Thursday, Aug. 1, 2002 ! Volume 9, Number 1 Page 1 of 9 Storm clouds gather The over Hoosier GOP Howey !"#$%&'()$)*"(%+*,'+#%-'.%()"/)()$)+# By BRIAN A. HOWEY in It was just a few election cycles ago that you could hear Hoosier Republican candidates talk about “running gov- Political ernment like a business.” Today, that notion and other formerly popular buzz- words such as “privatization” have Republicans seeking Report cover in a volatile economic and political environment. The adage that the die is cast for the fall election cycle by Aug. 1 The Howey Political Report is published by NewsLink may be premature in 2002 with security and the economy Inc. Founded in 1994, The Howey Political Report is riding a roller-coaster, but there are a multitude of storm an independent, non-partisan newsletter analyzing the clouds on the horizon, and how Republican and Democratic political process in . candidates play the cards dealt to them will be the essence of Brian A. Howey, publisher survival. Mark Schoeff Jr., Washington writer President Bush tried to stem the tide for Congressional Jack E. Howey, editor Republicans Tuesday when he signed a sweeping overhaul of business regulation. “This law says to every dishonest The Howey Political Report Office: 317-254-1533 corporate leader, 'You will be exposed and punished,’” Bush PO Box 40265 Fax: 317-968-0487 Indianapolis, IN 46240-0265 Mobile: 317-506-0883 said, following with this Clintonian echo: “The era of low standards and false profits is over. No board room in [email protected] www.howeypolitics.com America is above or beyond the law." The rushed passage of corporate reforms had Washington office: 202-775-3242; Hoosier Republicans whistling past the graveyard. “I think Business Office: 317-254-0535. we put the pin back in the hand grenade on this,” U.S. Rep. Subscriptions: $250 annually via e-mail or told . While still holding a fax; $450 annually including the HPR Daily lead in the 6th CD, Democratic challenger Melina Fox is Wire. Call 317-254-1533 or 254-0535. pressing Pence, which was noted by the Indianapolis Star © 2002, The Howey Political Report. All rights Tuesday. Up in the new 2nd CD, CEO has reserved. Photocopying, Internet forwarding, faxing or been on his heels as Democrat aimed reproducing in any form, in whole or in part, is a viola- double barrels at him: the corporate reforms and his 2000 tion of federal law and is strictly prohibited without campaign Elkhart Truth quote (see page 6) where Chocola consent of the publisher. continued on page 2

“This is a positive trend.. We’re heading in the Ticker: Pence predicts p. 2 right direction. But growth isn’t strong HPR Interview: p. 4 enough.” - President Bush, defending news of 1.1 Horse Race: Chocola’s SS quotes p. 6 percent growth in a sluggish economy Columnists: Colwell, Stedman p. 8 Perhaps: Constitutional convention p. 9 HPR Begins Our 9th Year of the Most Comprehensive Coverage of Indiana Politics Thursday, Aug. 1, 2002 Page 2 of 9

PENCE PREDICTS WAR: War against Iraq is only a matter of time, according to Congressman Mike Pence. "I believe President Bush has made a decision to move against Baghdad," Pence told members of the Muncie Delaware County Chamber of Commerce Wednesday (Rick Yencer, Muncie Star Press). Pence stopped in Muncie during a whirlwind three-week tour of East Central Indiana. talked about privatizing Social Security. year ago Republicans would not have $600 MILLION IN UNCOL- LECTED INDIANA TAXES: Democratic consultant Chris Sautter made. “CEOs and accountants who rob More than a half-billion dol- told HPR, “According to focus groups I've millions from investors by cooking the lars in taxes have gone been privy to in the last week, voters are books are no better than common crimi- uncollected in Indiana very, very angry about losing money in nals," Chocola said. "We need increased (Susan Taylor, Evansville the stock market while executives have accountability from our corporations and Courier & Press). Larry cashed in. I'm not sure that the legislation accounting firms, and this legislation McKee, the deputy commis- is sufficient to cool the anger. It doesn't delivers.” sioner of the Indiana appear to be a good climate for a CEO to Department of Revenue, run for office, to say the least.” In the 7th CD, Republican Brose said more than $600 million Fox also received considerable McVey, who has embarked on a fiesty in taxes are owed to the challenge to U.S. Rep. , state. The taxes due are press coverage in the 6th by taking a cara- from businesses which col- van of Studebakers, reminding voters that issued his own corporate reform proposals lect sales tax, employee the South Bend company’s collapse in and demanded a federal probe of AES and payroll tax, individuals who 1963 after it raided its own pension fund IPALCO, calling it the “Enron of the haven't paid state taxes was responsible for the creation of north.” In years past, it would have been owed from their tax returns former IPALCO CEO John Hodowal help- and other various taxes due ERISA. "We need to remember that with- to the state. McKee said he out political and investor pressure, it ing to raise money for GOP candidates. does not know how many would not have happened," said Fox. “We Today, he has been vilified for leading the outstanding tax warrants need a representative in Congress who corporate officer charge to sell IPALCO there are around the state. always respects us, not someone who flip- stock before it crashed, making millions Tax warrants are a legal while regular employees were left holding step taken by the state to flops in votes, first supporting powerful collect overdue taxes from people who don’t care about ordinary virtually worthless stock like their Enron individuals and businesses. families and then supporting families only counterparts. Secretary of State candidate And he also said he can't when the political pressure to do so Todd Rokita locked horns with Democrat say what the exact amount becomes overwhelming.” John Fernandez on Indiana’s security reg- of overdue taxes owed to Republican candidates tried to ulations, seeking to bolster the office’s the state are. "If we could avoid the whirlpool. In the 2nd CD, enforcement and prosecutorial prowess. Continued on page 3 Chocola was making statements that a Tuesday night, after Bush signed Page 3 of 9 Thursday, Aug. 1, 2002 the new law, NBC’s Tom Brokaw with 35% rating the national economy as observed, “The epidemic of corporate excellent or good; 65% rating it as not fraud and scandal in America is dangerous good or poor. to the health of politicians in an election DOW DOWN 13 PERCENT: year. Today, in Washington, they tried to CBS reported that after two spikes on the inoculate themselves with some legisla- Dow last week, it is still down 13 percent tion rushed through to address the most for the year. find out (the exact warrant BETHLEHEM STEEL DOOM- blatant cases. The President, who came to numbers statewide), it ED: In Northwest Indiana, where people would not jibe with the num- office promising to reduce the role of gov- are just beginning to figure out that the ber" of more than $600 mil- ernment in business, signed the new gov- tax restructuring in the legislature is still lion due, he said. ernment regulations with a flourish and going to mean big property tax increases, promised more action to come.” steel industry analysts were calling PRESCRIPTION DRUG PLAN FALLS IN SENATE: By Wednesday morning, a spate of Bethlehem Steel’s recovery in the Post- ugly economic news was mitigating any The Senate killed legislation Tribune “hopeless” and “a sham.” to provide prescription drug feel-good notion of Bush’s reform The last time a clear national benefits promised to the attempts: dynamic took shape that influenced scores elderly by politicians of INDIANA LEADS NATION IN of Hoosier Congressional and legislative both parties. But it over- BANKRUPTCY FILINGS: Indiana's races was in 1994. The late Democratic whelmingly passed a bill two federal court districts led the nation consultant Bill Schreiber recognized it by intended to give all Americans greater access last year in filings for Chapter 7, the most mid-summer of that year; U.S. Rep. Lee Hamilton articulated it to Democrats at to low-cost generic versions common type of bankruptcy for people of brand-name medicines French Lick at the end of August; and seeking protection from creditors (Mark (Robert Pear, New York Jewell, Associated Press). Last year, HPR began putting Democratic incum- Times). Indiana's delegation bents in the “tossup” zone in mid- Indiana's Northern District ranked first split its vote, with Democrat September. among 90 U.S. court districts, with 6.3 out voting yes and Democrats are beginning to get Republican of every 1,000 people filing under similar premonitions now, but this time voting no. Chapter 7. The Southern District was sec- reversed. “People have to hold President ond with a figure of 6.2 compared with a Bush and his people accountable for the WHITE HOUSE REJECTS national median of 3.8. economy," Delaware County Democratic TRUCK DELAY: The White U.S. ECONOMY LOSES Chairman Dennis Tyler said after meeting House on Wednesday rejected a plea from House MOMENTUM: The second quarter of with dozens of voters at the 4-H Fair Speaker Dennis Hastert, R- this year the economy grew at an annual there. Former legislator Hurley Goodall Ill., and other lawmakers to rate of just 1.1 percent (Associated Press). told the Muncie Star Press that even postpone a tough new anti- New government figures showed that last though Bush has a 76-approval rating in pollution standard for long- year's recession was worse than previous- Indiana, "If they don't get the economy haul diesel trucks that will ly thought and the economy actually straightened out, you are going to see a provide stiff penalties for shrank in three quarters of 2001. blowout.” companies that don't meet CONSUMER CONFIDENCE The fine line for Democrats is not the deadline for compliance SLUMPS: The Wall Street Journal to overplay their hand, rebuking their own (Washington Post). Senior officials of the Office of reported that the Conference Board's legendary President Franklin D. Roosevelt Management and Budget monthly index of consumer confidence who spoke of a fragile national psycholo- and the EPA confirmed the slumped in July to 97.1 from 106.3, down gy in 1933 by saying, “The only thing we decision, with one saying, for two straight months. An ABC have to fear, is fear itself.” "We looked at the science News/Money poll of 1,017 interviews in The fear for Republicans could and heard from as many the month ending July 28 (+/- 3%), shows come by Aug. 15, when the CEOs of the stakes-holders as possible . the Consumer Comfort Index "stands at - nation’s top 950 corporations have to per- . . and believe that moving 12 on its scale of +100 to -100, down a sonally certify earnings reports. " forward is the right thing to sizable six points in the last three weeks continued on page 4 Thursday, Aug. 1, 2002 Page 4 of 9 Rokita sizes up the Secretary of State race INDIANAPOLIS - HPR’s Brian conflict of interest situations. There Howey conducted this telephone interview comes a time when you have to hire addi- with Republican secretary of state nomi- tional expertise and we’ve seen the rise in nee Todd Rokita on Monday: the number of registered brokers almost do." U.S. Reps. Mike Pence HPR: What’s your read on the double in eight years. Although we’ve and lobbied Indiana political climate as we head into funneled more resources into the against the delay on behalf of Cummins Engines, the August? Securities Division over the past several only truck manufacturer Rokita: People want a change in years, there comes a time when you need who will meet the deadline. direction. Hoosiers have work ethic and more police on the beat. Once you get character second to none. Yet, they see those police on the beat, you send the KITTLE CALLS FOR that Kentucky had job growth last year message out and once you prosecute and KAPLAN RESIGNTATION: - and we didn’t. They see it’s time to make these criminals go to jail, that’s the best Indiana Republican Party some changes. deterrent factor of all. Chairman Jim Kittle Jr. has HPR: Are the corporate scandals HPR: The last three secretaries of called for the immediate weighing on the average man’s mind? states have cut and pruned that office, so resignation of Indiana Rokita: Yes, it’s a concern. People it’s interesting to hear you’re willing to Department of Environ-men- tal Management Commis- are happy we’re being proac- add resources. sioner Lori F. Kaplan after it tive. People don’t see govern- Rokita: As a Republican was revealed that IDEM and ment as necessarily having an who believes government the O'Bannon-Kernan answer. A crook is a crook. I that works best is govern- Administration have known hear a lot of that. But to the ment closest to the people for years that residents of extent that government can be and the best working govern- Bedford have been exposed helpful at whatever level, ment is a lean and small gov- to PCBs discharged from from the prosecutor at the courthouse to ernment, it is an ironic thing to say. We the local GM plant. "This the secretary of state at the Statehouse, to have taken every possible measure in run- lack of action on the part of Congress and the White House, they want ning the office to make sure that adequate IDEM is completely inexcus- able," Kittle said. "It shows to see us acting as a team. resources are there. For example, our a reckless disregard for HPR: Mayor Fernandez spent overall office budget went down 15 per- human life that simply can- much time talking about the need to cent, but that overall reduction actually not be tolerated. The com- strengthen security laws here in Indiana. includes a 26-percent increase in the missioner of IDEM must be Where do you think Indiana stands? Securities Division, so there are areas in asked to resign immediately Rokita: We have a three-point plan. government that would be better off with and a thorough investiga- That’s the benefit of having the experi- more resources. The test of leadership is tion must be conducted ence in office. We’re not creating a plan how to provide those resources while immediately before more out of thin air for political gain, but using taxpayer’s money most prudently. innocent Hoosiers become through experience. We know what needs HPR: Had you been weighing ill." Tests conducted nearly a quarter-century ago to be done. Here in Indiana what needs to these issues before the Enrons and revealed toxic levels of be done is having a secretary of state with WorldComs and Global Crossings? PCBs, known carcinogens, criminal jurisdiction so we can partner Rokita: It had been part of our in soil and water in and better with prosecutors, so we can prose- master plan. I’ve had the experience in the around Bedford. Yet local cute a case if the prosecutor doesn’t have office and I want to take it further into the residents were told nothing the expertise or the time. Secondly, and I 21st Century. Did I know WorldCom and for years while many of know this through experience, is to have Enron would unfold the way they did? them became ill with can- compliance auditing actually done by the No. But we had the general plan laid out cer, Parkinson's and other secretary of state. We had that before, but and these issues make the announcement diseases. The only direction it was dismantled a few administrations of the plan much more timely. they received from the state was to avoid eating fish ago. Actually, the stockbrokers are paying HPR: The other major issue is caught in local streams. to have the auditing done themselves. election reforms. Are you comfortable We’re seeing that very clearly in recent about what Indiana has done since the continued on page 5 Page 5 of 9 Thursday, Aug. 1, 2002

2000 presidential election? office. Mr. Fernandez’s record may come Rokita: I’m comfortable with the in, but it will be in context of qualifica- start we’ve made. But we have a long way tions running for secretary of state. to go. First and foremost the General HPR: We see a number of exterior Assembly passed the law that funded the political forces coming into play, ranging statewide voter file, and started to fund from President Bush’s popularity, to the GILROY ADDS THREE the updating of Indiana’s voting machines. economy, to the war on terrorism. What SECURITIES INVESTIGA- However, that funding is now frozen. do you anticipate the political climate to TORS: The secretary of What I asked the Governor is if we are be like over the next three months? state's office, which pro- not in public service to protect the corner- Rokita: I think Indiana is pro com- tects Hoosier investors from corporate fraud, is adding stone of our democracy, which is voting, mon sense, so it will be pro-George Bush. three investigators to its what are we in government for? You saw To what extent that will have on my race, financial beat (Indianapolis the General Assembly work together and you’re right, it’s an external factor I don’t Star). GaryTaxpayers will pass tax restructuring. Now that that have control over. What it’s going to be in not foot the bill, either. The money is there, let’s move out to election 100 days, I have less control over. It’s salaries of two new securi- reforms so I can get on with the business been a roller coaster ride so far. I am con- ties investigators will be the General Assembly has legislated. centrating on those things that I do have paid for out of the enforce- HPR: What other election reforms control over. My message. My record. ment fund, which contains $115,000 in fines collected would you like to see? Money raised to get that message out. from corporate lawbreakers. Rokita: Helping counties update HPR: What kind of money will The salary for the third voting machines. What we really need at you need and what do you think both can- investigator, whose job will the polls is some kind of positive voter didates will be spending this fall? focus on mortgage loan ID. I think that in the society we live now, Rokita: I have a goal to raise $1.4 brokers, will come from no one would be offended to show some million and I assume John has a similar licensing fees those brokers kind of ID, if it was done in some consti- goal and when it’s all over, we’ll both pay. "We are protecting tutional manner. This would also go to have zero. Hoosiers' life savings," Secretary of State Sue Anne help dispel rumors of fraud. HPR: Anything you’d like to talk Gilroy said in announcing HPR: What about extending the about that I didn’t bring up? the move Wednesday. voting hours? Oregon-style mail voting? Rokita: This race is important not Weekend voting? Internet voting? only for the duties all Hoosiers now see STEEL INDUSTRY ANA- Rokita: I think you’ll see a the secretary of state having, but it also LYSTS SAY BETHLEHEM IS Secretary of State Rokita entertaining any determines in large part the direction DOOMED: Steel industry idea that encourages people to vote. The Indiana goes. I come from, to be blunt analysts say the hurdles cornerstone to reform that sector is really about it, a part of Indiana that makes fun facing Bethlehem Steel are the statewide voter file, so you know who of people from Kentucky. But you know mounting, and they don’t believe the bankrupt steel what? Kentucky had job growth last year. should be voting and who shouldn’t. It’s maker will survive (Lisa very difficult to build a voting system This race in a large part is going to help Shidler, Gary Post-Tribune). around that. I do entertain ideas, especial- determine the direction Indiana goes. The tasks of reaching a con- ly remote voting. Technology exists where HPR: It sounds like you’re laying a tract with the union and cut- you don’t necessarily have to be in your skirmish line for 2004. How important is ting costs will be a chal- precinct to have your precinct ballot pop this race for the Indiana GOP? lenge, and analysts say the up on a screen. Internet voting shouldn’t Rokita: It will set the momentum company won’t likely make be discounted, but we all need to under- for the mayoral races in 2003 and the gov- it on its own. They also say it’ll be nearly impossible for stand that security has to be guaranteed. ernor’s race in 2004. The governor’s race the company to lure part- HPR: Are we going to see the in 2004 has started vis-a-vis this race. ners while it has the burden Fernandez tenure as Bloomington mayor HPR: As I asked Fernandez, are of $5 billion in pension and come up in the fall campaign? you going to serve out the full term? health care costs for Rokita: I intend to run a positive Rokita: Yes, and I have already retirees. “They’re hope- campaign that focuses on me and our committed in writing to serving out the record and what we’re going to do in that full term. " continued on page 6 Thursday, Aug. 1, 2002 Page 6 of 9 Indiana 2002 Racing Form TRENDLINE: Last Sunday on NBC’s Meet the Press, columnist William Safire was asked to predict where the 2002 congressional elections would go. He pre- dicted the House would go Democratic and the Senate will go Republican. “It’s a wash, and it’s a wash because it reflects where the country has been and is, which is less,’’ analyst Charles Bradford said about neatly split,” Safire said. “We like George Bush, we’ve come to like him, and a 70 per- Bethlehem. “Look at how cent personal approval rating is very high. That’s Eisenhower stuff. That’s remarkably much they lost. It’s a sham. high. And it’s maintained itself for almost a year.” It’s a total sham.” Bethlehem reported it lost $82.2 million in the second Indiana Congressional Races quarter, an improvement Republican: Chris Chocola. Democrat: Jill Long compared to the $101 mil- Congressional District 2: lion the company lost in the Thompson. Geography: South Bend, Michigan City, Mishawaka, Elkhart, Kokomo, Plymouth, first quarter. Logansport; LaPorte, St. Joseph, Starke, Marshall, Pulaski, Fulton, Cass, Carroll and parts of Howard, Porter, Elkhart and White counties. Media Market: South Bend-Elkhart, Indianapolis, I-69 ROUTE WON’T GO Lafayette, Chicago. Websites: www.jilllongthompson.com; www.chocolaforcongress.com 2000 41/70: The route most envi- Result: Roemer (D) 107,076, Chocola (R) ronmentalists favor for the 98,367. 2002 Forecast: On the Elkhart Truth Interstate 69 extension website, quotes attributed to Chocola in the fall between Indianapolis and of 2000 are these: “Bush's plan of individual Evansville is not among investment of 2 percent of the money is a start. those preferred by the Eventually, I'd like to see the entire system pri- Indiana Department of vatized. It's not a 'risky scheme.' There will be a series of investment options for people, profes- Transportation. That route sionally managed. If one isn't performing for you, you can change every year. We're not going to would follow I-70 from let people invest all of their money in Yahoo! People will be smart enough to understand their Indianapolis to Terre Haute risk level. I believe people can make good decisions, and I know they ask really good questions and use part of the existing before they make decisions. Will somebody screw it up? No question. But the government is four-lane U.S. 41 south to screwing up the whole thing right now. The whole thing is optional, and it's good for a couple of Evansville. But two of the reasons. One, it's your money and nobody can touch it. It doesn't end up being borrowed by the five preferred options would federal government to pay off other things. Two, it gives you a much better return than you'd bring the interstate through ever get out of Social Security. Right now, younger people are getting a negative return on their Monroe County. money. The stock market has performed at 8 percent return over the past 70 years -- that's through wars and depression. If you give people the opportunity, they'll build their self-reliance ALLEN COUNTY DEMOC- and self-respect because they'll be making a direct impact on their lives." Long Thompson said RATIC CHAIRMAN Wednesday that recent plummeting of the stock market shows “how risky privatization of Social RESIGNS: Allen County Security would have been" (Jack Colwell, South Bend Tribune). Chocola responded that Long Democrat Chairman Roger Thompson was following “the Democratic handbook on how to frighten senior citizens with Miller has resigned. Miller misinformation." Chocola said "privatization is not even a precise word for personal savings originally said he could han- accounts of the type referred to by the President's Commission to Strengthen Social Security.” dle being a candidate for Chocola denied that he ever supported privatization of the entire Social Security system. prosecutor, party chairman Chocola said, “My position on Social Security is clear: we must work to protect strengthen and and professional engineer, preserve Social Security. Any reform to Social Security must meet the following principles - no but he opted last week to cut in benefits, no raise in the retirement age, and no increase in payroll taxes.” Status: Tossup. focus on his race against Congressional District 6: Republican: U.S. Rep. Mike Pence. Democrat: Melina Republican Karen Richards Ann Fox. Geography: Anderson, Muncie, Richmond; Wells, Adams, Blackford, Jay, Madison, (Fort Wayne Journal Delaware, Randolph, Henry, Wayne, Rush, Fayette, Union, Decatur, Franklin, and parts of Gazette). Democrat insiders Bartholomew, Shelby, Johnson and Allen counties. Media Market: Indianapolis, Fort Wayne, must elect a new leader Dayton, Cincinnati. Websites: www.foxforcongress.com; mikepence.house.gov/ 2000 results: through an Aug. 17 party Pence (R) 106,023, Rock (D) 80,885, Frazier (I) 19,070. 2002 Forecast: Horse Race doesn’t caucus. That ballot so far is believe Pence is in serious trouble ... yet. But clearly this race looks like it could tighten up and slim, with only Vice Chair is beginning to get some national recognition. Pence’s “pin back in the hand grenade” could come back and haunt him, particularly if a large number of corporations report bogus earning Page 7 of 9 Thursday, Aug. 1, 2002 figures by Aug. 15, which could trigger a free-fall on the Dow. Pence released this statement Friday night, saying he would support the Homeland Security Act. "Today, we have created a new department of the executive branch to confront the new threat of terrorism," said Pence. "This is an historic moment. The House has begun the process of creating a shield to defend innocent Americans. The Department of Homeland Security (DHS) will protect future genera- tions from the threat of terrorism, both foreign and domestic. As chairman of the Security First Taskforce I am pleased that many of the provisions the taskforce identified as key ingredients of any Department of Homeland Security have been incorporated into the final bill. These include: 1) flexibility for the President to make personnel management decisions in the new Ann Reyes Robbins saying department; 2) inclusion of the Coast Guard in DHS; 3) reduced liability for the federal gov- she will seek the spot. ernment in class action lawsuits; 4) division of the Immigration and Naturalization Service into Charles Redd, a former two branches; and 5) coordination of the intelligence services. The inclusion of these features council member and vice will help make DHS successful in carrying out its duties to protect American citizens," said president of the Fort Wayne Pence. Status: Leans Pence. chapter of the Indiana Congressional District 7: Republican: Brose McVey. Democrat: U.S. Rep. Julia Democratic African American Carson. Libertarian: Andy Horning. Geography: Indianapolis. Media Market: Indianapolis. Caucus, said his group Websites: www.juliacarson.house.gov; www.broseforcongress.org 2000 Results: Carson (D) might put forward a candi- 91,300, Scott (R) 61,818, Ali (L) 2,513. 2002 Forecast: Bren Simon, a stalwart Democratic date. donor, made a $1,000 campaign contribution to 7th CD Republican Brose McVey on June 11, Federal Election Commission records show. Simon also made a contribution to U.S. Rep. Julia WEATHERWAX LAUDS TAX Carson. A Congressional Quarterly article posted on the Washington Post website, says REFORM: State Sen. Tom “McVey does not neatly fit into either the moderate or conservative camps of the GOP. He Weatherwax, R-Logansport, likens his views to those of Jack Kemp.” McVey is quoted saying, "My attitudes and views are told a Cass County econom- more like a Jack Kemp or a George W. Bush than a Ronald Reagan or a Tom DeLay." Carson ic development board last as of June 30 had more than twice as much cash on hand as McVey, $517,000 to $239,000, week how the rules of the because she had surplus campaign funds from her 2000 race. Carson noted she was outspent in game have changed. A fiscal her 1996 and 1998 campaigns, which she won with 53 percent and 58 percent respectively. "I conservative, Weatherwax have historically not relied on raising money to win elections," Carson said. "I rely on the peo- often criticized the state’s ple who make the difference in terms of the outcome. I will continue to do that. I will appeal inventory and property taxes to the people and not to the funders." Status: Leans Carson. and called the system an Congressional District 8: Republican: U.S. Rep. . Democrat: “alligator” he wrestled with for eight years (Bryan Harris, Bryan Hartke. Geography: Evansville, Terre Haute, Greencastle; Posey, Vanderburgh, Logansport Pharos-Tribune). Warrick, Gibson, Pike, Martin, Daviess, Knox, Sullivan, Greene, Owen, Clay, Vigo, He listed a reduction in Vermillion, Parke, Putnam, Warren and part of Fountain counties. Websites: www.bryan- school taxes on property hartke.com; www.house.gov/hostettler/ Media Market: Evansville, Terre Haute, Indianapolis. owners, a reduction in the Lafayette. 1994 results: Hostettler (R) 93,529, McCloskey (D) 84,857. 1996 Results: average residential property Hostettler (R) 109,582, Weinzapfel (D) 106,134, Hager (L) 3,799. 1998 Results: Hostettler (R) tax by 23 percent, elimina- 92,227, Riecken (D) 81,381, Hager (L) 3,395. 2000 Results: Hostettler 116,860, Perry (D) tion of the inventory tax for 100,461. 2002 Forecast: Hartke said Hostettler has not agreed to any of five proposed debates. businesses by 2007, and a Hartke said, "They said they didn't receive the first letter. I have a signed receipt for it. Starting new method of distributing a campaign off with lies is not the way it should be done" (Bloomington Herald-Times). tax money from the state’s Hostettler campaign spokesman said that Hartke "should have done more home- gambling boats that will yield work before proposing the debates since the first three proposed dates are days Hostettler will $258,000 for Cass County in be in Washington for House sessions." Status: Likely Hostettler. 2004. Congressional District 9: Republican: . Democrat: U.S. Rep. Baron Hill. Geography: Bloomington, Columbus, Lawrenceburg, Rising Sun, New Albany JORDAN ANNOUNCES FOR Jeffersonville, Madison, Nashville; Spencer, DuBois, Orange, Crawford, Perry, Harrison, MAYOR OF INDIANAPOLIS: Washington, Jackson, Brown, Jennings, Scott, Floyd, Clark, Jefferson, Switzerland, Ripley, The Republican effort to , and parts of Dearborn and Monroe counties. Media Market: Evansville, Indianapolis, dethrone Indianapolis Mayor Louisville, Dayton, Cincinnati. Websites: www.house.gov/baronhill/, www.mikesodrel.com formally began 1994 results: Hamilton 91,459 (D), Leising (R) 84,315. 1996 Results: Hamilton (D) 128,885, Wednesday when Marion Leising (R) 97,747, Feeney (L) 2,315. 1998 Results: Hill (D) 92,477, Leising (R) 87,278, County Treasurer Greg Feeney (L) 2,397. 2000 Results: Hill 125,978, Bailey (R) 101,790, Chambers (L) 4,634. 2002 Jordan kicked off his may- Forecast: Hill and U.S. Rep. Mike Pence successfully help lobby President Bush to keep a oral campaign (Indianapolis delay in truck engine pollution standards fromoccurring. Status: Leans D. " continued on page 8 Thursday, Aug. 1, 2002 Page 8 of 9

Jack Colwell, South Bend Tribune - try supports this effort because we've seen Star). "It's a difficult task, Social Security change has long been what a few people can do when they are any time you run against an referred to as the deadly third rail of poli- bent on causing maximum damage to U.S. incumbent," Jordan said. tics. Touch it and your fate is political citizens, our institutions and our psyche. "But I believe it's definitely electrocution, not election. That's the theo- All they had were box cutters and a doable." State Rep. Phil ry. In the 2000 campaign, George W. Bush fevered sense of martyrdom. Perish the Hinkle is also weighing a thought of like-minded people getting challenge to Peterson. dared to touch the issue of Social Security change. And so did Chris Chocola, the their hands on nuclear material, nerve gas, GARY MINISTERS Republican congressional nominee in massive amounts of the bubonic plague ‘STEAMED’ AT MAYOR what then was the 3rd District of Indiana. bacteria. So why are the Bush administra- KING: Last week, four Gary Bush survived to become president. He tion and some House Republicans luke- ministers requested a meet- won praise, particularly among warm, if not outright hostile, to programs ing with Mayor Scott King, Republicans, for daring to suggest Social that either destroy this stuff or secure it asking that he explain his Security reform, regarded by the advo- behind something a tad more difficult to veto of a request to deliver cates as long needed. Al Gore and most penetrate than a door sealed with a plop of $5 million to the National Democrats warned back in the 2000 cam- wax? Sen. Richard Lugar thinks it's resid- Civil Rights Hall of Fame ual Cold War feelings. Despite President foundation. King, preparing paign, however, that his proposal for per- Bush's deep look into Russian President for a four-day conference in mitting Americans to invest part of their Boston, asked Deputy Social Security money in private invest- Vladimir Putin's eyes last fall and finding Mayor Suzette Raggs to ment accounts was "a risky scheme." reasons to trust, there remains within the start the meeting without Privatization of Social Security, as the administration suspicion. Lugar doesn't him. He also arranged for concept was termed back then, was a big dispute that there maybe reasons for skep- City Council finance chair- issue -- in the 3rd District congressional ticism. But he says that's not the point. man Mary Brown, plan com- contest as well as in the presidential race. The point is to get rid of the gunk. Former mittee chairman Robert Although Chocola didn't win, he came Hoosier Rep. Lee Hamilton also shakes White and adviser Jewell close after starting with zilch name recog- his head over the Bush administration's Harris to be there. approach. “If we funded it more," he said Surprisingly, 17 ministers, nition. He certainly didn't self-destruct on lay people and union repre- that third rail. Now, in what is redrawn as of Nunn-Lugar, “pushed it more, we sentatives showed up the 2nd Congressional District, Social would accomplish more. But these doubts instead. They insist that a Security again is an issue. So is the con- linger, largely among the more conserva- majority of the city wants tention that Chocola, who is again the tive, hardline people in the Bush adminis- King to deliver $5 million to Republican congressional nominee, had tration." the foundation, without sought to go much farther than Bush in strings attached. (Steve privatization. " Leslie Stedman, Louisville Courier- Patterson, Post-Tribune). Journal - Indiana is one of 16 states in LEGISLATIVE WEBCASTS Sylvia Smith, Fort Wayne Journal which lawmakers already have raised TO CONTINUE; MAY Gazette -- President Bush has made it taxes. Along with nine other states, EXPAND TO VIDEO: The abundantly clear, and the country agrees Indiana also raised fees. Twelve states, Indiana Legislative Council with him, that deterring acts of terrorism including Indiana, tapped rainy day funds. agreed last week to contin- is his administration's No. 1 task. Tough Twenty-three states, including Indiana, ue audio Internet broad- job, but who would argue against this pri- tapped other state funds to make ends casts of action on the ority? Thus, the Bush administration and meet. After seven years of net cuts in state House and Senate floors taxes across the country, the 47 states (Niki Kelly, Fort Wayne Congress are rushing to spend billions to Journal Gazette). According deter terrorists from crossing our borders, responding to the survey imposed $6.7 to statistics, about 4,000 to detect their plots, to strengthen U.S billion in tax increases in 2002. That's a people logged on to listen installations worldwide, to augment secu- 1.2 percent increase in taxes over 2001, to the Senate compared to rity and intelligence operations. The coun- according to the report." Page 9 of 9 Thursday, Aug. 1, 2002

Initial reaction to a then the Legislative Council,” Styring constitutional convention said. “Incumbent state treasurer. Wow. Being in my 20s, I was impressed. In the Hey, folks, I’m not wandering on about 4,900 visiting the House. course of a rambling conversation, he this one. A number of Hoosier leaders explained why his office ought to be abol- CLARK WATCHING KERNAN’S liked parts of HPR’s Political Agenda of ished!” COMMERCE DEPARTMENT: the ‘00s that we published on July 16. Fountain County Prosecutor Mark State Sen. Murray Clark, a 2004 Take State Sen. Murray Clark, a McGrady asked HPR, “How does the leg- gubernatorial candidate, wrote 2004 gubernatorial contender. “I love the islature's new budget bill, which will of Lt. Gov. Joe Kernan’s plan idea of a Constitutional Convention. You to create 12 regional eliminate the inventory tax over time, pass might look at the historical approach set Commerce offices, “I've read constitutional muster? Article 10, Section forth in the first St. John's opinion. As I with interest Lieutenant 1, of the Indiana Constitution basically recall, several quotes from speeches from Governor Kernan's proposal to says all property must be taxed, with cer- the 1851 Constitutional Convention are decentralize the Indiana Department of Commerce into cited. They are great. Our sytem of gov- tain exceptions (and inventory is clearly not one of the exceptions). There is even 12 regional centers. As a con- ernment is in need of an overhaul. servative, I instinctively agree Furthermore, a consitutional convention an Indiana Court of Appeals case that seems to say exactly that.” with the impulse to disperse would put us on the political map and per- power and bring government In the case of State Board of Tax haps motivate, energize and get Hoosiers closer to the people it serves. interested again in state government.” Commissioners v. Key Motors Corp., the But in light of their previous Former Fort Wayne Mayor Paul opinion reads, "Thus, the Legislature does record, I believe we must Helmke observed, “I have spent a lot of not have the authority at all to exempt so- examine any and all economic years talking about the importance of re- called inventory personal property." development proposals made examining how we structure our govern- McGrady said, “Either I am miss- by this administration with a wary eye. After all, this is the ment and how what made sense in the ing something, or the legislature just team that has presided over 1850s doesn't necessarily work now with passed a tax increase that was largely jus- tified by the elimination of the inventory the loss of over 100,000 the advent of such modern inventions as Hoosier jobs over the last two tax, and that elimination is unconstitution- the automobile and telephone (much less years, and the plunge of per- television and the computer). How can we al.” Styring noted, “There is a constitu- sonal income growth toward deliver services efficiently or pay for them tional problem with doing anything with the bottom of the national equitably when we refuse to recognize the the property tax on inventories by a mere rankings. Overall, we have changes in our world over the last 150 statute. The problem is that Article 10, seen Indiana slip from 6th to years?” Section 1, is pretty damn specific. You 46th in job growth. Now, 5 ½ His comments come just as can't exempt or partially exempt any type years into his tenure at the department, the lieutenant gov- Indianapolis Mayor Bart Peterson has sug- of property except by constitutional amendment.” ernor wants to try something gested expanding the Marion County sher- new.” iff taxing district to the entire city, which Styring added, “The upside is ultimately begs this question: “Why is that I'm pretty sure we're going to have to RANDOLPH EYES CHAL- there a need for a sheriff and an IPD?” revisit this whole tax/budget issue pretty LENGE TO PASTRICK: East Former Lt. Gov. Robert Rock sug- soon (I don't think it hangs together), and Chicago City Judge Lonnie gested that the lieutenant governor “be that would be well before any court would Randolph is rumored to be released from presiding over the Senate,” get around to zapping this provision.” polling to see what his saying it would “be better to donate all of HPR has sought comments from chances might be if he decides to run against East Chicago his time to the executive branch.” other leading Hoosier office holders and Mayor Robert Pastrick next potential gubernatorial candidates on the Economist Bill Styring also favors year (Rich James, Post- a constitutional convention. “I'll never for- constitution, as well as nominating gover- Tribune). Councilman George get the day in the early 70s when Jack nor candidates via party convention. Pabel already has announced New strolled into my cubicle in what was Stay tuned. " his candidacy for mayor. "