V16, N28 Thursday, March 17, 2011 Mayors avoiding anti-incumbency Kruzan, Hamilton yet to feel it in Bloomington; most mayors appear to be on solid footing By BRIAN A. HOWEY BLOOMINGTON - The question posed to both Bloomington Mayor Mark Kruzan and his Democratic primary challenger, John Hamilton was this: Is there a widespread detectable anti-incumbency sentiment stirring among the voters? The question came just less than five months after Hoosier voters expressed frustration by defeating two congressmen while Republicans increased their state Senate majority to 37 seats and the House went from 48 to 60 GOP seats. “I always run like I’m behind,” Kruzan told HPI, noting that party “regulars” like Sen- Bloomington Mayor Mark Kruzan during Tuesday’s joint appearance with primary ate Minority Leader Vi Simpson and State Rep. opponent John Hamilton. An anti-incumbency sentiment has yet to surface in Matt Pierce, along with virtually every elected Bloomington and across . (HPI Photo by Brian A. Howey) Democratic official, are backing his reelection. be conducted (and there has been no independent polling Hamilton, who headed FSSA and IDEM under Gov. in this race to date), he would expect Kruzan to be ahead. Frank O’Bannnon, said this race has yet to be fully en- joined. He acknowledged that if a scientific survey were to Continued on page 3 Time to get out of box By RUSS STILWELL BOONVILLE - Last weekend I decided to take a trip to Urbana, Ill., and see firsthand what all the fuss is about in this college dominated community just a few miles from our Hoosier “There have been others out border. When I pulled into the park- ing lot of the Comfort Inn I knew there accused of committing right away that House Dems weren’t voter fraud, both famous and holed up in a four-star hotel. And no, there wasn’t a hot not famous. I’m the one person tub, as Mitch likes to suggest from time to time. What I did see was they go after.” a group of special Hoosiers defying - Secretary of State Charlie White all odds to ensure that their beloved HOWEY Politics Indiana Page 2 Weekly Briefing on Indiana Politics Thursday, March 17, 2011

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Brian A. Howey, Publisher Mark Schoeff Jr., Washington Jack E. Howey, editor Beverly K. Phillips, associate editor state continues to value fairness in the weekend, I renewed my belief that no Subscriptions workplace and classroom. one, and I mean no one, would relish $350 annually HPI Weekly As I visited with these former rolling in the muddy ring of politics $550 annually HPI Weekly and colleagues, I realized that they’re not with Pat Bauer. in Urbana to score political points, Unlike most politicians, Pat HPI Daily Wire. and they’re not in the Land of Lincoln Bauer is an excellent listener. He 'Call 317.627.6746 for the purpose of offending the new takes ridicule and Bauer-bashing with Republican majority. a grain of salt, although sometimes They know they are the I think it bothers him more than he Contact HPI last assemblage left in the Hoosier shows. But he is one thing above all Howey Politics Indiana State that can prevent the wholesale else – one tough in-your-face leader. 6255 N. Evanston Ave. destruction of the middle class and Contrary to his critics, he Indianapolis, IN 46220 the union members who sustain the doesn’t always pick the fights. Most www.howeypolitics.com middle class. just come his way and unlike many of [email protected] They sent strong signals to his contemporaries, Pat Bauer never the other side that they are prepared walks away from a fight. And if that 'Howey’s cell: 317.506.0883 to come back, debate the issues and fight is for the things he champions 'Washington: 703.248.0909 finish their collective work if one most, there is not a fiercer combatant 'Business Office: 317.627.6746 particularly offensive bill is rescinded than the feisty out-spoken Irishman Seems like a simple solution to such a from South Bend, Indiana! © 2011, Howey Politics Indiana. complex stalemate. But politics and Pat Bauer champions the Type A personalities never make for fight for the little people (and no, not All rights reserved. Photocopy- simple solutions. because he is short) and those that ing, Internet forwarding, fax- I have known House Demo- need a voice. He champions the fight ing or reproducing in any form, crat leader Pat Bauer for a long time, of the middle class, public schools and whole or part, is a violation of and I’ll readily admit that he can be the rights of Hoosiers to have a union federal law without permission difficult to deal with from time to time. and earn a decent wage. Sometimes I But I also know a lot about this man think that is his calling. from the publisher. v that many folks don’t. After spend- Anyone engaged in a political ing several hours with him this past fight with Pat Bauer had better be well HOWEY Politics Indiana Page 3 Weekly Briefing on Indiana Politics Thursday, March 17, 2011

prepared and ready to go the full 15 rounds. on common construction, and every day Leader Bauer and I really don’t know what round this legislative stale- his band of 39 pull that string ever closer to the brink of mate is in, but I know that Pat Bauer has a lot of rounds legislative destruction. left in him. He won’t bite off your ear to end the fight, but What is a box? when the bout is over, you might wish he had. A box is a metaphor for a situation that restricts That brings me to the point of this article. Are Pat your freedom. House D’s stuck in Urbana and House R’s Bauer and the House Democrats in a box? stuck in a half-empty legislative chamber are in boxes. But Some might suggest that these temporary resi- there is a way out of every box. One only needs to be will- dents of the Land of Lincoln are in a box. Others might ing to pay the price. suggest that Speaker Bosma and his band of 60 are in a When you remain in a box, you pay a price. The box. House D’s are feeling the wrath of Hoosiers for not do- One should not be surprised that both caucuses ing the job they were elected to do. House R’s are on the are in a box. On any given day these Type A personalities receiving end of a barrage of outrage from many of the are boiling, enraged, fighting mad, livid, singing songs in voters who put them in office. I can’t believe either side is caucus, or just resigned to another useless day of waiting. enjoying its position. Like most Hoosiers, I would like for this stalemate The way out of the box is to pay a price. to end. So I thought I would do what any enterprising The House D’s have served notice that their price Hoosier would do: Find out how to get out of a box. is one lonely legislative arrow in the overloaded Republican quiver of arrows. Peanuts and the coconut The House R’s? Seems their price was $250 daily In Africa and parts of India the natives use a fines, a poorly sung melody in their caucus that pissed off unique technique to catch monkeys. They hollow out one the D’s and a Republican letter serving notice that their end of a coconut and tie a long line to it. Then they put agenda was nothing short of the Second Crusade. peanuts inside the coconut and hide it in the bush. When a Pay the price and get out of the box? monkey discovers the coconut is filled with nuts, he works House D’s were probing for a rallying cause, and his hand through the small hole in one end of coconut to the House R’s sent them a Right to Work curve ball that grab a fist full of nuts, but finds that when he makes a was hit out of the park all the way to Urbana. It’s time for fist to grab the peanuts he is unable to pull his hand out Speaker Bosma to unclench his fist full of labor-troubling through the hole. peanuts and this “session of all sessions” can begin anew. Once the monkey has his hand inside the coconut, When you are trapped in a box you should remem- the natives slowly pull in the line attached to the coco- ber that Sun Tzu’s “Art of War” claims that there is noth- nut. No matter how loud the monkey squeals, he remains ing more dangerous than a foe that has no way out but to trapped as long as his fist is clenched. The monkey is in a fight. And if the fight goes another round, my money is on box and the only way he can have the peanuts is to give up the tough-nosed guy in the corner protecting the little guy his freedom. on the street. My money’s on Pat Bauer and the House It looks to me that Speaker Bosma and the House Democrats. v Republicans are just like the proverbial monkey. They Stilwell is the former Democratic House majority won’t let go of their over-reaching fist-clenching agenda leader.

two-term Ligonier Mayor Gary Bishop, Huntington Mayor Mayors, from page 1 Terry Abbett, Hobart’s Linda Buzinec, Kokomo’s Matt McKil- “Most people haven’t focused on the campaign,” lip and Alexandria Mayor Steve Skaggs. There was an- Hamilton said. He hopes that once they do, the fact that other wave of former mayors defeating incumbents in the he, who has been to hundreds of doorsteps making his primary: James Garner to Doug England in New Albany; pitch, will be in a position to move in on Kruzan. “I would Rob Waiz to Tom Galligan in Jeffersonville; Al Nipp to Sher- expect a poll would show Mark Kruzan ahead right now,” he man Boles at New Castle; Jim Bullard to John Burkhart in said. “Our goal is to reach out to voters who haven’t heard Seymour. from the mayor. We’re working it one door at a time.” In all of these incumbent losses, there was a com- This is of interest because in the 2007 mayoral mon thread: the incumbents had personal conflicts with election cycle, the battlefield was littered with incumbent their councils and/or political establishments. McKillip and primary losses including five-term Decatur Mayor Fred Isch, Garner openly feuded with their city councils. By the 2007 general, HPI counted fully 40 per- HOWEY Politics Indiana Page 4 Weekly Briefing on Indiana Politics Thursday, March 17, 2011

cent of sitting mayors publicly released in the had been tossed out, Indiana news media including ncumbent in this cycle, a recent mayors in Indianapolis, national Pew Research Terre Haute, Ander- Center poll (Feb. son, LaPorte, Delphi, 22-March1) showed that West Lafayette, Tell while the public remains City, Franklin, Madison, deeply frustrated with Charlestown, Plymouth, the federal govern- Vincennes, Washington, ment, fewer Americans Huntingburg and Frank- say they are angry at fort. government than did so last fall. Overall, in Indianapolis, Terre the percentage saying Haute Mayor Kevin they are angry with the Burke, Anderson Mayor federal government has Kevin Smith, LaPorte’s fallen from 23 percent Leigh Morris, former last September to 14 State Rep. Gary Cook in percent today, with Plymouth, Al Huntington much of the decline in Madison and Terry coming among Republi- Mooney in Vincennes cans and Tea Party sup- were all upset, some by porters. That should be large margins. good news for Carmel’s In talking with Brainard, who is being informed and reliable challenged by Council- operatives in both par- man John Accetturo, a ties, at this point in the mayoral cycle we are not detecting Tea Party-backed candidate. many mayors who appear to be poised for defeat. Pew Research continues: While anger at govern- At this point, Fort Wayne’s Tom Henry, East Chi- ment has subsided, the public expresses no greater taste cago’s Anthony Copeland, Kokomo’s Greg Goodnight, Gary’s for political compromise today than it did last fall. As politi- Rudy Clay, Lafayette’s Tony Roswarski, Marion’s Wayne cal leaders head into a tough political debate over the bud- Seybold, Elkhart’s Dick Moore, Goshen’s Alan Kauffman and get, 54 percent say they like elected officials who stick to Carmel’s Jim Brainard appear to be in pretty good shape for their positions, while 40 percent prefer officials who make reelection. compromises with people they disagree with. This is virtu- Even our next tier - in Indianapolis, ally identical to the balance of opinion among registered Tom Galligan in Jeffersonville, and Bloomington’s Kruzan - voters last September. appear to be in a position to win reelection. By roughly two-to-one (63 percent vs. 32 percent), At this point, HPI sees the most vulnerable in- more Republicans say they like elected officials who stick to cumbent mayors as Muncie’s Sharon McShurley and Terre their positions rather than those who make compromises. Haute’s Duke Bennett, and that analysis takes into account About half of independents (53 percent) prefer politicians the volatile nature of recent elections (Terre Haute, which who stick to their positions compared with 41 percent who has a high propensity for throwing out incumbents), and like elected officials who make compromises with people Muncie, where a female mayor who won by a razor thin they disagree with. Democrats are evenly divided -- 48 margin four years ago is trying to beat the gender reelec- percent like elected officials who stick to their positions, 46 tion gap. As we noted in January, in 2007 there were 11 of percent like those who compromise. 14 female mayors who lost reelection bids. It’s noteworthy on the chart above that while it The important contrast to municipal races is the does not specifically relate to Indiana municipal races, , where House Democrats have clearly there was a higher level of public trust in govern- walked off the job for a month. In just about every other ment in 1999 and 2003 than in 2007 when Hoosier mayoral level of government, from the White House down to cities, races became a killing field. The fact that the chart is on no one has the political cover to walk off the job. an uptick heading into 2011 is good news for incumbent While there has been virtually no scientific surveys mayors. HOWEY Politics Indiana Page 5 Weekly Briefing on Indiana Politics Thursday, March 17, 2011

downtown for an 85-acre campus toward Ellettsville. “This Bloomington would be anti-sustainable,” Hamilton said, noting that if the Democrat: Mayor Mark Kruzan, John Hamilton, John city’s second largest employer with 2,500 workers leaves Gusan. 2007 Results: Kruzan (D) 5,937, Sabbagh (R) the city center, it will contribute to urban sprawl, keep ser- 3,729. Outlook: The battle for mayor here comes down vices away from the poor, and be off public transportation to two-term Democrat Mark Kruzan, who has the backing routes. of most establishment Democrats, and John “The city needed to be very aggressive,” Hamilton Hamilton, who is waging a door-to-door campaign and hopes to flesh out enough support to make this race competitive by the May primary. The two met in a joint appearance on Tuesday before the Monroe County Democratic Women. In a race that has not had any scientific polling, it was impossible to gauge from the reaction in the room whether Hamilton can gain the upper hand from Kruzan, who has been a Democratic institution for a quarter century. This is the first competitive primary for Kruzan, who was elected to the Indiana House in 1986 and became majority leader there before opting into the mayor’s race in 2003 and being reelected easily in 2007. Kruzan and Hamilton shared a table at the MCDW luncheon. “As I walked Bloomington Mayor Mark Kruzan (left) and Democratic primary challenger John Ham- in and saw the shrimp and turkey soup on ilton speak before the Monroe County Democratic Women on Tuesday. (HPI Photo by the menu, I thought it was a strange com- Brian A. Howey) bination until I saw John and me sitting at same table,” Kruzan said. “That’s a strange combination.” said of keeping the hospital downtown, noting that he Hamilton said he was pleased to share a table and and the mayor have a “different style” when it comes to the mic with Kruzan. They were on the same side of fights approaching the hospital. “It’s the 11th hour,” he said. “I in Indianapolis during the days when Hamilton led the don’t think it’s too late. I believe the community needs to 10,000-employee FSSA and the 1,000 workers at IDEM and be mobilized about this.” was Gov. O’Bannon’s chief of staff. “We’ve been working Kruzan characterized it as “wishful thinking” to on many things together,” he said. “Now we’re on opposite present an “ultimatum” to a hospital board that is no lon- sides. We’re at a fork in the road. Whatever happens, we’ll ger local. “It could backfire,” he said. “Their decision frame- be on the same side of the fights.” work has changed dramatically” since IU Medical/Clarian Hamilton attempted to delineate his vision from purchased Bloomington Hospital in 2008. “Ultimately the what he called a static status quo under Kruzan. “I am hospital is going to make its decision based on its own running for mayor because Bloomington can and must do bottom line.” He said that in each of the last four years, better,” he said. “We have challenges we need to meet and the city has done “something concrete” to keep the facility opportunities we need to pursue. The campaign is how we downtown. “We’ve given them tools.” meet the challenges in front of us and how to take advan- Hamilton pushed back, saying, “Part of this is tage of the opportunities in front of us. I have been talking how Mark and I will lead differently. What the city should with a lot of people and there’s a hunger to rise and meet have done, very quickly in a matter of weeks or months is the challenges.” He stressed his sense of collaboration, develop aggressive responses. Here is why we think you “open government and open style.” should stay downtown. We talked about presenting that Hamilton, nephew of former congressman Lee proposal but no proposal has been presented. Let’s look at Hamilton, articulated three issues: Jobs, public education our options.” and “efficient and effective government.” He focused much Hamilton pushed to establish a homeless shelter, of his attention on the likelihood that what many knew as saying a network of churches is now handling that respon- “Bloomington Hospital” - now IU Medical - is about to leave sibility. On the education front, he insisted that voucher HOWEY Politics Indiana Page 6 Weekly Briefing on Indiana Politics Thursday, March 17, 2011

legislation before the Indiana General Assembly will drain $38,000,000. While that is certainly a large sum of money, revenue from public education. it is far short of the $77,000,000 continually talked about Kruzan pointed to his leadership style that has al- and reported. Secondly, even if the settlement is approved lowed Bloomington to escape the Great Recession in much by the applicable State agency, the remaining balance will better shape than university cities such as South Bend, be received in $2,500,000 increments over fifteen years. Terre Haute and Muncie, where there have been popula- Finally, and most importantly, although the Trust Fund’s tion contractions and cuts in services. He said he has corpus could not be spent these past 35 years during the concentrated on the physical growth of the city and how lease’s existence, now that the lease has expired we are it “impacts its physical character.” He said he drew the ire not required to spend it. Horse Race Status: Likely Henry of the Bloomington Herald-Times for his limited annexa- tion stance, saying he has a “more conservative approach Indianapolis to annexation. A city should never outgrow and outpace.” Republican: Mayor Greg Ballard. Democrats: Sam He opposed the extension of sewer service, for instance, Carson, Ron Gibson, Melina Kennedy. 2007 Results: Bal- because he did not want to induce sprawl. Horse Race lard (D) 83,238, Peterson, Bart (D) 77,926, Peterson, Fred Status: Leans Kruzan (L) 3,787. Outlook: Kennedy unveiled her first plan to improve public safety in Indianapolis – combating illegal Fort Wayne guns (Howey Politics Indiana). “The use of illegal guns is Democrats: Mayor Tom Henry, Frederick Steinke, Tom undermining our community, and is destroying too many Cook, Charles Eberhard, D.C. “Mr. Roachclip” Roach. Re- families,” said Kennedy. “As Mayor, I will take the action publicans: Councilwoman Liz Brown, Eric Doden, Paula necessary to make our streets and neighborhoods safer, Hughes, Fred Osheskie Sr., Terrence Richard Walker. 2007 and that includes taking head-on the issue of getting il- Results: Henry 31,740, Kelty (R) 21,163. Outlook: legal guns off our streets. This is my commitment and Hughes announced that she is setting the goal of a 24 the residents of Indianapolis can expect that I will follow percent cut of existing city long-term debt by the end of through on that promise if I her first term as mayor. Just this week, the credit reporting am elected Mayor.” Kennedy agency Experian announced noted that she is specifi- cally going after those who V14 N14 Wednesday, Nov. 7, 2007 levels of credit card debt by Upset City: Ballard’s shock wave possess guns illegally, 15 incumbent mayors city. Experian said Fort Wayne fall across the state, sending a defiant residents led the country in and respects the rights of message to Statehouse By BRIAN A. HOWEY INDIANAPOLIS - Republican mayor-elect Greg Ballard took the stage consumer debt reduction at those who lawfully carry at the Murat on Election night and told a frenzied crowd, “Welcome to the biggest upset in Indiana political history! This is a classic, if not the ultimate, example of a weapon. “I respect the grassroots politics.” a rate of 24%. “It seems that Ballard’s upset of Mayor Bart Peterson was one of at least 15 incum- bents who were defeated Tuesday. This will jolt the Indiana political establishment second amendment and am and send a shudder through the Indiana Republican Greg Ballard forged what he called the “biggest upset” in Hoosier history the residents of Fort Wayne Statehouse which must come up with a when he deposed Indianapolis Mayor Bart Peterson Tuesday. (HPR Photo by Brian A. property tax solution in 2008 or face a Howey) similar scenario a year from now. Incumbent mayors in Terre Washington, Huntingburg and Frankfort were upset as vot- focusing my target on those Haute, Anderson, LaPorte, Delphi, West Lafayette, Tell and I have the same goals City, Franklin, Madison, Charlestown, Plymouth, Vincennes, See Page 3 when it comes to reducing criminals who have no busi- Hoosiers are changing

By BRIAN A. HOWEY ness having a gun. As far as INDIANAPOLIS - My competitor at Indiana Legisla- debt,” Hughes said last Thursday. “It’s too bad that Mayor tive Insight likes to propagate the notion that Hoosiers are “resistant to all change.” “Ballard shouldn’t have an Allow me to retort. Since May 2004, Hoosiers have voted out Senate inaugural ball. He should have an I’m concerned, any step we Finance Chairman Larry Borst, Gov. Joe Henry and the city council haven’t gotten the memo.” The Kernan, and Senate President Pro Tempo- amnesty ball.” re Robert D. Garton. The Indiana House has switched hands, meaning we’ve had - Former Indiana two speakers in that time span. In fact, Republican Chairman Mike McDaniel on the can take to keep a gun out Hoosiers have swapped out their entire lack of GOP support for the mayor-elect City of Fort Wayne grew its long-term debt to $405 mil- executive and legislative branch leaders who make policy. lion with $78.4 million of those debts being accumulated of the hands of a criminal in 2009 alone. “Fort Wayne residents are making cuts in is a step closer to seeing their personal lives but the government is still living high on the city of safety and opportunity that I envision.” Kennedy the hog,” Hughes stated. “If the citizens of Fort Wayne can also expressed concern that Indianapolis has not joined the reduce their debt by 24%, city government can too.” bipartisan national Mayor’s Against Illegal Guns alliance, Brown detailed her plans, ideas and guiding prin- an alliance that four Indiana mayors have already joined. ciples for use of the City of Fort Wayne Light Lease Com- Horse Race Status: Leans Ballard munity Trust Fund and settlement proceeds. “We are lucky and should be grateful for the foresight of our city’s past Hammond leaders in establishing the City of Fort Wayne Light Lease Democrat: Mayor Thomas McDermott, Oscar Sanchez, Community Trust Fund. While the end resulted in conten- Alex Andrade. Republican: Humberto Prado, David tious litigation, the City is fortunate to be faced with the Hacker, Matthew Saliga, Jeff MacDonald, Rob Pastore. issue at hand. At the same time, there are critical miscon- 2007 Results: McDermott (D) 5,289, Janiec (R) 4,802. ceptions around the facts and circumstances of the City of Outlook: The Republican candidate tossed from the May Fort Wayne Light Lease Community Trust Fund that must 3 primary ballot by three Democratic election commission- be clarified. First, the Fund’s balance is currently about ers will appeal his removal in court, he said Friday (Times HOWEY Politics Indiana Page 7 Weekly Briefing on Indiana Politics Thursday, March 17, 2011

of Northwest Indiana). The Lake County Elections Board tion board, and McDermott is Lake County’s Democratic booted George Janiec from the ballot last week because he chairman, so the finger of blame -- or credit, depending holds a nonpartisan School City of Hammond board posi- on your point of view -- naturally is aimed at McDermott. tion. Janiec lost to incumbent Mayor Thomas McDermott Jr. McDermott denies pulling the strings. McDermott has a lot by less than 500 votes in 2007. No state law exists prevent- at stake in this election. As Janiec said, “His further political ing Janiec from seeking office, according to Jim Wieser, aspirations are probably doomed” if McDermott fails to win Democratic attorney for the board, and one of Janiec’s this election. There has been much talk of McDermott as colleagues on the school board also serves as a Democratic a potential gubernatorial candidate, and lately as a pos- precinct committeeman in Hammond. Still, a member of sible lieutenant governor hopeful. McDermott is a good the commission said it was “undesirable” for candidates to fundraiser, and he would bring his mayoral experience to seek partisan office while holding a nonpartisan seat and the ticket. The immediate question, though, is whether he was removed by three Democrats over the objections of the Lake County election board did McDermott a favor by two Republicans. Janiec’s attorney will have to file the ap- booting Janiec from the ballot. Or will McDermott come off peal in Lake Circuit Court. Additional appeals, if either party as a backroom schemer, pulling the election board’s puppet decided to pursue them, would go to the Indiana Court strings? Horse Race Status: Leans McDermott v of Appeals and the Indiana State Supreme Court. Wieser said he would represent the election board in the case. Kim Poland, chairman of the Hammond Republican Party and Republican city councilwoman from the 4th District, called the board’s move “dirty politics” that wasn’t based in law and predicted that Janiec would be placed back on the ballot. “It (speaks) to their fear of Janiec. They fear (him),” Poland said. “He came extremely close to winning Gregg ‘encouraged’ last time.” McDermott has acknowledged that Janiec, if he remains on the ballot, is his most credible opponent. Doug Ross, editorial writer for the Times, writes: about ‘12 governor bid Early voting hasn’t even started yet, and McDermott al- By BRIAN A. HOWEY ready has won his first, and perhaps biggest, victory. His INDIANAPOLIS - Former House Speaker John leading opponent, George Janiec, has been tossed off the Gregg described his exploration of a potential 2012 Demo- ballot. For now, anyway. Janiec came close to defeating cratic gubernatorial bid by saying he feels “enthused and McDermott in 2007. The vote was 5,289 to 4,802. McDer- encouraged.” mott said afterward, and has said since, that he wasn’t Gregg told HPI on Wednesday that he has spent campaigning hard enough and has learned his lesson. But time meeting with Indiana Democratic officials, elected of- Janiec has learned a bit since then, too. Janiec is now on ficeholders and activists. the School City of Hammond board, which is why he was “I’m getting ready to visit with labor,” Gregg said. tossed off the GOP ballot for the May 3 mayoral primary. “I’ve met with many party regulars in Southern Indiana. Follow closely; this could get confusing. The rationale his Going to DC next week to meet with the Democratic Gover- challenger used is that school boards, at least in Indiana, nors Association.” are nonpartisan. The Lake County election board decided And the week after that? Gregg will meet with Janiec’s candidacy in the GOP primary makes him a parti- labor officials and travel to Lake County. san, thus his choice was to either resign from the School Last week U.S. Rep. Joe Donnelly said he was Board or forfeit his candidacy in the mayoral primary. considering a gubernatorial bid, but appeared to be more Janiec told me Thursday he is choosing a third option -- interested in a potential U.S. Senate race. Senate Minor- taking legal action to appeal the election board’s decision. ity Leader Vi Simpson told HPI she will look at a potential Gary Community School Corp. board member Labrenda candidacy after the Indiana General Assembly sine die. King-Smith, who wants to be on the ballot in her city’s Simpson said that she, Donnelly and Gregg are in Democratic mayoral primary, was tossed off the ballot at contact with each other. “When the session is over we’ll the same time as Janiec, for the same reason. She filed her sit down with other folks who have talked about it and see appeal Wednesday. Janiec noted Thursday that Lake Sta- where we are,” she said. “It’s not good to have a contested tion Community Schools board member Michael Stills, who primary. We want the best ticket we can put together.” is running as a Democrat for an at-large seat on the City There was also talk in Democratic circles that if Council, wasn’t tossed off the ballot. But no one challenged Gregg gets in, he may also have a designated running his candidacy.The Democrats are the majority on the elec- mate. v HOWEY Politics Indiana Page 8 Weekly Briefing on Indiana Politics Thursday, March 17, 2011

Indianapolis mayors past and present met at the University of Indianapolis last Friday, including (from left) U.S. Sen. , Wil- liam Hudnut, , Bart Peterson and Mayor Greg Ballard. (University of Indianapolis Photo)

allowing it to escape the fate that has befallen Detroit, Mayoral continuity can Cleveland and St. Louis, cities that are surrounded by suburbs, statelines and lakes and have suffered population declines and eroding tax bases. Lugar noted that in five of pay dividends for a city his eight years as mayor (1968-75) property taxes declined. By BRIAN A. HOWEY “After people began to build and the tax break rose INDIANAPOLIS - It usually takes a funeral, a cel- dramatically. That trend continued with my successors dra- ebration or a disaster to bring together past presidents and matically.” governors. At the University of Indianapolis Friday night Lugar cited the Greater Indianapolis Progress Com- came the extraordinary image of the modern Indianapolis mittee that “forged partnership and spirit” which allowed mayors gathered together for a two-hour discussion that the city to become the amateur sports capital of the nation, was poignant, emotional and at several points filled with brought the Colts and NCAA to the city, and established the humor. life sciences initiative that has allowed that economic sector Richard Lugar, Bill Hudnut, Stephen Goldsmith, Bart to overtake auto production as the most dynamic economic Peterson and Greg Ballard sat in overstuffed chairs and engine in Indiana. discussed their administrations, visions, triumphs and fail- Peterson (2000-08) explained, “The secret of suc- ures after taking “Naptown” 40 years ago and with unprec- cess is continuity itself.” These mayors often took undevel- edented continuity in the American urban experience, and oped blueprints they found on their first day in office and molding it into a dynamic city that has avoided the fates built on them. The classic example is the Fall Creek Place of metropolises in surrounding states. The mayors became development that Mayor Goldsmith drew up and Peterson political juggernauts, winning 11 elections, with only Peter- executed, turning a blighted, crack-infested neighborhood son suffering a defeat. The University of Indianapolis set up into a revived housing community that cuts across eco- the forum after establishing the Institute for Civic Leader- nomic class. Mayor Ballard built on Peterson’s control over ship and Archives. charter schools. Peterson observed that in other cities, You could even notice the progression from hair an incoming mayor will reverse course from a predeces- color, with the white/gray heads of Lugar and Hudnut giv- sor, “leading to a zig zag path. Stop trying to reinvent the ing way to the salt and pepper of Goldsmith, and the rela- wheel.” tive youth of Peterson and Ballard. I reached that conclusion when I wrote a piece U.S. Sen. Dick Lugar cited his Unigov initiative in for Indianapolis Monthly in 2010. The assignment was to 1969 that expanded the city to the Marion County lines, determine who the best and worst Indianapolis mayors were. After research, while there were strong mayors such HOWEY Politics Indiana Page 9 Weekly Briefing on Indiana Politics Thursday, March 17, 2011

as Tom Taggart (1895-1901) and Robert Tyndall (1943-47), superintendents,” Peterson explained. “If you’re outside the it was the progression of mayors from John Barton in the system you can’t change it.” early 1960s (he was responsible for establishing the route Peterson added that mayors should be responsible of I-465) through Peterson (Indy Works, schools, police for education “instead of the school board. You would have and fire mergers) that built on the legacies of predeces- a single point of accountability. Elections can be refer- sors. endum on the performance of the mayor in leading the Gauging Indiana’s strongest cities such as Colum- schools. And you have the accountabilities that districts bus, Indianapolis, Lafayette, West Lafayette, and Blooming- simply lack, where nobody knows the name of their school ton, there is that element of continuity, even after a politi- board members. Fundamentally, it’s not a democratic cal breakdown. Ballard, for instance, completed the police system the way it is now. It would be with the mayor in department merger with the Marion County Sheriff that was proposed by Peterson’s Indy Works plans. The number of fire department mergers grew from two under Peterson to five under Ballard. A city like Columbus has thrived under the three terms that Mayor Fred Armstong has guided the city. In Mishawaka, that continuity was transferred from Mayor Robert Buetter to Jeff Rea. In Fort Wayne, first term Mayor Tom Henry is completing the downtown baseball and new city hall projects that commenced under two-term Mayor Graham Richard. Compare this to Terre Haute, where voters have tossed out the last four incum- bent mayors, with the last three fired after only one term. All of the mayors said that education must be a priority, with Goldsmith stating that his “biggest failure” was not getting control of India- control.” napolis Public Schools. “The fact is that the mayor has no Hudnut agreed, saying the mayor “should have control, but has to deal with the consequences,” Goldsmith control of the school board” and offered his own ideas on said. The mayors cited high dropout rates they have had no radical surgery: “abolish IPS” and “divide it like a pie” into control over, but were forced to deal with the results that the neighboring township schools. included crime, teenage pregnancy, gangs and other as- Ballard said that principals of schools “should be pects that cost taxpayers millions of dollars to deal with on CEOs” and “not mid-level managers.” the backside. Goldsmith called for “radical surgery” when it As for advice to future mayors, Lugar said, “Listen comes to education and that means “more charter schools. to our conversation this evening. It’s full of ideas, practi- The city’s future hangs in the balance of education.” cality” and added, “There’s no reason for us to make the “You look for diversity -- and new diversity, be- same mistakes.” cause the old days of manufacturing are gone and are not Hudnut said, glancing at his former nemesis going to return,” said Hudnut (1975-91). “We’ve made a Goldsmith, “Plow the darn snow.” He added, “Come, let us transition to a service-oriented economy. It’s also on life reason together, listen to each other.” He said he headed sciences, on biotechnology and clean and green business- off a firefighter strike simply by agreeing to meet with fire es, and laboratories and research, and that leads you back union officials for a Friday breakfast. Goldsmith said that again to education, which I think is critically essential if “every minute” a mayor “can make someone’s life bet- you’re not going to have America divided into two classes.” ter.” He urged successors to “think outside the box in bold Peterson recalled being confronted with legislation ways.” in the Indiana General Assembly in 2001 that would give Peterson said, “Be bold. Have guts.” him control over charter schools. He wasn’t sure he wanted To which Ballard responded, “I agree with all of it. But he said a “wise” man counseled him to accept the that.” v responsibility. “It puts you at the table as an equal with HOWEY Politics Indiana Page 10 Weekly Briefing on Indiana Politics Thursday, March 17, 2011

nie Lawson, R-Danville, would have eliminated Indiana’s House Democrats lose township advisory boards and required township budgets instead be reviewed and approved by the county councils. It was rejected by a 28-21 vote. faith in ability to debate A similar bill had passed the Senate before, By BRIAN A. HOWEY only to die without debate in the House. It came after Gov. INDIANAPOLIS - Well, my offer of free beer for pressed for the reforms during his State of House Democrats at the Rathskeller Biergarten on St. Pat- the State address and a number of Indiana newspapers rick’s Day didn’t work unless I get a call by day’s end. printed a series of articles earlier this winter document- While Pat Bauer and the Dems may still be in Illinois, ing alleged financial, ethical and moral abuses of township most of the city will be downtown stalking bagpipers. And government. this got me to thinking about other governmental units that Despite all of that support, it failed. have gone MIA. While I disagree with this rejection, I applaud the There have been strikes - the most famous being process. The debated the legislation and the air traffic controllers in 1981 - but they weren’t elected. rendered a verdict. That’s how the process should work. Of course, there are the Wisconsin Senate Demo- The bills House Democrats used as a premise to crats. Not only did they go AWOL, but they were outma- walkout on did not have anything close to monolithic sup- neuvered by their Republican coun- port. There were notable pockets of opposition within the terparts last week. House Republican caucus to Right to Work, as well as that There’s our own Charlie of Gov. Daniels, who said from the get-go this year was the White, who got cross ways with his wrong time and place. press secretary for admitting he While support appeared fairly wide for expand- didn’t know if the Secretary of Hack ing charter schools, we saw on Tuesday Senate Education had shown up to work following his Chair Dennis Kruse make significant alterations in the leg- indictment. islation Gov. Daniels sought. On school vouchers, this was And there was President an unsettled situation that would have produced compelling Woodrow Wilson, who suffered a testimony on both sides, from Republicans and Democrats. stroke and the First Lady essen- Its fate was far from certain. tially ran the show for a number of On the new school funding formula, I gauged sig- months. You can add former State nificant trepidation on behalf of not only urban legislators Rep. Dennie Oxley Sr., and State Sen. Glenn Howard to the of both parties, but increasingly from rural Republicans who MIA list, who suffered crippling medical maladies and didn’t began to understand there would be significant funding resign. cuts. But when you think about it, most government en- I’ve watched freshman Republican Reps. Sue tities from our presidents, through our governors, mayors, Ellspermann and Wendy McNamara - both career educators county commissioners, all the council members, all the dog - weigh the various reforms and there was hardly consen- catchers, even the township trustees, show up and do their sus. The Evansville Courier & Press reported in December: duty. Ellspermann ... said she thinks a couple of the governor’s But not the Indiana House Democrats. ideas wouldn’t suit her district. “The rural perspective isn’t They say they are working and Minority Leader always heard as loudly as I would like at the Statehouse,” Bauer has been negotiating with Speaker Bosma (see their she said. letters on page 11). They have their victories, as the list of McNamara was open to dropping the “de- 11 bills has been apparently whittled down to three and, ghoster” from the formula, saying it makes sense in “a as of news reports on Tuesday, one major issue. Bauer logical, rational world.” But, then she noted that it would and the Democrats can say their walkout produced some hurt the three school corporations in her district - including tangible victories for the common, working man. The prob- a $2.5 million hit for Mount Vernon Schools - and observed, lem with this is that part of the reform agenda so detested “You don’t want to see your schools hurt. That’s a big, by the defenders of the status quo didn’t get through the steep hill to climb.” Senate, despite the towering 37-13 Republican advantage. The saddest aspect of the House walkout is not Some of the Kernan-Shepard reforms that would have only do House Democrats seemingly lack any kind of com- taken a huge taxpayer funded monetary chunk out of pelling vision beyond defending the status quo, they’ve lost township government failed last month. faith in their ability to even debate the issues facing a 21st v The bill, SB405 sponsored by Majority Leader Con- Century Indiana. HOWEY Politics Indiana Page 11 Weekly Briefing on Indiana Politics Thursday, March 17, 2011

Letters from the Great Midwest: Here are the two letters generated over the past two days between House Speak- er and House Minority Leader B. Patrick Bauer as they grapple with the four-week Democratic House walkout. HOWEY Politics Indiana Page 12 Weekly Briefing on Indiana Politics Thursday, March 17, 2011

and defeat. The political evolution The Pew Re- search Center of social media released its By BRIAN A. HOWEY annual State INDIANAPOLIS - Dick Lugar has become a social of the Media media animal. report and It’s a matter of political survival as potential while there Republican Senate primary challengers Richard Mourdock were dire ele- and Mike Delph have made Facebook a staple in their abil- ments such as ity to reach out to a constituency and raise money. If you the elimina- want to know what Sen. Delph is up to, a quick scan of his tion of more Facebook page. In a quick read, you will see Delph posing than 1,500 with his campaign staff and daughters and read about his newsroom support for a resolution for the Nation of Israel. jobs this past “We take social media ideas seriously,” Lugar told year national- several reporters on Sunday, some of them tweeting and ly, it revealed posting on Facebook as the session progressed. He noted that there is that at recent IUPUI and Franklin College visits, “Many still a grow- were tweeting throughout the events, even as I was speak- ing thirst for ing. I was receiving questions from an audience much information. broader” than the room in which he stood. A new survey Lugar noted that in the political realm, it can come released with down to “how quickly you respond.” this year’s “If the battle is not being fought in Sunday media, report, pro- talk shows, editorials, everyday reporters, it may be you duced by Pew Internet and American Life Project in asso- need to answer these questions, raise some of your own. ciation with the Knight Foundation, found that nearly half Go back and forth. From time to time our staff becomes of all Americans (47%) now get some form of local news aware some paper or radio station is conducting a poll. on a mobile device. What they turn to most there is news Sometimes I’m part of the poll. They might alert some of that serves immediate needs – weather, information about our friends there is a poll going on.” restaurants and other local businesses, and traffic. And the As the Mourdock Senate bid got underway, the move to mobile is only likely to grow. By January 2011, 7% Evansville Courier & Press conducted an online survey and of Americans reported owning some kind of electronic tab- Lugar won it by more than 20 percentage points, or as let. That was nearly double the number just four months Lugar put it, “I won the poll by a very decisive majority. earlier. There was an enor- Pew noted: The mous surge in vot- migration to the ing. Well, welcome web also continued to social media.” to gather speed. In The conse- 2010 every news quences of the poll platform saw audi- were limited. It was ences either stall or a one or two news decline — except cycle victory and it for the web. Cable came in Mourdock’s news, one of the hometown. As any growth sectors of the political figure can last decade, is now tell you, an accumu- shrinking, too. For lation of “winning” a the first time in at various news cycle least a dozen years, along with its timing the median audience can make the differ- declined at all three ence between victory cable news channels. HOWEY Politics Indiana Page 13 Weekly Briefing on Indiana Politics Thursday, March 17, 2011

For the first time, real drama could too, more people come to a politi- said they got more cal campaign just news from the web over the horizon. than newspapers. Democratic politi- The Internet now cal consultant Joe trails only television Trippi said Sunday among American that it’s just a mat- adults as a destina- ter of time before a tion for news, and third-party candi- the trend line shows date comes out of the gap closing. Fi- nowhere to upend nancially the tipping a presidential front- point also has come. runner — and it When the final could happen as tally is in, online ad soon as next year revenue in 2010 is to President Barack projected to surpass Obama (Politico). print newspaper ad Trippi presided over revenue for the first Howard Dean’s time. The problem meteoric rise and for news is that by fall as the first far the largest share of that online ad revenue goes to true Internet candidate who flashed out with his loss and non-news sources, particularly to aggregators. Traditional scream on the night of the Iowa caucuses in 2004. It was newsrooms, meanwhile, are different places than they were a prelude to the $750 million Obama campaign, and many before the recession. They are smaller, their aspirations believe that by 2012 presidential campaigns will reach the have narrowed and their journalists are stretched thinner. billion dollar range. But their leaders also say they are more adaptive, younger In October 2010, Nevada Tea Party Republican and more engaged in multimedia presentation, aggrega- Sharon Angle raised an astounding $14 million in her un- tion, blogging and user content. In some ways, new media successful challenge to Senate Majority Leader Harry Reid. and old, slowly and sometimes grudgingly, are coming to Angle was unfocused, with her campaign at one point ob- resemble each other. sessed with hiring planes to wage a skywriting campaign. Campaigns are having to adapt on that front. A Challengers like Mourdock believe they can tap into social classic example came last week when the Ogden on Politics media and the Tea Party network to overcome the initial blog filed a report suggesting that Lugar had residency is- $2.5 million cash advantage that Lugar has going into the sues that could parallel those of indicted Secretary of State 2012 Republican primary. Charlie White. Paul Ogden made his posting but made no “This will be one of the big frontier breakthroughs effort to contact Lugar’s Senate office or campaign. “A for politics, either in 2012 or 2016, and my guess is it’s go- reporter would have done some research to the validity of ing to be a challenger,” Trippi told Politico. “What happens the charge,” Lugar noted. “Call me to see what my reaction is that really smart people, even the Obama guys, they get would be as far as human interest.” fat and lazy and they’re in charge and the conventional wis- It was Howey Politics Indiana which contacted dom thing even seeps in for them and some guy out there, the Lugar Senate office. The campaign responded by citing some candidate, some woman running, who doesn’t have provisions of the Indiana and U.S. Constitutions that gave much of a chance, decides innovation is the only way out.” Lugar legal cover. Fort Wayne Journal Gazette reporter Trippi predicts it will be a third party candidate. “There’s Brian Francisco followed up by quoting a 1982 opinion from going to be a moment, and it could be in 2012 – you know then Indiana Attorney General Linley Pearson regarding the for my party’s sake, I hope it’s in 2016 – but some inde- Lugar residency (he still votes in the precinct of his 1969 pendent candidate is gonna just come out of nowhere and address, as allowed by state law). It is just the latest exam- raise a billion dollars on the Internet, saying ‘screw both ple of bloggers that prompt mainstream media coverage, these parties, it’s you and me baby, let’s go change this which often centers on completing the cycle of information. thing.’” That, Trippi predicted, “will be the end of the two While the technological changes have been parties.” v wrenching for many print and broadcast newsrooms, the HOWEY Politics Indiana Page 14 Weekly Briefing on Indiana Politics Thursday, March 17, 2011

other things, that’s all I’ve said,” Daniels said. Daniels’ ‘Washington As for the Gridiron, it was the first time that Presi- dent Obama and Daniels shared the bill. Daniels needled the president by recalling one of month’ concludes Obama’s private musings to fundraisers during the 2008 By BRIAN A. HOWEY campaign that conservatives found refuge in religion and INDIANAPOLIS - Gov. Mitch Daniels’ Washington guns. Daniels, his right arm in a sling due to rotator cuff Month Phase I is over. surgery, quipped: “Mr. President, until I get this thing off, I Between mid-February and last weekend, Daniels can cling to my gun or my Bible, but not both.” took the nation’s capital by storm, giving a fiscally stirring Later he turned to Obama and mockingly took a address to CPAC, and then the Gridiron Dinner where he shot at the president’s use of the TelePrompter. “Mr. Presi- arrived with CBS’s Katie Couric, along with appearances on dent you’re not laughing, who forgot to put ha-ha-ha on Fox News Sunday and NBC’s Meet the Press thrown in for the teleprompter?” good measure. Pundits ranging from Daniels also sarcastically joked that George Will of the Washington Post to it’s hard not to let all the favorable David Brooks of press attention he’s been getting go fell in love with our governor. to his head. “Just listen to a quick So, do we know anything more sample,” Daniels said as the audi- about a potential Daniels presidential ence roared. “Small, stiff, short, pale, bid? unimposing, unassuming, uninspiring, Nope. Nada. Zip. understated, uncharismatic, accoun- NBC’s Chuck Todd showed tantlike, nontelegenic, boring, bald- Daniels “final” 2008 TV ad in which he ing, blunt, nerdy, wooden, wonky, said, “No matter what your outlook on puny and pint-sized. It all points to politics, here’s some good news. This is one inescapable conclusion,” Daniels the last time you will have to watch me added as his right arm shot to the in an ad like this. You see, governor is sky. “It’s destiny!” the only office I’d run for or Obama got the last word. ever will.” Daniels, Obama said, tore Asked why that ad into his filet mignon “like it wasn’t deceiving in light of was a public employee.” the presidential speculation, If Daniels isn’t ready to Daniels responded, “I wrote commit to a presidential it, like I write most of my own run, the opportunity is stuff, I meant every word of certainly still there. A PPP it and others have said over Poll showed Mike Hucka- the last course of a year and a bee leading the GOP field half, that I ought to consider at 18 percent, followed by something that’s never en- Mitt Romney at 17 percent, tered my mind and I’ve agreed Sarah Palin at 16 percent, to consider it.” Newt Gingrich at 14 per- Asked about the cent, Ron Paul at 9 percent, “truce” on social issues, Tim Pawlenty at 5 percent Daniels said, “We’re going and Daniels at 4 percent. to have to make changes, at It is the first least moving forward, that will time in generations that a permit us to maintain a grow- frontrunner isn’t in the 30th ing economy and the American percentile at this stage. dream of upward mobility for Essentially, the those at the bottom and we’re GOP race is wide open. Gov- going to have to get together ernor, that ringing in your with people who disagree on ears isn’t Gridiron applause. It may be history calling. v HOWEY Politics Indiana Page 15 Weekly Briefing on Indiana Politics Thursday, March 17, 2011

our state revenue needs twenty years ago – now it’s down to just 6%. With enablers like Mitch Daniels and Brian Daniels, Bosma Bosma, some of the biggest and most profitable corpora- tions can extort whatever they want from state government play class warfare – tax breaks, loan guarantees, subsidies - oftentimes with little new jobs produced as a result. (Check out WTHR’s By SHAW FRIEDMAN outstanding series on IEDC’s wildly overblown claims of LAPORTE, Ind. - Did you hear the one about the jobs actually produced.) Wall Street billionaire, the unionized public employee and The non-partisan Multi-State Tax Commission the Tea Party member who were all sitting around a table says Indiana is losing out on one third of a billion dollars a eyeing a plate of one dozen chocolate chip cookies? The year because of various tax shelters like passive investment financier reaches across the table and takes 11 cookies, corporations, reincorporations in tax havens and transfer looks over at the tea partier and says, “Watch out for that pricing. union guy. He wants your cook- Because of this massive shift of tax obligations to ie.” ordinary working families – our kids are supposed to be Can you imagine we’ve satisfied in overcrowded classrooms, local libraries are to come to a point where gov- be closed, our streets, highways and bridges are falling ernors like Mitch Daniels and apart and we’re told there’s not enough money to pay for Speakers of the House like low income heating assistance, homeless shelters for our Brian Bosma are blaming tight veterans or even Meals on Wheels. budgets on middle class public Times are tough. servants like teachers, firefight- Well, someone HAS to pay. Why not start with ers and police? They call ‘em those who can MOST afford it? Many of these largest and greedy for wanting a share of most profitable multi-national and multi-state corporations the American dream. who do business in our state are sitting on loads of cash. Who was the bank robber who But what did this governor and Brian Bosma was once asked – why do you do? They told unemployed Hoosiers that they are to get by rob banks and the guy responded without blinking an eye – with a 25 percent cut in unemployment benefits while re- “because that’s where the money is.” warding corporations with a 25 percent corporate tax break As we need additional state revenue to help fund under SB589. schools, pay for police and fire and provide basic services, Folks - there’s a reason that thousands of work- why is our governor and his buddy Brian Bosma absolutely ing people descended on the State Capitol again this past unwilling to look to their friends in the corporate suites to week. Ordinary Hoosiers know that sacrifice is only being do their part? Isn’t that where the money is? Why must asked from them while the wealthiest corporate execs like we turn on public employees for the sacrifices? those who crowded into the opulent new $150 million con- Remember, it’s the multi-state and multi-national cert hall in Carmel and toasted each others’ success were banks who do business in our state who helped bring our being asked to do little. economy to its knees and who benefited by billions in tax- Stop the charade Governor Daniels and Speaker payer funded TARP funds. Bosma. It’s class warfare you’re waging and those on the What about companies like GE, Carnival, Boeing, receiving end know it. v FedEx, News Corp, ExxonMobil, Pfizer, P&G and yes, Eli Lilly, who pretend their profits are earned in tax havens like Shaw Friedman is a LaPorte attorney and a the Cayman Islands and their losses are earned in the U.S., regular contributor to HPI. lowering both their federal and state tax bills? These corporations are heavy users of our taxpayer funded public infrastructure and property rights protection systems. They use our regulated marketplace, call upon our law enforcement systems and judiciary to remedy disputes. They’re protected by our police forces and firefighters. They enjoy all the privileges and benefits of taxpaying citizens. They just don’t pay their fair share for those services. Corporate income taxes used to make up 12% of HOWEY Politics Indiana Page 16 Weekly Briefing on Indiana Politics Thursday, March 17, 2011

ing to the mayor’s friends and family. But removal of the Opposing opinion need snow is our primary concern. The possibility of saving some money in the process is desirable, but secondary. not demand respect This view does not condone illegal or unethical behaviors. But it adds a dimension to ethical government. By MORTON J. MARCUS Would we prefer perfectly appropriate contracting and a INDIANAPOLIS - Last week more than 200 people poor job of snow removal? assembled in Hobart to hear a panel of vigorous speakers The essential ethical aspect of government, explore the various dimensions of ethics in government. touched lightly at this conference is the need for govern- The discussion focused on officials, elected and appointed, ment officials to do the right thing. Often the excuse is who convert their power into made there are differences of opinion as to what is right. personal gain. We call it cor- This argument merely reveals an inadequacy of debate, ruption in the form of graft, sometimes disguising an unwillingness to oppose ill-in- bribery, nepotism, conflict-of- formed views. interest, being-on-the-take, For example, is it morally justified to deny neces- pay-to-play and a host of ad- sary services to the poor, the disabled, and the disadvan- ditional names. taged in order to maintain low taxes on the wealthy? Is it These serious matters cost unconscionable to deny unemployment or worker’s com- taxpayers billions of dollars pensation in order to keep down taxes on workers holding annually at the state and local jobs? (Many people believe that employers pay these taxes, levels. The abuse of power is but in all likelihood they are paid indirectly through lower not limited to certain states, wages for those at work.) counties or cities. It is found In Indiana and across the nation, arguments everywhere, but it is not the bubble concerning the effect on investment and the robust- dominant characteristic of public service. The overwhelm- ness of business if taxes are raised moderately. Those ing majority of elected and appointed officials are honest arguments are unfounded except in the mythology of the servants of the people not looking for kick-backs or inap- ignorant. We have a cadre of conservatives who would cut propriate advantages in their jobs. government spending in order to get people back to work. Speakers at the meeting encouraged the audi- This is a fundamentally flawed idea. ence to keep an eye on government, to be watchdogs, to To accept these positions, to honor them as endorse training government officials and workers about valid expressions of personal values is unethical. To avoid ethical issues. The culture of unethical behavior and the debate because your opponent holds a different view is perception of public office as a private possession permit wrong. That is why legislative minorities in several states corruption to endure from one administration to another, in have denied the majorities easy victories. Failure to coop- some cases for generations. erate with an unethical power is a commendable ethical Ethics goes much further than not cheating the stand. v taxpayers by improperly applying their funds for personal gain. Missing from the discussion, however, was something Marcus is an independent economist, speaker, and less exotic than the petty thefts and grand larcenies that writer formerly with IU’s Kelley School of Business. make the headlines. Ethics in government involves doing- the-right-thing and being effective. The idea citizens are taxpayers alone leads to poor decisions. As consumers of services, we have other direct and indirect relationships with government beyond paying taxes. When we emphasize taxes, we focus on ef- ficiency and often disregard effectiveness. Take snow removal. It snows and streets are im- passable. Crews come out, remove the snow, and normal functions resume. That’s what we want. That’s effective government. Yes, we desire efficient government where funds are used honestly and in a prudent manner, keeping costs low. We don’t want all the contracts for snow removal go- HOWEY Politics Indiana Page 17 Weekly Briefing on Indiana Politics Thursday, March 17, 2011

states. Did the public That’s what some politicians now do. Brazenly, this is the tactic even of some of the deal fail? politicians, some Republicans, some Democrats, who once were part of the deal. By JACK COLWELL That deal in which they didn’t pay their bills. SOUTH BEND - For decades, in many cities, school That deal in which they winked at underfunded districts, counties and states, public service employees and pensions and health plans. the politicians who employ them have had a deal, informal That deal in which they bragged about being con- but understood. servative as they ran up their bills. It worked well for both sides - or so it seemed. Are the pensions and health care provisions for a Here’s the deal: lot of public service employees now too expensive? Public service employees would work for modest Yes. pay, low really for those with They cannot be sustained, not at this time of responsibilities and dangers reckoning, with the bills coming due. They will have to be involved in protecting the public reduced. from fire and crime, also for oth- Are the public service employees the villains in this ers with the vital task of teach- tough fiscal situation? ing the children, including kids No. with no parents in their lives. They are the victims. Politicians, such as gov- They didn’t point guns at those governors, mayors, ernors, mayors, legislators and legislators and other elected officials who made the deal. other elected officials involved in They were offered the deal and accepted in good budgeting, would then proclaim faith. They would work for pay too often not commensu- that they held the line on pay rate with the vital services they perform, figuring that they and didn’t raise taxes. would be compensated for modest pay with the promised In return for acceptance of generosity in health and pension plans. modest pay, lower than many of them could have obtained It isn’t their fault that the nation was hit by the in private employment with less threat and challenge, Great Recession. But they suffer from it still. And they face these public employees were offered generous pension further shattering of what had been their middle-class plans, better than provided in most of the private sector, American dream. and excellent health care coverage requiring low employee It isn’t their fault that the housing market col- contributions. lapsed. But the value of their homes has diminished. And Why did it work? this is so even if they never missed a mortgage payment. The public employees, while not getting rich, were It isn’t their fault that the politicians didn’t pay rewarded by public service involvement in which they took the bills. But they now are the ones who lose benefits they pride and by expectations of quality, affordable health care thought were promised in good faith. And they are demon- and solid pensions upon retirement. They bought the deal. ized by politicians who broke the faith. The politicians, able to hold down wages, the Demons. biggest expense in their budgets, could wink at the un- What do you do with demons? derfunded pension and health plans, leaving that for the Expel them. future, and brag about preventing tax increases by sound, Politicians doing the demonizing seek to do just conservative management. They bought the deal and won that - exorcism - expel, lay off, a lot of those money-grab- reelection. bing demons, no matter the cost in public safety, service Alas, there comes now a day of reckoning. and education in this time of global competition. Those politicians engaged in this deal didn’t pay They want again to put off costs and look good do- their bills. Now the bills are coming due in huge pension ing it. and health care obligations. Staggering expenses. So, now in dealing with demons, the deal involves What to do? laying off lots of public service employees, thus increasing Demonize the public service employees, of course. unemployment just as it was coming down, and decimating Make them the bad guys, the greedy money- their buying power, thus reducing consumer sending just as grabbers whose pensions and health care costs threaten to it finally was spurring the weak economy. bankrupt some of our cities, school districts, counties and Another deal. v HOWEY Politics Indiana Page 18 Weekly Briefing on Indiana Politics Thursday, March 17, 2011

Abdul-Hakim Shabazz, Indiana Barrister: there are boxes of documents that will prove his innocence then On Saturday morning I was having breakfast with a few political he should be back by the end of the year. But there’s no reason friends, when I had gotten word that Indiana Secretary of State to try and fight this kind of war on two fronts. It never ends well, Charlie White might be stepping down. As someone who trades and sometimes when you win, you still lose. v in political gossip and rumor, this was good stuff. Let’s face it. The Friday news conference outside the Hamilton County Courthouse Matt Tully, Indianapolis Star: For months now, as was not one of White’s finer moments. And his chief of Staff, Gov. Mitch Daniels has taken up residency on the op-ed pages Sean Keefer, has turned in resignation the same day. And from of and collected gobs of frequent-flyer everything I’ve been able to gather, that news conference was the miles during his many visits to D.C., Indiana political observers reason why. I immediately sent White a text message and threw have debated at length the question of whether he will run for that information up on Twitter. Within five minutes I heard back president in 2012. But here’s a better question: Should he run for from White telling me he was neither stepping down nor stepping president? Today, less than a year before the Iowa caucuses and aside. A few minutes later he called and so we talked for about New Hampshire primaries, let’s discuss the five most compelling 30 minutes. White did not talk about the facts of the case, simply reasons for Daniels to make a run for the White House. (On Fri- once again repeating that he was innocent and there’s a lot more day, we’ll discuss the five reasons he should not.) Timing is crucial information out there that will back him up. He also said he had in politics, and there arguably has never been a time when the no concerns that that Friday’s news conference would hurt his issues that set Daniels apart -- his laserlike focus on government case. And that the office could function, despite his indictment. spending and his long-standing crusade against deficits -- enjoyed He declined to comment on why Keefer stepped down. Nor would such a prominent role in the political debate. This could be a rare he comment on the news that his Press Secretary, opportunity for a bottom-line politician, one who looks Jason Thomas, may be resigning on Monday. He did more like an accountant than a presidential candidate, to say the office’s other 75 employees are doing a great grab a sizable chuck of the electorate. If voters truly are job serving the people of Indiana. White spent quite concerned about the federal debt and the nation’s long- a bit of time disputing the claim that the Indiana term fiscal situation, they may be willing and even eager Secretary of State is the “Chief Election Officer”. He to embrace a number-cruncher with a history of cutting said most of those election functions are carried out at costs. In many election cycles, voters are attracted to the County level and most of what the Office does is charisma, charm or the guy with whom you’d like to ministerial in nature. He did admit to being out of his have a beer. There’s a chance many Republicans in 2012 will look main office a couple days last week, but said one day he worked for the candidate you’d hire to do your taxes. He would enter from home and the other day he spent in the Securities Division, the race with full credibility as a presidential candidate. Daniels which is in the Government Center. When I asked if he will be has run a state, worked in the corporate world and served in two back in the office Monday he said, “Yes, I love my job and I love presidential administrations. He understands the inner workings coming into work. I’m a fighter and I’m not going anywhere.” He of government and how D.C. policies affect states and businesses. also expressed concern that the ordeal was having on his family. He has the resume and, importantly, the national media and po- When we concluded our conversation and I was going through my litical worlds long ago deemed him a serious contender. Attaining notes, I tried to run through my mind an analogy that would fit all credibility is the first hurdle many candidates have to cross. Many this. I wanted to keep the Charlie Sheen/Japanese nuclear reactor never do. But Daniels has. It’d be a shame not to take advantage meltdown references down to a bear minimum if at all. And I all of that. v I could come away with was your typical Shakespeare character, whose drive, determination and ability to focus on one thing, bring him to power, but those same character traits are what Rich James, Post-Tribune: I’m not sure what it is with become his downfall. I understand wanting to fight. If I was in Republicans. Are they vindictive, or just not bright? Maybe both. White’s shoes I’d mount a vigorous defense as well, but there are Just five months after Sister Sarah and the tea partiers won con- different ways to do it. And I’m not convinced that White can suc- trol of the U.S. House and state legislatures across the country, cessfully fend off his charges and carry out his duties at the same Republicans have laid the groundwork for self-destruction. Hold time as Secretary of State. I’m not sure anyone could do that in the applause till later. The attacks on organized labor and social that position. This is part of the reason why the law allows the service agencies that primarily serve the poor have awakened the Chief Deputy Secretary of State to take over should the elected Democrats who forgot to go to the polls last fall. I don’t recall the officeholder temporarily step down. That fact also ties into some tea folks telling their candidates that the first thing they needed speculation as to why Keefer may have resigned. In addition to to do when elected was a frontal attack on organized labor. Yep, being upset about White’s performance on Friday during his news destroy the unions by essentially getting rid of collective bargain- conference, a number of Republicans have expressed concerns ing. Republican Gov. Scott Walker in Wisconsin even said it. He is about him taking over the office since he was White’s campaign out to break the unions. Because of the attacks on unions, some manager and Keefer taking over the office would not have done 70,000 union folks turned out in protest in Wisconsin. Thousands much to quell the controversy. In fact, it would have only added more did so in Indiana and elsewhere. The Republicans will to it. At the end of our 30-minute chat, I am more convinced than have some successes in their attacks on unions and the ability of ever that White should temporarily abdicate his office and turn it people to organize, but in the end, they’ll wish they hadn’t made over to the acting chief Deputy Secretary of State. He should fight the first move. Walker in Wisconsin doesn’t have a lick of sense. the charges and if the grand jury did not get the whole story and He doesn’t know it now, but he’ll be a one-term governor. v HOWEY Politics Indiana Page 19 Weekly Briefing on Indiana Politics Thursday, March 17, 2011

Bosma raises idea of recall law INDIANAPOLIS - Republican House Speaker Brian Bosma sug- gested Wednesday that lawmakers might consider in the future enacting a recall law enabling citizens to remove legislators from office during their term (Kelly, Fort Wayne Journal Ga- zette). “There’s not a means for that in current Indiana statute,” he said. “We’ve had a lot of taxpayers ask for a remedy to that.” Other states have a procedure in place, including Wisconsin, where recall petitions have started for both Republicans and Democrats involved in a budget tussle. In Indiana, House one labor bill, water down a private to work” measure that would allow Democrats who have broken a quorum school voucher program and declare workers to opt out of union dues and, in that chamber since Feb. 22 can the “right to work” measure dead for opponents say, undermine union fund- only be fined under House rules. The the year (Bradner, Evansville Courier ing in the process, is really dead. It majority of that caucus remains in an & Press).Those are the requests the was one of 23 bills that hit procedural Illinois hotel. Bosma also said Indiana leader of Indiana’s boycotting House snags when Democrats fled to Illinois used to have an anti-bolting statute on Democrats made in a letter his staff on Feb. 22. Bosma has previously said the books that called for misdemeanor hand-delivered to Republican House his chamber won’t seek to insert lan- convictions and a one-time $1,000 fine Speaker Brian Bosma on Tuesday. guage from those bills into any others against members. And it might be time The implication of House Democratic for the rest of this session.Regardless to look at the constitutional provision Leader B. Patrick Bauer’s letter: If of the answer, the Senate could still requiring 67 members for a quorum. Republicans agree to those conces- insert some of those proposals into “If this is going to be the conduct of sions, Democrats move much closer other bills currently under consider- elected officials in the future, perhaps to leaving the Comfort Suites hotel. ation in that chamber. Still, Bauer said it’s time to take a look at the constitu- Bosma has said he is not willing to he wanted to know if Bosma’s offer tion and revise it,” Bosma said. Rep. negotiate with Democrats anywhere stands. Win Moses, D-Fort Wayne, said “the but the floor of the House, where purpose of breaking a quorum is in Republicans have a 60-40 majority but part to bring the discussion back to need a 67-member two-thirds quorum Senate panel the middle so we don’t have extrem- to conduct business. But Democratic ists on either side and we are able to Rep. of Evansville said changes charters talk about these things and educate Bauer’s letter presents a “great oppor- INDIANAPOLIS - Legislation people.” tunity” to end the standoff that is now expanding the availability of charter in its fourth week. “That’s certainly schools was changed by an Indi- something that I would be definitely ana Senate committee Wednesday Bauer outlines interested in, no question,” she said to limit the effects of expansion on negotiation points of the contents of Bauer’s letter. The traditional public schools. Under the letter included one question and two changes made to House Bill 1002, INDIANAPOLIS - Scotch proposals. The question was aimed traditional schools would not have at making sure the contentious “right HOWEY Politics Indiana Page 20 Weekly Briefing on Indiana Politics Thursday, March 17, 2011

to share transportation funding with out future jobs as defense secretary, scheme. “I can’t stand here and pur- charters, city mayors would not be al- vice president or even president of the port to feel what they feel. There are lowed to sponsor charter schools and . Why would a politician people who are severely hurt because it would be more difficult to convert who has sought the nation’s top office of this,” Morrison said. FBI spokes- a traditional school into a charter. In lower her sights? “I have the best job woman Laura Eimiller said Durham addition, most teachers in a charter ever,” Clinton said, saying the world was arrested Wednesday morning at school would have to be certified and was changing so quickly “it’s almost his home in West Hollywood, Calif. charter schools would have less access hard to catch our breath.” “I want to He was scheduled to appear in U.S. to unused school buildings. A charter be part of helping to represent the District Court in Los Angeles. Cochran school is a publicly funded school that U.S. at this critical moment in time, and Snow were arraigned Wednesday operates under a contract or charter, to do everything I can in support of in federal court in Indianapolis and with fewer restrictions than a tradi- the president and the government, to released, although they are required tional public school. State Sen. Earline stand for values and ideals and stand to wear electronic-monitoring equip- Rogers, D-Gary, sponsored many of up for America’s interest,” Clinton said. ment, U.S. Attorney Winfield Ong said. the changes enacted by the Senate As for the presidency -- not interested. James Voyles, an attorney for Co- Education Committee. She believes the “I had a wonderful experience run- chran, declined comment Wednesday. changes correct some of the flaws in ning. I’m very proud of the support Attorneys for Durham and Snow did legislation as approved by the House. and the opportunity. But I’m going to not immediately return calls seeking “There are legitimate concerns that be moving on,” she said. comment. an increase in charter schools has the potential of a negative impact on the traditional schools to carry out their Durham arrested I-69 contract mission,” Rogers said. House Speaker Brian Bosma, R-Indianapolis, the spon- on $200M fraud awarded for Pike INDIANAPOLIS - A former Indiana sor of the legislation, said he does not businessman who served for years as EVANSVILLE - State officials support the new requirement that a National Lampoon’s chief executive have awarded a southern Indiana majority of parents and teachers agree was arrested Wednesday on charges company a $25 million contract to before a traditional school can become he ran an elaborate Ponzi scheme that build a 4-mile section of the Inter- a charter. “That one was, I don’t think, defrauded investors of more than $200 state 69 extension that will run from well advised,” Bosma said. The educa- million to help fund a lavish lifestyle, Indianapolis to Evansville. Bloom- tion committee voted 8-2 to approve including a $250,000 revamp of his ington-based Crider and Crider, Inc. the amended legislation. Because the luxury home’s garage. A federal grand submitted the lowest bid for the Pike proposal spends state funds it will now jury indictment unsealed Wednes- County project. The state Department go to the Senate Appropriations Com- day in Indianapolis charges Timothy of Transportation says the agency has mittee for a second review. Durham, business partner James F. awarded 11 of 15 contracts for the Cochran and their accountant, Rick D. 142-mile interstate to Indiana firms at No second term Snow, with 12 counts, including con- the lowest bid. spiracy to commit wire and securities for Hillary fraud, wire fraud and securities fraud. The indictment, along with a separate IMB expanding WASHINGTON - Secretary of Securities and Exchange Commis- State Hillary Clinton said on Wednes- sion civil filing, accuses all three of call center day she has no desire to continue in defrauding about 5,000 investors in DALEVILLE - The silo might the job if President Barack Obama Akron, Ohio-based Fair Finance Co. of be gone, but the jobs are coming. wins a second term in 2012. And she more than $200 million. Tim Morrison, Technology giant IBM, which already said she doesn’t want to be presi- the first assistant U.S. attorney in employs more than 400 people at a dent either.When Clinton was asked Indianapolis, said the charges Dur- customer contact center in Daleville in aCNN interview during a trip to ham faces involve Fair Finance and in in southwestern Delaware County, is Cairo if she wanted a second stint as no way pertain to National Lampoon. expanding its operations into one of America’s top diplomat, she was clear Morrison said many of the victims, the few remaining spaces left in the (Associated Press). “No,” she an- including elderly investors, suffered nearby Heartland Business Center. swered -- and then moved on to rule severe financial harm in the alleged