Politics Indiana

V14 N24 Thursday, Feb. 5, 2009 As Washington bickers, Hoosiers freeze Obama warns of Wednesday that a new Marriott Hotel ‘catastrophe’ as at its downtown Harrison Square stimulus plan stalls project is stalled. Deno Yiankes, White By BRIAN A. HOWEY Lodging president INDIANAPOLIS - Want and chief executive to build a new hotel at a minor officer for invest- league baseball complex in down- ments and develop- town Fort Wayne? No credit avail- ment, said banks able. Buy a recreational vehicle? are hoarding cash. Credit frozen. “We’re not looking While Washington dickers for the perfect loan, over the stimulus bill President we’re looking for a Obama says is essential to ward loan,” Yiankes said. off a financial “catastrophe”, the An Associated Press banking system is on life support Then candidate Barack Obama outside an abandoned Chicago steel analysis earlier in and continues to sap the Indiana mill in a TV ad during the Indiana presidential primary. the week explained economy and jobs, throwing more that banks say they and more Hoosiers into the cold. are caught in a Jayco in Middlebury and Keystone RV in Elkhart laid off 600 frustrating Catch-22: How can they make more loans when more workers this past week. The Elkhart Truth reported creditworthy borrowers are scarce, their balance sheets that the layoffs in Elkhart and LaGrange counties, where the are saddled with bad debt and regulators are hounding jobless rate is 15 percent, “brought renewed attention to them to horde cash. “We want to lend, but the regulators the crippling effect of the frozen credit markets.” The Fort Wayne Journal Gazette reported on See Page 3

What stimulus could do

By DAVE KITCHELL LOGANSPORT - Imagine being one of 50 winners of a most unusual, yet probable national lottery – a federal stimulus package for states. As Congress hammers out the final details of a package spiraling in the direction of “It was the last state we deliberated $1 trillion, the pork barrel projects are on and the state we wanted the being shed for the sake of programs and line items guaranteed to put most was Indiana.” people to work. What could be the beauty of this bill, and I use that word - David Plouffe on the Obama loosely given the cost to taxpayers, campaign selecting 18 battleground is the flexibility. If governors and/or legislatures really have the final say in states last summer how to spend their share of a federal (See page 7 for full story) HOWEY Politics Indiana Page 2 Weekly Briefing on Indiana Politics Thursday, Feb. 5, 2009 stimulus package, it could go a long small business and rural development Howey Politics way to moving the economy forward, objectives. as in fast forward. If it’s just going to 7. Green up the environment. Indiana be bankrolled, forget it. Indiana has been a leader in alterna- is a nonpartisan news- I don’t know what Indiana’s tive fuel production, but the Indianap- governor and legislature would do if olis Star’s recent coverage of mercury letter based in Indianapolis they got the chance to spend, say, a levels in Indiana streams points to the billion dollars from the federal govern- need to reduce power plant emissions. and published by NewsLink ment. But if they did ask, here’s what Giving utilities low-interest or zero- Inc. It was founded in my laundry list would look like: interest loans, or just plain grans to 1. Give rebates for companies install scrubbers and other equipment 1994 in Fort Wayne. purchasing Indiana steel. It’s a big that reduces emissions would improve ticket item for Indiana, and the pay is our overall health. ginormous. A little sales tax on steel 8. Encourage the purchase of Brian A. Howey, publisher goes a long way in a state economy. Indiana-made vehicles. Giving govern- Mark Schoeff Jr.,Washington 2. Fund school consolida- ment entities a $2,000 rebate for a Jack E. Howey, Editor tion costs. It’s one thing to say it will Subaru made in Lafayette or a Honda help Indiana. It’s another thing to put made in Greensburg for instance Beverly Phillips, Associate your money where your mouth is and would be an added boost to those Editor actually encourage small schools and economies, as well as the Chrysler urban schools with declining enroll- plant in Kokomo. The credit could be ments to merge. Long-term savings $500 for every individual. Subscriptions: of operational costs would be huge to 9. Find the 10 best locally $350 annually HPI via e-mail; taxpayers. owned Indiana banks. Giving bankers closest to lenders the opportunity to $550 annually HPI & HPI Daily 3. Buyouts for state employ- ees. Older employees could free up invest in their communities in the next Wire. more jobs in Indiana simply by quali- six months shouldn’t be a problem for Call 317-254-0535. fying for the same retirement rules them. 10. Flip a house. For any Hoo- Howey Politics Indiana affecting teachers. If you’re 55 and have 30 years of service to the state, sier who buys a new home in the next PO Box 40265 you can retire. That would free up six months, a $1,000 check would be Indianapolis, IN 46240-0265. thousands of jobs. in the mail. For anyone who improves 4. Offer one free night of a house purchased in a tax sale, a lodging in Indiana. For out-of-state $500 check would be in hand. For Contact Us residents, this would be a huge tour- anyone in the state’s home ownership www.howeypolitics.com ism boost. Day trips to Indiana from protection plan who wants to avoid foreclosure, a payment would be made [email protected] surrounding states, even if they are just to visit family or friends, would on their mortgage, with a 67 percent Main Office: 317-202-0210. inject money into local economies and payment made in a second month Howey’s Mobile: 317-506-0883. the state would reap more tax rev- and a 33 percent payment made in Indianapolis Fax: 317-254-0535. enue. the third month of participation in the 5. Give scholarships to the program. Washington: 202-256-5822. unemployed. For everyone who has 11. Fund Head Start teach- Business Office: 317-627-6746. lost a job or been laid off in the past ing positions. Eliminating the backlog ©2009, Howey Politics 18 months, going to school is a good of children on waiting lists for this option. It allows adults to retool them- preschool program would allow some Indiana. All rights reserved. selves for other jobs until the economy parents to go to work, employ many Photocopying, Internet forwarding, warms up and it gives the unemployed teachers who are out of work, and faxing or reproducing in any form, a chance to add to their skill sets. reduce remediation costs for schools. 6. Develop incentives for e- There are probably plenty in whole or part, is a violation of commerce. Start-up companies have of ideas like these. Many of them federal law without permission from little overhead if they are Internet should be vetted for impact and public the publisher. based. Offering incentives for legiti- scrutiny. Not all of mine – check that, mate Internet businesses would help maybe none of mine – would make HOWEY Politics Indiana Page 3 Weekly Briefing on Indiana Politics Thursday, Feb. 5, 2009

the cut. But I’ve made an attempt to start the dialogue incumbent on all of us to lookat ways to make good things of what we’ve got to do in the 19th state to move the happen for Hoosiers as soon as possible. v economy forward without falling flat on our faces. With Dave Kitchell is a veteran Indiana journalist more than a quarter of a million Hoosiers out of a job, it’s who teaches journalism at Ball State.

solve all our problems, that we can ignore fundamental from page 1 Stimulus, challenges like energy independence,” Obama said. “I re- are flat-out telling us, ‘Get your capital up.’ Then there’s ject those theories -- and so did the American people when Congress telling you to lend it all out,” said Greg Melvin, a they went to the polls in November and voted resoundingly board member at FNB Corp., a Hermitage, Pa.-based bank for change.” that got $100 million in bailout money. “Two arms of the The heat is likely to grow. On Wednesday, eight government are saying exactly the opposite thing -- it’s Indiana mayors - including South Bend’s Stephen Luecke ridiculous.” and Evansville’s Jonathan Weinzapfel - traveled to Wash- This comes as the U.S. economy contracted by ington to push for the stimulus package. Earlier this month, 3.8 percent (some had predicted it would be in the 5 per- Elkhart Mayor Dick Moore went to Washington seeking cent range) and expectations are that more job losses are stimulus funds. Moore carried with him a list of 18 “shovel on the way. It has plunged a knife into Indiana revenues, ready” public works projects, totaling $92.4 million and which came up $142 million short last month and has Gov. creating an estimated 2,300 jobs (Elkhart Truth). Mitch Daniels and legislators preparing Also pressuring Capitol Hill for the worst. were Republican governors. “Time However, the stimulus pack- is of the essence ... we have to get age - which could create an estimated the money out as quickly as we 79,000 jobs in Indiana - is stalled on can,” said Republican Vermont Gov. Capitol Hill. Last Sunday, Senate Mi- Jim Douglas during a meeting with nority Leader Mitch McConnell said the President Obama in the Oval Office current plan might fail. “I think it may on Monday (CNN). “I think we need be time … for the president to kind to find some common ground. We of get a hold of these Democrats in need to pass a bill that works.” The the Senate and the House, who have Republican Minnesota Gov. Tim rather significant majorities, and shake Pawlenty said Tuesday that while governors have virtually no say in them a little bit and say, ‘Look, let’s do President Obama and Treasury Secretary what goes into the stimulus bill, this the right way,’” McConnell said. “I Geithner announcing limits on executives adding that Obama’s outreach to can’t believe that the president isn’t whose mismanaged companies receive TARP the nation’s governors is a power embarrassed about the products that money. (White House Photo) have been produced so far.” play to speed things along. “What I That could happen tonight think President Obama is trying to as Obama meets with Congressional Democrats at a West do is show that it is a bipartisan effort or to indirectly pres- Virginia retreat. sure the Congress in that regard,” Pawlenty said. On Wednesday, President Obama warned of a Gov. Daniels wouldn’t say whether he supports the “catastrophe,” saying, “No plan is perfect, and we should bailout in principle, but he has begun building a list for the work to make it stronger. Let’s not make the perfect the en- $5 billion likely to land here. “It is one-time money and emy of the essential. Let’s show people all over our country should be used that way,” Daniels said. “Jobs and speed who are looking for leadership in this difficult time that we must be the goal.” But he also left open the door for a tax are equal to the task. A failure to act, and act now, will turn cut. To which House Speaker B. Patrick Bauer responded, crisis into a catastrophe and guarantee a longer recession, “Tax cuts don’t help the 266,000 people who don’t have a a less robust recovery, and a more uncertain future.” This job. We are in a crisis. We have to use what we have here afternoon, he said, “We end up bickering when it is time to in Indiana to stimulate Indiana jobs and take what we can save the economy.” get from Washington, D.C., and add more jobs.” Obama took issue with Republicans like U.S. Rep. Bauer and Daniels agree on one thing: the stim- Mike Pence who have been picking apart the plan as a ulus must be used on one-time only projects. But Senate “litany of liberal” spending projects. “These criticisms echo Minority Leader Vi Simpson noted, “Everybody is grappling the very same failed economic theories that led us into this for just the right answer.” crisis in the first place -- the notion that tax cuts alone will Everybody from Washington to Indianapolis. v HOWEY Politics Indiana Page 4 Weekly Briefing on Indiana Politics Thursday, Feb. 5, 2009

heard this story before, but mostly it was wonks and nerds Sustainable energy in collecting grease from McDonald’s to power their VW mini buses. But this can be done on an industrial scale and create many, many jobs. “If we only produced 55 gallons the City of Firsts of K-Fuel a day the city would save, at today’s fuel prices, By BRIAN A. HOWEY $25,000 during the first 12 months of operation,” said KOKOMO - If you’ve listened to leaders like Mitch Goodnight as he unveiled the K-Fuel complex - really just Daniels and Barack Obama over the past five years, one a small room in a cavernous wastewater treatment facility constant theme has been to look at your world differently and a machine the city bought for about $27,000. “That is and not accept the status quo. I thought about this after good for the city’s budget and the city’s taxpayers.” going over the columns I’ve written since December - my Of course, the city is planning on making more doom and gloom period. It was neces- than 55 gallons a day. Paul Munoz, Kokomo’s bio-fuels sary because of the gathering storm manager, detailed how waste cooking oil is processed into clouds that will translate into double bio-diesel. The Kokomo Tribune reported it this way: mix digit jobless statistics. Now it’s time a cup and a half of caustic soda and 11 gallons of metha- to talk about what we can do to lift nol with 55 gallons of used cooking oil, put it through a out of our current processor, and the result is a big batch of biodiesel fuel. plight and forge a Mix that batch with regular new America. diesel fuel at an 80 percent There have been diesel/20 percent biodiesel airliners flying off ratio, and the cost of fueling of fuel made es- the city of Kokomo’s truck sentially from pond fleet begins to drop. scum, or algae to “The city will collect used be precise. There is enough fuel in a cooking oil from participat- typical septic tank to power a generator ing restaurants, businesses, and the home above. Or, thinking bigger, and a residential collection the human waste Hoosiers spend bil- program. At this time, we lions every year treating is an abundant are collecting about 1,500 energy source and in the next couple of gallons of used cooking oil decades might actually power our cities. from 12 participating busi- The garbage in our landfills will do the nesses each month; and same with some innovative thinking and anticipate the collection of the removal of governmental interfer- about 300 gallons from our ence. residents in the first couple So it’s worth coming to Kokomo of months of operation,” and Indianapolis, where 100 years ago Munoz explained These they saw their bicycle shops turn them- amounts will increase over selves into automobile factories. Folks time, as businesses partner peered out of their windows and saw with the city, and as our Elwood Haynes’ strange contraption mo- production and collection toring down the streets of Kokomo sans methods improve.” Eventu- horses. That’s what Hoosiers need to be ally, it will supply about 20 doing in the coming months and years. Kokomo bio-fuels manager Paul Munoz holding vials percent of the diesel needs Think outside the box and create new of K-Fuel made from local restaurant cooking oil. of the city fleet. opportunities, even out of the wastes of (Kokomo Tribune photo) Munoz added, “This pro- past generations. A closed Chrysler plant gram will help reduce the or the hollow Getrag factory near Tipton amount of fats and oils that could be the key to sustaining our American dream. disrupt our wastewater system, and will reduce the amount Here in the city of firsts, Mayor Greg Goodnight of money the city spends on sewer maintenance. Nearly unveiled a groundbreaking fuel program on Wednesday. 50 percent of the maintenance and repair costs on sewer It involves turning cooking grease from Kokomo restau- and lift stations is caused by the buildup of fats, oils, and rants into diesel fuel that will power the city fleet. We’ve grease that enter into our sewer and treatment facility.’’ How much that saves the city is not currently quantitative. HOWEY Politics Indiana Page 5 Weekly Briefing on Indiana Politics Thursday, Feb. 5, 2009

Kokomo’s sustainability manager, David Galvin, has watched similar programs in California and found research- Daniels administration ers in Bowling Green, Ky., who, with relatively simple processes, can literally de-water biomass. That material rolling with the punches can then be transformed into various forms of energy. “We can’t wait for stimulus money,” Galvin said. “We have to act By BRIAN A. HOWEY now. Kokomo’s Renewable Energy Partnership is designed INDIANAPOLIS - Call it adaptation. Or rolling with to find ways to convert our city’s waste into forms of re- the punches. newable energy products. We can save taxpayers’ money, Pick your cliche, but that’s what the Daniels admin- create alternative streams of revenue, improve our city’s istration has had to do as a deepening financial crisis has image, and be more competitive for the jobs of the 21st consumed the state. On nearly every front there is bad Century.” news or a political assault. For each punch from Wall Street Kokomo is a city that with companies like Chrys- to Mother Nature to House Democrats, there has been a ler, Haynes and Delphi is home to hundreds of engineers stutter step and most often a counter. who are literally waiting to Long lines at Workforce One offices in Elkhart see if the Detroit 3 survive. or LaGrange? The administration responded by moving Whether the automakers Department of Workforce Development computers into make it through the next neighborhood churches and community libraries. Hic- two years or not, there are cups in the Family Social Services Administration’s welfare these engineers, thousands “modernization”? Gov. Mitch Daniels at first tried to keep of square feet of manufac- Republican Rep. Suzanne Crouch and Sen. Vaneta Becker turing and clean research from filing a bill to prevent the rollout coming to the more areas. People like Goodnight populous counties where the system might be swamped by envision a sustainability double-digit unemployment almost certain to hit the state manufacturing future for Ko- in the coming months. komo. “We call the initiative On Monday, FSSA Secretary Anne Murphy, who Kokomo’s Renewable Energy took over from Mitch Roob in January, defended the new Partnership, and is about sus- system, but she conceded Evansville needed more staff to tainable development,” said handle the city’s needs (Evansville Courier & Press). “Van- Goodnight, who presides over a city with 8,500 employees derburgh County probably has a legitimate concern,” she directly tied to the Detroit 3. “We are taking our first steps said. toward a local economy that is more diverse, competitive, On Monday, INDOT Commissioner Karl Browning and rooted in sustainable practices. We want to be a hub was seeking to ward off State Rep. Teri Austin’s bill that of the renewable energy industry.” would divert Major Moves money away from state projects And this is just the beginning. Algae - or and into cities, counties in towns. Today, Browning is gone, “green crude” - has drawn the investment of people like transitioning to Michael Reed, executive director of the In- Microsoft’s Bill Gates into Sapphire Energy. Others are look- diana Utility Regulatory Commission, who will try and swat ing at kudzu, the weed that ate the South and is vining into away Austin’s attempt to raid the $500 million Major Moves Southern Indiana, as another source of bio fuel. There are trust fund. While the Austin bill will be DOA in the Repub- growing solar and wind power sectors, though the current lican-dominated Senate, the Daniels administration will be credit crisis in the American banking system is sapping the forced to deal with the diversions at conference committee needed capital to bring more solar panels to homes at af- time, unless Washington stimulus money solves the prob- fordable prices. lem. Congress and the Indiana General Assembly ought As one observer told HPI, “The Daniels people to borrow a page from President Reagan, who in 1981 are working through the metrics, taking the data and then forged the tax cuts that brought existing technology to managing. But it’s coming in a crisis environment and the market in the form of cellphones and personal computers question is, will they get a black eye when opponents try to over the following decade. Today, legislators ought to be exploit?” creating tax incentives for restaurants involved in programs The most problematic for Daniels was repeated TV like K-Fuel, as well as other renewable energy products. and newspaper coverage of long lines of shivering Hoosiers This will be one way to find the next morning in waiting outside WorkOne offices in deep snow and sub- America. v freezing (sometimes sub zero) temperatures. Last Thurs- day, DWD turned to faith groups, community organizations HOWEY Politics Indiana Page 6 Weekly Briefing on Indiana Politics Thursday, Feb. 5, 2009

and public libraries. The Elkhart Truth reported: The state Becker said of the delays (Evansville Courier & Press). agency announced a partnership Thursday with the Office At INDOT, there were rumors that Browning of Faith-Based and Community Initiatives and the state would depart, paving the way for a third commissioner library to provide training as well as computers to local in five years. He had clashed with legislators from both groups interested in helping Hoosiers file for unemploy- parties as he tried to deflect the Major Moves raids. On ment benefits. The DWD is touting the initiative Wednesday, the administration sought to as providing more locations for out-of-work state portray it as a voluntary transition. “Karl residents to file unemployment claims. “We’d Browning has been spectacular in this job,” be glad to. We’d be glad to help,” said Leonard Daniels said. “I did everything I could to Cook, senior minister at the River of Life Church keep him as long as I could. His legacy will in Elkhart. “That’s what our building is for. We’re live for generations through record-break- here to help the community.” This initiative ing road building that he has put in motion would train library workers across the state so for Indiana.” they can answer questions and help the job- Browning had been defending the less maneuver the online system. However, the raids, telling a House committee at one single training session the state has organized point on the Austin bill, “I’m here talking for interested groups will be held only in India- about a bill that I can’t imagine has any napolis and not until the end of February. possibility of seeing the light of day. If it On the FSSA front, the Crouch legisla- does have a possibility, I feel sorry for the tion would prevent FSSA from rolling its mod- rest of us in this state.” It prompted House INDOT Commissioner Karl ernization program out to 33 remaining counties Speaker B. Patrick Bauer to complain that Browning resigned. (Evans- until a study committee reviews the process. the INDOT chief had a “chip on his shoul- ville Courier & Press Photo) “The (new) program is clearly not working der.” where I live,” Crouch told the House commit- Reed led state and regional tee Monday (Corbin, Evansville Courier & Press). Among operations for GTE/Verizon over several decades. Early in the complaints: the FSSA call center in Marion, Ind., loses his career he was the first quality director for GTE’s larg- clients’ critical documents and causes long delays in enroll- est subsidiary covering 13 states. He later directed annual ing clients for benefits, and the phone- and Web-based expense and capital budgets of more than $500 million as application systems are hard for the elderly and disabled budget and finance director for GTE’s Midwestern opera- to navigate. tion. Reed was staff operations director, directing the Testifying Monday on the bill was Tim Flesch, regional headquarters organization from 1985 to 1989 and president and chief executive of St. Mary’s Health System as state general manager for Indiana, Kentucky and Texas in Evansville. He said that while the FSSA has made some for eight years. At the IURC, Reed has responsibility for all strides in the system’s effectiveness, the time it takes to utility industry matters in electricity, water, sewer, natural enroll patients for Medicaid is still a major issue. “A month gas, pipeline safety and consumer affairs. v after the baby is born is a little late for prenatal care,” Sen. HOWEY Politics Indiana Page 7 Weekly Briefing on Indiana Politics Thursday, Feb. 5, 2009

Plouffe: How Obama turned Indiana blue

By BRIAN A. HOWEY presidential theaters. As improbable as it was for Obama to GREENCASTLE - In the weeks that followed June derail the Clinton dynasty and then become the first black 3 - that improbable day when Barack Obama secured the man to win the White House - Plouffe initially gave him a Democratic presidential nomination - his brain trust gath- 1 in 10 shot - even more so was winning Indiana on Nov. ered to choose what would become the 18 battleground 4. We all know the phrases and cliches: on the board for states heading into the fall. The goal was to spread the the GOP at 6:01 p.m. Hadn’t gone Democratic since LBJ in field. The locomotives on this track were the traditional 1964. That Plouffe and Axelrod had even cued Indiana up must-win powerhouses: Florida, for consideration brought them Ohio, Pennsylvania, Michigan. ridicule. There was some unfamiliar ter- Barack Obama had lost by ritory - Colorado, Nevada - and about 13,000 votes to Hillary finally the heart of Bush-Cheney Clinton in the May 6 primary. Country: North Carolina, He had two forces beyond his Virginia ... Indiana, a political control that shaped the events caboose. leading into the Indiana prima- “It was probably the ry: Rev. Jeremiah Wright and hardest decision we made,” Rush Limbaugh. Plouffe said at DePauw Univer- Rev. Wright, the candi- sity Monday night during the date’s fame-convulsed pastor, Ubben Lecture. “It was the last went into meltdown mode at state we deliberated on and the David Plouffe, President Obama’s campaign manager, the National Press Club in April, state we wanted the most was gave lectures and answered student questions at DePauw forcing Obama to hold a press Indiana.” This decision made by University on Monday. Above, Obama played hoops at conference the next day com- Plouffe, chief strategist David Riverview Elementary School in Elkhart two days before the pletely denouncing him. When Axelrod and Obama himself Indiana primary. Plouffe would call the Getty photos some HPI talked with Obama 90 min- paved the way for two epic of the best of the campaign. (HPI Photo by Brian A. Howey) utes after the most emotional HOWEY Politics Indiana Page 8 Weekly Briefing on Indiana Politics Thursday, Feb. 5, 2009

press briefing of the campaign, he explained, “Well, when helped us with voters because they want honest leader- you run for president, one of the things you sign on to is ship,” Plouffe said. “It resonated with voters. What seemed the fact the American people want to know who you are like a politically risky move at the time people saw it and and all aspects of you. Some of them get blown out of pro- said, ‘That’s not what we should be doing.’ It put wind back portion. Some of them get magnified. You have to take it in our sails at a very important moment. That period in as it comes. I think I was very clear about today. My former Indiana was really strong campaigning. It went really, re- pastor doesn’t speak for me and doesn’t reflect my views. ally well. I think the energy and gas tax debates reminded It was sad to see what happened yesterday, yet I don’t people what was different about Obama and helped us want that to be a distraction about what this campaign is regain steam at a challenging time in the campaign.”” about. The American people are struggling and they need help.” The ‘die was cast’ in Indiana Rev. Wright had come at Obama in two waves. Plouffe said of May 6, “the die was cast at that “That was a challenging period, no doubt,” Plouffe said. moment.” The atmosphere was ripe for what would be a “But I think the way President spread-the-field offense. Plouffe Obama dealt with that situa- explained, “One of the challenges tion, for a lot of people, the when you looked at John Kerry way he dealt with it in Phila- four years ago, he really only delphia (in March) they saw a had (primary) elections in Iowa president; someone who han- and New Hampshire and South dled a difficult situation with Carolina” prior to securing the honesty and integrity. There is nomination. And then to go build a desire among the American up campaigns in all these states people for leadership. There is really really hard,” Plouffe said. was a leader on the stage that “For us, it wasn’t turnkey, but it day. He dealt with that issue was a pretty accomplishable task. very forthrightly.” We were the nominee on June 3 Wright was a distrac- and at the beginning of July we tion, but conservative radio had fully formed campaigns in all commentator Rush Limbaugh 18 battleground states and we was the rogue as he urged were much further ahead in orga- “Dittoheads” to vote against nization than McCain was, which Obama in the Democratic Barack Obama’s presser at Joe’s Junction Phillips 66 is surprising.” primary just to confuse things. station in Indianapolis helped change the dynamic in “As I mentioned when Plouffe said at DePauw that Indiana. (HPI Photo by Brian A. Howey) Brian and I were walking over Limbaugh cost Obama the Indi- here, that Indiana primary really ana primary. did suggest to us that Indiana could be competitive in the general election because we Primary loss & silver linings felt we could be very competitive with a high percent- Yet there were plenty of silver linings. “There was age of the independent vote and get double digits of the a lot of belief that we were going to struggle on that day,” Republican vote,” Plouffe said. “If you couple that with Plouffe explained of May 6. “We would actually win North really strong Democratic turnout (the state had the low- Carolina and most people predicted she would win Indiana est turnout in 2004 of any state), I believed that we could, by 8 or 10 points in the primary and maybe even more. potentially, pull out a narrow victory. It ended up being The fact that we won North Carolina by 14 points and lost very, very close, obviously. It was a very rewarding victory Indiana by a razor margin, that strengthened our candidacy and it speaks to Obama’s appeal in all parts of the country and most people felt the primary was effectively over.” and all demographic groups.” The assumptions were cor- Obama had also called Hillary Clinton on her gas rect. Obama would pull 13 percent of the Republican vote tax holiday as gasoline was nearing its $4.19 a gallon apex. and win big with Hispanics, Catholics, independents and Actually, for the final 10 days prior to the primary, both suburbanites, reversing significant Bush-Cheney trends. Clinton and John McCain were assailing Obama on that issue. Obama would dismiss it as a “gimmick” at a Phillips McCain-Palin took Indiana for granted 66 press conference on the southwest side of Indianapolis. What astounded Plouffe, however, was that Mc- “The fact that we opposed that repeal of the gas tax, that Cain and the Republicans never seemed concerned about HOWEY Politics Indiana Page 9 Weekly Briefing on Indiana Politics Thursday, Feb. 5, 2009

defending Indiana. They just couldn’t believe it would go “What’s interesting about the primary process is blue. But it wasn’t just Indiana. McCain lives and headquar- that people in both Indiana and North Carolina stayed in tered his campaign in Virginia, yet didn’t make a campaign May and were really rewarded because this time they got appearance there until September. For Indiana, which a lot of attention,” Plouffe explained. “You look at those would play host to 49 Obama visits - the final coming on states on Feb. 5 and it was just a blur.” Most of the Super Election Day - McCain wouldn’t show up until Nov. 3 and Tuesday states got only one Obama rally. Hoosiers saw his speech was about 16 minutes of one cliche strung after Obama play basketball in Kokomo, New Castle, Elkhart another as his supporters yelled, “Drill, baby, drill.” Plouffe and Marion. He drank a rare beer up in St. Joseph County calls it “campaign malpractice,” explaining, “This was the and visited Nick’s English Hut in Bloomington. There were presidency. It was for all the two huge Indianapolis rallies at the marbles. You cannot leave American Legion Mall, another at anything to chance. If you the Indiana State Fairgrounds. think you could lose a state Obama would mix it up, you should win, you need to going through a series of bas- commit.” ketball gyms in South Bend, Fort How disorganized was Wayne and Columbus - and the McCain-Palin campaign? Indiana has 19 of the 20 biggest When Alaska Gov. Sarah Palin prep arenas in the nation - and made the ticket’s first fall ap- then opting for meeting with Mike pearance in October at Ve- and Cheryl Fisher in their Beech rizon Center, a Kokomo soft- Grove home and a community ware company owner, David meeting at Garfield Park in In- McChesney, had been sum- dianapolis. In Elkhart, he roamed moned by a friend and McCain the neighborhoods south of the campaign staffer to help with St. Joseph River on the city’s east “security.” McChesney, who side, shaking hands with folks was an undecided voter, and doing yard work and sinking treys at an outdoor hoops court at his teenage daughter showed Sarah Palin prayed prior to her apperance at Verizon Wire- up at Verizon and found chaos. Riverview Elementary. less Music Center and the photographer ended up emcee- “It was a long cam- His friend approached him ing the event. (HPI Photo by J. David McChesney) once more: the Master of paign,” Plouffe said, seeming to Ceremonies had bugged out. sigh. He spent much of the first Would Dave the “Software Guy” be willing to emcee the year in Iowa, with few big rallies event with 16,000 Palin fans? McChesney was stunned. And until just prior to the caucuses when he brought Oprah in. emcee he did. Then came the mad dash to New Hampshire, then Super Tuesday on Feb. 2 - or the “blur” as Plouffe remembers. After upsetting Clinton in Iowa, Obama lost to her in Kicking the tires New Hampshire five days later. Plouffe said that despite It would be one of 150 Indiana presidential cam- that stinging defeat, paign events conducted by Barack and Michelle Obama, Obama was calm. Joe Biden, Bill, Chelsea and Hillary Clinton, John and Cindy “Wow, this campaign McCain and Gov. Palin, drawing more than half a million is going to go on for Hoosiers. More than a dozen campaign appearances would awhile,” Obama told be made by the Obamas and Biden during the autumnal Plouffe. The fresh- homestretch (compared to four appearances by McCain/ man senator pondered Palin). For the first time in decades, Hoosiers could do what further, telling his their counterparts in Iowa and New Hampshire take for campaign manager, granted: getting close and personal with a future president. “This is good. We’ll be “Voters get ... to use an Obama phrase ... to kick better for it. We don’t the tires,” Plouffe said. “It’s hard to hide who you are in a want to be a comet in two-year period. I do think there will be some reform of the sky.” the primary calendar system. The first contest was right Obama at Garfield Park in Indianapolis In hindsight, one after Jan. 3, right after the holidays. There were too many at a small town hall. (HPI Photo by A. of the campaign’s big- contests on Feb. 5.” Walker Shaw) gest mistakes was not HOWEY Politics Indiana Page 10 Weekly Briefing on Indiana Politics Thursday, Feb. 5, 2009

making Texas a priority over Ohio, which Plouffe says pro- working sites. Their opt-in text database marketed Obama longed the campaign another month, while making Indiana directly to untold masses. They followed an estimated and North Carolina extremely relevant. 130,000 on Twitter and collected an estimated 10 million e-mails. They used the web to dispel Obama-inspired urban The message never changed myths. Most importantly, they mobilized an online commu- While Plouffe said the basic Obama message never nity -- from college students to grandmas -- to take action changed from his campaign kickoff in Springfield, Ill., on a off-line: volunteer, open your pocketbook, and get out to frigid Feb. 10, 2007, to his victory speech at Grant Park in vote. Chicago on Nov. 4, the campaign mixed up the Illinois sen- “You’ve got people sharing information: did you ator’s venues. “Part of it is the nature of wanting to try new see this on YouTube? Or did you see this e-mail?” Plouffe things,” Plouffe said. “And there was a little less strategy said. “That was growing every day, person to person. We involved than you might think. Particu- tried our best to navigate larly when we were going to be spend- that and share a lot of ing a lot of time in Indiana. You can’t our e-mail with their have four rallies a day. We were going circles. People get their to be here for a couple of weeks, so in information in a lot of the primary, we came out, and did some different ways. It’s not at town hall meetings. I think we went a set time every day. It’s into a couple of homes and had discus- not when the morning sions about issues. We had a diversity of newspaper comes or the events. We had to make sure that voters nightly news and that’s understood how connected he was to it. It’s all day long. We’ve peoples’ lives. He really understood got websites and blogs, what people were going through and we’ve got YouTube. We that he would go to the White House have a lot of young peo- and be their advocate.” ple - and not just young As for the message, Plouffe people - who won’t read said, “We didn’t have meetings every a list of talking points, but week wondering what our new mes- they’ll look at video. “ sage was. He often said that people will “You’ve got to be accept our message and him or they cognizant of that,” Plouffe wouldn’t and he wouldn’t win. That was continued. “It’s a chal- a core part of our campaign. We just lenging media environ- didn’t have a lot of debates about what ment and you have to be our message was. “ even more disciplined on Woven throughout was an in- what you’re trying to get tegrated message coming from a brain across because people’s trust that kept headquarters in Chi- The Obamas during the campaign kickoff in Springfield attention is so fragment- cago, rather than DC. In Chicago there in February 2007 and in victory on Nov. 4 at Grant Park. ed. So someone knocking weren’t reporters and rumor mongers The candidate’s message never changed inbetween. (HPI on a door, making a call, stalking staff. The Obama campaign Photos by Brian A. Howey and Ryan Nees) sending an e-mail, send- shared sensitive information with vol- ing Sen. Obama’s speech- unteers they trusted, again drawing the ridicule from the es and television ads, all conventional wisdom crowd. The campaign adapted to a needed to be connected. Because otherwise you’re not news environment that departed from news cycles to “roll- being as effective as you can be with each individual effort. ing coverage.” One of the challenges in the campaign was just hitting on While the campaign spent millions of dollars in all cylinders getting across the same message. It took a lot Indiana on traditional media like TV, radio and newspaper of work but on more days than not, we did.” (print ads being a departure from the recent past) - they And in this one improbable presidential campaign, also harnessed technology beyond a basic website to reach with a candidate who literally came out of nowhere, upset Hoosiers and the entire nation. They created an iPhone dynasties, turned out young people and got more votes application and spread the message on YouTube. They cre- than any Democrat since LBJ, the odds stood on their ears. ated profiles on MySpace, Facebook and other social net- Indiana became a battleground state and it changed presi- dential politics forever. v HOWEY Politics Indiana Page 11 Weekly Briefing on Indiana Politics Thursday, Feb. 5, 2009

before it gets better. The best stimulus effort can only Partisan politics still lessen the depths of recession and shorten its duration. But before anything is passed, politics will be grips Washington played, nasty and divisive. That’s been the norm in Wash- ington for at least the last 16 years. By JACK COLWELL Nastiness breeds nastiness. Many Republicans SOUTH BEND - After all the contentious partisan voting against the stimulus package were doing so more wrangling during the Bush administration, divisiveness that because of a desire to swat House Speaker Nancy Pelosi helped bring on the present woes, you might think there than to cripple Obama. They think she has been unfair to would be more bipartisanship now in Washington amid the minority, not permitting input on legislation. You know, financial crisis. the way Newt Gingrich and Tom “the Hammer” DeLay If you think that, the House vote on the stimu- treated the Democratic minority. Presumably, in this never- lus package to stave off another Great Depression shows ending game of retaliation, the next time Republicans have you are wrong. Every House the majority, the speaker will treat a Democratic minor- Republican voted to kill the ity the way Republicans believe they are treated now by stimulus package, even after Pelosi, who still recalls treatment of Democrats by Gingrich President Obama accepted and DeLay. some Republican changes and Some Democrats now grumble that Obama is sell- went personally to plead with ing out to the Republicans, spending more time trying to them, extending a hand. They appease and woo them than he is to push through the type didn’t shake his hand; they bit of Democratic legislation he promised in winning the presi- it. dency. Republicans may think the election returns showed Why? that a majority of Americans think tax cuts can cure every- Partisan politics. And not thing from deficits to the common cold, but that’s not the just on the Republican side. prevailing feeling in the aftermath of the Bush tax cuts. Many of the Republicans, Some of Obama’s most enthusiastic Democratic knowing that a stimulus pack- backers fear he showed weakness in extending a hand to age is needed now, voted to Republicans in the House. If he had relied just on his own kill it only because they also party and treated Republicans as outcasts, with a Bush-like knew that they couldn’t. They smirk and a Rove-like political attack in their districts, he knew there was a large enough Democratic majority in the couldn’t have done worse than get not a single Republican House to pass the bill. There was, even as a few Demo- vote. But Obama wasn’t going to the House Republican crats played their own brand of politics, voting “no” to try caucus just to let them make a fool of him when it came to fool conservative constituents into thinking they really time to vote. are Republicans. Obama was speaking more to the American Republicans love their country just as much as public than to the partisan House Republicans. He was Democrats do, and quite a few of them, probably a major- establishing a willingness to talk, to cooperate, to compro- ity, would have voted for the package if they thought it mise, to seek bipartisanship. That’s what a vast majority was really going to be killed, with no alternative to counter of Americans want. Although Obama, won not a single rising joblessness. Republican vote in the House, it is dangerous for those But they weren’t about to stop playing parti- House Republicans to think he hasn’t won the admiration of san politics at this stage just because the president was a whole bunch of Republicans as well as Democrats outside preaching bipartisanship. Some stimulus package will pass Washington. in compromise form in both the House and the Senate and It appears that the only way Obama could win bi- will be signed into law by the president. partisan cooperation in the House would be to start acting While Republicans in the Senate still have enough like Rod Blagojevich, who brought bipartisanship to the Il- strength to filibuster a bill to death, they aren’t going to linois House. The vote there to impeach Blago was 117-1.v kill a final hope for countering this severe economic down- turn. They don’t want to establish the GOP as the party of Hoover. Nor do they want to hurt their country. Colwell has covered Indiana politics for more than Partisan wrangling aside, any of the proposed five decades for the South Bend Tribune. stimulus efforts would be better than no effort at all. No plan can bring a quick end to a recession sure to get worse HOWEY Politics Indiana Page 12 Weekly Briefing on Indiana Politics Thursday, Feb. 5, 2009

Gary Gerard, Warsaw Times-Union: Comes now Bill 1656. That committee, also controlled by Democrats, the stimulus package. A perfect time for O to put his foot is expected to rework the bill, something that appears down and demand lots of spending on infrastructure. But sorely needed. As written now, the bill would shift nearly no. The bill passed in the House Wednesday includes $30 $500 million over two years from the state transportation billion for roads and bridges, $9 billion for public transit department’s operating budget to local governments for and $1 billion for inter-city rail. That’s less than 5 per- road projects. It would also assign $1.5 billion in revenue cent of the $825 billion package’s total spending. (While from the 2006 lease of the Indiana Toll Road -- called Major we’re on the subject of huge numbers, the Congressional Moves -- for about two dozen currently unfunded highway, Budget Office points out that after we pay the interest on bridge and railroad projects listed in the bill. The proposal’s the loans we’re getting from foreign countries to fund the author, Roads and Transportation Chairwoman Terri Austin, stimulus package, its cost balloons to $1.2 trillion.) So I D-Anderson, said the goal is to put money in the hands of guess I was a little disappointed. I poked around in the local governments, which she believes are ready to start stimulus package. It’s quite massive, like, 647 pages. It’s at building projects. But Gov. Mitch Daniels’ administration : http://www.docuticker.com/?p=24473 What I noticed is complains the bill will decimate the Indiana Department that there aren’t really a lot of earmarks in there. of Transportation and essentially eliminate the money the That’s what we normally refer to as pork barrel state uses as a match for federal funds. But that’s spending. That’s when a congressman - take not the bill’s only hitch. It also earmarks Major ours for example, Third District U.S. House Moves money that is designated for other projects Representative Mark Souder - would add some- Austin picked. She points out the projects are on thing like a $2 million indoor skating rink for transportation department lists but haven’t been Warsaw onto the bill. There’s really not much allocated dollars. Transportation Secretary Karl of that as far I can see. But there are a whole Browning said the problem is that because those bunch of government programs that prob- projects are unfunded, they have not been pre- ably wouldn’t pass if they were put to a straight up and pared for construction. None could be ready to go down vote. There’s $3 billion for prevention and wellness for three to five years, Browning told the roads committee programs, including $335 million for sexually transmitted in a contentious meeting. So essentially, the bill guts the disease education and prevention; $400 million for NASA very transportation program that already is putting Hoo- scientists to conduct climate-change research; $600 million siers to work, includes a mistake that would stop repaving for cars for government workers; $150 million for renova- and other maintenance work in most areas of the state, tion at the Smithsonian; $10 million for bike and walking and provides money to projects that may or may not be trails; $650 million for “alternative energy technologies, ready for construction. v energy efficiency enhancements and deferred maintenance at federal facilities”; $600 million for grants for diesel emis- Sylvia Smith, Fort Wayne Journal Gazette: The first sion reduction; $800 million to clean up Superfund sites; bill President Obama signed into law helps chip away at $200 million for plug-in car stations; $1.5 billion for “green workplace unfairness by expanding the time frame in which schools”; $1 billion to the Community Oriented Policing Ser- workers can sue for pay discrimination. The bill stems from vices hiring programs; $2.7 billion in National Institutes of a lawsuit filed when a Goodyear Tire & Rubber manager Health research grants; $75 million for smoking cessation; found out that for years she was paid less than her male $5 billion for “Neighborhood Stabilization Programs”. v counterparts. She won her case in 2003, but it was later thrown out because the lawsuit wasn’t filed within six Leslie Stedman Weidenbener, Louisville months of when the discrimination began. She was some- Courier-Journal: House Democrats this week will take a how supposed to intuit that her employers were cheating second stab at creating a state stimulus package that they her. Since money is the Big Taboo in our society, it’s not hope will complement the federal program and put Hoo- surprising that Lilly Ledbetter didn’t find out about Good- siers to work now. Their first effort, introduced last month, year’s swindle right away. When she figured it out, she had some real problems -- including at least one outright sued. But the law was interpreted as meaning Ledbetter error -- but that didn’t stop the House Roads and Transpor- had to sue within six months of her first paycheck. That’s tation Committee from approving it anyway. The vote was just silly, and Congress said so. Bravo to Congress passing on party lines, with Republicans voting no after Democrats the bill, and bravo to Obama for signing it. But phttttttttttt rebuffed their attempts to fix and amend the bill. The to Republicans who voted against the legislation – among approval sent the bill on to the Ways and Means Com- them all of Indiana’s GOP members. None of them was mittee, which considers all legislation with any significant thoughtful, sensible or compassionate in this case – except fiscal impact, a description that certainly applies to House in their regard for deceitful employers. v HOWEY Politics Indiana Page 13 Weekly Briefing on Indiana Politics Thursday, Feb. 5, 2009 State revenues dive that’s probably going to save us from commissioners this year would either INDIANAPOLIS - State rev- being a total disaster.” Still, Kenley choose between the two systems or enues nose-dived in January, fall- said, “there’s no question” that these allow residents to do so in a 2010 ing $142 million below expectations new numbers will force the state to referendum. Counties would not be and leaving the state with a deeper look at all alternatives, including dip- allowed to keep their existing struc- hole in its primary checking account ping into the Rainy Day Fund. ture. A majority of the senators on that could the committee also approved a special approach exemption for Lake County only. $400 mil- Elkhart-Goshen top lion by the jobs loser in nation end of this ELKHART - Although other Indiana would get fiscal year places in the United States posted $4B in House stimulus (Indianapo- higher unemployment, none topped lis Star). the Elkhart-Goshen metropolitan area INDIANAPOLIS - Indiana’s Indiana has in the rate that jobs were lost dur- superintendent of public instruction $1.3 billion ing December (Elkhart Truth). On and board of education unleashed a in reserves, including $390 million in Wednesday, the U.S. Bureau of Labor slew of deregulations Wednesday in an its Rainy Day Fund. But Gov. Mitch Statistics released its measurement of effort to allow schools more flexibility Daniels insists he has no plans to unemployment figures from 168 met- (Fort Wayne Journal Gazette). But at tap that money, much to the chagrin ropolitan areas. From December 2007 least one state teachers union of- of Democrats. Instead, Daniels has to December 2008, the Elkhart-Goshen ficial said the moves won’t affect how ordered the State Budget Agency to jobless rate skyrocketed 10.6 percent- schools operate. Schools have had assemble options from state agencies age points (with unemployment going the authority to do much of what the to save additional money, on top of from 4.7 percent to 15.3 percent) and state board approved – at the request the $763 million in cuts he ordered in put the Northern Indiana county in the of Tony Bennett, state superintendent December. State Budget Director Chris No. 1 spot. of public instruction – since 1999, said Ruhl said in a statement that pos- Dan Clark, deputy director of the In- sibilities include renegotiating some diana State Teachers Association. “It’s contracts and leases and shifting some County reforms pass a nice symbol, but it’s really an empty unspent money into the general fund Senate committee gesture,” Clark said. The board re- from other dedicated funds. “State pealed a number of provisions, includ- INDIANAPOLIS - After about four ing a requirement that mandates high revenues continue to get worse as the hours of testimony, the Senate Local economy slides further into recession,” school students spend 250 minutes Government Committee voted 6-5 to in a class each week to receive credit said Ryan Kitchell, director of the state approve a heavily amended Senate Bill Office of Management and Budget. for the course and a requirement that 506. The only area lawmaker on the students attend high school for seven panel – Sen. Travis Holdman, R-Markle semesters before graduating. But Kenley, Bauer react – voted yes (Kelly, Fort Wayne Journal schools have been able to apply for INDIANPOLIS - “There’s abso- Gazette). The bill, which now moves waivers to cut through those require- lutely a crisis in this state,” said House to the full Senate, would mandate a ments since Public Law 221 was Speaker B. Patrick Bauer, D-South change to one of two new systems of passed in 1999, Clark said. “I think Bend, who renewed his call for Daniels county government: •A single elected the truth of the matter is, it’s pretty to dip into the state’s Rainy Day Fund. county executive accompanied by a non-consequential,” Clark said. Cam “We want him to join us to create seven-member county council with Savage, spokesman for the Indiana jobs in Indiana and use the available legislative and fiscal powers. This Department of Education, acknowl- money in the bank to get those going” system is similar to city structure with edged many of these requirements (Indianapolis Star). Sen. Luke Kenley, a mayor and city council. •A seven- could have previously been lifted with R-Noblesville, chairman of the Sen- member board of supervisors with waivers. The purpose of Wednesday’s ate Appropriations Committee, called executive, legislative and fiscal powers vote was to get rid of the red tape the new revenue numbers “terrible . . that would appoint a county manager school districts have to go through to . even worse than I expected.” Ken- to handle daily tasks. This system is achieve those things, he said. ley said the cuts Daniels already has similar to town governments with a made, including freezing the pay of town board and town manager. Under state employees, are “the one thing the bill, the three current county