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The Howey Political Report Is Published by Newslink Follow the Huge Footsteps of Robin Winston and Joe Andrew

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The Howey Political Report Is Published by Newslink Follow the Huge Footsteps of Robin Winston and Joe Andrew Thursday, July 12, 2001 ! Volume 7, Number 42 Page 1 of 8 Manous key in Lake The County tax dilemma Howey !"#$%&'()**"*%+,--%*../%0,1%,*1,2031 By BRIAN A. HOWEY in Indianapolis From Gov. Frank O’Bannon’s perspective, Peter Political Manous may possess the key to one of the toughest locks for Indiana Democrats in their drive to become the state’s majority party. With tax restructuring a daunting public policy and Report with its impact on the state and Lake County potentially severe, O’Bannon reached out to the Merrillville attorney to The Howey Political Report is published by NewsLink follow the huge footsteps of Robin Winston and Joe Andrew. Inc. Founded in 1994, The Howey Political Report is an independent, non-partisan newsletter analyzing the Winston will turn the party chairmanship over to Manous on political process in Indiana. Dec. 31 after prolonging Democratic gubernatorial rule to 16 Brian A. Howey, publisher years, retaining the Indiana House majority, and coming within about 500 votes of winning mayoralites in the state’s Mark Schoeff Jr., Washington writer four largest cities. Jack E. Howey, editor Lake County is a very complicated entity when it The Howey Political Report Office: 317-254-1533 comes to politics and the public policy aspects of tax restruc- PO Box 40265 Fax: 317-466-0993 turing. HPR asked the governor if he made the selection with Indianapolis, IN 46240-0265 Mobile: 317-506-0883 the idea that Manous would help him understand and inter- [email protected] pret what can be a very divisive situation up there? www.howeypolitics.com O’Bannon responded, “Peter will always be a big Washington office: 202-775-3242; asset from that standpoint. It’s a very, very strong reason that Business Office: 317-254-0535. Peter is from Lake County and is very important (that he) has that leadership. He’s been one of our key fundraisers and Subscriptions: $250 annually via e-mail or has the connection with all the diverse groups of the fax; $450 annually including the HPR Daily Democratic Party that are so important.” Wire. Call 317-254-1533 or 254-0535. How restructuring is handled - if it is handled - is vital © 2001, The Howey Political Report. All rights to the party’s success. Lake County contributed a 57,000 reserved. Photocopying, Internet forwarding, faxing or vote plurality to O’Bannon in 1996 and a 75,000 plurality in reproducing in any form, in whole or in part, is a viola- 2000. If reassessment goes into effect in 2003 without some tion of federal law and is strictly prohibited without consent of the publisher. type of relief to residents who could see property tax bills go continued on page 2 “I think I’d be more effective than most, but Ticker: O’Bannon freezes spending p. 2 what does that mean?’’ - State Rep. B. Patrick Congress Watch: Campaign reform p. 5 Horse Race: Tobias emerges; McGoff Bauer, on pondering whether he should run for joins SofS race; Bauer awaits poll; Congress where he’d be one of 435 members, to JLT raises $100k; Pence 300k p. 7 the South Bend Tribune Columnists: Smith, Colwell p. 9 Thursday, July 12, 2001 Page 2 of 8 O’BANNON SEEKS MORE SPENDING CUTS: An eco- nomic slowdown has result- ed in the first dip in state revenues in 20 years, caus- ing Gov. Frank O'Bannon to order spending cuts and to pledge to aggressively iden- tify other ways to address the situation. O'Bannon and State Budget Director Betty Cockrum announced that the state ended FY01 with $107 million less than the April forecast projected. The shortfall represents a 1 per- Manous inherits a Democratic Party cent decline compared to from page 1 FY00. It is the first time Manous, thriving at historical highs. Winston hand- since 1980 that the state up by more than 200 percent, a Joe ed Manous at Wednesday’s press confer- has experienced negative Kernan gubernatorial candidacy could pay ence a CD-Rom with 4 million voter reg- revenue figures. As of June a potentially severe price. istrations and 2.1 million phone numbers. 30, the general fund balance “The tax issue is going to be a big “There’s no reason we can’t win Lake was $19 million. "This dis- issue in Northwest Indiana,” Manous said. County by 95,000,” Winston quipped. appointing news com- “Obviously that county is very important “That’s a high bar,” Manous pounds the problems that I replied. O’Bannon seemed to raise it even talked about in the spring," to the Democratic party and how we work O'Bannon said. "The budget with the governor and the governor’s staff higher, saying, “He has the support of passed by the General on how we address the message as the many people. We look to Peter Manous to Assembly for the biennium governor works on a solution toward that take us to a new level.” The room was we began July 1 calls for problem is important. We’ll work to keep packed with reporters and Democratic more than $500 million all the officeholders informed. I’m sure staffers, including Mary Downes repre- more spending per year I’ll have interaction with the governor’s senting Joe Kernan’s gubernatorial cam- than the state is projected staff on the policy side because having paign. to take in. It does not lived up there and understanding it, I’ll be Under Winston’s leadership, provide any way to make up that structural deficit. And able to offer insights.” Indiana Democrats have raised $10.3 mil- the situation worsened While Manous is considered part of lion since 1999, compared to $8.8 million recently with a court deci- the faction led by East Chicago Mayor from 1995 to 1997. sion that will result in $100 Robert Pastrick - which automatically puts Winston said he and Manous had million more annual spend- him at odds with Lake County Chairman numerous conversations when the two ing on Medicaid. For more Stephen Stiglich - one long-time Demo- were in the midst of transporting their than a year, I have called for cratic operative told HPR, “Peter is a good young children to day care. “It seems like fiscal restraint. When this negotiator. He’s good at putting out brush we always only had 10 minutes to talk,” administration learned of fires. Tax restructuring will be a very dif- the underestimation of the Winston said. “When I looked at the ficult issue, a very volatile issue, and cost of a personal property scales of life, my daughter always mat- tax cut, I began vetoing Peter will have a good grip on that. The tered more.” Lake County challenges will be at the Asked if Winston was upset by Continued on page 3 political forefront.” continued on page 5 Page 3 of 8 Thursday, July 12, 2001 DLC sees Indiana as centrist showcase By BRIAN A. HOWEY Democrats’ most influential political fig- INDIANAPOLIS - After losing five ures will accentuate such issues. Featured out of six presidential elections between will be the DLC Chair, U.S. Sen. Evan 1968 and 1988, South Bend native Al Bayh, Gov. Frank O’Bannon, Indianapolis From decided it was time to modernize Mayor Bart Peterson, Senate Majority spending billsIn April, I the Democratic Party. Leader Tom Daschle, Maryland Lt. Gov. called for an increase in the cigarette tax that would As executive director of the Kathleen Kennedy Townsend, U.S. Sens. have generated, over two Democratic Leadership Conference, and Hillary Clinton and Joe Lieberman. years, about $650 million to with the help of prominent leaders such as “Largely Republican Indiana is address the budget short- Bill Clinton and Al Gore, there were new dominated by New Democrat elected offi- fall. But the legislature definitions that reconnected the party with cials,” From observed. “We think the state refused to consider it. I am the legacies of Andrew Jackson, Franklin and its leaders can serve as a model for willing to work with lawmak- D. Roosevelt and John F. Kennedy. the Democratic Party. This movement has ers to address this situa- They included equal opportunity for played a vital role in modernizing the tion. In the meantime, I will do what I can with the tools all; policies that reflect values (work, Democratic Party and reshaping American available to me." On July 1, responsibility, faith, tolerance); a rekin- politics during the last decade.” the State Budget Agency dling of civic responsibility; a reconnec- Bayh has long stressed fiscal con- set aside 7 percent of all tion of the party’s historic global outlook servatism and was one of the first gover- executive - branch operat- that resulted in NAFTA and GATT; and nors to receive federal welfare waivers. ing budgets, saving $50 mil- finally, innovative government. O’Bannon has pressed for school account- lion. The administration also From noted that the big electoral ability and 500 new cops. Peterson broke will: Review contracted ser- divisions were quite evident. Parents with a 32-year Republican lock on Indianapolis vices and state grants; look children voted Republican. Working by calling for 200 new cops while his at the state's staffing table and personnel costs; review opponent tried to turn the crime issue into mothers voted Republican. Pro life people state programs for possible voted Republican. a matter of economics. Fort Wayne Mayor suspension, cuts or elimina- Despite all of his personal foibles, Graham Richard won a narrow election by tion; consider implementing President Clinton took the DLC impetus positioning himself as an economic devel- more fee increases.
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