Budak, Neese on the Major Moves Hot Seat Politically Vulnerable Republicans May Hold the Key “This Isn’T a Plan

V 12, No 22 Thursday, Jan. 26, 2006 Budak, Neese on the Major Moves hot seat Politically vulnerable Republicans may hold the key “This isn’t a plan. It’s a By BRIAN A. HOWEY in Indianapolis joke.” In the vortex of Major Moves, three House Republicans -- Timothy Neese of –– Budget Director Elkhart, Mary Kay Budak of LaPorte and Jackie Walorski of Lakeville -- stand out. With Republicans holding a mere 52-48 advantage, Gov. Mitch Daniels will Chuck Schalliol, reacting to need 49 votes to pass what he calls the “jobs bill of a generation” and his “Louisiana House Minority Leader B. Purchase.” Three defections from the GOP ranks could be Patrick Bauer’s plan to raise lethal. highway money by bonding Rep. Budak is being challenged by LaPorte School Trustee Tom Dermody in an effort many believe has at least the tacit approval of the Daniels braintrust. To the point that Budak has the GOP establishment lining up against here (St. Joseph The Howey Political Report is published County Republican Chairman by NewsLink Inc. It was founded in 1994. Gov. Daniels is making an impassioned - Democrats say Chris Faulkner’s firm is work- Brian A. Howey, Publisher ing for Dermody) Budak resist- threatening - plea for Major Moves. Shown with him is Kokomo Mayor Matt McKillip. (HPR Photo by Brian A. Howey) Mark Schoeff Jr., Washington Writer ed an appeal to switch to the Jack E. Howey, Editor Democrats. And she told the Michigan City News-Dispatch on Monday, the day Gov. Daniels announced a $3.8 bil- Subscriptions: lion lease bid for the Indiana Toll Road that cuts right through her district, “Today's $350 annually HPR via e-mail; announcement underlines the need for a full discussion of the proposal. The total dol- $550 annually HPR & HPR Daily Wire. lar amount does not influence my decision; I want to hear from my constituents before Call 317-254-0535. voting.” In today’s Post-Tribune she said, “I don’t think my people at home have been The Howey Political Report convinced of this idea. As it stands, I can’t vote for it. I’m only doing what people have PO Box 40265 been telling me.” Indianapolis, IN 46240-0265. Democrats were more than willing to help show Budak which way the wind www.howeypolitics.com was blowing, producing a Garin-Hart-Yang Poll from last October in Budak’s HD20 [email protected] Indianapolis Office: 317-506-0883. Howey: mulling the toll road lease p. 4 Indianapolis Fax: 317-254-0535. Washington, DC Office: 202-256-5822. HPR Interview: Sheriff Ellsworth p. 5 Business Office: 317-254-0535. Columnists: Kovener, Tully p. 6 ©2006, The Howey Political Report. All rights reserved. Photocopying, Internet for- The Burton Boys ride again p. 7 warding, faxing or reproducing in any form, in whole or part, is a violation of federal law Horse Race: Jischke for Govenor? p. 9 and is strictly prohibited without consent of the publisher. Ticker: Garton pans redistricting bill p. 13 HOWEY Political Report Page 2 Weekly Briefing on Indiana Politics Thursday, Jan. 26, 2006 that showed 16 percent favoring a toll road lease and 79 per- Budget Director Chuck Schalliol called the Bauer plan cent opposed. “a joke” and said it defied Accounting 101 principles. As for The Neese situation is equally interesting. Elkhart what would happen if Cintra went bankrupt (the Spanish por- County Council President John Letherman, who is also presi- tion has $23 billion of debt), Schalliol explained, “If a foreign dent of the U.S. 31 Coalition, was poised to challenge Neese company defaults, we get to keep the money and we get the in the GOP primary. He backed off, though the Elkhart Truth road back." had a hard time pinning him down, and Lt. Gov. Becky Skillman ended up doing a fundraiser for Neese recently. Waivering mayors So where does Neese stand on Major Moves? Not Other Republicans were expressing doubts. One of where the governor wants him, that’s for sure. Gov. Daniels favorite mayors, LaPorte’s Leigh Morris, who "The higher the (bid) figure the more potential exists last Thursday saw Major Moves as a way to bring an end of that the tolls will have to be higher to pay that investment “chaos,” told the Times, "We still need more details. The fact back," Neese told the South Bend Tribune. And the tolls could it is $3.8 billion as opposed to $2 billion, is wonderful news. become an issue. But what does it mean for northern Indiana?" Morris and oth- The Times of Northwest Indiana reported that tolls ers still remain concerned that northern Indiana's slice of the could increase 169 percent pie remains stuck at 34 percent, even if it is a between Portage and the Illinois $3.85 billion pie. line. A year’s worth of round trips The Times observed: Most leaders in north- would go from $384 to $840. ern Indiana seemed more concerned with where Throw in the Chicago Skyway the other $2.5 billion will go. And views were little one-way toll of $2.50, and the changed from what they were before Daniels' round-trip commute to the Loop announcement. Morris and four other LaPorte will cost someone $2,040 yearly. Budak Neese Walorski County officials last week sent a letter to their A third Republican, State area legislators telling them most proceeds from Rep. Jackie Walorski, is also wavering. She told the South the lease should stay in northern Indiana. Hammond Mayor Bend Tribune that promised distributions to toll road counties Thomas McDermott expressed similar sentiments Monday. may sound big now but should be considered over the life of "For the next 75 years, we and our children and our children's a 75-year lease. "I'm concerned about how much that's going children will pay for tolls that go directly to southern Indiana," to generate for our counties over seven and a half decades," McDermott said. Walorski said. Another Democrat friendly to the governor, Legislative Republican leadership was showing vary- Jeffersonville Mayor Rob Waiz, met briefly with Gov. Daniels ing degrees of support. House Speaker Brian Bosma called it at Clarksville on Tuesday and said he had just started review- a “staggering opportunity,” but Senate President Pro Tempore ing the plan last weekend. He told the News-Tribune that he Robert Garton offered up a lukewarm comment, calling it in wanted to see “who would get the work,” or how many of the the Indianapolis Star a “very imaginative proposal.” jobs created by the plan would be filled by state residents. It’s this type of information that led State Rep. Dennis At least two mayors who were included on Gov. T. Avery, D-Evansville, to tell the Indianapolis Star that House Daniels’ endorsement list -- Democratic New Albany Mayor Republicans are not united. “I would suspect few Democrats, James Garner and Columbus Mayor Fred Armstong -- have if any, will vote for this so-called 'Major Moves' package," bolted. Armstrong thinks the $3.85 billion would last only a Avery said. few years (Columbus Republic). After that, the state would As House Minority Leader B. Patrick Bauer unveiled a have new expenses and no toll road to help foot the bill for proposal that would increase tolls and use 20-year bonds to the rest of the time. “I can see going 20 years as the max,” he raise $1.6 billion on Wednesday, he was asked if House said, “At 75 years, I think we’re giving up the farm.” Democrats would be a solid no vote. “Well, we are now,” Bauer responded. “We just have to help them avoid tempta- tion.” Daniels resorts to threats The Evansville Courier & Press’s lead in today’s edi- The prospect of a major defeat had Daniels issuing tions was: The outlook for bipartisan support of a bill that threats as he made his way along the Ohio River on Tuesday. would allow a private company to lease the Indiana Toll Road At Clarksville, he said, "If you vote against this plan, you've looked grim Wednesday as Democrats unveiled a competing voted against those bridges, at least for many years to come." plan and Republicans turned up the rhetoric. Daniels said (Louisville Courier-Journal). "I told the General HOWEY Political Report Page 3 Weekly Briefing on Indiana Politics Thursday, Jan. 26, 2006 Assembly over the last 24 hours politics has its place," he said. "They can beat up on me on any other issue. But on this, with tens of thousands of jobs for our kids in our grasp, House snuffs out cig tax let's hold hands, let's everybody share in the credit, and let's INDIANAPOLIS - Gov. Mitch Daniels’ bid for a get this done together." substantial increase in the state’s cigarette tax failed At Evansville he openly criticized Democrats. "The Wednesday when the House Public Health Committee people saying this had 16 years to get something done and voted the proposal down. The 6-2 vote means it is dead left us with a $3 billion deficit," Daniels said, referring to the for the session, according to Rep. Tim Brown, R- $2.8 billion funding shortfall in the 10-year state road con- Crawfordsville, who wrote the amendment authorizing the struction plan (Evansville Courier & Press). "It is a new idea increase (Kelly, Fort Wayne Journal Gazette). and we have had a lot of folks, some in the General Brown said some Republicans were against the Assembly, who don't always think in those terms." The gover- measure because they generally oppose increased state nor also said private companies will be able to operate the toll spending.

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