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V17, N19 Thursday, Jan. 12, 2012 Charlie’s Duck Soup: another fine mess His disaster ricochets across 3 branches of government, 2 parties and up & down Market St. By BRIAN A. HOWEY - It’s not quite “Duck Soup” with Oliver Hardy admonish- ing Stanley Laurel: “This is another fine mess you’ve gotten us into.” But the saga of Secretary of State Charlie White is about to enter a multi- dimensional climax over the next two or three months. And while there have been statewide officer holders who have ended up in career-ending legal predicaments - Supt. of Instruction Harold Negley and Clerk of Courts Dwayne Brown the most recent - the Charlie saga has or could in- The next couple of months will likely bring a sensational end to the Charlie White volve all three branches of government and saga, one of the strangest chapters in political history. have unpredictable political implications up and down Market Street. voter registration, Class D felony; two counts of perjury, White is facing trial in Hamilton County Superior Class D felony; voting outside of precinct resident, Class D Court on a seven-count indictment for election fraud issued felony; procuring a fraudulent ballot, Class D felony; theft, in March 2011, perjury and theft related to his 2010 prima- Class D felony; and fraud on a financial institution, Class C ry vote in Fishers, allegedly from the wrong residence. The Continued on page 4 charges that will be heard on Jan. 30 include: fraudulent Mitch & Morton’s historic bond

By BRIAN A. HOWEY INDIANAPOLIS - Gov. , facing west as he gave his final State of the State address Tuesday, essentially stood back-to-back with the statue guarding the Tuesday’s House Labor eastern entrance of the Indiana State- house – that of Gov. Oliver P. Morton. Committee “did not reflect A slender strand of history now connects the two. After Copperhead democracy’s finest hour.” Democrats won the Indiana General - Speaker Assembly in 1862, a political reaction to Morton’s backing of the coming Eman- cipation Proclamation, Gov. Morton feared they would pull Indiana out of the Union and he sent Republican leg- HOWEY Politics Indiana Page 2 Weekly Briefing on Indiana Politics Thursday, Jan. 12, 2012

islators to Madison, within easy access to Kentucky if Democrats tried to forcibly return them to Indianapolis. Thus, there would be no quorum. In 1863 www.HoweyPolitics.com and 1864, there would be no . And no annual State of the State Howey Politics address. Republicans would win Indiana back control of the legislature in is a non-partisan newsletter the elections of 1864 and soon based in Indianapolis. It was thereafter the American Civil founded in 1994 in Fort Wayne. War would be over. Thus, the annual event of a State of the State address Brian A. Howey, Publisher would be one where Republican Mark Schoeff Jr., Washington and Democrat legislators would Jack E. Howey, editor convene in the Indiana House Beverly K. Phillips, associate to hear the governor’s annual report. Until Tuesday night. editor Most House Democrats Gov. Oliver P. Morton was ruthless in dealing with boycotted Gov. Daniels’ address, Democrats and traitors. Subscriptions a political and emotional reaction half empty chamber (some sena- $350 annually HPI Weekly to what had occurred Tuesday morn- tors took the seats of missing House ing in the House Labor Committee. $550 annually HPI Weekly and Democrats). As the governor spoke, The meeting lasted just six minutes, chanting and yelling could be heard HPI Daily Wire. with Chairman of outside the House chambers. “Walk 'Call 317.627.6746 Francesville, refusing all amendments out! Walk out!” the union members and stymieing all discussion and public chanted. Some yelled insults at First testimony on HB1001, the Right to Contact HPI Lady Cheri Daniels. Work bill. Actually Rep. Fry asked Howey Politics Indiana “You cannot deny process,” a relevant question: “What are you 6255 N. Evanston Ave. Rep. David Niezgodski charged. “What afraid of?” Indianapolis, IN 46220 you’re trying to do today, we object Many of the gathered Repub- www.howeypolitics.com to.” lican legislators – sensing palpable “I think the light of democracy [email protected] fear in the gathering protesters – were just went out in the Indiana House,” packing heat, more so than normal. 'Howey’s cell: 317.506.0883 said Rep. , D-Terre Haute. But politically, things seem 'Washington: 703.248.0909 “I’ve never seen a charade like this stacked in favor of Republicans. The 'Business Office: 317.627.6746 in my life,” said Rep. John Bartlett, recent Public Opinion Strategies polls D-Indianapolis. House Minority Leader show large margins of support for B. Patrick Bauer observed, “We have © 2012, Howey Politics Indiana. Right to Work. Some 68% of Hoosiers a Chinese democracy, joined by a are against the Democratic walkouts. All rights reserved. Photocopy- quest for Chinese wages and Chinese The Republicans have a 60-40 major- ing, Internet forwarding, fax- benefits.” ity in the House and a super majority ing or reproducing in any form, Speaker Bosma, reviewing in the Senate. And there stood Gov. whole or part, is a violation of the hearing tape, acknowledged that Mitch Daniels, the most successful it “did not reflect democracy’s finest union-busting governor in Indiana his- federal law without permission hour.” v tory. from the publisher. Thus ensued the historic He would make the case to snub. Most House Democrats stayed Hoosiers in his speech, saying, “Be- away. Hoosier television viewers wit- cause economic opportunity, and nessed Daniels speaking to an almost building America’s best home for jobs, HOWEY Politics Indiana Page 3 Weekly Briefing on Indiana Politics Thursday, Jan. 12, 2012

is the central goal of all we do, every year should include acted like they had a mandate,” Gregg said. “They came a bold stroke to enhance it,” Daniels said. “This year, the in, and said, ‘Let’s settle some old scores.’ They wanted to choice of actions has become obvious. In survey after get rid of fair share for the teachers, they wanted to do survey, by margins of 2 to 1 or more, Hoosiers support the away with the prevailing wage, the mini Davis-Bacon Act. principle known as Right to Work. After a year of studying Well, there was no reason to mess with fair share. They the proposal, I agree. The idea, that no worker should be just wanted to mess with the teachers and the ISTA. The forced to pay union dues as a condition of keeping a job, one that really baffled me, like it did this time, the building is simple, and just. But the benefits in new jobs would be and trades people, because on a lot of social issues, these large: A third or more of growing or relocating businesses guys were starting to feel real at home because of and the social issues, and the Republicans went out and smacked them in their wallet. They did it in ‘95 and they did it this time. It’s amazing. “I became Speaker because of what they did in 1995. And it will make me governor.” Republicans defend the heavy-handed tactics, cit- ing last year’s five-week walkout to and – at this writing – four days of boycotts this year. There was no need of testimony on Tuesday because there had been five hours of it last Friday, they reasoned. And all the issues had been extensively vetted in 2011. Rep. , R-Carmel, called the Democratic amendments “showboating” and added, “I suspect they are going to walk out again no matter what we do.” But with every controversial issue – some like Daylight Savings Time fought annually for more than Gov. Daniels greets Minority Leaders Bauer and Simpson prior to his a decade – the process was followed, the testimony State of the State, which was boycotted by many Democrats. heard, even if it had been repeated ad nauseam. Until this month. With both sides digging in, all the other important will not consider a state that does not provide workers this legislation – human trafficking, a statewide smoking ban, protection. Almost half our fellow states have Right-to- an online sales tax, local government reform– is held hos- Work laws. As a group, they are adding jobs faster, grow- tage while Daniels and the Republicans try to finish off the ing worker income faster, and enjoying lower unemploy- unions, which since 2005 had steered $4 million into Demo- ment rates than those of us without a law. In those ratings cratic campaigns. This isn’t so much about job creation as of business attractiveness I mentioned, the only states it is about politics. ahead of us are Right-to-Work states.” As for Democrats, this is what happens when, So if Republicans have public opinion, huge majori- as a party, you become vacuous defenders of the sta- ties and a sympathetic governor on their side, why, then, tus quo and purveyors of campaign political porn. When the heavy-handed tactics that have even some of the RTW a party becomes bereft of ideas and is simply there to proponents shaking their heads? obstruct, the voters will vote for the other guy. That’s why Speaker Bosma has put Right to Work on a Republicans have such big majorities. fast track, thus Gutwein was a loyal foot soldier, deny- As for Rep. Bartlett citing this “charade,” I must ing amendments, debate and testimony. It came after remind that he presided over a House committee a couple the Daniels’ administration tried to suppress the number of years ago and tried to spike a package of local govern- of protesters in the Statehouse, and received a stunning ment reforms, scurried back and forth between the House rebuke not only from columnists, editorial writers, Demo- floor and Pat Bauer’s office to get orders, and then forgot crats and union members, but Constitutional Republicans. to call for a vote as he gaveled the committee closed. It Daniels quickly relented. was one of the most amateurish moments in memory, and John Gregg, the former Democratic House Speaker emblematic of how policy bankrupt Indiana Democrats now running for governor, has been mostly silent in recent have become. weeks despite the growing controversy. It’s as if he’s allow- Today, despite their historic snub, they are paying a ing the GOP to damage itself. He calls it the “overreach” steep, steep price. v because he’s seen it before. “After the 1994 election, they HOWEY Politics Indiana Page 4 Weekly Briefing on Indiana Politics Thursday, Jan. 12, 2012

asked the Indiana Supreme Court to directly hear the state Charlie, from page 1 Recount Commission’s appeal regarding a statewide candi- date’s ballot eligibility, due to the importance of the case. felony. “It is in the public’s interest that this lingering question of The indictment came in time for the Indiana Gen- whether a statewide candidate was eligible for the ballot be eral Assembly to change the state election law in 2011. The decided with certainty and finality,” Zoeller explained. “In law, signed by Gov. Mitch Daniels last May, states, “If in the this rare circumstance, my office has asked the Indiana Su- event of a candidate who is found ineligible, it has no effect preme Court to take this case directly. In our role defending on party status.” the legal authority of state administrative boards, we will Up until the bill authored by State Sen. Mike vigorously contend the Recount Commission’s unanimous Young, R-Indianapolis, was passed and signed, had White decision was correct and ought not to have been reversed.” been removed from office, the Republican Party could have Holcomb hopes the Supreme Court hears the case. lost party status, making it tougher for its candidates to “The good news, Judge Rosenberg issued a stay and ev- have automatic ballot erything is frozen and access. we are, as well as other “What that interested parties, wait- bill is saying is, those ing to find out if the were real votes by real Supreme Court will take voters. They count,” up this case and, if so, said Indiana Repub- how quickly will they do lican Chairman Eric it. Everyone agrees the Holcomb. “We would sooner this is resolved, say it always said that, the better, for all par- but this went above ties involved. So we’ll and beyond and is wait with respect for very clear that’s the their decision whether case. We are not in it is taken up by the jeopardy of losing our Court of Appeals or the party status.” That law Supreme Court. We just essentially says, “we’ll simply have to wait for respect the intent of the process to play out. voters and we won’t “We’re pretty overturn their will.” confident, again, and On Dec. 22, precedent would sug- Marion Circuit Court Judge Louis Rosenberg ruled that gest that as the Recount Commission underscored already, White was not eligible for office. “Based on submissions of Charlie White was an eligible candidate to run for office. the parties mentioned above and for the foregoing rea- When this is confirmed, the sooner it is confirmed, the bet- sons, the Court reverses and sets aside the decision of the ter,” Holcomb said. Indiana Recount Commission,” Rosenberg ruled. “The Court There is no clear indication when the Rosen- grants the Election Contest of the berg ruling will be heard by a higher court. The matter has and remands the matter with instructions to said Commis- an interesting twist in that Chief Justice Randall T. Shepard sion to declare that Charlie White was not eligible to be a will retire in March. candidate for the office of Secretary of State and to certify One potential outcome could be that the higher the candidate who received the second highest number of courts allow the criminal case to proceed, beginning on votes, Vop Osili, as Secretary of State.” Rosenberg added, Jan. 30. “The fact that Mr. White knowingly registered in the wrong “The Hamilton County trial will take days, not precinct is sufficient to render him ineligible for the office of weeks,” Holcomb said. “I’m hopeful the end is near.” Secretary of State.” If White is exonerated of the felony counts in Judge Rosenberg stayed that ruling on Jan. 3 Hamilton Circuit Court, he would stay in office until a higher and White is expected to appeal that decision, which could court determined the validity of the Rosenberg ruling. take his case to either the Indiana Court of Appeals or the If White is convicted of a felony, Indiana law Indiana Supreme Court. requires an immediate vacation of the Secretary of State’s On Tuesday, Indiana Attorney General Greg Zoeller office. HOWEY Politics Indiana Page 5 Weekly Briefing on Indiana Politics Thursday, Jan. 12, 2012

from his official duties until the legal process reaches a conclusion.” But there are other wrinkles. Some Republicans are exploring the fact that with Council- man Osili taking an oath for a city office, it can be argued that he has essen- tially abandoned his claim on Secretary of State. In a year-end WTHR-TV interview, Daniels reiterated his call for White to step down. “I thought that would have been the right course before and I just hope it is resolved quickly. It has been a difficult and un- necessary situation for the state,” said Daniels. Gov. Mitch Daniels would then choose a replace- ment. Holcomb said that the likely step is that Daniels As for who might replace a felonious White, Holcomb said would designate a deputy Secretary of State to run the that there is a list of potential successors, but that he has office. He could immediately announce a replacement, but urged all of them to not “get out in front” of the various probably won’t because Hamilton Superior Court Judge scenarios. Steven Nation has the latitude to lessen a felony conviction And there are gathering political implications. to a misdemeanor at sentencing. “That would mean Charlie White has essentially become a pariah and an could reassume office,” Holcomb said. “The governor would embarrassment in Republican circles. One GOP leader ex- want to wait to hear a final sentencing. There is no dead- plained, “Charlie has virtually zero support anywhere. He is line for the governor to make an appointment.” a first-class embarrassment to the GOP.” Judge Nation’s sentencing could take up to a That became evident during a conference call month after a felony verdict is rendered. Holcomb had with GOP leaders last week. While Repub- This fine mess is complicated because there are licans want Charlie to disappear, there is fear that if Osili now overlapping criminal and civil cases. is installed, then he will ignore the Indiana Voter ID law. “The Supreme Court could await the outcome of The recent voter fraud cases in St. Joseph and Jennings the criminal trial,” Holcomb speculated. counties underscore Republican concerns about potential Daniels has twice called on White to resign. problems. Last March after the indictment, Daniels said, “This news If White isn’t convicted, there will be increasing is sad and regrettable, but the only course of honor is for calls for him to resign. Mr. White to step down from his duties, at least during the Many Republicans see Charlie White as a duration of these proceedings until a verdict is reached. It “cornered wild animal.” He will try to paint Indiana election would be neither credible nor appropriate for the state’s laws as arcane and difficult to apply. He will use the notion top elections official to continue to perform his duties while of “selective enforcement” of laws with , Dick contesting criminal charges, some of them under the very Lugar, , and David McIntosh as Exhibits laws the Secretary of State implements. I have consulted A through D. There have been hints that he can drop more with each of the other statewide elected officials and our embarrassing dirt bombs on fellow Republicans. judgment about this is unanimous.” There is no question, Ollie is right. One fine mess Holcomb said after the indictment, “What we here, Charlie. An epic mess. On an unparalleled political learned today is disappointing. We think it’s appropriate and legal scale. v Secretary of State Charlie White take a leave of absence HOWEY Politics Indiana Page 6 Weekly Briefing on Indiana Politics Thursday, Jan. 12, 2012

know what? When a decent idea like this comes forth, you Going nowhere know it ain’t gonna happen. 4. Here’s one for the RTW advocates. Make sure that every legislator knows what RTW really means. When on a fast train the House majority leader appears confused, wanna bet By RUSS STILWELL that there’s a whole lot more? Case in point: BOONVILLE - Last month I made a couple of Go to democracynow.com and see the interview predictions about what Right to Work will deliver to the between Rep. and House Majority Leader Bill Indiana General Assembly. Unfortunately, I was right. Friend that occurred on January 5. When asked whether What were those predictions? “Right to Work workers should pay a fee to their union for representation, legislation will take the 2012 session of the Indiana General Friend responded, “I think that is a very discussible issue. Assembly on an absolute crawl so The issue of payment of fees is a point worthy of discus- broad and consuming that Hoosiers sion. I don’t object to that.” will think it has come to an absolute What? Paying a fee for union representation is the halt.” I think that was an understate- very essence of what RTW is all about! If the House majori- ment. ty leader is confused on this issue, one would presume that I predicted, “There will be more most of the rest of his caucus is baffled as well. And what protests, more lobbying and more about the general public? Does this mean that we need television and news shows focusing more education? Duh? Does this mean that RTW will slow on this one single issue than all other down from the fast-track ? No chance. It’s all about cram- issues combined in years past. RTW ming this issue to the Gov’s desk before the Super Bowl! will take the breath out of every other 5. How about a novel idea? Let’s let the people de- issue before the legislature.” Ditto! cide. What? Let the people decide the most divisive issue in And I predicted that national pundits will set up generations? When legislators don’t even know what RTW shop in Indiana and make our Hoosier state the center- is really all about, how can the public know? Most reason- piece of what’s wrong with America. And just in time for able Hoosiers don’t have a clue what RTW is about. If we the Super Bowl week with an international audience! Ditto can’t have democracy in the Statehouse, maybe we can again! give it back to the Hoosier voters. Sometimes I just hate for bad predictions to be- 6. Maybe we should take a deep breath, take RTW come authenticated. This is the critical mass week for RTW. off the fast-track path and put it on a state referendum and Want to get this entire mess behind us and begin the work let democracy work. Let the people decide seems like a that most folks elected our legislative members for in the reasonable approach. Who benefits? Everyone. first place? House Ds get a breather and the House Rs can Pick the poison that takes this issue off the table. renew the Daniels aggressive agenda without interruption. It not a top 10 list, but it just might be worth taking a look And Hoosiers can begin the process of educating them- at. selves about whether or not RTW is sound public policy. 1. Take the bill off the agenda, stuff it in a sock Betcha there’s a bunch of House Rs who would like for the made in China and hang it from the Hoosier windmills in people to decide as well. Then they wouldn’t have to make NW Indiana that are made in Europe. Not likely. that dreadful vote and pay the piper this fall. 2. Maybe, just maybe, the House and Senate Re- 7. Wanna bet the Chamber, the Republican leader- publicans could realize that putting off this fast-tracking of ship and the out-of-state financiers of the RTW campaign RTW could bring reasonable minds together and solutions think this kind of democracy is a good idea? Nope, they’re could be achieved with a more deliberate approach. Did I not going to let RTW off the rails. It’s muscle flexing time. say this would also enable us to have a demonstration-free Most observers recognize that this isn’t about Super Bowl celebration as well? Nope, ain’t gonna happen fairness for Hoosier workers. It’s about payback time. It either. is all about the business community and their Republican 3. You know what? Maybe the House Democrat allies banding together to weaken unions and help make Leader and the House Speaker both have a good idea. our state be union free. Generally, when you let the people Let’s fully disclose where all the money is coming from on decide, sound logic and good decisions often prevail. the myriad of ads that are dominating our radios, our flat 8. NY Times: “Democrats resumed their boycott of screens and public media. Seems logical that the public Indiana House sessions Tuesday after the Republican-con- would want to know from whom and where the money is trolled labor committee approved Right-to-Work legislation coming from. Is it from Hoosiers or outside interests? You in six minutes without public testimony, committee debate HOWEY Politics Indiana Page 7 Weekly Briefing on Indiana Politics Thursday, Jan. 12, 2012

or amendments.” This short but true statement should song, “Fast Train.” The RTW fast train. “Well you’ve been shame every Hoosier and encourage every state legislator on a fast train and it’s going off the rails ... And you can’t to stop and take a breath. It should motivate them to slow come back, can’t come back together again ... And you down the RTW freight train, get it right and listen to the start breaking down... In the pouring rain ... Well you’ve people. Oh, if it was only that easy. It isn’t and they won’t! been on a fast train.” The lyrics were as poignant then as 9. We now have fewer than 24 days in the count- they are now. RTW is on a fast train and it’s going off the down for the Super Bowl in Indy. We will be on the inter- rails. Let’s allow the people decide and put it on the train of national stage for a week, and more. And what will we be Hoosier democracy. v sharing the spotlight with? You got it . . . Right to Work and the fast train to nowhere. Surely cooler heads can Stilwell is a former Democratic House majority prevail and slow it down before it careens off the rails. leader. 10. This debate reminds me of the Van Morrison

the primary.” Strange bedfellows in These are similar talking points that Mourdock’s campaign used last summer: that a low turnout primary would bolster the challenger. Lugar chief of staff Marty GOP Senate race Morris has always been quick to attack that assump- By BRIAN A. HOWEY tion, assuming that Lugar’s campaign won’t be working INDIANAPOLIS - Strange bedfellows, Richard Mour- to increase turnout, particularly among independent and dock and the Indiana Democratic Party, these days. even Democratic voters. The fact that there will be virtually Don’t show up for work? Ditto, ditto. no Democratic primary contests will free up many voters. Press the message that U.S. Sen. Dick Lugar is Indiana’s wide open primary structure means that more likely to get beat in the pri- than just Republicans will vote in the Senate race, just as it mary? Ditto, ditto. was GOP voters who essentially helped win a Indiana Democrats were razor-thin win over in 2008. circulating a Huffington Post In 2010, at the height of the , story that recent internal the group didn’t dominate, as captured the U.S. polling shows Lugar and Senate nomination. U.S. Rep. Marlin Stutzman was able to Mourdock “statistically tied” at use the Tea Party thrust to win the 3rd CD, but that came 42-41%. The catch is that it’s in a caucus. a survey from Republican vot- The Lugar campaign points out many flaws in the ers who voted in the last two primaries. story thread. Among them: that it had planned for a con- The other notion is that Mitt Romney’s “inevitable” tested presidential primary. To include that scenario in any nomination well before the May 8 Indiana primary is bad credible campaign strategy would be a fantastic leap. news for Lugar. The story goes that with a fully-engaged Indiana Democratic Chairman Dan Parker insists that Lugar GOP presidential primary, Lugar will be able to add more is vulnerable in the primary. He has a “tracker” following independent and Democratic vot- the Mourdock campaign (as does ers. “If the Republican nomination the Lugar campaign) and be- is sealed by the time Indiana’s lieves the treasurer is organizing May primary rolls around, low a formidable ground operation turnout may prove a significant with the help of national Tea factor - and a real challenge - Party groups like the Tea Party for Lugar,” argues the Donnelly Express and FreedomWorks. memo, prepared by the Global Asked why, then, Mourdock has Strategy Group. “Lugar’s suc- struggled to raise money after cess is largely dependent on a Sharron Angle and Christine higher primary turnout, where O’Donnell raised millions of the ideological bent of the voters dollars in 2010, Parker said that Sen. Lugar dropped off petitons at the St. Joseph County much of that money flowed is more mixed. In a low turnout Voter Registration office - scene of a presidential ballot election, Tea Party voters, who after the primary. petiton scandal HPI covered - Wednesday. (South Bend From the standpoint of favor Mourdock, would dominate Tribune Photo) HOWEY Politics Indiana Page 8 Weekly Briefing on Indiana Politics Thursday, Jan. 12, 2012

U.S. Rep. , why it took him so long, and why the presumed Demo- he refused to do so over a year cratic nominee, taking on ago when the case began,” said Mourdock would provide Mourdock. the kind of opportunity The Lugar campaign that O’Donnell and Angle offered a rebuke, saying that presented Democrats in Mourdock “accidentally misfired 2010. Both defeated more or intentionally mislead when he mainstream Republicans attempted this week to discuss in primaries, then lost the Senator Richard G. Lugar’s long- Senate seats in the fall, time opposition to Obamacare.” costing the GOP a Senate “In yet another example majority. Huffington report- of what The Indianapolis Star ed: Global Strategy Group’s on Sunday called a struggling, data - which should be stumbling campaign, Mourdock taken with a grain of salt again misrepresented Dick Lugar’s because it was gathered record,” said David W. Willkie, po- for Donnelly - finds Don- litical director for Friends of Dick nelly leading Mourdock by Lugar. Willkie said Lugar’s record about 7 percentage points. speaks louder than Mourdock’s Lugar is also work- attack: Lugar announced his ing an intense grassroots opposition to Obamacare in July campaign. The campaign of 2009, five months before its opened its Northeast Indi- U.S. Rep. (top, left) meets with new Muncie Mayor passage; supported every Con- ana headquarters in Fort Dennis Tyler. Below, Jim Wallace’s TV ad features his chopper gressional attempt to delay and Wayne on Tuesday. “Adding piloting. derail the bill; voted more than this regional headquarters 20 times against Obamacare; will increase the number publicly described Obamacare as of calls we are making to Hoosiers to more than 30,000 “irresponsible” and “incomprehensible”; asked Indiana At- weekly,” said Lugar campaign manager Emily Krueger. The torney General Greg Zoeller to review Obamacare’s consti- Lugar campaign fanned out across the state on Wednesday, tutionality; helped prompt Indiana to engage in one of the delivering close to 7,000 signatures to the 92 county clerk national lawsuits against Obamacare; and signed onto the offices. Lugar personally appeared at the St. Joseph county U.S. Appeals Court and U.S. Supreme Court amicus briefs clerk’s office - scene of presidential ballot petition forgeries against Obamacare. in 2008 - to turn in his signatures. “Mourdock can’t seem to get either his facts or his Lugar is expected to post $750,000 raised on his eleventh campaign in order,” Willkie said. “That’s why so fourth quarter 2011 FEC report, campaign sources tell many Republican volunteers and donors are questioning Howey Politics Indiana, and will have more than $4 million Mourdock’s electability and capacity to serve in higher of- cash on hand. Indiana political insiders expect Lugar to fice.”Horse Race Primary Status: Leans Lugar show a strong first quarter with several fundraisers head- lined by popular Indiana Gov. Mitch Daniels, U.S. Sen. Lisa Governor: Gregg laying low Murkowski and other dignitaries already on the calendar. Democrat John Gregg has been concentrating on Mourdock attempted to take aim at Lugar over the fundraising and hasn’t weighed in on the issues. He reacted , or “Obamacare,” last Friday. Mourdock to Gov. Mitch Daniels’ State of the State address Tuesday, called out Lugar for “flip-flopping on the ObamaCare Case” saying, “Hardworking Hoosiers are falling behind, and that’s by finally announcing his support for a legal brief filed not right. When I’m governor, I will bring good-paying jobs by Senator Mitch McConnell and the majority of Senate back to Indiana by improving education, investing in clean Republicans. “It is interesting that Senator Lugar is now Indiana coal and alternative energy, and providing small willing to formally support the challenge to the constitu- businesses with the tools to grow. We need a governor that tionality of the Patient Protection and Affordable Care Act will improve Indiana’s abilities to create jobs. Whether it (ObamaCare) by supporting the most recent legal brief filed is helping a small business expand in Muncie, promoting by Senator McConnell and GOP Senators. The question in Gary, or getting more kids into vocational Republican primary voters should be asking themselves is training at a place like Vincennes University, I know that as HOWEY Politics Indiana Page 9 Weekly Briefing on Indiana Politics Thursday, Jan. 12, 2012

a state - and as Hoosiers - we can do better.” seeking another term in the representing But he has stayed above the fray as House Demo- District 42,She filed the required paperwork with the State crats have been battling Republicans on the Right to Work Senate and the Indiana Secretary of State’s office yester- legislation. Gregg appears to be letting the GOP’s heavy- day. “As I travel throughout the district, the number one handed tactics, such as attempting to cap the number of concern I hear continues to be jobs – more good-paying people entering the Statehouse, to Tuesday’s House Labor jobs for hard-working Hoosiers,” Leising said. “I consider Committee “cramdown” of HB1001 as the expected “over- my campaign to be a lengthy job interview with the people reach” on the issues that he believes will be a repeat of the of District 42, and I want to assure them that, if they party in 1995 that paved the way for Democrats to retake choose to rehire me for another term, my priority will be the House in 1996. helping those who are unemployed find new jobs and help Republican Jim Wallace is airing a new TV ad, fea- those who are employed keep the jobs they have.” turing his role as an U.S. Army helicopter pilot. As Wallace is shown piloting a chopper, he says that while he has been HD52: Smaltz to run a businessman who “creates jobs” over two decades, “this Longtime DeKalb County activist and small busi- is where I learned to be a leader. Your warrior for jobs, ness owner officially announced he will seek lower taxes and the Hoosier way of life.” the Indiana House District 52 seat (Fort Wayne Journal Wallace also announced that he married Jennifer Gazette). The Republican describes himself as a conserva- Taylor Friars in Maui on Jan. 2. tive and pro-constitutionalist. Since 2002, he has served Pence has been stumping in Indiana. He met with on the DeKalb County Council, and in 2006 he was elected Democratic Muncie Mayor Dennis Tyler on Tuesday. On to his current role as president of the council. Under his Wednesday, 35 Pence volunteers took part in “Operation leadership, the council consolidated three 911 call centers Certify,” traveling across the state to deliver petition signa- into a central dispatch system and helped lure a Family tures. Horse Race Primary Status: Likely Pence Dollar distribution center to Ashley. “Government can cre- ate an environment that jobs can be created in, however, 6th CD: Smith enters government can also get in the way unnecessarily,” Smaltz Bartholomew County Coroner Allen Smith, who said. “Bringing businesses into the community creates jobs. gained national exposure on “The Biggest Loser” reality Jobs bring payrolls. As payrolls increase, tax rates can be television series, plans to run for Indiana’s 6th District seat lowered and still produce the same amount of revenues for in the U.S. House of Representatives (Columbus Republic). services.” Current Rep. David Yarde, R-Garrett, has decided Luke Messer filed his candidacy on Wednesday at the Indi- to seek a Senate seat rather than reelection in the House. ana Statehouse. Horse Race Status: Likely Messer Allen County Councilman Paul Moss, R-At Large, is also seeking the House seat. Moss lives outside Huntertown. 8th CD: Bucshon seeks cuts One of the hundreds - perhaps thousands - of HD55: White to kick off campaign union supporters who waited more than two hours in line Republican Bob White will kick off his HD55 cam- to enter the Statehouse last week was former state Rep. paign at 10 a.m. Saturday, Jan. 21 at the Highpoint Or- Dave Crooks (Bradner, Evansville Courier & Press). The chard in Greensburg. He will be joined by State Sen. Brandt Democrat from Washington, Ind. is his party’s endorsed Hershman, State Rep. and Greensburg Mayor candidate for the 8th District U.S. House seat. And, like Gary Herbert. other Indiana Democrats, he sees organized labor as an important political ally. The incumbent he hopes to knock HD86: Bosso to challenge DeLaney off - freshman Republican U.S. Rep. - noted Indianapolis Republican Luke Bosso has announced Crooks’ presence, too. “Partisan antics that encourage his candidacy for House District 86. This seat is currently inaction and ignore the will of the people should never be held by State Representative Ed DeLaney, but will rep- promoted, regardless of which political party is involved,” resent new boundaries after the 2012 election (Howey Bucshon’s campaign said in a statement. “The fact that he Politics Indiana). Bosso is a graduate of North Central HS is actively supporting this action reveals he is disconnected and Franklin College. “Indiana has always been my home from what the founding fathers envisioned when they set and it has always been good to me, this is a great opportu- up our representative republic.” nity for me to serve the state and my district,” Bosso said, adding his campaign will focus on fiscal responsibility within SD42: Leising to seek reelection government as well as improving education reform. v State Sen. Jean Leising announced today she is HOWEY Politics Indiana Page 10 Weekly Briefing on Indiana Politics Thursday, Jan. 12, 2012

tion of quitting. McIntosh wants to make You can guarantee Burton will go to the primary if the speculation becomes rampant that he may not. That’s Burton’s nature. Asked about it, McIntosh wouldn’t go his campaign a template there. By BRIAN A. HOWEY In fact, McIntosh said he will keep his campaign INDIANAPOLIS - David McIntosh’s political come- positive and talk about why he wants to return, as opposed back began in earnest this past week. He had an India- to denigrating Burton and his other opponents. napolis Artsgarden presser where he defined the reasons McIntosh served in Congress from 1995 until 2000 for wanting to return to Congress after a 12 year hiatus. when he challenged Gov. Frank O’Bannon, losing by 14%. On Wednesday, he was at the Indiana Statehouse Since then, he has practiced law in Washington and con- to file his candidate papers. tinued his role as a founder of the Federalist Society, while And he surveys what he sees advising presidential candidates. as a very winnable race against U.S. He wants his 5th CD candidacy to be Rep. Dan Burton - perhaps the most something of a national template. “The real vulnerable Member this cycle. goal is to lay out (my candidacy) for the Last summer, his pollster - 70% of the 5th District that is new,” McIn- John McLaughlin - did a head-to-head tosh said at the Rathskeller on Tuesday. “But with Burton “among people who know I also want to lay out a conservative agenda both me and Dan Burton” and McIn- for pro-growth,” similar to the way Ronald tosh came out ahead 52-38%. Reagan did it in 1980. “America can over- And in a crowded race - which come its problems when we allow Americans includes former Federal DA Susan to innovate and create jobs,” McIntosh said. Brooks, former Marion County Coroner That brings him to three points: John McGoff and little known attorney 1. Stability in taxation. Jack Lugar also running - “we get to 2. Rein in the regulatory state. 38% and he’s at 30%,” McIntosh said 3. And create a stable dollar. of Burton. On regulatory reform, McIntosh em- That’s consistent with the phasizes “flexibility” to achieve goals. For verdict voters rendered in 2010 when example, McIntosh explained, “If you can Burton barely fended off Luke Messer say to the EPA, hold back on regulation costs with an anemic 29% of the vote, meaning 70% opposed and figure out what the higher environmental him. With the new maps, the 5th CD is without the Burton benefits are and keep those in place, less money will be strongholds of Miami, Wabash and Huntington counties. spent. It’s like a tax cut.” Both McIntosh and Brooks raised more than In an op-ed piece appearing in the Indianapolis $300,000 last quarter and both are expected to post better Star on Jan. 5, McIntosh explained, “Our economy is stuck numbers than Burton in the fourth quarter. Much of the in neutral - too many Hoosiers remain unemployed or in McIntosh campaign team is part of the Maverick team used jobs that don’t use their full talents. Regulatory agencies by U.S. Rep. Marlin Stutzman. have grown too powerful and impose many rules that busi- McIntosh believes that Brooks will have enough nesses - small and large - simply cannot afford. Govern- money to pump her name ID up to competitive levels, forg- ment has grown too large and, under Obama, has followed ing a potential three-way showdown. a crony capitalism model that picks winners and losers in And there has been considerable speculation that the marketplace and attempts to control entire sectors of Burton might the economy.” McIntosh Campaign not make it McIntosh said the real reason he’s running is for to the post, his children, Ellie and Davey. He pointed to his first stint in Campaign HQ: Anderson, Ind. though the Congress where Republicans and the Clinton administration Campaign Manager: Robb Greene congressman’s made cuts, reformed welfare and kept taxes stable, result- Campaign Chair: Devon Anderson office earlier ing in budget surplus. Fundraiser: David Buskirk this month let it The potential for an economic cataclysm is there. Press: Ryan Streeter be known that “That motivated me to run,” McIntosh said. “I don’t believe Pollster: John McLaughlin the incumbent we’ve got more than five years to figure this out.” v Media: Jason Neeland (Maverick) has no inten- HOWEY Politics Indiana Page 11 Weekly Briefing on Indiana Politics Thursday, Jan. 12, 2012

in 32 years. But King abruptly resigned during his third The Freeman-Wilson term, leading to the election of Mayor – a career politician who was ill-equipped to run the city. Those remaining have staked Gary’s future on era begins in Gary Freeman-Wilson, who recognizes the mess she has inher- By RICH JAMES ited. GARY - After watching the weeklong inauguration Some of the new mayor’s early moves have proved of Gary Mayor Karen Freeman-Wilson, one would have interesting. Although crime remains the city’s largest prob- thought the city was back in its heyday, a time when – and lem, Freeman-Wilson declined to consider Mark Becker as not all that long ago ‑ being elected Gary mayor was a police chief, saying department heads must live in the city. monumental event. Becker, who retired from the FBI four years ago is regarded After all, with a population of more than 175,000, it as one of the finest law enforcement officials in the state. used to be the second largest city in the state. While with the FBI, Becker headed the Gang Response With U.S. Steel running at capacity ‑ and a plethora Investigative Team that targeted gangs and drugs in Gary. of other industries ‑ the city was And, despite the dwindling population and awash in money and jobs. financial straits, Freeman-Wilson will have a hefty adminis- With a patronage army tration with a deputy mayor and chief of staff, as well as a second to none, any mayor public safety director overseeing the police and fire depart- who picked up the garbage and ments, curious moves at a time when the city has cut back plowed the streets was virtually on police and firefighting personnel. guaranteed re-election. Nevertheless, Freeman-Wilson takes over on the The mayor of Gary 40 run as she hopes to reap the benefits of special task forces years ago was simply a caretaker she appointed last year to advise her on a number of sub- for a city that ran itself. jects. But that was the Gary of Freeman-Wilson said she will stress basics by old. reconnecting the city to the people. Her early initiatives With just 82,000 residents include cleaning up the aging city – something Clay often remaining, Gary after the 2010 talked about but never got done. census not only lost its state ranking, but slipped behind Freeman-Wilson, too, wants to put people in Hammond as the most populous city in Lake County. abandoned housing for $1, as long as the property can be The white exodus began in 1967 shortly after Richard G. rehabbed. She has vowed $50 to all crime tips that lead to Hatcher was the first black elected mayor of a major U.S. an arrest. city. And she wants the residents to know that the city is listen- Today, the city is broke, filthy, littered with aban- ing. All calls to a city department will be answered within doned buildings and grasping for any hint of hope. The 72 hours. public school system is among the worst in Indiana and Veteran state Rep. Charlie Brown, who came has prompted the exit of blacks looking for a better future. to Gary in 1960, spoke at the mayor’s inauguration. “She While the number of homicides was can’t do it alone, and if everyone would live up to this significantly lower in 2011, Gary promise, we’d be the cleanest, most remains a dangerous, drug-infest- economically developed city in the ed city, steeped in unemployment. ,” Brown told the crowd. Despite the dismal That’s a pretty good description of outlook, huge crowds bounced the self-proclaimed City of the Century from event to event during what when Brown arrived in Gary 52 years v seemed more like a coronation ago. than the swearing-in of a new mayor during the first week of the Rich James is a former editorial month. page editor and columnist for the In some respects, it was Post-Tribune in Merrillville. reminiscent of 1995 when Gary looked for a radical change and elected Scott King as mayor – the Mayor Karen Freeman-Wilson faces tough prob- first white chief executive elected lems in Gary. HOWEY Politics Indiana Page 12 Weekly Briefing on Indiana Politics Thursday, Jan. 12, 2012

knew, so future growth starts from a higher number. Cor- Suddenly, the state porate tax projections are up $202 million for fiscal years 2012 and 2013 as a result. The General Assembly has three basic choices of has money what to do with this added money. They could increase By LARRY DeBOER spending, they could reduce taxes, or they could add the WEST LAFAYETTE - All of a sudden the state has money to state balances. money. The recent December forecast revision increased That’s where the new “excess state reserves” expected revenues by $516 million for the biennium. It’s law kicks in. If state balances exceed 10 percent of the been almost 10 years since we’ve seen that much added budget at the end of a fiscal year (on June 30), the excess revenue at the start of a legislative session. has to be distributed half to the pension stabilization fund And that’s not all. Suddenly, there’s an added $288 to help cover teacher pension commitments and half to million in state balances, the money income tax credits. In other words, excess balances trigger in the state’s checking account. an automatic tax cut. That’s in addition to the When the law was passed earlier this year, it didn’t added forecast revenue. look like it would have much effect any time soon. Balances Part of the added money were expected to be a little less than 10 percent at the end recognizes that revenue has been of the biennium in 2013. Now, with all the extra money, running ahead of projections so far balances are expected to be 12 percent of the budget at this year. Projections have been ad- the end of this fiscal year, June 30, 2012. If nothing is justed upward. Much of it, though, changed, the Budget Agency expects that $167 million will results from money we collected but be used for tax cuts when taxes are paid in 2013. didn’t know we had. That would amount to a credit of about 3 percent Here’s what happened: Tax on your income tax payment, perhaps $60 for the average payments are deposited into a col- taxpayer. lections fund when they first arrive What could our legislators do? They could let the at the Department of Revenue. Then a computer program tax cut happen; everyone likes lower taxes. Or they could sweeps this money into the appropriate fund, like the spend enough of the added money so that balances do not general fund. The budget passed by the General Assembly top 10 percent; this would make up for a fraction of the then authorizes spending out of these funds. $1.6 billion or so in spending cuts during the last biennium. In 2007 business corporations were offered a new Or they could change the law to raise the way to pay their corporate income taxes, called “e-Check.” balance ceiling above 10 percent; Indiana balances have Taxes could be paid by check electronically. Unfortunately, averaged about 14 percent over the past 35 years, so the the software that ran the sweep was not modified to catch 10 percent ceiling is a little low historically. this new source of corporate taxes. When the sweeps hap- In a sense, we’ve put an explicit price on added pened, the corporate e-Check money was left in the collec- spending or higher balances. Support school spending or tions fund. The money wasn’t lost. All of it was still there shore up the checking account, and it costs you and me in the collections fund, and it even earned interest. $60. We’ll soon see if this price affects what the General The e-Check payments were small at first, less Assembly does. v than half a percent of the $12 billion a year that passes through the collections fund. Then e-Check payments DeBoer is a professor of agricultural economics at jumped from $58 million in 2010 to $139 million in 2011. A Purdue University. Department of Revenue auditor found the error in Novem- ber. The newly discovered e-Check money totaled $320 million. Of this amount, $288 million has been added to state balances. That’s the tax money collected through 2011 but not spent because we didn’t know it was there. The $32 million from this fiscal year, 2012, has been added to this year’s revenue estimate. But the discovery of the error affects the forecast, too. Corporate income tax revenues were higher than we HOWEY Politics Indiana Page 13 Weekly Briefing on Indiana Politics Thursday, Jan. 12, 2012

Republican candidates, especially in South Bend but also St. Joe GOP faces big in county races, have sometimes been a joke. This doesn’t encourage party membership or willingness to contribute. The GOP brand in the county - with the exception of Misha- problems, opportunity waka mayoral politics - hasn’t been sterling. By JACK COLWELL This goes way back. SOUTH BEND - The St. Joseph County Republican Back to Republican nominees filing just to fill the Party (yes, there is one) has real problems. And real op- ticket and having no intention of campaigning, no desire to portunities. win. Dr. Deb Fleming, Mishawaka dentist who took over I remember one Republican candidate agreeing as county Republican chair last March, acknowledges the to talk about this off the record. “What would you do if you problems - membership, money and somehow won?” I asked. She replied, “I’d resign.” brand. And some South Bend Republican mayoral nomi- Decades of defeats for nees in the past 40 years were so unqualified that nobody county and South Bend offices have in either party really concerned about the city wanted them led to the perception that Republi- as mayor. I stress “some,” not “all.” cans are a joke in St. Joseph County Fleming says she will recruit qualified candidates, - and some of their candidates have not fill tickets with tokens. been pretty funny. Tough task. Past Republican chairs sought to re- But Republican mayors cruit many candidates who said “no.” keep winning in Mishawaka. Repub- In recruiting, Fleming says, she will pledge all-out lican candidates running statewide backing for a recruited candidate in the primary as well as often carry the county. Potential is the fall. there. She knows this could bring charges of “Boss Flem- In county races and especially in South Bend city ing” from others who might seek the nomination. She finds elections, however, those problems of membership, money that a price worth paying to improve the ticket and the and brand - like three strikes - have doomed even good brand. Republican candidates. The county chair is taking sides in the congressio- Fleming agrees there sometimes have been “token nal primary, supporting Jackie Walorski over opponents for candidates who lose, and then they just go away.” the nomination. Those three problems: But Fleming is taking no stand in the race between Membership. Jake Teshka, South Bend native Sen. Dick Lugar and state Treasurer Richard Mourdock for who was Northern Indiana field director for the Indiana Re- the U.S. Senate nomination. publican Party before assuming a newly created position as Fleming says she never was actively involved in executive director for the county party last November, was politics until inspired by the selection of Sarah Palin for the aghast at finding only 300 sustaining (regular contributing) vice presidential nomination. members. She found Palin’s background in sports similar to Thousands of county residents contribute to Re- her own as a letter winner in three sports at Mishawaka publican national and state causes but aren’t attracted to High School and volleyball player at the University of Ken- local candidates. Teshka now is directing a major member- tucky, where she obtained her dental degree. ship drive. Fleming doesn’t shy from political warfare. Money. Democratic candidates, especially in She recently wrote an opinion piece criticizing South Bend, almost always raise much more than their Re- the fund-raising of Brendan Mullen, the expected Demo- publican opponents. Even when Republicans have a chance cratic nominee for Congress. to knock off some weak link on the Democratic ticket, lack She called for the resignation of long-time County of targeting of limited resources usually prevents an upset. Democratic Chair Butch Morgan after reports of improper Increased membership and enhanced fund-raising to some petition signing. She hopes her call played a part in his extent go hand in hand. But more than a membership drive eventual resignation. is needed. The organization hopes to turn events such as She now has another target, capturing at least one the annual Lincoln Day Dinner into a more successful fund- of two county commissioner seats at stake. That, with a raiser and help with individual campaign efforts. holdover Republican seat, would give Republicans control Brand. This is the worst problem. It makes tack- of the county executive branch, a real opportunity for a v ling membership and money problems more difficult. party long with real problems. HOWEY Politics Indiana Page 14 Weekly Briefing on Indiana Politics Thursday, Jan. 12, 2012

on December 11, 2011 that not having a Right-to-Work law ‘Pious baloney’ offered in place has “never been cited as an issue when deciding when to locate in LaPorte County.” Continued Dermody, “They want to know about taxes, about a competent work- by GOP on RTW force, about good schools.” By SHAW R. FRIEDMAN State Sen. Brent Waltz (R-Greenwood) who LaPORTE - Oh, come on guys. Put aside the voted against Right-to-Work in committee echoed Der- pretense and charade that this is somehow about improv- mody’s sentiments when he flatly told the Associated Press ing Indiana’s job creation climate. The leadership of the on January 6, 2011 that he was troubled by the unwilling- Indiana Republican Party is now in thrall to national corpo- ness of RTW supporters to identify companies who won’t rate interests that want to make Indiana a poster child for consider Indiana because it lacks such a law and he hadn’t trying to cripple the ability of unions encountered that argument during his work as an invest- to represent their members. ment banker. Said Waltz, “I’ve not heard one person tell me Claims by House Speaker Bosma that Right-to-Work was relevant in their decision to come and Gov. Daniels that Right-to-Work here or in their decision not to come.” will somehow enhance Indiana’s Then why put the State Legislature and 6 million ability to attract new business are Hoosiers through this tumult, through this divisive and just so much “pious baloney” to use polarizing issue? Quite simply: the Republican leadership is the phrase coined by Newt Gingrich hell-bent on being viewed nationally as leaders in trying to at a recent candidates’ debate in punish organized labor. It’s a political leadership now out New Hampshire. of step with historic Republicans like Abe Lincoln and others You’d think that if this was the who understood the role that unions play in this country. #1 issue of the session as both It was Lincoln who said that “if a man tells you he trusts proclaim, they’d be able to produce documents supporting America yet fears labor, he is a fool. There is no America the claim of Indiana Economic Development Corporation without labor and to rob one is to fleece the other.” (IEDC) spokeswoman Katelyn Hancock who told the Times Another Republican who thinks unions make a of Northwest Indiana on December 22, 2011 that Indiana positive contribution to society had this to say: “Collective loses “new job and investment opportunities between a bargaining … has played a major role in America’s econom- quarter and a half of the time because we are not a Right- ic miracle. Unions represent some of the freest institutions to-Work state.” in this land. There are few finer examples of participatory Really? That’s a serious charge. That’s why I sent democracy to be found anywhere. Too often, discussion an Open Records request to IEDC Director Dan Hasler on about the labor movement concentrates on disputes, cor- December 27, 2011 requesting any documentation from ruption and strikes. But while these things are headlines, IEDC files to support the claim. I’ve even suggested the there are thousands of good agreements reached and put agency redact out company-specific info that might be into practice every year without a hitch.” trade sensitive or exempt from release under the Open Who is this Republican outlier whose radical Records Act. But the agency certainly has to have phone thinking would be anathema to the likes of Gov. Daniels memos or some documentation to show specific examples and Brian Bosma? Who would dare speak about the “sa- of where companies have indicated either to site selectors cred right of American workers to negotiate their wages?” or to the state directly that it is bypassing Indiana because None other than Ronald Reagan – that’s who. of no Right-to-Work law. Otherwise, this is nothing but It’s a shame that the Indiana Republican leader- “pious baloney” and it ought to be called that by the state- ship won’t heed those wise words or the insight of editorial house press corps. Still not a single document produced in boards like the South Bend Tribune who advised them to response to the request. “stand down on this fight, again this year, in deference to Those in the know already say the stated rea- an essential premise of democracy – being in the majority sons are nothing but a ruse. Former Indiana Commerce doesn’t give you carte blanche to ignore the minority.” Chief Tom McKenna told on January Another classic case of overreaching by Indiana 3, 2011 that the state administration is simply “making this Republicans that was never decided on by voters in 2010 up.” State Rep. (R-LaPorte) has come out elections and for which there is no desire by the bulk of against the bill and says he will vote against it. Dermody, Hoosiers to impose. Brian Bosma and the Governor don’t a LaPorte businessman has been involved in economic de- trust Hoosiers on this issue and that’s why they won’t put velopment groups seeking to entice business to northwest this issue up for a referendum. This is no longer the party v Indiana for years and told the Michigan City News Dispatch of Lincoln or Reagan – it’s the new Indiana GOP. HOWEY Politics Indiana Page 15 Weekly Briefing on Indiana Politics Thursday, Jan. 12, 2012

Dale Moss, Louisville Courier-Journal: I pre- Obama went to the Pentagon on Thursday for the budget dict Richard Lugar remains Indiana’s senior U.S. senator. announcement. He began by declaring victory in what Some in his party, the Republicans, wish Lugar was more used to be known as “the long war,” offering a string of conservative. Most Hoosiers are glad he is not. Lugar will valedictory phrases: The United States is “turning the page beat back a and stroll into an incredible on a decade of war”; “we’ve succeeded in defending our seventh term. v nation”; “the tide of war is receding.” Rhetoric about new strategies is standard fare, especially in an election year. But these claims should be taken seriously. The Pentagon Matt Tully, Indianapolis Star: What don’t I get? budget cuts will make a difference, at home and abroad. Well, apparently the following: 1. That Lugar’s willingness They mark a genuine shift, one of the most important since to work at times with (egads!) Democrats, and his inabil- 1945. What will change? First, the administration is cutting ity to see the world strictly through a simplistic partisan ground forces sharply because it doesn’t expect any new prism, make him an unsuitable Republican. 2. That the Iraqs or Afghanistans. Obviously, it’s premature to declare U.S. senator’s interest in working on the United States’ victory in Afghanistan when that war is far from over. But biggest problems -- and, yes, they include global issues the White House thinks that it can play the endgame effec- -- is a sign that he has forgotten about Indiana. 3. That tively even if it maintains a steady drawdown of troops. he is a bad Republican because, while helping to reduce It was easy to miss the impact of Obama’s words: He was the nuclear threat from the former , he hasn’t declaring that the era that began on Sept. 11, 2001, is spent enough time pandering to the Hoosier over. Al-Qaeda’s top leader is dead, and most of its GOP on the chicken-dinner political circuit. 4. cadres are on the run; secret peace talks are under That “compromise” -- until recently the trade- way with the Taliban. And across the Arab world, mark of a statesman -- is now a bad, bad word. the United States is talking with Muslim Brother- 5. That the senator is too old. Give me a break. hood and Salafist organizations that a few years It seems to me that what we need now more ago might have been on terror lists. It’s a process than ever in D.C. -- as well as at the Statehouse that’s similar to the way Britain ended its long war or City-County Building -- are more Lugars. Mourdock has with Irish terrorists, by engaging in negotiations with the struggled mightily to raise both money and his profile, and IRA’s “political” wing. v his campaign has stumbled at times, including when he offered a ridiculously simplistic plan to eliminate several federal agencies. Still, he has worked the local GOP politi- Fareed Zakaria, CNN: There’s not much foreign cal circuit from Lake Michigan to the Ohio River hard and policy talk on the campaign trail except for one issue - Iran. effectively for years. He’s won two statewide elections. He’s Everyone is talking about Iran’s new strength and as- getting help from some national conservative groups. Most sertiveness - its missile tests, its progress on the nuclear important, he has at his back the same type of voter anger program, its moves in Iraq. Mitt Romney, the Republican that claimed other respected Lugar-like Republicans across front-runner, describes Iran as “the greatest threat that the the nation in 2010. “The national mood continues to set world faces over the next decade.” Newt Gingrich has com- the tone for the race,” Mourdock told me last week. “And pared the Iranian challenge to the rise of Hitler’s Germany. the Republican base wants to see us become a more con- More measured commentators also see Iran’s rising influ- servative party.” Mourdock said he is bracing for the Lugar ence and power across the Middle East. In fact, the real campaign to “demonize” him with a negative ad campaign story on the ground is that Iran is weak and getting weak- “similar to what (Newt) Gingrich went through” in Iowa. He er. Sanctions have pushed the economy into a nose-dive. can’t complain; his campaign picked the fight and has been The political system is fractured and fragmenting. Abroad, negative for months. But he’s right; in this anti-Washington its closest ally and the regime of which it is almost the political environment, Lugar will likely need to go negative sole supporter - Syria - is itself crumbling. The Persian Gulf against his largely unknown opponent. v monarchies have banded together against Iran and shored up their relations with Washington. Last week, closed its largest-ever purchase of U.S. weaponry. The David Ignatius, Washington Post: When you simplest measure of Iran’s strength is its currency. When ask Obama administration officials to explain their foreign Barack Obama became president, you could buy 9,700 rials policy agenda for 2012, they point first to the defense bud- with one dollar. Since then, the dollar has appreciated 60 get. That’s where they want to make a “pivot” in U.S. strat- percent against the rial, meaning you can buy 15,600 rials. egy — away from the wars in Iraq and Afghanistan and The price of food staples has soared 40 percent the past toward the 21st-century priority of China and the Pacific. few months, Reuters reported this week. v To underline the importance of this rebalancing, President HOWEY Politics Indiana Page 16 Weekly Briefing on Indiana Politics Thursday, Jan. 12, 2012

called into question Daniels’ honesty of legislation authored by Sen. Con- Union cites Daniels about the measure. “I was raised to nie Lawson (R-Danville) to eliminate betrayal on RTW believe that a man’s word is his bond,” nepotism at all levels of Indiana Sweeney said in a statement sent to government. Senate Bill 170 would MERRILLVILLE - A labor union The Times. “When someone looks prohibit an individual from serving in that supported Gov. Mitch Daniels in you in the eye, shakes your hand, a direct supervisory role over a family his two gubernatorial bids claims he and gives you his word, you expect member within any government unit. privately committed there was no need him to live up to it. Mitch Daniels has The legislation does grandfather those to make Indiana a right-to-work state gone back on his word.” David Fagan, individuals employed prior to July 1, (Tweh, NWI Times). In seeking an the local’s Merrillville-based financial 2012 unless the person has a break endorsement in 2004 from the Inter- secretary, said the letter is coming in employment from the government national Union of Operating Engineers out now because they thought the unit. It also specifies that a volunteer Local 150, Dan- governor shared their position and be- firefighter or a precinct election officer iels sent a letter lieved in labor groups and businesses is not considered employment by a to former union working together to support economic unit of government. “It’s time Indiana President Wil- development in the state. Fagan, of removed the cloud of impropriety that liam Dugan that the 23,000-member local, which has arises each time an elected official he would not workers Indiana, Illinois and Iowa, uses taxpayer dollars to pay a fam- pursue right-to- said with other significant issues hap- ily member salary,” Lawson said. “I work legislation. pening in Indiana, he wonders how believe this legislation is fair for all and The union sent The Times a copy of right-to-work became a top priority in will help make Indiana government the letter dated July 30, 2004; it has the state. more accountable.” Lawson’s legisla- “Mitch for Governor Campaign Com- tion would also require public employ- mittee” as its letterhead and Daniels’ ees elected to serve on an executive signature at the bottom. The letter Bosma gives Bauer or fiscal body of the county, city, town said, “As I have indicated to you in or township that oversees their agen- person, I understand your member- RTW olive branch cies to decide if they want to remain ship’s support for the current Indiana INDIANAPOLIS - House an employee of that unit or begin their law providing a common construc- Speaker Brian Bosma, R-Indianapolis, term as an elected official. “By making tion (prevailing) wage for many state said he watched video of Tuesday’s this adjustment, we can help ensure contracts, as well as your viewpoint House Labor Committee hearing and trust in local government by eliminat- that no need exists to enact a ‘right concluded it “did not reflect democ- ing conflicts of interest that could arise to work’ statute in our state. I’m in racy’s finest hour,” though no rules when a public employee serves as an agreement on both counts.” Daniels’ were broken (Indianapolis Star). Still, elected official and makes decisions on spokeswoman, Jane Jankowski, said Bosma said he reached out to House things like budgets and office policies in an email to The Times the governor Minority Leader B. Patrick Bauer, D- they will directly benefit from,” Lawson did say in 2004 and subsequent years South Bend, on Wednesday “to see said. SB 170 now heads to the full he believed Indiana could make its if we couldn’t find something to calm Senate for further action. way with the labor laws we have. “But people down.” The olive branch: giv- two things in particular have changed ing Democrats more time to prepare his mind and led to his support of amendments by scheduling them for Shepard says right-to-work legislation: Indiana Tuesday, with full debate and a vote misses many job opportunities and the farewell on the bill later next week. significant downturn in the national INDIANAPOLIS - Chief Justice economy,” she said in the email. “The Randall T. Shepard reflected on the governor articulated the reasons for progress of the state’s courts system his position on right to work when he Lawson nepotism Wednesday during his 25th and final announced his decision on Dec. 15 State of the Judiciary address. “Over and subsequently in his state of the bill passes panel time, Indiana’s courts have become state speech” Tuesday night. James less like a collection of lone rangers Sweeney, Local 150’s current presi- INDIANAPOLIS - Members and more like a group of colleagues dent and business manager, released of the Senate Committee on Local with a common purpose,” he told the a copy of the letter Wednesday and Government voted 9-0 today in favor HOWEY Politics Indiana Page 17 Weekly Briefing on Indiana Politics Thursday, Jan. 12, 2012

Indiana General Assembly (Indianapo- late 2011 that led to a spike in media ana High School Athletics Association, lis Star). He pointed toward better attention to the topic. But the changes however, said such an action would be courts- related programs for children also may also reflect a growing public a sign of “big government” getting in- and domestic violence victims; in- awareness of underlying shifts in the volved with something that should be creased professional development for distribution of wealth in American left to local school leaders. A hearing judges; a wider range of sentencing society.2 According to the most recent before the state Senate’s education options; and increasing national rec- U.S. Census Bureau data, the propor- committee renewed a debate in the ognition for work in Indiana courts. He tion of overall wealth—a measure Legislature that lawmakers have heard added that Indiana juries were ranked that includes home equity, stocks several times since the IHSAA began fourth nationally for their fairness. and bonds and the value of jewelry, its four-class boys and girls basketball Shepard will retire March 4. He plans furniture and other possessions—held tournaments based on school enroll- to take a job in the private sector. He by the top 10% of the population ment sizes in 1998. Bill sponsor Sen. joked that he would be remembered increased from 49% in 2005 to 56% in , R-Carmel, said the current as the second half of the hyphen for 2009. format has “failed miserably” and that the Kernan-Shepard report on local the old tournament celebrated in the government reform, drawing light 1986 movie “Hoosiers” helped unite laughter from the lawmakers. But Bill targets all the state for decades. The committee he choked up a moment later, eyes e-commerce held a nearly three-hour hearing on red, as he marked this as his final Delph’s bill, which also has provisions speech. He called Gov. Mitch Dan- INDIANAPOLIS - Just because to block school districts from starting iels -- who gave his final State of the Gov. Mitch Daniels reached a sales their academic year before Labor Day State speech Tuesday and stood near tax agreement with online retail giant and require the teaching of cursive Shepard on Wednesday -- a friend and Amazon.com doesn’t mean there isn’t writing. IHSAA Commissioner Bobby an inspiration. more work for legislators to do (Kelly, Cox said he hoped the Legislature Fort Wayne Journal Gazette). The would allow the organization’s 408 House Ways and Means Committee on member schools to decide how to run Pew poll sees divide Wednesday considered a bill by Rep. the basketball tournament. “I think it’s Jeff Espich, R-Uniondale, that targets an example of big government impos- between rich, poor all e-commerce sales. The bill also ing its will on a private organization that, quite honestly, has great repre- WASHINGTON - A new Pew focuses on Hoosiers’ responsibility to sentation,” Cox said. Research Center survey of 2,048 pay sales and use taxes for Internet adults finds that about two-thirds of purchases. “There is growing concern the public (66%) believes there are that we are losing money that we’d Smoking ban “very strong” or “strong” conflicts like to be spending on something between the rich and the poor—an important,” he said. The complicated passes House panel increase of 19 percentage points since issue of collecting and paying state 2009. As a result, in the public’s evalu- sales and use taxes on Internet pur- INDIANAPOLIS - An Indiana ations of divisions within American chases has gained traction in recent House committee has approved a society, conflicts between rich and years as the state’s tax revenues have bill for a broad statewide smoking poor now rank ahead of three other declined. ban that’s tougher than a proposal potential sources of group tension— that failed in the Legislature last year between immigrants and the native (WISH-TV). The House health com- born; between blacks and whites; One class BB mittee voted 9-3 in favor of the bill and between young and old. Back in debated Wednesday after adding an exemption 2009, more survey respondents said for retail tobacco shops. The bill would there were strong conflicts between INDIANAPOLIS -State lawmak- prohibit smoking in most public places immigrants and the native born than ers who want to force a return to Indi- and workplaces, including bars. The said the same about the rich and the ana’s old single-class high school bas- proposal would allow smoking only on poor. These changes in attitudes over ketball tournament said Wednesday the gambling floors of casinos, frater- a relatively short period of time may the Legislature should have a role in nal and veterans clubs and cigar and reflect the income and wealth inequal- that decision because of the tourney’s hookah bars. ity message conveyed by Occupy Wall decades-long cultural importance (As- v Street protesters across the country in sociated Press). The head of the Indi-