, and Al Gore addressed the steps to strengthen our business climate. advanced manufacturing, 21st century AME Church during their presidential campaigns. Hoosiers should be proud because these logistics and technology. It should also be actions were the result of bipartisan unity. noted that the magazine selected only a Continued on page 3 Together, members from both parties in few existing companies as examples. Page 3 of 10 Thursday, June 24, 2004

Indiana’s economic plan focuses on mod- nies grow and add jobs. But the minute ernization as well as diversification of our something great happens to our state – state’s economy.” like being ranked No. 1 by a national magazine – they tear it down. This rank- A marketing tool? ing should be celebrated. It represents the In the dog-eat-dog economic hard work of Indiana’s companies and development warfare between the their workers. And it’s an honor that can American states and various regions, it’s be used to actually sell the state to poten- NADER WON’T BE ON INDI- hardly surprising that entities such as the tial companies, and yet the Daniels cam- ANA BALLOT: Hoosiers looking for another choice Indiana Chamber and the Department of paign insists on trying to poke holes in it and belittle what’s been accomplished.” in this fall’s presidential Commerce would seek to change the per- election won’t see Ralph ception of Indiana as an economic rustbelt Nader’s name in the voting backwater. Two ways to see things booth, says the independent Monger candidly acknowledges, Oesterle also complained that the candidate’s state coordina- “Others have classified this award as a two gubernatorial campaigns are being tor (Post-Tribune). “We’re mere marketing tool. Well, yes it is. And, held to different standards. The Indiana- not going to make the ballot we’re marketing to 45,000 business exec- polis Star criticized the Daniels campaign in the state,” said Dallas Stoner, 27, of Indianapolis. utives, site consultants and economic in a a May 26 “Ad Watch” for a TV ad Stoner said Indiana’s Nader developers worldwide, along with tens of that said Indiana colleges were buying committee only has about thousands of others who will learn and dorm furniture out of state. 9,000 signatures. Thirty- read about this award. Does that diminish Oesterle said the campaign never thousand signatures are its significance and the bold steps Indiana claimed that “all” of the furniture was needed to get Nader’s name took to earn the award? Hardly.” being purchased outside the state. “But on Indiana ballots. Stoner What’s different about Indiana’s then Gov. Kernan is running ads saying said more than 6,000 other No.1 ranking this year is that it has also that he has lowered property taxes for signatures were stolen from an Indianapolis headquar- become a political marketing tool for the Hoosier families and cut taxes for busi- ters. He said he did not Kernan campaign. That’s what has gotten nesses. Was it for all Hoosier families? report the theft to police, Oesterle’s ire up. “There was no real audit Ask the people of Lake County about already frustrated by prob- of the data,” Oesterle said. “Site Selection that. Did he cut taxes for all Hoosier busi- lems with authorities. has not been willing to release its method- nesses? These are sweeping statements Between the theft and strin- ology.” He said the Daniels campaign that are being held to different standards.” gent third-party signature tried to subscribe to the magazine’s data- The week after Daniels ordered laws, Stoner said he feels base with the price going from $200 to the Indiana GOP to pull its Legacy of demoralized. He said he is $1,800 before it refused outright. Neglect website, Indiana Democrats thinking of moving to Canada after the elections. The Kernan campaign says released an e-mail on Wednesday (Mitch “We’re not in America,” said Indiana Republicans are cherry picking Daniels says he’s “Aiming Higher,” but Stoner. “There’s no change the way they use the same data. “Site what does that really mean for Hoosiers?) going on in this state.” Selection magazine was good enough for referencing published reports on Daniels Republicans when it had us near 50th in role at OMB and the “higher federal FOUR FIRED AT BMV: The one of its other economic development deficits, higher spending and higher tax Indiana Bureau of Motor rankings,” said campaign spokeswoman burdens on Hoosiers.” Vehicles disclosed Tina Noel. “The now defunct Legacy of What Hoosiers are witnessing is a Wednesday that it has fired four employees and two Neglect Web site used a Site Selection classic “glass half empty/half full” debate others have resigned from about the performance of Gov. Kernan’s ranking.” an Indianapolis license Noel continued, “This is a classic administration and the case Daniels is branch that is the target of example of the Daniels campaign saying making for change. an internal investigation one thing, but doing another. They say The way the often three-dimen- into "gross mismanage- they’re positive -- that they’re all about sional data is used ends up in one-dimen- ment." The agency fired  lifting Indiana up, and helping our compa- sional 30 second perceptions. continued on page 4 Thursday, June 24, 2004 Page 4 of 10 Oesterle surveys the Daniels-Kernan race INDIANAPOLIS - Mitch Daniels of $300 million. They’re saying it would campaign manager Bill Oesterle sat down be $1.2 billion. We believe that over a 10- with HPR on Tuesday and surveyed the year period, that would result in over $2 field. HPR plans to conduct a similar billion in economic benefits and addition- branch manager Anna interview with the Kernan campaign’s al tax revenue for the state. From a cash Herron, team leader Paula Bernie Toon. flow standpoint, you get a bunch of that Jenkins and customer ser- HPR: Could you respond to Bernie activity in year one. You get jobs, you get vice representatives Rasheeda Bigbee and Toon’s comments in the Fort Wayne new income taxes, you get additional Cheryl Bailey, who worked Journal Gazette that the Daniels campaign properties and additional investments. at the license branch at has never responded to the debate, how That’s for new activity. 4064 Meadows Parkway. you’re going to pay for programs, and the HPR: Have you seen the opposi- Customer service represen- clean campaign pledge? tion research that was distributed at the tatives Cindy Guillaume and Oesterle: I contacted their cam- Democratic convention? Tresa Ellis, who were sus- paign last week. I left a message for Oesterle: No, I haven’t seen that. pended pending the out- Bernie, a detailed message, and I’ve heard HPR: Put that into perspective, come of the investigation, no response. So that’s flat inaccurate. It’s since Gov. Kernan labled the Legacy of resigned. In April, the BMV a misrepresentation. Our Neglect “trash.” announced that an internal audit discovered that money response to the fair cam- Oesterle: They desperate- apparently had disappeared paign pledge is we are now ly want to portray Mitch as from the branch disclosing more about cam- negative. They started before (Indianapolis Star). paign finances than anyone he announced his candidacy in the history of gubernato- that he would be negative. It INDIANA POPULATION rial elections in Indiana. just doesn’t ring true with the STABLE: Indiana's largest Mitch recently reined in voters who are watching his cities and townships have surrogates for messages he didn’t think actions. His commercials have set a posi- held their ground in terms were consistent with his style. Mitch tive, optimistic tone for the campaign. Our of size nationally since the pledged in the primary the type of cam- primary campaign was run on a positive 2000 Census, despite some turbulent economic times, paign he was going to run and the tone. The appointment of Kip Tew as state census data released today response is in his actions. They are consis- chairman - they’ve put the pit bull of the shows (Evansville Courier & tent with a fair and clean campaign. That’s Democratic Party in that role. That’s Press). The state's 20 going to continue to be the case. He’s indicative of the direction they may take largest cities and towns leading by example. As for proposals, this campaign. remained stable in the we’re happy to provide details on costs. HPR: The Legacy of Neglect was nationwide rankings, said HPR: The Kernan campaign is say- basically a compilation of published Carol Rogers, associate ing that the abatement proposal Daniels newspaper articles on the O’Bannon- director of the Indiana made last winter did not contain costs, Kernan administrations. What do you Business Research Center. and they say it will cost the state $1.2 bil- believe is fair game in addressing the pub- "It's a positive that of our 20 largest cities and towns, lion. Do you agree with that? lic policy record of the administrations none of them changed Oesterle: No. That’s grossly over- over the past eight years and how it is dis- rank," said Rogers. "On the stated. There are two things about that. played in a political environment? other hand, some of them Their use of the word “cost” is a mis- Oesterle: We are now at a point in did lose population." nomer. They’ve grossly overstated what the campaign where the description of the Indianapolis has gained that number would be and they failed to Kernan record or the depiction of the con- more than 1,700 residents include the benefits side which vastly out- dition of the state is going to be in Mitch’s since 2000 and remains the weighs any costs.. voice. The Kernan campaign was quick to 12th-largest city in the HPR: What would the benefits side point out, ‘Well, the Legacy of Neglect country, according to esti- of the equation be? was out there for seven months.’ There mates released by the U.S. Census Bureau. Evansville Oesterle: We think it would impact was also a brochure that was to be distrib- the collection of property taxes to the tune uted at our convention that we stopped. continued on page 5 Page 5 of 10 Thursday, June 24, 2004 We had to pull it out of 3,000 bags the say why it’s not effective. That is a legiti- delegates were going to get. It was pro- mate role of any candidate. duced without our knowledge. We stopped HPR: Did Evan Bayh cross the line it. We said that this is not consistent with in his race against Mutz? how Mitch will deliver his messages. We Oesterle: I’ve gone back and look- don’t think it is appropriate. Before it got ed at things he did. But I can’t think of into anyone’s hands, we pulled it out. any examples where we’ve said, “Bayh took the biggest hit, losing Kernan had a chance to do that with the did this and we’re not going to do that.” nearly 3,300 residents between 2000 and 2003. But talking points. He’s done none of that in HPR: Bart Peterson said in 1999 Rogers said many of them his campaign. Mitch is going to work very that dynasties usually don’t go down qui- may have moved to nearby hard for civility in this campaign. etly; that they often screech to a halt. unincorporated towns or HPR: Where do you think the line Oesterle: The press is saying it’s suburbs, following a grow- should be drawn for a legitimate public going to be dirty and negative. There’s no ing trend of suburban policy debate and making the contrasts? way that has to be the case. Campaigns sprawl. Fort Wayne, South Published reports? are about contrast and stimulating the Bend and Kokomo also saw Oesterle: That’s pretty much our debate. Campaigns can deteriorate, but slight declines in popula- criteria. If you’ve got third party valida- Mitch’s intent is to keep that from hap- tion, according to the esti- mates. Rogers attributed pening. tion, this is about I knows it when I sees it some of the heavier losses, kind of thing. It’s one thing to criticize HPR: What debate format would in places such as Evansville their actions; it’s another to criticize their you prefer? and Hammond - which lost motivations. Mitch has made it pretty Oesterle: The Kernan campaign nearly 2,300 residents - to clear that’s a line he is not going to cross. proposed three. That sounds good to us. job cuts. In fact, Indiana's HPR: Will the Daniels campaign We’d like to have them out and about the population as a whole grew press Gov. Kernan on his role within the state. Mitch would prefer something that to an estimated 6,195,643 in O’Bannon administration, where his seat isn’t sound-bite oriented. 2003, up 0.63 percent from was at the table? HPR: Give an overview of your 2000 estimates. "We have not lost rank since Census campaign and where you expect to be on Oesterle: Yes, certainly. Mitch has 2000, so that's good," already addressed that throughout the Labor Day. Rogers said. "Relatively course of this campaign. The voters have Oesterle: We got a lot of momen- speaking, things remained to be able to decide, based on the gover- tum out of the primary, the selection of pretty stable." Rogers nor’s job performance as lieutenant gover- Becky Skillman and Pat Miller. The con- emphasized that the new nor and as chief economic development vention went very well. His speech was data were not official and officer, did he do a good job or did he very well received. People seem to be can be challenged by the not? It’s like a company performance energized. On any one of those things, cities. "For a lot of these review that goes to whether a person something could have gone wrong. And cities and towns that are losing population, they'll be Mitch’s reception on the road: we thought keeps a job. It’s not personal. heartened by the fact that HPR: Have you studied Evan we’d hit a lull, but it’s gotten more ener- tax money is based on the Bayh’s 1988 campaign and how he took getic. That all feels real good to us. census, not estimates," on the eight years of Orr-Mutz? HPR: It’s my perception this race Rogers said. Towns near Oesterle: I was working on Bob is within the margin of error. Agree? Indianapolis saw the most Orr’s staff and my roommate was a Oesterle: Yeah. There’s been five significant gains, including speech writer for John Mutz. polls other people have done ... and four Fishers (up 9,200 residents), HPR: Bayh attacked the Orr-Mutz of them were within the margin of error. Carmel (4,500) and Noblesville (4,000). record on the Suburu plant in Lafayette, HPR: Does that surprise you? Oesterle: Yes, but it’s a pleasant the license branches, and came out with STEEL INDUSTRY EXPECTS the no new tax pledge a year after the A- surprise. Running as a challenger, keeping TO HIRE: Fortified with new Plus education tax increases. Fair game? an incumbent under 50 percent and within respect on Wall Street that Oesterle: Bayh had to make the the margin of error ... that’s all you want. translates into cash, the case for change. His entire campaign was That’s right where you want to be, under stronger steel companies “It’s time for a change.” In order to do 50 percent and within the margin of error. that is you have to state the status quo and  continued on page 6 Thursday, June 24, 2004 Page 6 of 10 2004 Racing Form TREND LINE: Let’s talk about the 2007 elections. The roots of the next Indianapolis mayoral race could be in the 2004 governor’s race. Marion County Republicans are convinced the City-County Council vote to take $300,000 out will soon be on the prowl of Prosecutor Carl Brizzi’s budget and put for new companies to buy both nationally and interna- it in the public defender’s budget is a tionally (Post-Tribune). That political payback for Brizzi’s BMV and likely will create a second FSSA investigations. “Gov. Kernan and wave of consolidations, Mayor Peterson are trying to intimidate Carl Brizzi,” Republican Chairman financial analysts predicted Mike Murphy told HPR on Tuesday. What appears to be setting up is a Brizzi Wednesday at the 19th annual Steel Success challenge to Peterson in 2007. Strategies conference in New York this week. While the consolidations most Indiana 2004 Gubernatorial, Statewides likely will cause some lay- Governor 2004: Republican: Mitch Daniels. Democrat: Gov. Joe Kernan. offs, representatives of two Libertarian: Kenn Gividen. 1996 Results: O’Bannon (D) 1,075,342, Goldsmith (R) 997,505, companies with locations in Dillon (L) 35,261. 2000 Results: O’Bannon (D) 1,230,345, McIntosh (R) 906,492, Horning (L) Northwest Indiana said the 38,686. 2004 Forecast: Daniels announced two new proposals to raise ethical standards in job market should be open- state government and hold those accountable who act contrary to the public good. Monday in ing up here for the first time Fort Wayne, Daniels proposed the following policies: Forfeiture of Public Retirement Monies by in decades. “I expect to Corrupt Officials - Public servants who steal from the government, defraud the public, or act in start hiring in the next cou- a manner that renders their public service dishonorable, will be subject to full or partial forfei- ple of years. We’re looking ture of their public pension or retirement benefit. Daniels said Indiana law should also bar regis- into a hiring program for tered lobbyists from serving on non-advisory boards and commissions. “We must do everything engineers,” said Rodney possible to restore the public's trust in state government,” said Daniels. “It's not just the perfor- Mott, CEO of International mance standards in state government that we must raise; we must raise the ethical standards as Steel Group, which has well. Our state government has been tolerating a host of practices that are not permitted in other locations in Burns Harbor states.” Daniels also announced Monday his campaign will release all donations on a weekly and East Chicago. Dave basis via an online database starting Monday. Candidates last turned in campaign finance reports Allen, spokesman for Ispat April 15 and aren't scheduled to do so again until Oct. 15. Daniels thinks that leaves voters in Inland in East Chicago, also the dark too long. “I was surprised how rarely contributions have to be disclosed at the state said the company would level,” he said. “I'm not trying to be holier-than-thou. I'm just trying to have a standard of open- look to add qualified ness.” Spokesman Marc Lotter said the new feature will just be a report detailing contributions. employees in the next few It will not include a running tally of how much money the campaign has on hand or what they years after a number of lean have spent. Lotter did say Daniels has raised almost $8 million to date. Daniels also said he is hiring years. He said the not pushing Democrat Gov. Joe Kernan to follow suit. “I'm not saying anyone else has to imitate mill did not hire a single it,” he said. “I won't be critical if they don't. They're living up to the laws as we have them person from 1981 to 1999, now.” Gov. Joe Kernan is airing a new 30-second TV ad beginning last weekend (HPR). Kernan but now with a large chunk explains in the ad, “The economy has been very difficult, but we have set the stage for us to be of its work force getting able to be very successful at putting Hoosiers back to work and putting them to work at good close to retirement, it needs jobs.” An announcer then says, “Joe Kernan cut taxes for indiana businesses to create jobs; to replenish its force. changed state policy to give 2,400 indiana companies greater opportunities to win state con- tracts; and now, indiana has been recognized as one of the best states in the nation at competing INDIANA POLLUTANTS UP for business investment and jobs.” Last week, Kernan proposed three small-business initiatives. 7 PERCENT: The volume of He said he is working with the Indiana Department of Commerce to create the Office of the pollution released by Small Business Advocate. The staff would be charged with tracking ways to reduce unnecessary Indiana industries increased regulations on small businesses. They would also help small companies tap into loans and grants almost 7 percent in 2002, and tell them about health insurance options (Evansville Courier & Press). The office would be although emissions of can- in addition to the Business Action Team Lt. Gov. Kathy Davis announced Monday that would cer-causing toxins declined help businesses navigate state regulations. Kernan also revealed that the commerce department Page 7 of 10 Thursday, June 24, 2004 is working to develop a certificate program for worker training. Under the program, employees could earn certificates for learning new skills while the companies where they work could get a state payment of $50-$100 per worker who earns a training certificate. The program is sched- uled to be ready this fall. And lastly, he heralded a web site, dubbed “Buy Indiana,” that should be up and running in July that will list Indiana vendors so that companies can buy in-state. “Small businesses employ almost half of Indiana's work force,” Kernan told a gathering of biotechnology executives (Louisville Courier-Journal). “Small businesses are at the front end of innovation and entrepreneurship.” Daniels called the initiatives “trivial.” He told the Evansville Courier & Press, “The governor was responsible for jobs for eight years in this for the fifth year in a row, state. All these problems have been visible and getting worse for all of the eight years. The according to a federal inven- folks who created this problem are probably not the folks to clean it up. We have very large tory released Wednesday problems and this administration shoots BBs over and over.” Kernan and Indianapolis Mayor (Indianapolis Star). The state Bart Peterson joined the Indianapolis Airport Authority board and executives of AAR Corp. to ranked sixth in the nation announce that a portion of the Indianapolis Maintenance Center will be leased by the with more than 221 million Indianapolis Airport Authority to AAR Aircraft Services, Inc. It could create 800 new jobs by pounds of pollutants 2009. “This is exciting news for all of Indiana,” Gov. Kernan said. “We are thrilled that AAR released into the air, land has the vision to see the value of establishing a presence here at the Indianapolis International and water, compared with Airport. This world-class maintenance facility and a well-trained workforce right here in 207 million pounds in 2001, Central Indiana are assets to AAR's long-term business goals.” Status: Tossup. when the state ranked sev- Superintendent of Public Instruction: Republican: Supt. Suellen Reed. enth, according to the U.S. Environmental Protection Democrat: Susan Williams. 2000 Results: Reed (R) 1,181,678, McCullum (D) 814,658, Agency's Toxics Release Goldstein (L) 81,722. 2004 Forecast: The Terre Haute Tribune-Star editorialized last Friday: Inventory. Sometimes politicians can be far too clever - and far too sneaky - for their own good, let alone that of the voting public. That's certainly the case of a plan by Gov. Joe Kernan and SUPREME COURT HEARS Indianapolis City-County Councilwoman Susan Williams. It seems that Kernan and the LAKE COUNTY TAX CASE: Indiana Democratic Party are intent on having Williams, 59, run for state superintendent of Indiana Supreme Court jus- public instruction. Not a bad choice, considering her background in education. She would tices wrestled with whether oppose Republican Suellen Reed, who is seeking a fourth term. Now get this. Williams the independent reassess- promises to resign if she wins. That feint would allow whoever takes the governor's race, ment of Lake County was Kernan or Mitch Daniels, to pick his own schools chief. Some in government think that's the constitutional, as they heard way things should be, that the schools job should be appointed - not elected, as now required oral arguments on the law- by Indiana law. Their argument: the closeness with which the governor and superintendent of suit brought by the Miller instruction must work. Making the highest public schools office an appointed position - literal- residents (Post-Tribune). As ly a political plum - seems a strange way to insulate the job from politics. We like having the is customary, the justices voters make choices about who will run our schools. But that may not happen much longer took no action from the anyway. In the 1980s, a bill to make the schools job an appointed position failed by only a bench, but Chief Justice vote or two in the state Senate. Some say a similar bill today would be approved. That may be Randall T. Shepard promised so. And that's the way to make legitimate change - not with a win-and-then-resign scheme.” to act promptly to resolve Status: Likely Reed. whether the lawsuit can con- tinue, or whether homeown- ers will have to go back to square one and appeal Indiana 2004 Congressional before the Indiana Tax Court. Congressional District 2: Republican: U.S. Rep. Chris Chocola. Democrat: Joe The justices are caught Donnelly. Geography: South Bend, Michigan City, Mishawaka, Elkhart, Kokomo, Plymouth, between two of their own Logansport; LaPorte, St. Joseph, Starke, Marshall, Pulaski, Fulton, Cass, Carroll and parts of decisions — their 1998 ruling Howard, Porter, Elkhart and White counties. Media Market: South Bend-Elkhart, in the St. John case that Indianapolis, Lafayette, Chicago. People: Urban/rural 73/27%; median income $40,381; declared the old assessment Poverty 9.5%; Race 84% white, 8% black; 5 Hispanic; Blue/white collar: 34/50%. 2000 system unconstitutional and Presidential: Bush 53%, Gore 44%; Cook Partisan Voting Index: R+5; 2002 Result: the South Bend Kimsey case Chocola 95,081 (50%), Long Thompson 86,253 (46%); 2004 Forecast: Donnelly is concen- prohibiting special legisla- trating on raising money that could determine whether he has a real chance to upset Chocola tion. Their 1998 ruling even- (Jack Colwell, South Bend Tribune). Mike Marshall, Donnelly's campaign manager, says the tually led Tax Court Judge DCCCwants Donnelly to hit the $400,000 plateau in fund-raising by the June 30 close of the Thomas Fisher to set a next campaign finance reporting period. The DCCC can help Donnelly with all-out targeting Thursday, June 24, 2004 Page 8 of 10

from the national level, as it seems poised to do, or pull back in support and concentrate resources elsewhere if Donnelly doesn't appear to be getting within striking distance. Reaching or topping that goal is so important, and not just to please the DCCC, that Marshall has come up with a series of June 30 “taking back the House parties.” At 100 sites around the district, hosts of the parties will seek to raise $1,000 each, thus collecting at least $100,000 in a single night in order to top the goal. Status: Leans Chocola. statewide deadline to have a Congressional District 8: Republican: U.S. Rep. John Hostettler. Democrat: Jon new assessment system in Jennings. Green Party: Clark Gabriel Field. Geography: Evansville, Terre Haute, Greencastle; place for taxes due in 2003. Posey, Vanderburgh, Warrick, Gibson, Pike, Martin, Daviess, Knox, Sullivan, Greene, Owen, Hoping to stay out of Tax Clay, Vigo, Vermillion, Parke, Putnam, Warren and part of Fountain counties. Media Market: Court and delay future bills Evansville, Terre Haute, Indianapolis. Lafayette. People: Urban/rural 58/42%; median with the new assessment income$36,732; poverty 10.7%; race white 93.7%, black 3.7%, Hispanic .9%; blue/white collar: figures, the Miller Citizens 32/52%. 2000 Presidential: Bush 56%, Gore 42%; Cook Partisan Voting Index: R+8. 2002 Corp. argued the 2002 law Results: Hostettler 98,952 (51%), Hartke 88,763 (46%), 2004 Forecast: Hostettler had some that allowed the indepen- tough talk about the U.S. Supreme Court and federal courts with regard to abortion and marriage dent reassessment of Lake laws. (Linton Daily Citizen). Hostettler said he feels the landmark Roe v. Wade decision that County was special legisla- allowed abortions could be overturned very easily by the Congress with passage of a bill now tion, which was deemed ille- being considered in the House. “There is a bill that has been introduced by Rep. Duncan Hunter gal by the high court in the of California and it refers to the 14th amendment which gives Congress the authority to deter- 2003 Kimsey decision. “It mine rights. Not only at a federal level, but at a state level. The 14th amendment was the basis sounds like the statute does for all of the civil rights acts that took place in the 1870s until today. So what the bill does is contradict Kimsey, but the reaffirms the 14th amendment which says no state shall deprive a person of life, liberty or due legislature didn’t know it at process of law. It defines a person and life at conception. That bill would grant a civil right to the time,” said Justice pre-born human person,” Hostettler said. “I think that is good legislation and I am co-sponsoring Frank Sullivan, speaking to it. It would effectively overturn Roe v. Wade without a constitutional amendment. We don't need Toby Jerrells, the deputy a constitutional amendment to overturn Roe v. Wade.” Jennings expressed his disappointment attorney general arguing the late yesterday after House Republicans shamelessly attached a rider to a vital Defense case for the government. Department appropriations bill that increased the national debt ceiling to nearly $700 billion. “The irresponsible tax cuts given to millionaires and multi-national corporations have already HAMMOND COUNCILMEN turned a budget surplus into the largest budget deficit in our nations history.” Status: Tossup. REIMBURSE CITY: Two City Council members have reimbursed taxpayers for a portion of their trip to San Antonio, Tex., this year, a Indiana 2004 Legislative trip on which they spent Senate District 44: Republican: Brent Steele. Democrat: Open. 2000 Results: more than $3,700 to attend a Skillman (R) 33,125. 2004 Forecast: Steele won the caucus over former Orange County auditor seminar called "Guarding John Noblitt. (Louisville Courier-Journal). No Democrat filed to run before the primary in May the Public Checkbook." but Democrats still can appoint someone to the ballot. A social and fiscal conservative, Steele Councilmen Alfonso said yesterday that he is most immediately interested in fixing the state's financial problems. Salinas, D-2nd, and Homero Indiana currently faces a budget deficit of nearly $1billion. “We're at a critical time in our state's "Chico" Hinojosa, D-6th, history,” Steele said. “I don't mind spending money on a program, but if you're broke, you can't each submitted checks for spend money on anything. You've got to prioritize.” Steele said he's always wanted to run for the $106 to the Controller's Senate and was planning a bid in 1992 when his father -- who had held the seat decades before - Office on Friday, after being -- was diagnosed with cancer. So he put that goal aside and served as Skillman's campaign man- informed The Times of ager. When she won, Steele said he thought he might never have another chance. “I knew she'd Northwest Indiana would be elected as long as she wanted to serve,” he said. After his father died, Steele ran for and won run an article about the trip a seat in the Indiana House in 1994 and served eight years. During his first campaign, Steele Sunday. The amount repre- pledged to support term limits. Although the legislation never passed, Steele said in 2002 that he sents the cost of the coun- still believed in them and so he opted not to run again. During his tenure in the House, he spear- cilmen's April 25 stay at the headed an effort to allow judges and juries to punish a defendant with life in prison or the death Adam's Mark Hotel, where penalty if they tortured or mutilated victims before killing them. He also drafted a law that they had traveled for a requires insurance companies to pay for breast reconstructive surgery for women with breast National League of Cities cancer. “I'm not going to be casting votes to make anybody in the hallway happy,” he said, seminar on good govern- referring to lobbyists. “I'll do what's right to try to get this state fixed.” Gemeral Status: ment practices. Their atten- SAFE STEELE  dance at the seminar, which Page 9 of 10 Thursday, June 24, 2004

William Safire, New York Times - appear to have resulted in a collaborative relationship.” Kean and Hamilton have “Panel Finds No Qaeda-Iraq Tie” went ran from April 22-24, repre- the Times headline. "Al Qaeda-Hussein allowed themselves to be jerked around sents 30 percent of all council Link Is Dismissed" front-paged the by a manipulative staff.  travel expenses in 2004. Under Washington Post. The AP led with the the city travel policy, officials thrilling words "Bluntly contradicting the Michiko Kakutani, New York Times can be reimbursed for a hotel Bush Administration, the commission... .” - As his celebrated 1993 speech in stay the night a seminar ends - This understandably caused my editorial- Memphis to the Church of God in Christ - but not the night after. That the city paid for it was a cleri- page colleagues to draw the conclusion demonstrated, former President Bill cal error, according to the that “there was never any evidence of a Clinton is capable of soaring eloquence council's administrative staff. link between Iraq and Al Qaeda....” All and visionary thinking. But as those who wrong. The basis for the hoo-ha was not a heard his deadening speech nominating KERNAN SEEKS NCLB judgment of the panel of commissioners Michael Dukakis at the 1988 Democratic CHANGES: Gov. Joe Kernan appointed to investigate the 9/11 attacks. National Convention in Atlanta well today urged members of As reporters noted below the headlines, it know, he is also capable of numbing, self- Indiana's congressional dele- was an interim report of the commission's conscious garrulity. Unfortunately for the gation and U.S. Department of runaway staff, headed by the ex-N.S.C. reader, Mr. Clinton's much awaited new Education Secretary Rod Paige aide Philip Zelikow. After Vice President autobiography My Life more closely to make improvements to the federal No Child Left Behind Dick Cheney's outraged objection, the resembles the Atlanta speech, which was Act to better reflect individual staff's sweeping conclusion was soon dis- so long-winded and tedious that the student and school progress. avowed by both commission chairman crowd cheered when he finally reached In the letter, which was sent to Tom Kean and vice chairman Lee the words “In closing . . .” The book, Paige, both of Indiana's U.S. Hamilton. “Were there contacts between which weighs in at more than 950 pages, Senators and the state's nine Al Qaeda and Iraq?” Kean asked himself. is sloppy, self-indulgent and often eye- members of the U.S. House of “Yes . . . no question.” Hamilton joined crossingly dull — the sound of one man Representatives, Kernan in: “The vice president is saying, I think, prattling away, not for the reader, but for focused on three areas of con- that there were connections . . . we don't himself and some distant recording angel cern, and cited measures disagree with that” — just "no credible of history. The nation's first baby-boomer included in Indiana's Public Law 221 as examples of ways evidence” of Iraqi cooperation in the 9/11 president always seemed like an avatar of to enhance NCLB. First, the attack. The Zelikow report was seized his generation, defined by the struggles of governor asked that the defini- upon by John Kerry because it fuzzed up the 60's and Vietnam, comfortable in the tion of Adequate Yearly the distinction between evidence of use of touchy-feely language, and intent Progress be expanded so that decade-long dealings between agents of on demystifying his job. And yet the for- equal weight is given to contin- Saddam and bin Laden (which panel mer president's account of his life, read in uous improvement of students members know to be true) and evidence this post-9/11 day, feels strangely like an and schools. Currently, NCLB of Iraqi cooperation in the 9/11 attacks artifact from a distant, more innocent era. does not provide the flexibility (which, as Hamilton said yesterday, modi- Lies about sex and real estate, partisan for schools to measure fying his earlier “no credible evidence” rancor over “character issues” (not over improvement in student perfor- mance from one year to the judgment, was "not proven one way or weapons of mass destruction or pre-emp- next. In contrast, P.L. 221 mea- the other.") But the staff had twisted the tive war), psychobabble mea culpas, and sures continuous school two strands together to cast doubt on both tabloid wrangles over stained dresses all improvement over time by the Qaeda-Iraq ties and the specific seem like pressing matters from another using a rolling three-year aver- attacks of 9/11: “There have been reports galaxy, far, far away.  age. It also allows for both that contacts between Iraq and Al Qaeda improvement and performance also occurred after bin Laden had to be used in determining a returned to Afghanistan, but they do not school's success. Thursday, June 24, 2004 Page 10 of 10

War and not enough words nity received some good news this week The true contrasting emotions of war when State Rep. Scott Reske did come home "Additionally, the focus on in the 21st Century hit home this past week. ... alive, unlike 20 other Hoosiers. Reske, a continuous improvement There was the photo -- a shocking Marine reserve pilot, had spent 90 days on challenges all schools - photo -- of four U.S. soldiers lying dead in active duty and was stationed near terror-rid- including high performing den Fallujah. schools - to ensure that all the dirt streets of Ramadi following a Monday morning ambush by Iraqi insur- Reske told Anderson Herald-Bulletin students improve each year," reporter Ken de la Bastide, “We traveled Kernan said. Second, the gents. Their bodies, stripped of helmets and everywhere in convoys, which was the time governor said that NCLB, for flak vests, were sprawled out along a con- we were most vulnerable to attack. It was AYP purposes, fails to mea- crete barrier. Any Baby Boomer growing up more dangerous than I expected. There were sure success based on each in the ‘50s and ‘60s, as I did in the dunes of rocket and mortar attacks nightly in the student's progress. Currently, Michigan City, knew the poses all too well NCLB compares student per- area.” as we played out our imaginary battles with formance with that of stu- Reske told of traveling to meet with the Germans and the Japanese. dents at that grade level in provincial governors. “They knew when we For the Greatest Generation, it might the previous year. Kernan were traveling with a general,” he said of the have reminded them of the January 1943 points out that P.L. 221 called Iraqi insurgents. “There were times they for comparing the perfor- photo by LIFE’s George Strock, who cap- tried to mortar the convoy the general was mance of the same group of tured for eternity three Marines dead on the traveling in. One time I was observing a students from one year to the beach at Buna with their wrecked landing next. "I urge the Administra- roadside patrol when a bomb placed along- craft nearby. It was one of the first photos of side the road exploded. Another time we had tion and Congress to allow dead Americans allowed to be released to the states that can track each just passed through an American checkpoint student's performance to public by the War Department and it shocked in Baghdad. About 15 minutes later we heard adopt a value-added model the nation. LIFE commented when it ran the a big explosion. I could feel it in my chest, for AYP focused on the photo, “Words are never enough.” that’s how big the blast was.” Reske said progress of individual chil- Gen. Douglas MacArthur was so they later learned that Izzedine Salim, presi- dren," Kernan said. "NCLB's moved that he ordered Gen. Robert Eichel- dent of the Iraqi Governing Council, had laudable goal of 'leaving no berger into the fray, telling him, “Take Buna been killed in the May 17 attack. child behind' cannot be met or don’t come back alive.” It took Eichel- Deputy Defense Secretary Paul when the same students are berger another month and 787 American not followed over time." Last, Wolfowitz told Congress on Tuesday, “I'm the governor asks that addi- lives to capture Buna. not sure how having many more troops tional flexibilities be consid- The Ramadi photo came several would have helped us to root out these ele- ered to help ensure that the months after a photographer took unautho- ments of the old intelligence service. They progress of students with rized photos of coffins in an air transport are killers. Let's recognize that they are, disabilities is being measured craft, coming home to Dover AFB. This past instead of trying to figure our where we did fairly. week the U.S. Senate upheld the coffin photo something wrong to create them. We didn't.” ban. “The Bush Administration's policy of All this reminded me of Reske’s  barring news photographs of the flag-cov- 2002 vote for tax restructuring when he ered coffins of service members killed in noted with some humor the irony of legisla- Iraq won the backing of the Republican-con- tive colleagues telling him it took “courage” trolled Senate on Monday, when lawmakers to take the controversial stand. defeated a Democratic measure to instruct I believe I speak for the Hoosier the Pentagon to allow pictures,” the New public policy family when I say we are York Times reported. relieved that Reske, a lawmaker who actual- If the Ramadi photo was sad and ly went to war, is home once again .  sobering, the Indiana public policy commu-