V18, N22 Thursday, Jan. 24, 2013 Gov. Pence: Persuasion, luck & allies

sional races to an incumbent Democrat, then took the reins Fledgling governor delivers of the Indiana Policy Review Foundation, where he further honed his skills on the issues. But it was his radio and TV two resounding speeches, but talk shows beginning in 1994 that established Pence as a now comes the hard part gifted communicator and, from that standpoint, both his inaugural address on Jan. 14 and his State of the State ad- By BRIAN A. HOWEY dress Tuesday night graded well on style points. INDIANAPOLIS – There is no question that Gov. Midway through his State of the State, it was strik- Mike Pence is a skilled orator who can craft a great speech. ing to see skeptical Democrats rise when he vowed to fully Hoosiers have now witnessed this twice in the past 10 fund Medicaid, to emphasize an increased funding for Child days. Services, take head-on the national disgrace of the high This is no surprise. After Pence burst onto the Indi- jobless rate of military veterans, and provide transparency ana political scene in 1988, he promptly lost two congres- Continued on page 4 Obama: A liberal payback? By BRIAN A. HOWEY NASHVILLE, Ind. – A little over a week before the New York Times’ Page 1 banner headline would proclaim - “Obama offers liberal vision: ‘We Must Act’ - an acknowl- ‘‘We’re expecting over the next edgement of sorts came forth. U.S. Rep. Todd Rokita, 22 months to be the focus of this a sophomore Republican administration as they attempt to stated the obvious in an HPI interview. Asked if his 4th annihilate the Republican Party.” CD constituents had come to grips with the likely fact that Barack Hussein Obama would - House Speaker John Boehner be president for the next to the Ripon Society four years, Rokita responded, HOWEY Politics Indiana Page 2 Weekly Briefing on Indiana Politics Thursday, Jan. 24, 2013

“I think my constituents understand. President Reagan, using this most Who I hope understands is House Re- conspicuous platform with the whole publican leadership. For my first years world watching to make his case to his in Congress, we weren’t supposed to coalition, vowing to wage the fight. www.HoweyPolitics.com do anything too bold for fear of rock- “Through blood drawn by lash ing the boat before the election and a and blood drawn by sword, we learned chance to get a Republican president,” that no union founded on the prin- Howey Politics Rokita said. “Quite frankly, that time ciples of liberty and equality could sur- Indiana has come and gone. So we have noth- vive half-slave and half-free,” Obama is a non-partisan newsletter ing left but to be bold.” said. “We made ourselves anew, and based in Indianapolis and It was an acknowledgement vowed to move forward together.” Nashville, Ind. It was founded that doing whatever it took to get Obama then cited instances America back to work after the Bush where the federal government bound in 1994 in Fort Wayne. wars and economic disaster took a the nation. “Together, we determined It is published by second seat behind the 2012 election, that a modern economy requires WWWHowey Media, LLC with Senate Minority Leader Mitch Mc- railroads and highways to speed travel 405 Massachusetts Ave, Connell stating the “priority” of making and commerce; schools and colleges Suite 300 Obama a “one-term president.” to train our workers. Together, we To be fair to Republicans and discovered that a free market only Indianapolis, IN 46204 Rokita, the first African-American thrives when there are rules to ensure president, while inheriting a historic competition and fair play,” the Illinois Brian A. Howey, Publisher mess, did not listen, did not schmooze Democrat said. “Together, we resolved Mark Schoeff Jr., Washington and did not take seriously their ideas that a great nation must care for the Jack E. Howey, editor and proposals. vulnerable, and protect its people What followed was an array from life’s worst hazards and misfor- of party-line votes, the rise of the Tea tune. Through it all, we have never Subscriptions Party, threats to shut down the gov- relinquished our skepticism of central $350 annually HPI Weekly ernment and default on its debt. They authority, nor have we succumbed to $550 annually HPI Weekly and accused Obama of perpetrating the the fiction that all society’s ills can be trillion dollar deficits that were nearly cured through government alone. Our HPI Daily Wire. identical to the costs of the military celebration of initiative and enterprise; 'Call Adrian France adventures in Afghanistan and Iraq our insistence on hard work and per- 812.455.4070 or email and forged by President George W. sonal responsibility, are constants in [email protected] Bush. our character.” Bush’s TARP rescue as well as CNN analyst David Gergen fishing General Motors and Chrysler called it one of Obama’s most impor- Contact HPI out of the liquid abyss were to become tant speeches, saying, “It’s a real dec- www.howeypolitics.com Obama’s millstone, as was his precari- laration of principles. He was saying, [email protected] ous stimulus program. ‘Let’s talk about what is essential.’” 'Howey’s Cabin: 812.988.6520 On Monday, President Obama NBC analyst Tom Brokaw ushered in his second term with a called it “part one” of a “two part 'Howey’s cell: 317.506.0883 defense of “collective action” and speech,” the second coming with his 'Washington: 202-256-5822 the role of government, though he State of the Union address later this 'Business Office:812.455.4070 acknowledged the limits and “skepti- month in which he will lay out his cism” of central authority. program. © 2013, Howey Politics Indiana. The inaugural speech, coming Republicans fumed. Former All rights reserved. Photocopy- on Martin Luther King Day, was a bow Republican National Committeewoman to his political coalition, but also an Dee Dee Benkie tweeted, “Very scary ing, Internet forwarding, fax- emergence of a second-term presi- speech - get ready , he is going for ing or reproducing in any form, dent looking beyond the wars, terror the throat.” And CNN Republican ana- whole or part, is a violation of threats and economic collapse that lyst Alex Castellanos observed, “This federal law without permission defined much of his first term. Obama was the speech of a warrior. This is from the publisher. v appeared to be taking a page from a guy who is ready to go to combat. HOWEY Politics Indiana Page 3 Weekly Briefing on Indiana Politics Thursday, Jan. 24, 2013

Your votes are great, but now I need your voices.” be equal as well.” Obama acknowledged the crises he faced when “We will respond to the threat of climate change, he entered office in 2009, with a near economic collapse, knowing that the failure to do so would betray our chil- the potential liquidation of the American auto industry, and dren and future generations,” Obama said. “Some may still wars in Iraq and Afghanistan that had divided the nation. deny the overwhelming judgment of science, but none can “This generation of Americans has been tested by crises avoid the devastating impact of raging fires, and crippling that steeled our resolve and proved our resilience,” Obama drought, and more powerful storms. The path towards said while offering a light at the end of the tunnel. “A sustainable energy sources will be long and sometimes decade of war is now ending. An economic recovery has difficult. But America cannot resist this transition; we must begun. America’s possibilities are limitless, for we pos- lead it. We cannot cede to other nations the technology sess all the qualities that this world without boundaries that will power new jobs and new industries - we must demands: youth and drive; diversity and openness; an end- claim its promise. That is how we will maintain our eco- less capacity for risk and a gift for reinvention. My fellow nomic vitality and our national treasure - our forests and Americans, we are made for this moment, and we will seize waterways; our croplands and snowcapped peaks. That is it - so long as we seize it together.” how we will preserve our planet, commanded to our care Obama cited climate change, immigration and by God. That’s what will lend meaning to the creed our made the case that gay Americans deserve the same rights fathers once declared.” as others, cloaked into the Jeffersonian principles that “All Despite Hurricane Sandy, Henryville, Tuscaloosa, men are created equal.” a crippling drought where Indiana was “We, the people, still an astounding 3 degrees above aver- believe that every citizen deserves age heat, and another one possibly on a basic measure of security and the way, and Lake Michigan at historic dignity,” Obama said. “We must lows, “climate change” has become a make the hard choices to reduce liberal issue. the cost of health care and the size It has been an extraordinary of our deficit. But we reject the cascade of events that an African- belief that America must choose American male named Barack Hus- between caring for the generation sein Obama could rocket to the most that built this country and invest- powerful office in the world and then ing in the generation that will build win a second term after bitter debate its future. For we remember the lessons of our past, when and four years of largely party line votes on crucial issues. twilight years were spent in poverty, and parents of a child Obama is signaling that, yes, he won the election. with a disability had nowhere to turn. We do not believe And yes, he’s going to deal with as much of the future on that in this country, freedom is reserved for the lucky, or his terms. Republicans seem to be getting the message happiness for the few. We recognize that no matter how (and reading the polls), having pulled back from the debt responsibly we live our lives, any one of us, at any time, ceiling fight that was just over the horizon. may face a job loss, or a sudden illness, or a home swept But New York Times conservative columnist away in a terrible storm.” David Brooks believes that Obama “misunderstands this Obama seemed to be rhetorically responding to moment.” The nation’s greatest innovations “were unfore- his opponent last fall, Mitt Romney, who suggested that seen by those at the national headquarters. They emerged, 47% of Americans were “takers.” Obama said, “The com- bottom up, from tinkerers and business outsiders,” he said. mitments we make to each other - through Medicare, and “The Progressive Era, New Deal and Great Society Medicaid, and Social Security - these things do not sap our laws were enacted when America was still a young and initiative; they strengthen us. They do not make us a na- growing nation,” Brooks writes. “They were enacted in a tion of takers; they free us to take the risks that make this nation that was vibrant, raw, underinstitutionalized and country great.” needed taming. We are no longer that nation. We are now And he reached out to issues such as climate a mature nation with an aging population. We are bogged change and gay rights. “For our journey is not complete down with a bloated political system (see pages 7-8), a until our wives, our mothers, and daughters can earn a tangled tax code, a byzantine legal code and a crushing living equal to their efforts,” Obama said. “Our journey is debt.” not complete until our gay brothers and sisters are treated Obama barely mentioned entitlement reform and like anyone else under the law - for if we are truly created spending cuts as he launches four years into his final whirl- equal, then surely the love we commit to one another must wind. v HOWEY Politics Indiana Page 4 Weekly Briefing on Indiana Politics Thursday, Jan. 24, 2013

House Speaker Brian Bosma and Senate President David Gov. Pence, from page 1 Long were quick to note that they were in “95% agree- for the controversial jobs claims of the Indiana Economic ment” with the new governor on his agenda. Development Corporation. It’s that 5% that will require all of Pence’s political “Our budget fully funds the Medicaid forecast, skill and luck over the next three and a half months. Both meeting the projected health care needs of our most vul- legislative leaders have been cool to the tax cut, coming on nerable citizens and families,” Pence said. “That’s why our the heels of corporate and inheritance tax reforms, and the budget calls for increasing funding for the Department of automatic taxpayer refunds that came in the latter years of Child Services by $35 million so we can protect the lives of his popular predecessor Mitch Daniels. our most vulnerable children through additional casework- ers, supervisors, and investments in the emergency hot- Pence doubles down line.” On Tuesday, Pence doubled down (a phrase heard “Not only can I work with Gov. Pence but look for- a lot in the Statehouse these days) and made his case. ward to working with Gov. Pence,” State Rep. Kreg Battles, “The budget I submitted last week is honestly balanced, the Vincennes Democrat, told the Evansville Courier & funds our priorities, reduces by 10% the tax bill Hoosiers Press. currently pay, and still maintains reserves well in excess House Minority Leader Scott Pelath, D-Michigan of the resources we would need to meet emergency and City, observed, “I want to thank Gov. Pence for listening to unforeseen contingencies,” Pence said. “So let’s be honest things, and transparency with our fellow Hoosiers. in our state’s economic We can afford to do this.” development operations. Pence then rhetorically We’ve been talking about asked, “But why cut taxes the veterans’ unemploy- now?” before he under- ment rate being a dis- scored four points. grace. He mentioned that. “First, at a time He mentioned one in five when federal taxes have kids live in poverty.” Pence just gone up on all working received similar reviews Hoosiers, most small busi- from Senate Minority nesses and family farms Leader Tim Lanane, who and our medical device said he is used to Pence industry, now more than delivering a great speech, ever, Hoosiers could use Pence having served as some tax relief,” Pence be- Lanane’s congressman for gan (remember this point). 12 years. “Second, this reduction Lanane and Pelath Gov. Pence greets Hoosiers outside the House chambers following his in taxes will unleash half represent just 44 of the State of the State address. (HPI Photo by Brian A. Howey) a billion dollars into the 150 legislators, who could private, voluntary economy be characterized as almost every year. Letting Hoosiers irrelevant in this new Age of the Super Majority. But from keep more dollars to spend, invest or save will be good the perspective of setting the tone, and the deep suspi- for Indiana families and businesses. Third, reducing the cions raised by Democratic gubernatorial nominee John personal income tax rate is the best way to lower taxes on Gregg that the wooly lamb-like Pence was really a social small businesses and family farms. Ninety-two percent of warrior wolf under the curls, this distinction helps establish Hoosier small businesses pay their taxes under the indi- the cred of something Pence said in his second paragraph vidual income tax rate. By lowering taxes, small businesses of the State of the State: “I am honored to stand before will have more money to hire new employees, purchase you today as governor of all the people of Indiana and I new equipment and grow. Fourth, by lowering the personal know that, together, we will write the next great chapter of income tax rate by 10 percent, it will be official: Indiana Indiana history.” will be the lowest taxed state in the Midwest. Companies But from a pure power perspective, Pence’s most who are here will have one more reason to expand and we profound challenge will be to convince Republican leaders will give businesses outside Indiana one more reason to to go along with his top priority, the 10% income tax cut. move to the Hoosier state.” HOWEY Politics Indiana Page 5 Weekly Briefing on Indiana Politics Thursday, Jan. 24, 2013

Pence finished that section of the speech by say- economy and with it, Indiana’s. ing, “Because we can afford to cut taxes for every Hoosier, I believe we should. And on behalf of millions of hardwork- Gubernatorial vs. legislative power ing Hoosiers, small businesses and family farms, I respect- What’s intriguing when mining into the dynamic fully ask for your support.” here are the emerging differences between the Daniels era and the fledgling Pence administration. Bosma’s intriguing response Gov. Daniels was clearly the alpha male, spending The most intriguing response from the GOP leaders 18 months campaigning in every burg and ville in the state, came from Bosma, who took a subtle stab at Pence’s recent the savior who brought Hoosier Republicans out of the Washington roots. “I don’t think the irresponsible policies of desert after an aimless, 16-year traipse. the federal government really impact things here,” he said. Upon taking the reins of power, Daniels never had Translated: Don’t confuse the actions of the kids in Con- to deal with powerful Senate Finance Chairman Larry Borst, gress with the adult-like responsibility Statehouse Republi- who was defeated in the 2004 Republican primary. Former cans have fostered over the past eight years. Republican chairman Rex Early was questioned by candi- Bosma then reempha- date Daniels about his opposition sized points he began making to Borst in that primary, and Early last November, four months responded, “I’m trying to do you a after legislative leaders were favor.” left out of the Pence policy Thus, Daniels never had to deal loop: “Our goal will be to have with the prickly “Old Dog Doctor” a sustainable budget, one that who had caused the previous five in the long haul serves Hoosier governors a number of sleepless taxpayers well. It’s sustainability, nights. not on an election cycle,” Bosma Two years later, Senate President said in what could be perceived Pro Tempore Robert Garton met the as a conspicuous acknowledg- same primary fate. Essentially, that ment of Pence’s potential 2016 Senate President David Long and Speaker Brian Bos- gave Daniels an emphatic upper presidential aspirations. ma liked Gov. Pence’s “tone” but have not signed on hand when it came to dealing with “I appreciate his opin- to all the substance, such as the income tax cut. (HPI the emerging Senate Republican ion,” Bosma continued. “We’ll Photo by Brian A. Howey) powers of David Long, Luke Kenley work with the governor and his and Brandt Hershman. folks to come to the right conclusion here.” With a new governor, there would be a natural Long observed, “The question will be at the end of tendency for Senate leadership to push back after being the day what can we afford in April? In the end, affordabil- subservient to the profound Daniels agendas. In a sense, ity is going to be a key factor, and also is it the best way to this push began in the final year of Daniels’ tenure, when stimulate the Hoosier economy? We’ll have that discussion Bosma and Long declared that Right to Work – never a as well, but his goals are right. We need a shot in the arm.” staple in the Daniels policy schedule – would become the It left an opening for Pelath, who said, “We’re not top GOP legislative item. They were obviously not reading the ones who have to tell him no. We’re going to listen to off the Daniels script. him. Having said that, he has a case to make. Will that Thus, we find Long and Bosma flexing some truly grow jobs in Indiana?” muscle, with the Pence tax cut the first wrestling match. That’s an understatement. Hoosiers watched the December jobless rate spike up to an unacceptable 8.2%. The Conservative Caucus It has now been fully four years of unemployment rates Gov. Pence, however, has assets. There is the Sen- ranging from 7.8 to 10% – a hallmark of the Great Reces- ate Conservative Caucus that is somewhat restive. It is not sion that has eclipsed the dire days of the early 1980s as in position – nor is it seeking a power challenge to Long – an era of pain from the board room to the kitchen table. but there is a sense that it will be there for the new gover- The irony is that as head of the U.S. House Repub- nor. lican Conference, Pence was a cog in the machine that de- Caucus members Jim Banks and Mike Delph were cided to oppose President Obama’s job initiatives, hoping to quick to embrace the Pence tax cut quickly after Long and elect a Republican president last November. The persistent Bosma had expressed deep caution. jobless rate has become the ashes in their mouths, and Others in that caucus, Sens. Jean Leising, Scott Pence can only hope that Obama can pry loose the national Schneider, John Waterman, Mike Young, Brent Waltz, Greg HOWEY Politics Indiana Page 6 Weekly Briefing on Indiana Politics Thursday, Jan. 24, 2013

Walker and Jim Buck, are likely to rally for Pence. There are Emergency surgery for First Lady others, such as Sens. Jim Tomes and Vanetta Becker, who

might be willing to push back at Long. INDIANAPOLIS - First Lady Karen Pence is under- And there are some in leadership - such as State going emergency gall bladder surgery this morning. Gov. Sens. Dennis Kruse and Brent Steele - who will be sympa- Mike Pence has cleared his schedule. thetic to helping the new conservative governor get off on the right foot. Long has displayed a Gartonesque heavy hand with Pence completes cabinet some conservatives, pushing bills by Banks (on abortion Gov. Mike Pence finished his cabinet last week, and guns on campus), Kruse (Lord’s Prayer in schools) and selecting Debra F. Minott as secretary of the Family Social Tomes (use of drones for civilian use) into the purgatory of Services Administration and Gina Sheets as his director of the Rules Committee. the Indiana State Department of Agriculture. There are other pressure points. Informed and reli- Minott, of Carmel, most recently served as Vice able sources tell HPI that Hershman is preparing for a 2014 President and Associate General Counsel for Hill-Rom, campaign for state treasurer. Delph and other conservatives a medical device manufacturer in Batesville. Minott has are apt to line up behind Marion Mayor Wayne Seybold as served in a variety of roles including Human Resources part of the Senate power chess game. Director at CarDon & Associates, Inc., Indiana State Per- sonnel Director, Chief Governance Officer and Corporate House dynamic has yet to emerge Secretary of Guidant Corporation, Senior Vice President and General Counsel for Essex International Inc., and Senior On the House side, there is certainly a rich vein of Counsel at Eli Lilly and Company. Minott earned her under- conservatism, most notably lead by State Rep. Eric Turner, graduate and law degrees from the University of Michigan. who Bosma did not name as Ways & Means chairman. But Prior to joining state government in 2009, Sheets served many other notable conservatives are firmly entrenched as Economic Development Director and CEO of the Clinton in Bosma’s leadership team, and so much of the caucus is County Chamber of Commerce, Director of the Frankfort new, that it is unclear whether a conservative caucus will Urban Enterprise Association and Director of the Clinton emerge there. County Economic Advancement Foundation. On Wednesday, Turner filed HB1541 which would eliminate the automatic refund and phase in the income tax Here is the complete Pence cabinet cut over three years. “I’ve followed what he’s been doing all summer,” Turner told the Indianapolis Star, “and thought Alley, Michael Commissioner Revenue about what would be the best-case scenario for the state. I Atkins, Chris Director Management and Budget like his approach on a tax cut.” Baltzell, Paul CIO Office of Technology Pence said he wants to keep the Daniels rebate, Brown, James Director Veterans Affairs but added, “My standing rule on legislation is we’ll consider Cardwell, Jeff Executive Dir. Faith Based & Community any ideas that members of the General Assembly want to Carter, Doug Superintendent Indiana State Police bring forward.” Carter, Rob Director Natural Resources Pence campaigned vigorously for many members Cline, Michael Commissioner INDOT of the Classes of 2010 and 2012, and he will find deep Doden, Eric CEO IEDC affection from freshmen and sophomores such as Reps. Easterly, Thomas Commissioner IDEM Ron Bacon, Robert Morris, Tim Wesco, Matt Ubelhor, Tom Hill, John Exec. Director Homeland Security Washburne, Steve Davisson, David Ober and others. Keefer, Sean Commissioner Labor While much speculation has centered on the April Lemmon, Bruce Commissioner Correction revenue forecast, the fact is that the budget is generated in Minott, Debra Secretary FSSA the House and will have to pass over to the Senate at the Ryan, John Director Child Services mid-way point in early March. Samuel, Anita Director State Personnel So it will be intriguing to see how Speaker Bosma Sanders, Scott Commissioner Workforce Development and fiscal leaders such as Ways & Means Chairman Tim Sheets, Gina Comissioner Agriculture Brown grapple with the tandem realities of a new, conser- Smith, Victor Secretary Commerce vative and politically ambitious governor from their party, Umbarger, Martin Adj. General Indiana National Guard and whether his top legislative priority will be the medicine VanNess, Bill Commissioner Health to spark a long-awaited recovery, or be a millstone in 2014 Waddell, Scott Commissioner BMV or 2016 reelection bids if the state falls back into deficits. v Wynkoop, Robert Commissioner Administration v HOWEY Politics Indiana Page 7 Weekly Briefing on Indiana Politics Thursday, Jan. 24, 2013

Pundits like George Will note that Frito Lay will Indiana’s U.S. Senate spend more than that on potato chips in any given year. But in the wake of U.S. Supreme Court rulings on Citizens United and SpeechNow, the fact is that most race of Butkus proportions of the spending decisions didn’t come in Indianapolis- By BRIAN A. HOWEY based candidate campaign headquarters, or in the Indiana INDIANAPOLIS – Hoosiers experienced a spectacle Republican and Democratic parties, but in 527 Super PACs they had never witnessed before in 2012 and it wasn’t the located in Washington and New York City. And those who Indianapolis 500. It was the $51 million U.S. Senate race. have opted into this new wild, wild West scenario of free Who could forget speech and campaign finance the dizzying array of radio – like Club For Growth’s Chris and TV ads that included Chocola – will tell you with a synchronized swimmers, straight face that the entire Dick Lugar’s Virginia home, shebang was completely un- a grinning Joe Donnelly and coordinated. They say there his funding of the Lobster was no talk between candi- Institute. dates, their campaigns, the Actually, it was state parties and the Super $51,717,265, spent by and PACs. on behalf of Republicans Dick As incredible as that Lugar and Richard Mourdock, seems, when average Hoo- and Democrat Joe Don- siers turned on the TV set nelly. It was a race of Butkus last October, their senses proportions and by the time were assaulted by a cascad- it was finished, heads really ing kaleidoscope of menacing did roll (Editor’s note: Hall of narratives, grainy photos, Fame Chicago Bears line- smirking candidates, out- backer Dick Butkus used to of-context statistics and dream of hitting an opponent Congressional roll calls and so hard his head would roll taunting voice-overs. Per- away). haps, just maybe, Chocola Outside groups spent $32,844,052, according to was right. The new paradigm in campaign finance is one the website Open Secrets. The three campaign commit- where the ideological wing nuts are running the American tees – Lugar at $4,703,690, Mourdock at $8,596,756, and political asylum. If you wanted for things to get lost in Donnelly at $5,572,767 – raised and spent a combined translation, you didn’t have to journey to Tokyo. Indy would $18,873,213, according to the Federal Election Commis- suffice. sion. That would have been a record in itself. “The way I view it, it’s the law of the land,” said Compare that to the $9 million 2010 Indiana Sen- Indiana Republican Chairman Eric Holcomb, who watched ate race when U.S. Sen. Dan Coats raised $4,499,120 and a sliver of Republican primary voters dispose of Lugar, who received $1,227,000 in PAC contributions. Democrat Brad had carried more than 7.1 million federal election votes in Ellsworth raised $2,291,863 and had $1,052,000 in PAC his career, and then witnessed Mourdock’s debate implo- contributions. sion and the seat reverting to Vance Hartke’s party after 36 Former U.S. Sen. Evan Bayh spent in the range years. of $4- to $5 million in his 1998 Senate rate, and $3- to “The roles are changing and we have to adapt to $4 million in his 2004 reelection, according to Indiana change,” Holcomb said. “Parties are here to stay and they Democratic Chairman Dan Parker. Neither of those races play a very valuable role with the candidates; we provide were competitive. The most recent truly competitive races institutional knowledge, data and we provide the overall occurred in 1990 and 1992 between Coats and Baron Hill in brand. Super PACs played a huge role in the presidential the former, and Joe Hogsett in the latter. Parker put the Hill and Senate races, primarily on TV.” and Hogsett campaigns in the $2 million range. Holcomb then added, “If we’ve learned one thing, “The gross rating points in last year’s campaign in addition to money can’t buy you love, it can’t buy offices. were ridiculous,” Parker said, noting that $15 million was If the message is wrong, no amount of money can over- spent against Donnelly - just on television advertising in come that.” the general election sequence. Parker doesn’t see the dynamic change. “It would HOWEY Politics Indiana Page 8 Weekly Briefing on Indiana Politics Thursday, Jan. 24, 2013

have to start with the Supreme Court,” Parker said. “Since which are relatively small organizations which collect and the Citizens United, it’s opened the flood gates. I don’t bundle millions of dollars, “have to recognize this: Are we know how you do anything to change it without another helping or hurting” a candidate? Supreme Court ruling.” “They focus on very specific projects,” the Re- In Holcomb’s view, the Super PACs leveled the publican said. “They will evolve. What they do over time, playing field. In 2004 and 2008, he watched AFSCME and I hope, is become aware when they are over-saturating SEIU write huge checks to the opponents of his boss, then- television. It’s really bad when it’s bad television.” candidate and later Gov. Mitch Daniels. Big labor meant Holcomb believes that the true point of no return big checks, boots on will be on political TV the ground and phone advertising, which is banks. becoming less and less But in the hey- effective with each day of the UAW and election cycle. the out-sized role they “Looking around played in congressio- the country, it ap- nal and gubernatorial pears we got beat on races, the messaging the ground,” Holcomb was consistent and said. “Everyone now largely coordinated knows that. It was a through either the real wake-up call, los- candidate’s campaign ing that Senate race or the party. In 2012, like we did. We’ve got Holcomb could only to look at everything; watch as a the frenetic data, messaging, our Super PACs vomited ground game, what is into the airwaves a mishmash of assaults on Joe Donnelly, our platform and how do we connect.” while the Mourdock campaign tried to rally with its own For Holcomb, the Super PACs have become “the messaging that the Democratic congressman had voted for hand we’ve been dealt.” Obamacare. Ultimately, Mourdock lost control of his own U.S. Rep. Todd Rokita, who sits on the House message well before his epic blunder at the New Albany Administration Committee, told HPI that despite no ground- debate. swell calls for changes in campaign finance from the grass- “The campaign of the future is going to have to roots, it is likely to happen. “From private conversations recognize when the message is hurting or helping,” Hol- I’ve had, it’s clear to me that election reform is going to be comb said. “They will need to speak out on that.” a major part of that committee, sooner rather than later,” But in this crazy new world, had Mourdock object- said Rokita, who as Indiana secretary of state directed an ed to a Club For Growth TV ad, how could he have legally upgrade of county-by-county computer equipment, pushed stopped it, since no one was supposed to be communicat- voting centers, and voter ID law while purging voter lists. ing? The committee is chaired by Candace Miller, former In the next election cycle or two, could we watch Michigan secretary of state. Rokita said there has been little a candidate call a press conference and watch him or her call for change from Hoosier Republicans. “It’s all so new,” denounce a Super PAC for assaulting an opponent? And he said. As for specific legislation, Rokita added, “I can’t what impact would that have? say we know right now. But it’s an invitation for your read- “The bottom line,” said Holcomb, “is there ers to chime in.” He said the committee “is going to be very is only so much air time, only so much radio, and only active and will be the scene of some intriguing election law so much direct mail. And then at some point, it becomes policy. counter- productive. The candidate has to be willing to say, But Parker believes it will take a future Supreme ‘Thanks, but no thanks.” Court case or a Constitutional amendment to induce trans- Parker believes there will be diminishing returns in parency into the equation. “The fact is, the Koch brothers the presidential race, noting that “a quarter of a billion dol- and Sherman Adelson can come in and spend whatever lars was spent in Ohio” on the Obama/Romney battle. they want,” Parker said. “Is it good for democracy that But as far as state races go, “TV is still the main these billionaires can spend and you don’t know where it’s driver of name ID.” coming from?” v Holcomb also observed that Super PACs, some of HOWEY Politics Indiana Page 9 Weekly Briefing on Indiana Politics Thursday, Jan. 24, 2013

Republicans were accustomed to taking for granted. Obama and Indiana . . . There’s another reason for Obama’s unpopularity here: his race. In April 2008 at the apex of the Obama/Clin- ton primary battle, U.S. Rep. Baron Hill endorsed Obama. well, it’s complicated He would later tell HPI how shocked he was with the reac- By BRIAN A. HOWEY tion of some Democrats, who drew pause over the candi- NASHVILLE, Ind. – When it comes to President date’s race. It’s not a widely discussed fact, but the fact Barak Obama and Hoosiers, well, it’s complicated. that Clinton carried almost all of the “river country” coun- There is no question that President Obama is not ties along the Ohio and Wabash was a subtle reminder that a popular figure here. In the final Howey/DePauw Indiana much of Southern Indiana had been settled by folks coming Battleground Poll last Octover, Obama trailed Republican up from Virginia, the Carolinas and Kentucky. Mitt Romney 49-40%. Former Congressman Lee Hamilton - who In the September Howey/ represented Southeastern Indiana’s 9th CD for more than DePauw survey, Obama was again three decades - told HPI that the racial sentiment exists at just 40% and was carrying just with the first African-American president that “bubbles 35.2% of the Hoosier white vote, and seethes beneath the surface.” This is particularly true, though he was capturing 95.2% he observed, in Southern Indiana “which was settled by of the African-American vote and Southerners. There have been those vestiges that have not 71.8% of the “non-white” vote been removed.” which would include Latinos and “There is a desire for the good old days,” said Asians. Hamilton, who now heads Indiana University’s Center on And here is the most nota- Congress. “Many Hoosiers see a drift of power to people ble reason for the president’s lack and groups they don’t fully understand or know. So there’s of popularity here: Obamacare. a theme of ‘let’s get our country back.’ I ran into that in this On the Obamacare issue in election.” September, 55% of Hoosier voters said they would support On Sunday, President Obama took his second oath a candidate who would oppose the Affordable Care Act, of office after winning another term last November. In Indi- while 37% say they would vote for a candidate who sup- ana, he carried just 44% of the vote. ports it. Only 8% don’t know. Yet, Obama has had a profound impact on Indiana. But this story is far more complex than just Obam- He saved the auto industry, which was on the brink acare. of liquidation when he came in office. Brookings Institute The president made history here in 2008, losing a estimated 150,000 Hoosier jobs were at stake going well vigorously fought Democratic primary battle beyond General Motors and Chrysler, into the hundreds of by then-U.S. Sen. Hillary Clinton by less than 1% of the vote. From March through November of that year, something pro- foundly unusual happened: The Obama campaign opened up dozens of field of- fices. He and the future First Lady made almost 50 forays into the state, including his last stop as a candidate on Election Day 2008, and his first stop outside of Washing- ton as president when he came to Elkhart to push his stimulus package. In doing so, Obama became the first Democrat since 1964 to carry Indiana’s Electoral College votes when he barely clipped Republican John McCain that November. Leading into 2004, the fact that an African-American named Barack Hus- sein Obama would carry the 11 Hoosier votes was unfathomable, and McCain would Candidate Barack Obama speaks at Roberts Stadium in Evansville in April 2008. (HPI make only three appearances in a state Photo by Brian A. Howey) HOWEY Politics Indiana Page 10 Weekly Briefing on Indiana Politics Thursday, Jan. 24, 2013

supplier firms. without the auto restructuring, Indiana would have been The Obama political wing and Indiana Democrats looking at jobless rates approaching those that hammered largely avoided defending the events of spring and summer the state from 1979 through 1983. Places like Kokomo and 2009 when President Obama rejected a plan to rescue GM Elkhart saw 20% jobless rates fall back into single digits by and Chrysler beyond when President George W. Bush had 2012. done with TARP funds the previous fall. Indiana Democrats The Obama stimulus law of 2009 flooded Indi- took a shellacking in November 2010, losing a number of ana with billions of dollars that propped up the state bud- “legacy” Congressional and get, paid for thousands of teacher and public safety jobs, legislative seats in Southern Indiana, many of them prob- ably gone for good. Indiana Treasurer Richard Mourdock, who tried to derail the Chrys- ler/Fiat merger, would lead the state ticket that year. The new legislative Republican majorities allowed the GOP to develop the new Indiana General Assembly and Congressional maps, and by 2012, Republicans would have super majorities in both House chambers while Democrats would control only urban con- gressional seats in Indianapo- lis and the Northwest Region, along with the U.S. Senate seat Joe Donnelly won. Two weeks after the 2010 general election, Presi- dent Obama and Vice President Biden appeared at the Chrysler Transmission Plant II in and hundreds of infrastructure projects. Kokomo. “Today we know that was the right decision,” How could a political figure, then, poll only 44% of Obama told a small crowd. “This plant is now running at the Indiana vote during his reelection? full capacity and that is why I am here today.” Not only The answer is a political one. The Obama cam- was the plant running, Obama announced that Fiat CEO paign didn’t need Indiana in 2012. Had the various scenari- Sergio Marchionne was making an additional $843 million os made Indiana an Electoral College priority for reelection, investment in its Kokomo industrial cluster. That’s on top the reelection engines would have fired up with a full- of $300 million that had been announced earlier. “Even as throated defense of the auto rescue. we continue to face serious challenges, what happened As it turned out, Donnelly would use the issue on here at this plant and changes we are seeing at this plant his way to a 6% victory over Mourdock, though the trea- in Kokomo ... you are showing us the way forward and surer’s implosion at the final debate in New Albany may living up to that spirit of optimism, determinism and grit,” have cloaked the auto issue as one that the Democrats said Obama, making a rare appearance with Vice President prevailed. Biden outside of Washington. Despite his unpopularity here, President Obama “We’re coming back; we’re on the move,” a buoy- will have an out-sized legacy here in the Hoosier state. His ant Obama proclaimed. “We decided to make a stand. fuel mileage standards will impact the auto industry here We made the decision because we had confidence in the as well as future consumers while reducing the nation’s American worker.” reliance on foreign oil. His education reforms - finding an Chrysler and GM would consolidate and bring unlikely ally in Gov. Mitch Daniels and former Supt. Tony hundreds of new jobs to facilities in Fort Wayne, Marion, Bennett - could help solve the “skills gap” that exists de- Kokomo and Bedford. Manufacturing leaders like Pat Kiely spite Indiana’s 8.2% jobless rate. v of the Indiana Manufacturers Association acknowledge that HOWEY Politics Indiana Page 11 Weekly Briefing on Indiana Politics Thursday, Jan. 24, 2013

1 percent annual increase in education funding would be Interfaith opposes HJR6 the most Indiana has spent on schools in 10 years. But INDIANAPOLIS - The Interfaith Coalition on Non- Democrats, who have asked the new administration to discrimination is disappointed and saddened that elected restore $300 million in education cuts, noted the Legisla- officials have filed this discriminatory bill. ICON’s member- ture routinely approved much more than the 1 percent, ship includes churches, synagogues, clergy leaders, and only to see Gov. Mitch Daniels slash it from the budget. “As individuals who embody a rich diversity of faith traditions we make promises, it seems like lately the Legislature _ mirrored in every Indiana county. We do not demand which is given the constitutional task of creating the budget adherence to one particular view of God, and moving forward _ it seems like it’s become more of a and we firmly believe our State ought suggestion, than a budget for the state,” said Rep. Terry to show the same justice and respect. Goodin, D-Crothersville.. Changing the Constitution to legalize one view of marriage (a religious rite) is Leising cursive bill passes committee detrimental to all of us.” Senate President A bill authored by State Sen. Jean Leising (R-Old- David Long said there will be an internal enburg) to require Indiana elementary schools to include caucus debate over whether to proceed cursive writing and reading in their curriculum passed the with HJR6 with the prospects of a Supreme Court ruling on Senate Committee on Education and Career Development the case that could render any language passed this year today — “National Handwriting Day” — with a vote of moot. Sources say there is no mechanism to pull Consti- 7-4. With a push from the Indiana Department of Educa- tutional referendums once they’ve passed. Several Senate tion to align state education standards with Common Core conservatives have told HPI they don’t believe a marriage Standards, cursive writing has become an optional part of amendment will pass this session. school curriculum since 2011. Leising said Senate Bill 120 is critical to ensuring Indiana students are receiving a well- Union constitutional amendment advances rounded education and, what’s more, to promoting child Having prevailed last year in putting right-to-work development. into state law, some Republican senators now want to amend the Indiana Constitution to make it even more dif- Casino bill passes Senate panel 9-0 ficult for labor unions to organize (Carden, NWI Times). An Indiana Senate committee on Wednesday On a party-line vote Wednesday, the Republican-controlled endorsed plans aimed at helping the state’s casinos stave Senate Pensions and Labor Committee approved a pro- off growing competition, although its fate is uncertain with posed constitutional amendment requiring secret ballots some legislators worried about the potential loss of $100 be used for any union representation decision. The amend- million annually in taxes from the industry and others wary ment, sponsored by state Sens. Jim Banks, R-Columbia of any gambling expansion. The Senate Public Policy Com- City, and Dennis Kruse, R-Auburn, is intended to block a mittee voted 9-0 in support of a bill that would overhaul proposed federal law known as “card check” that would the state’s casino taxes, along with allowing Indiana’s 10 allow a workplace union to form without an election if riverboat casinos to move inland to adjacent property and more than half the employees signed union authorization permit live table games at the two horse track casinos. cards. The proposed amendment states: “The right to vote by secret ballot is fundamental. If any Indiana or federal DSC staffing bill passes law requires or permits an election for any designation or Indiana’s agency to investigate child abuse com- authorization of employee representation, the right of any plaints would get a big personnel boost under a bill that individual to vote by secret ballot in any such election is unanimously passed the House Family, Children and Human guaranteed.” Affairs Committee on Wednesday. The measure, House Bill 1142, would require the state’s Department of Child Atkins presses on school funding Services to hire 50 additional workers and 10 supervisors to Budget director Chris Atkins found himself Wednes- the state’s centralized call center, plus 80 caseworkers and day in the strange position of having to defend education 16 supervisors who would investigate those complaints. cuts made by his former boss, while pitching House law- With a price tag of about $8.9 million annually, plus a one- makers on a modest education proposal from his new boss, time $100,000 technology upgrade, the bill must now go to Gov. Mike Pence (Associated Press). Atkins told members the budget-writing House Ways and Means Committee for of the House Ways and Means Committee that the planned approval before the full House can take up the bill. v HOWEY Politics Indiana Page 12 Weekly Briefing on Indiana Politics Thursday, Jan. 24, 2013

Students are leaving, when they graduate at all, with loads The times they are of debt but without evidence that they grew much in either knowledge or critical thinking. • Administrative costs, splurging on “resort” ameni- a-changin’ (at Purdue) ties, and an obsession with expensive capital projects have By BRIAN A. HOWEY run up the cost to students without enhancing the value of INDIANAPOLIS - Just hours after Mitch Daniels left the education they receive. the Indiana governorship, he became Purdue University • Rigor has weakened. Grade inflation has drained President Mitch Daniels. Within a week, the new president the meaning from grade point averages and left the di- began laying down some emphatic markers and raising ploma in many cases as merely a surrogate marker for the profound questions that will reverberate well beyond West intelligence required to gain admission in the first place. Lafayette. • The system lacks accountability for results. No By the end of his first week, Daniels sent a letter to one can tell if one school is performing any better than the “People of Purdue” that could be a precursor to his role another. as a change agent, this time in academia. • The mission of undergraduate instruction is “I have tried to use the time afforded by the first- increasingly subordinated to research and to work with semester interim to learn all I could from and about you,” graduate students. Daniels began. “I have made spare-time and weekend ‘field • Too many professors are spending too much time trips’ to the campus, “writing papers for each other,” researching abstruse topics totaling some 17 of no real utility and days. These trips no real incremental have featured brief- contribution to human ings on all the ma- knowledge or under- jor functions of the standing. school and tours of • Diversity is many major facili- prized except in the ties. I have spoken most important realm to a host of experts of all, diversity of across the spectrum thought. The acad- of higher education, emies that, through including more than the unique system of a dozen current tenure, once enshrined and past university freedom of opinion and presidents. I have inquiry now frequently visited campuses in- are home to the nar- cluding Harvard, Yale, and Chicago, and attended seminars rowest sort of closed-mindedness and the worst repression on topics such as the impact of technology and the restruc- of dissident ideas. turing of student assistance. And I have read as much as I • Athletics, particularly in NCAA Division I, is out of could manage of the gusher of books, articles, and inter- control both financially and as a priority of university atten- views which are everywhere these days, predicting major tion. change or even upheaval in American higher education.” Daniels noted recent articles such as TIME’s “Re- “Most useful of all” have been the meetings inventing College” and Newsweek - the now defunct news with “hundreds” of Purdue faculty and students. Daniels magazine driven out of existence by the Internet - which said that “two themes ran steadily” throughout this fact- asked, “Is College a Lousy Investment?” finding mission. “First, that Purdue is an extraordinary There was talk of “bubbles burst when people place, making life-changing differences in the lives of its catch on” as with what occurred in the housing industry. students and often the lives of people around the world. “Other information industries, from journalism to Second, that the higher ed world we have known is likely music to book publishing, enjoyed similar periods of suc- headed for big change, although I heard a full range of cess right before epic change enveloped them, seemingly opinions about its nature, extent, and what if anything overnight…Colleges and universities could be next, unless Purdue should do to react to it.” they act to mitigate the poor choices and inaction from the Included were attacks on the status quo: lost decade by looking for ways to lower costs, embrace • College costs too much and delivers too little. technology and improve education.” (Jeff Selingo, editorial HOWEY Politics Indiana Page 13 Weekly Briefing on Indiana Politics Thursday, Jan. 24, 2013

degrees that attract tens of thousands of students who a decade ago would be attending a residential school. At an Ivy Tech commencement, he told graduates how that school is as important as any in the state. Now Daniels is in the Big Ten, a former Midwestern conference that will soon have 14 schools stretching from the high plains to the East- ern Seaboard. “A newcomer quickly notices that we are less a university; than a federation,” Daniels noted. Robert Allen Zimmerman enrolled at the University of Minnesota in 1959, but didn’t stay long. Within years, Zimmerman (better known as Bob Dylan) would be singing:

Gather ‘round people Purdue University President Mitch Daniels during a flash mob last week with Wherever you roam Korean students outside of his office. And admit that the waters Around you have grown And acc ept it that soon director, Chronicle of Higher Education). You’ll be drenched to the bone And, perhaps the most jarring of all: “In 50 years, If your time to you if not much sooner, half the roughly 4,500 colleges and Is worth savin’ universities now operating in the United States will have Then you better start swimmin’ ceased to exist…nothing can stop it…(T)he residential Or you’ll sink like a stone college will become largely obsolete; tens of thousands of For the times they are a-changin’ professors will lose their jobs; the bachelor’s degree will become increasingly irrelevant; and 10 years from now Come writers and critics Harvard will enroll 10 million students.” (Nathan Harden, Who prophesize with your pen writing in The American Interest magazine) Keep your eyes wide Daniels quoted Stanford President John Hennessy: The chance won’t come again “There’s a tsunami coming.” Don’t speak too soon The crux of the news president’s message? “I’ve For the wheel’s still in spin been party to the overreading of trends and the overreac- And there’s no tellin’ who tions it can cause; these mistakes have taught me never That it’s namin’ to be dismissive of criticism or warnings, but also to move For the loser now cautiously in response,” Daniels said. “And it’s become my Will be later to win firm conviction these last few months that, whatever the For the times they, they are a-changin’ validity of the statements above, Purdue has a chance to set itself apart as a counterexample to much of the criti- Come senators, Congressmen cism lodged against higher ed in general.” Please heed the call We in the Indiana political realm have watched Don’t block at the doorway Daniels transform change in campaigns, municipal and Don’t block up the hall state government, and now he has moved past the door- For he that gets hurt step of Indiana’s land grant university. A “B” student from Will be he who has stalled Indiana is unlikely to gain admittance to Indiana University There’s a battle outside or Purdue (the cut off, I’ve been told for IU by parents of And it’s ragin’ Hoosier kids is at 3.5 GPA). Purdue’s charter states that it is It’ll soon shake your windows to be a college for the children of working Hoosiers. And rattle your walls Daniels himself brought Western Governors Uni- For the times they are a-changin’ v versity to Indiana, a college without a campus or a basket- ball team. We now see schools like UCLA offering online HOWEY Politics Indiana Page 14 Weekly Briefing on Indiana Politics Thursday, Jan. 24, 2013

For instance, 183 students who graduated last year re- A McDermott run for ceived scholarships. That was up 20 percent over the previ- ous year. More than 500 families have students in the pro- governor is possible gram. By RICH JAMES Purdue University Calumet is one of the great- MERRILLVILLE – When the Indiana General As- est beneficiaries as 34 percent of the scholarship recipients sembly convenes each year, it looks with a wary eye toward attend the Hammond school. Lake County. The program also has turned into a plus for those If something is good for wanting to attend Calumet College of St. Joseph, according Lake County, it must not be good to the Times of Northwest Indiana. for the rest of the state, is often The college, which is private, is making up the dif- the thinking of downstate legisla- ference between its tuition and the maximum scholarship tors. offered by the program. Such was the train of It also is the hope of Hammond that the students thought when the Legislature in benefitting from the program will return to Hammond to the early 1990s approved river- start families and send their children to college. boat gambling. It is a way to build the middle class, but that only After all, the casinos never can happen if there are enough jobs, which now isn’t the would have been approved had case. the legislation not been tied to the That is one reason why the annual $10 million two-year state budget. state stipend for the Northwest Indiana Regional Develop- Then-Gov. Evan Bayh, who ment Authority, which is poised to expire next year, needs is anything but a liberal, likely wouldn’t have signed a bill to be continued. legalizing casinos if it stood on its own. So what is in this for McDermott? The casinos were to have been the salvation of the Potentially plenty other than bringing stability and urban rust belt in Northwest Indiana and along the Ohio then growth to the city’s housing stock. River. McDermott won’t be content to be mayor for There were going to be jobs everywhere, so went life. the thinking. Gary officials boasted that there would be While he would love to go to Congress, that won’t 30,000 jobs created in Gary alone. happen as long as U.S. Rep. Peter Visclosky wants to con- There have been jobs, but far from 30,000. tinue in Congress. He was first elected in 1984. There have been a number of positive results other Making a run for governor is not out of the ques- than jobs as a result of the casinos. And legislators need to tion, especially with the Democratic Party lacking in viable be aware of them as they contemplate new casino legisla- candidates. tion, including a land-based gambling operation in Gary. Should that happen, expect to hear about College Heck, the Legislature should have authorized land- Bound – one of the really good things about Lake County based gambling from the get-go. that came out of the casino legislation. v Instead, legislators pretended riverboat gambling was a bit of Americana, something out of a Mark Twain James is the former editorial page editor for the novel and was going to hurt no one. Post-Tribune. The thinking was that it was fairly harmless, almost as if the gamblers were using play money. One of the greatest programs to be funded by casino money is in Hammond. Mayor Thomas McDermott Jr. came up with his College Bound scholarship program after seeing how such a program works in a southern Michigan community. The Hammond program offers four-year college scholarships to the children of Hammond homeowners. The annual amount was increased to $10,000 last year. It has been a win-win program for Hammond and local colleges. HOWEY Politics Indiana Page 15 Weekly Briefing on Indiana Politics Thursday, Jan. 24, 2013

who went on to serve in Congress. A tale of two speakers: Bosma noted accurately that Julia Carson was described as “an ultra-liberal, inner city Democrat” and his father was regarded as “an ultra-right-wing suburban, more one in DC, one in Indy like rural.” By JACK COLWELL They didn’t have much in common, he contin- SOUTH BEND - Speaker of the House. ued: “One white, one black. One Republican, one Demo- Both of them have that title, a title that connotes crat. One man, one woman. They didn’t see eye-to-eye on power. Both are Republicans just selected to preside in a very many issues, but they set those political differences new legislative session. Both thus have authority in rulings aside and joined hands for the disabled. So much so that and recognition of legislators they became known as the ‘odd couple.’” and in articulating the goals and Bosma challenged the Indiana legislators: “Where agenda of the majority. is the odd couple in this room that will set political differ- Yet, they are far different. ences aside and concentrate on (early childhood education They are: for families) that cannot afford the same opportunities that Speaker of the House John most of us in this room enjoy?” Boehner, who presides over the He called for some defender of administration poli- U.S. House of Representatives. cies on child protection and some harsh critic to be an “odd Speaker of the House couple” working to make sure “every child under the care Brian Bosma, who presides over of the Department of Child Services is in a safe place.” the Indiana House of Representa- An “odd couple” willing to reach across the aisle for tives. flexibility for both teachers and school corporations? Far different? Yes. And An “odd couple” differing on social issues “but will- not just far in the sense of the ing to set that aside and work together to find a way to get distance from Indianapolis to Washington, D.C. science, technology, engineering and mathematics teachers We hear a lot from and about Boehner, so often in every classroom that wants them?” in the news for his partisan opposition to anything said or In a visit to The Tribune, Bosma expanded on the proposed by President Obama. Despite his power, he can- theme of working together on the big issues. Biggest of not steer his contentious majority, now a smaller majority all, he said, is workforce development. He noted that the that needs to stick together to halt the plummeting to ever unemployment rate remains too high even as job openings lower approval ratings. abound. Thus, he said, the state, working with local com- We hear not so much so far from and about Bos- munities, must see that more workers become qualified to ma, so often conciliatory rather than inflammatory in refer- fill those vacancies. ences to a depleted Democratic minority. He has used his On tax cuts - source of such warfare in Washing- power to guide a super majority, a majority so big it easily ton - he called for a common sense approach of waiting to could break into warring factions to ruin high election-time see what April revenue forecasts show rather than battling popularity. now one way or the other in Indiana. The difference was shown right away in Bosma’s And while partisans in Washington fight to swing speech on opening day of the Indiana General Assembly. an agenda left or right on divisive issues, Bosma said he He called for bipartisanship. He talked of reaching out with expects “no hard jerk left or right.” “a spirit of working together” to solve problems. Bosma even urged members of the Hoosier con- Boehner, of course, likely would be out as speak- gressional delegation to act as “peacemakers.” er if he talked about reaching across the aisle in bipartisan- Boehner couldn’t ask for peacemakers in Congress. ship. Partisan political dogma there calls for an unwavering One of the caucus Beatitudes is: “Cursed are the peace- hate-thy-neighbor-across-the-aisle belief. makers, for they shall inherit a primary challenge.” v Bosma noted the presence at the opening session of a visiting Democratic congressman, Rep. Andre Carson Colwell has covered Indiana politics over five de- of Indianapolis, and told a story of how an “odd couple” in cades for the South Bend Tribune. the Indiana General Assembly once teamed up for signifi- cant legislation for the disabled. Those state legislators were Bosma’s father, Charles Bosma, and Carson’s grandmother, Julia Carson, HOWEY Politics Indiana Page 16 Weekly Briefing on Indiana Politics Thursday, Jan. 24, 2013

While our average annual growth rate was 2.5 A realistic view of percent, the nation advanced by 3.7 percent and Indiana’s share of all manufacturing in the U.S. shrank. Indiana’s economy These are but a few of the economic facts of the past eight years. The self-congratulatory notes struck by By MORTON J. MARCUS the out-going and the incoming administrations concerning INDIANAPOLIS - You cannot blame Mike Pence for our fiscal circumstances highlight their values. They believe delivering an upbeat inaugural address. Let’s just hope it is appropriate to sacrifice services to the disadvantaged, he has a clear understanding of Indiana’s real economic the poor, and the state’s students in order to protect pri- circumstances. vate consumption. Take a look at the contrast be- While Indiana enjoys a fiscal surplus, we suffer from tween 2011, the last year for which we a deficit of social responsibility. v have full data, and eight years earlier. This is not to say that the Daniels’ Mr. Marcus is an independent economist, writer and administration is responsible for the speaker. problems we face. No state administra- tion is capable of offsetting the trends of the times. In fact, it is best, from a purely political point of view, for governors Union membership in steep decline not to raise economic expectations in areas where they are mostly powerless. WASHINGTON - Union membership plummeted last For example, Gov. Daniels set a goal of year to the lowest level since the 1930s as cash-strapped raising Indiana’s per capita personal income (PCPI) closer state and local governments shed workers and unions had to the national average. difficulty organizing new members in the private sector In 2003, Indiana’s PCPI was 9 percent below the na- despite signs of an improving economy (Associated Press). tional average. We ranked 33rd among the 50 states. Eight Government figures released Wednesday showed union years later, we ranked 40th in the nation, 14 percent below membership declined from 11.8 percent to 11.3 percent of the United States average. Our average annual growth rate the workforce, another blow to a labor movement already was 2.4 percent, the fourth lowest in the nation. stretched thin by battles in Wisconsin, Indiana, Michigan PCPI is the result of dividing personal income by and other states to curb bargaining rights and weaken population. It turns out our personal income growth rate union clout. was the third lowest in America, just below Ohio and Michi- In Indiana, where a new right-to-work law took gan. If it were not for the slow rate of growth in popula- effect last March, the state lost about 56,000 union mem- tion (0.6 percent annually), Indiana’s PCPI could have been bers. The law prohibits unions from requiring workers to even lower. pay union fees, even if they benefit from a collective bar- In 2003, the average compensation per job in Indi- gaining agreement. Michigan lawmakers approved a similar ana was $42,489. This grew to $51,297 by 2011. Sounds measure in December. good, but over the course of eight years that 21 percent Overall membership fell by about 400,000 workers growth was second lowest in the nation. More important, it to 14.4 million, according to the Bureau of Labor Statistics. was a mere one percentage point greater than the increase More than half the loss, about 234,000, came from govern- in consumer prices. One percentage point of real increase ment workers including teachers, firefighters and public in compensation per job over an eight year period! administrators. But unions also saw losses in the private As we step back and look at state’s economy, we sector even as the economy created 1.8 million new jobs see that Indiana’s Gross Domestic Product went from 15th in 2012. That membership rate fell from 6.9 percent to largest in the country to 17th as we were passed by Mary- 6.6 percent, a troubling sign for the future of organized land and Minnesota. Our total output of goods and services labor, as job growth generally has taken place at non- was seven percent less than it would have been if we had union companies. “To employers, it’s going to look like the but grown at the national rate of increase. labor movement is ready for a knockout punch,” said Gary In manufacturing, there is a deceptive bright point. Chaison, professor of industrial relations at Clark University Indiana moved from producing the eighth largest value of in Worcester, Mass. “You can’t be a movement and get output to sixth place. This occurred because Pennsylvania smaller.” v and Michigan slipped drastically during those eight years. HOWEY Politics Indiana Page 17 Weekly Briefing on Indiana Politics Thursday, Jan. 24, 2013

down to attitude. Some ideas for To begin, they have to put the country first. Not their party or their re-election or their political ambitions, updating Congress but the nation’s best interest. The surest way I know to earn the respect of voters is to put responsible governance By LEE H. HAMILTON first. BLOOMINGTON - A few weeks ago, the survey firm In part, this means acting with the future in Public Policy Polling made headlines when it released a mind. Thomas Jefferson in his first inaugural address poll comparing Congress’s standing to a variety of unloved looked toward “our descendants to the thousandth and things. Respondents did prefer our national legislature to the thousandth generation.” That may be a longer time- the ebola virus, but otherwise frame than is politically realistic, but at the moment I’d the news was grim: Americans, even settle for just the thousandth and the thousandth day, the survey suggested, have a which is more far-sighted than most members’ obsession lower opinion of Congress than with the next election. Americans care about their country’s of head lice, Genghis Khan, future, and they want their representatives to do so, too. used-car salesmen, and root This means that members of Congress need to canals. accept responsibility for resolving the nation’s challenges, I’ll admit it: I chuckled, whether they’re in the majority or in the minority. Our though I don’t really agree. country simply cannot survive the current reluctance to Having experienced both, I put meet our problems head on or Capitol Hill’s tolerance for Congress well ahead of root the sort of brinksmanship that leaves the nation on tenter- canals. hooks and difficult issues put off for another day. Still, in the years since I Members have a responsibility to make the govern- left Capitol Hill my frustration ment work, and they need to square their shoulders and with the institution I admired step up to it: to make decisions, to vote on the issues that and loved has grown; watching need addressing — rather than on legislation designed to it now is painful. Congress has shown a dispiriting unwill- give them political cover or to pander to deep-pocketed ingness to reckon with tax reform, rein in the deficit, find interests — and to move the country forward. ways to spur economic growth or make any of the other To do this, they will have to work out their dif- tough decisions that face it. When it does make a decision, ferences — through skillful negotiation, patience, under- it tends to limit its reach — thus, over and over, avoiding standing, accommodation, and compromise. Being a mem- the real issues. ber does not mean treating adversaries as enemies to be Its constant partisanship, lack of urgency in the defeated and humiliated; they are colleagues with whom face of looming fiscal threats, posturing and finger-pointing one must cooperate on the larger goal of searching for a even at moments when the national interest clearly de- remedy to the challenges that beset the country. Focusing mands a resolution — all these have made it appear unin- on the facts — rather than on scoring ideological points — terested in actually governing. and working together to build consensus based on those Yet people do not run for Congress so they can facts is the only way our representatives will be able to become unpopular. They don’t go to Washington because take on the responsibilities Americans expect of them. they want to accomplish nothing. They don’t take the oath That is what Americans are looking for. And that of office, surrounded by reminders of the distinguished is what Congress needs to deliver if it wants to be more men and women who came before them, just to disavow popular than root canals. v Congress’s rich history of accomplishment. Rather, they get caught in a destructive cycle Lee Hamilton is Director of the Center on Congress whose dynamics are often shaped by political forces out at Indiana University. He was a member of the U.S. of their control — by the demands of party loyalty or the House of Representatives for 34 years. arm-twisting of caucus leaders, by the threats and blan- dishments of special interests or the fear of well-funded opposition in the next primary. The challenge facing mem- bers of Congress is to rise above all this, to find a way to reassert the values and aspirations that first brought them to national office. How can they do this? I’m convinced that it comes HOWEY Politics Indiana Page 18 Weekly Briefing on Indiana Politics Thursday, Jan. 24, 2013

Michael Gerson, Washington Post: Just be- for people who would like to come to dinners like this fore noon Jan. 14, Mitch Daniels ceased to be governor of someday.’ ” v Indiana. By 2 p.m. he was in West Lafayette conducting a meeting as the soon-to-be president of Purdue University. Maureen Hayden, CHNI: Love him or hate him, A true Hoosier calls that a promotion. But his elevated new there’s one area of consensus on the soon-to-be departing stage is a smaller one. And as national Republicans con- Gov. Mitch Daniels: He transformed Indiana state govern- template the second half of the Obama era, they wonder ment in ways few of his predecessors ever did. In 2004, he what might have been. Daniels pronounces himself “at was the first Republican in 16 years to take the governor’s peace” with his decision not to run for president — the sort office, and he wasted little time firing up what he called of thing a man says after many restless nights. “I made a “freight train of change.” One of his first acts in office the right decision,” he tells me. The objection of his fam- was to sign an executive order doing away with collective ily was “a showstopper, in and of itself.” And remaining on bargaining for state employees. One of the big pieces of the job as governor “allowed me to fulfill a commitment, to legislation he signed into law in his final year in office was get some big stuff done right to the end.” Even his stron- the right-to-work bill that bars labor contracts from requir- gest critics don’t deny that “big stuff” has been achieved. ing non-union members to pay union dues. There was Daniels was arguably the most ambitious, effective con- much more in between than room in this column to list. He servative governor in America. In the process, pushed for the property tax caps that are locked Daniels demonstrated two paradoxes of con- into Indiana law; championed the creation of the servative governance. First, it often requires a nation’s largest voucher program that gives low- strong executive to encourage limited govern- income parents public dollars to put their children ment. Margaret Thatcher, for example, used in private schools; outsourced the Indiana toll executive power to break up existing arrange- road and the welfare system to private entities; ments favorable to calcified liberalism. Daniels and changed our clocks when he shoved the state came into office promising a “freight train of onto daylight saving time. Brian Howey, longtime change” directed at state bureaucracies that had grown chronicler of Indiana politics and publisher of Howey Indi- comfortable in dysfunction and mediocrity. Second, Daniels ana Politics, has described — with more much eloquence demonstrated that a smaller, more focused government can than I can muster — how transformative Daniels has been restore the reputation of government. Grasping, ineffective both in politics and governing. In the foreword he wrote for bureaucracies cultivate public disdain. Daniels is a man of a book that contains excerpts from speeches Daniels made libertarian leanings who improved the public standing of over 22 years, Howey lists Daniels among the 10 governors the Bureau of Motor Vehicles and the Department of Rev- in Indiana’s almost 200-year history who were true change enue by making them more efficient and responsive. agents. Given how we cautious, conservative, stubborn “I set out with two faint hopes,” he says. “For a Hoosiers tend to loathe change, that’s a big deal. v change-averse state to be a leader. And for this to be a less cynical state. Skepticism about big government is as Ameri- NWI Times: Mark Lopez is the can as can be. But we must never allow skepticism about William Nangle, warm-up act. Pete Visclosky is the star. For as many years big government to become contempt for all government. as I can remember, the Northwest Indiana congressman We can disagree about the scope of government activity. has been listening to his constituents at community fo- But a free society requires a consensus that government rums. Visclosky, or Pete as most of those attending called is operated by people of good will achieving reasonable him, starts answering questions – written and verbal. How results.” Daniels’s parting observations on the state of the about the Illiana Expressway? It is, after all, not a federal Republican Party are broadly consistent with those of a ris- project, Visclosky notes. But “the benefit is to relieve traffic ing generation of conservative reformers. On immigration, on the Borman and U.S. 30.” The obvious national issues the GOP needs an approach “that embraces those who are of the day get equal time. The escalating debt. The future here, not castigates them.” He remains an advocate for a of Social Security and Medicare. The congressman takes “truce” on social issues — “leaving aside some irreconcil- his time, answering with facts and his view on each issue. able debates to focus on a few priorities, such as the fiscal No issue gets a louder response than gun control. It is crisis” — and notes that most Republicans have implicitly quickly obvious the crowd wants no part of further controls. adopted this approach already. And he believes Republicans One man rises, saying, “I worry that honest, hardworking should be speaking more directly to “people seeking to rise. people who need guns to protect” won’t be able to have To young people. To poor people. I never went to a GOP them. v dinner without saying: ‘We should be proud of the success of people in this room. But we really need to do something HOWEY Politics Indiana Page 19 Weekly Briefing on Indiana Politics Thursday, Jan. 24, 2013

Larry Bucshon backed the passage of law, saying the state was justified in Donnelly presses the No Budget, No Pay Act. “The first trying to protect children but that the Obama on Keystone step to any responsible debt reduction “blanket ban” went too far. The 2008 plan is to pass a budget, the most ba- law “broadly prohibits substantial pro- WASHINGTON - Two freshman sic responsibility of government, which tected speech rather than specifically Senate Democrats have jumped into also happens to be the law,” Bucshon targeting the evil of improper commu- the fight over the Keystone XL oil pipe- said. “Today, I voted in favor of the nications to minors,” the judges wrote. line, joining seven other Democrats No Budget, No Pay Act to require both and dozens of Republicans in pres- the Senate and the House to pass a suring President Obama to approve budget, or their pay will be withheld.” the project. Freshman Sens. Heidi Only U.S. Rep. Andre Carson from Evansville selects Heitkamp (D-N.D.) and Joe Donnelly Indiana opposed the bill. (D-Ind.) both backed the proposed hotel developer pipeline well before they arrived in the EVANSVILLE — A new Down- Senate. But their signatures on a let- Ballard presses for town hotel developed by a Branson, ter, just days into their Senate tenure, Mo., firm will usher Evansville back from 53 senators calling for Obama mass transit bill into the convention market for the first to quickly approve Keystone signals INDIANAPOLIS - Transit ad- time since the Executive Inn closed that the red-state lawmakers won’t vocates inundated an Indiana House in 2009, Mayor Lloyd Winnecke said hesitate to stake committee Wednesday afternoon with Wednesday (Evansville Courier & out positions at testimony urging authorization of local Press). The property at Martin Luther odds with more referendums that could set a $1.3 bil- King Boulevard and Walnut Street is to liberal mem- lion expansion in motion (Indianapolis include a hotel with approximately 250 bers of their Star). Indianapolis Mayor Greg Ballard rooms, a residential tower and busi- caucus. Heit- characterized expanded transit as nec- nesses. Wednesday morning’s 5-0 vote kamp accused essary to the city’s economic vitality, by the Evansville Redevelopment Com- the Obama as younger professionals look to live in mission signaled the formal opening of administration of dragging its feet on communities with convenient transpor- negotiations between city officials and Keystone as she joined more than half tation options. Other local mayors and Branson-based HCW. the Senate on the new letter calling transit boosters echoed his point, tying for approval. “We have gone through expanded transit to the metro area’s a process with the Keystone pipe- job-creation and workforce expan- LaPorte Council line where it has taken us longer to sion prospects. “Clearly, now isn’t the evaluate that pipeline than it took us time to handcuff the economic base bucks Milo to fight a world war. That is a frustrat- of the 11th-largest city,” Ballard told ing point to the American public who LaPORTE — A member of the the House Roads and Transportation realizes this is not only a great security LaPorte Historic Preservation Com- Committee, which met in the House project, but it’s a jobs project, it’s an mission who is accused of attempting chamber to accommodate the crowd. economic project,” Heitkamp said at to elude police because he was not a bipartisan press conference in the wearing a seat belt will retain his seat Capitol Wednesday. “We ask you not Judge tosses social — over the objections of the mayor. to move the goalposts as opponents Mayor Blair Milo Tuesday called for of this project have pressed you to do. media ban the city council to rescind its appoint- We urge you to choose jobs, economic ment of Tim Stabosz to the commis- development and American energy INDIANAPOLIS – An Indiana sion. However, by a 5-2 vote, the security,” the letter states. law that bans registered sex offenders council rejected the mayor’s request from using Facebook and other social in front of dozens of vocal supporters networking sites that can be accessed of Stabosz, who is a former member Bucshon backs by children is unconstitutional, a feder- of the city council. “He’s not the first al appeals court ruled Wednesday (As- person involved in politics that has No Budget, No Pay sociated Press). The 7th U.S. Circuit made mistakes. To set a precedent to of Appeals in Chicago overturned a remove people I think is bad judg- WASHINGTON - U.S. Rep. federal judge’s decision upholding the ment,” council member Joe Mrozinske.