V15 N10 Wednesday, Oct. 21, 2009 Too early to gauge FSSA fallout That was leadership, not failure IBM contract termination on the Governor’s part.” will likely make way into Asked if the IBM contract was his worst problem in five House races, but as with years of office, Daniels respond - ed during his presser last Thurs - BMV, story could evolve day, “No. I’ve got a long list. I By BRIAN A. HOWEY haven’t tried to rate them. The INDIANAPOLIS - This being a “po - easiest thing to do in a situation litical report” we naturally think about the like this is throw your hands up political implications of last week’s bomb - and say, ‘Well, that’s as good as shell that Gov. Mitch Daniels was terminat- it can be.’ This has been a daunt- ing the IBM welfare contract in what he ing thing all along, and it still called a “major mid-course correction.” is, of course. Our first attempt Internally with the administra- didn’t get us there, but we did tion, politics as related to the 2010 battle get some positives out of it. We’ll for the Indiana House and this issue are just have to take them and re- probably the least of their concerns at verse some of the mistakes and this point. A gargantuan amount of work move forward. I’ve told you for awaits to develop the “hybrid” system that five years that’s how we’re going restores the “face to face” contact and to operate, and this is a classic keeps the problems with fraud in check. case.” As one administration source told Democrats were jubilant, HPI, “The public appreciates the governor trying to reform with House Speaker B. Patrick Bauer reacting, “”Hallelujah! and deliver a better and more modernized service. When Today’s announcement is huge for any number of rea- the company the state contracted with failed to make the sons. It agreed upon changes, they were relieved of their duty. Continued on Page 3 Blogs & phone calls

By BRIAN A. HOWEY INDIANAPOLIS - The Advance Indiana blog head- line Oct. 14 was sensational: “Anonymous Mailing Hits Luke Messer OWI Guilty Plea.” The first paragraph read: “An anonymous letter ar - “He is nicer to Chavez, nicer to rived in the mailboxes of several area news sources today, including this blog.” Castro, nicer to the president of And then the entire content of the mailing was posted. What makes this Iran, nicer to all these thugs than newsworthy is that Advance Indiana’s he is to Israel, to Netanyahu.” Gary Welsh didn’t bother to call the Messer campaign to confirm whether - U.S. Rep. Mark Souder , on the information was true. Or whether it was the same “Allen Luke Messer” that President Obama, to the Fort Wayne is now running for the 5th CD seat. Journal Gazette) HOWEY Politics Indiana Page 2 Weekly Briefing on Indiana Politics Wednesday, Oct. 21, 2009

Howey Politics Indiana, which were hauling filing cabinets out of the Howey Politics also received the packet, appears to Indiana Statehouse and other gov- Indiana have been the only news source which ernment centers. When the probing sought a confirmation and comment. press disappears, corruption tends to is a nonpartisan news - Advance Indiana would later add the follow. Virtually gone over the past HPI quote from Jennifer Hallowell of the year or so is investigative report - letter based in Indianapolis Messer campaign to its website. ing. News staffs, which have either and published by NewsLink With the Post-Tribune teetering endured layoffs and seen numbers on the brink and the New York Times dwindle due to attrition, simply no Inc. It was founded in preparing to cleave away 8 percent longer have the manpower to conduct 1994 in Fort Wayne. of its news staff, this is a disturbing expansive, time-consuming investiga - glimpse into the future of American tive enterprise. journalism. The FSSA/IBM story that Brian A. Howey, publisher Many of the blogs will pump broke last week was more the re- out rumors. Some never follow up. sult of safety net providers who Mark Schoeff Jr.,Washington Others will, but only later. The notion of complained to local legislators, with Jack E. Howey, editor picking up the phone for confirmation is the press picking up the story dur - Beverly Phillips, associate quaint or burdensome. The danger for ing coverage of the Indiana General society is that unless a new economic Assembly. In times gone by, there editor model can be found, it will be the blogs would have been reporters probing and “journalists” without degrees - and the system well in advance of legisla- Subscriptions: in many cases, without ethics - who will tive committee hearings and bill filing fill the void. deadlines. That didn’t happen, for the $350 annually HPI via e-mail; This week, former Washing- most part, until this year. $550 annually HPI & HPI Daily ton Post Executive Editor Len Downie Society will pay a steep Wire. wrote in a paper commissioned by the price if that continues. Columbia University Journalism School The news this year from the Call 317-627-6746. that “Journalism is at risk and American newsrooms has been horrific. The Howey Politics Indiana society must act to preserve it.” New York Times has seen its news- Downie and Columbia professor room go from 1,330 employees to 6255 N. Evanston Ave. Michael Schudson argue the govern- 1,250. The Los Angeles Times has Indianapolis, IN 46220 ment, universities and nonprofit founda - gone from 1,200 to 600; the Wash - tions should step in as newspapers suf - ington Post from 900 to 700; the Contact Us fer financially. Among other steps, the Boston Globe from 500 to 300. There authors recommend that the govern- have been more than 100 layoffs at www.howeypolitics.com ment ensure the tax code allows local the Indianapolis Star along with staff [email protected] news outlets to operate as non-profits. pay cuts and at least two weeklong They urge philanthropic organizations to furloughs. The Star’s Statehouse cov- Main Office: 317-506-0883. support local reporting. And they sug - erage is only a shell of what it once Howey’s Mobile: 317-506-0883. gest a fund be established using fees was. With newspaper and TV station’s Indianapolis Fax: 317-254-0535. from telecom or Internet providers for in budget sessions now for 2010, it is Washington: 202-256-5822. grants to innovative local news groups. unclear how many news organizations Howey Politics Indiana has will be providing daily Statehouse Business Office: 317-627-6746. been participating in a working group coverage next year. ©2009, Howey Politics exploring the “news foundation” option. Ad revenue that has been Indiana . All rights reserved. In my view, the foundation could be a steadily decreasing the past few 10-year measure to ensure the fourth years, fell 28.6 percent in the first Photocopying, Internet forwarding, estate watchdog continues in some half of the year, according to the New faxing or reproducing in any form, form until a viable economic model York Times. The newspaper reported in whole or part, is a violation of can be established to sustain a probing that Gannett - owner of the India- press. napolis Star - saw its revenue fall 28.4 federal law without permission from Without such, it will only be a percent last quarter, an improvement the publisher. matter of time before we return to the over the 33 percent decline during days of the 1980s, when FBI agents the first half of the year. McClatchy HOWEY Politics Indiana Page 3 Weekly Briefing on Indiana Politics Wednesday, Oct. 21, 2009

newspapers reported a 28.1 percent decline. aren’t publishing on Mondays or Saturdays. Earlier this Across Indiana, we’ve watched dozens of layoffs. month, Steve Key of the Hoosier State Press Association Some newspapers no longer employ photographers, or as told HPI that he believed that the state newspaper industry the Indianapolis Star started a few years back, they send had reached its low point. journalists to press conferences with cameras in hand to But in talks with journalists around the state in augment their staff photographers. Press releases are recent weeks, many are girding for further cuts, further being printed verbatim as “News from You.” Some papers layoffs, and a further erosion of the local watchdog. v

impact on these four races than others across the state. FSSA, from page 1 But several observers see the Evansville area races as the GOP’s attempt to “spread the field” and draw Democratic vindicates those of us who have raised serious questions sources into the area. about the viability of turning to the private sector to handle Can the Democrats make the IBM story translate critical government functions. Ever since this contract was to other races in places like Anderson, Pendleton, Kokomo signed, there have been so many complaints about the and races involving Reps. Vern Tincher, Bob Bischoff, Terri delivery of services that even a blind man could see that Austin, Scott Reske, Joe Pearson and Ron Herrell? the system was not working. Perhaps this will put a needed Possibly. brake on the desires to privatize more government func - The IBM issue could also cloud another theme tions.” likely to emerge as Daniels and Republicans press for the Many Democrats were skeptical of the $1.34 billion Kernan-Shepard local government reforms. Bauer and the contract awarded to IBM and ACS in 2007. They noted that Democrats will almost certainly try to broad-brush the a similar system in Texas was scuttled due to problems. problems at FSSA into other “reforms.” Among the most vocal In an Associated Press story, Dan- are those in the Evansville area iels was asked whether this was a de- where Democrat State Reps. feat for “privatization.” He responded, Dennis Avery and Gail Riecken, “It has nothing to do with private or Republican Rep. Suzanne Crouch public. It had to do with a concept. If and Sen. Vanetta Becker were you had tried to use the same concept either critical or wrote legislation IBM brought, and every worker was a seeking to stop further roll out state worker, you’d have had exactly of the IBM system. the same results, or worse.” Demo- These Democrats are crats will almost certainly seek to already in the crosshairs of the refute that. battle for the House, as Re- There are a couple of things publicans have recruited Susan to consider. One, this constituency - Ellspermann, Warrick Coroner those seeking welfare services - is not Ron Bacon, former DLGF Com- a widespread constituency compared missioner Cheryl Musgrave and to those who felt the brunt of esca- Wendy McNamara to challenge lating property taxes. But when the Majority Leader Russ Stilwell, jobless ranks swell beyond 10 percent, Avery, Riecken and State Rep. it has greater heft. Having said that, Trent Van Haaften. At this point there’s a more widespread notion of in the HPI Horse Race, none of “fairness” and a stable social safety these races would be any closer net. Democrats could translate the than “Leans Democrat” with the story to a wider swath of voters from Stillwell/Elspermann race rated both parties who deeply care about “Likely Democrat.” that safety net and demand that it be Because the IBM story there for Hoosiers who need it. has run in the Evansville media Another aspect was covered by Speaker B. Patrick Bauer and Senate Minority Lead- market more intensely than Niki Kelly of the Fort Wayne Journal er Vi Simpson will seek more legislative oversight almost any other in Indiana, the Gazette, who reported Sunday: The over FSSA during the 2010 session. (HPI Photo by story will likely have a greater state’s Family and Social Services Ad- HOWEY Politics Indiana Page 4 Weekly Briefing on Indiana Politics Wednesday, Oct. 21, 2009

ministration also faces Secondly, it’s early. the task of replacing Daniels did not its dinosaur of a core concede that the computer system down entire enterprise had the road, a cost not failed. “The fraud included in the IBM appears to have contract. been stopped and It could be a we’re still on track Republican political to save taxpayers problem if there are hundreds of millions cost overruns, delays of dollars, but the and meltdowns. A com- intended service im- puter replacement of provements have not such magnitude would been delivered, and be daunting even in a that’s not accept - normal, non-political able,” said Daniels. environment. “Those who raised And Bauer and concerns about Former FSSA Commissioner Mitch Roob in 2005 when Gov. Daniels created the legislative Democrats service quality were Deparment of Child Services. Roob has since left FSSA for the Indiana Economic will attack the issue on correct and we ap - Development Corporation. (HPI Photo by Brian A. Howey) the legislative oversight preciate their efforts. front. “This does not We’ll now take the automatically solve all best parts of the old the problems that are taking place at FSSA,” Bauer said last and new and move ahead with a hybrid system in what Thursday. “Many of the subcontractors who remain on the amounts to a major mid-course correction.” job have generated serious concerns about their delivery There is still more than a year before the home- of services, particularly ACS, and I suspect today’s decision stretch in the battle of the House. There is still time for the won’t alleviate those concerns. In that light, I believe that governor’s “hybrid” approach at FSSA to produce results. it is necessary for the Legislature to continue to provide Democrats on the campaign front are cau- needed oversight of the changes to come. I will recom- tious. Kristen Self, who is coordinating House races for the mend to my fellow leaders that we appoint members of Democratic caucus, told HPI on Tuesday that the issue still the House and Senate to fulfill that role in the months to resides in the “policy” realm and much is to be determined. come.” “We’re still digesting the news and determining where the Senate Minority Leader Vi Simpson added, “It is governor is going with this,” Self said. now important that we maintain diligent oversight of the The Republican story line here could be that Dan - transition and this new hybrid system as it is tested.” iels inherited a system fraught with rampant fraud, they Translation: The Democrats will use the upcom - tried an innovative approach that didn’t work the way they ing legislative session to keep the pressure on the Daniels expected and they acknowledged the problem and its crit - administration and House Republicans on this issue. There ics, and went back to the drawing board and are now mak- will be more headlines; more controversy. ing it work. The Democrats will respond with: Remember On Tuesday, State Reps. Peggy Welch and Suzanne Texas! Roob will be their poster boy. Crouch promised to closely monitor ACS. “We’re going to The cautionary tale for Democrats can be be watching closely on ACS, because there is a perception found in the Bureau of Motor Vehicles. When Gov. Daniels’ that they are just as bad an actor as IBM,” Welch said after first BMV commissioner, Joel Silverman, initiated many a meeting of the Legislature’s Medicaid Oversight Commis- reforms in 2005, Democrats and some Republicans like sion (Louisville Courier-Journal). Crouch, R-Evansville, said then-Senate President Pro Tempore Bob Garton were vocif - lawmakers remain skeptical of ACS because it was brought erous in their opposition. There were public hearings where in by Mitch Roob, a former ACS executive who oversaw the people scolded Silverman. Garton, for instance, vowed to IBM/ACS project as FSSA commissioner before becoming defend the Hope license branch slated for closure. The bad secretary of commerce. “People are uncomfortable that headlines were widespread. ACS is still in place and that they were brought on board There was also a July 2007 computer glitch during by former Secretary Roob,” Crouch told the Courier-Journal. a system switchover that created several news cycles of Roob’s office did not immediately respond to a message bad headlines. seeking comment. Today, BMV is seen as one of the administration’s HOWEY Politics Indiana

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greatest success stories. Wait times at BMV branches have they might have 55 or 56 seats. evaporated from hours to minutes. Garton was defeated So, from a purely political standpoint, this is for re-election in the 2006 Republican primary, and by 2008 not a slam dunk either way. It poses promising campaign BMV was a Daniels’ asset for re-election, taking a promi - themes for Democrats and has the potential of putting Re - nent role in his “Star Wars” headline TV ads. publican legislative challengers (and incumbents) on their Another example was Major Moves, which heels. Democrats were confident would become a major cam - Much will depend on how the new “hybrid” ap - paign issue for the 2006 cycle. And while the party re - proach works. If it spawns months of bad headlines, that gained control of the Indiana House, it did so without could hurt GOP candidates and keep the governor from taking a single Republican seat from Indiana Toll Road regaining a Republican House majority. counties where polls suggested vulnerability; when earlier An improving economy and a successful hybrid conventional wisdom had the issue as a GOP millstone. could render the story moot, or turn it into a Republican as - Given the Democratic nature of that cycle (the set if Daniels tries a Ronald Reagan redux and pronounces party picked up three Indiana Congressional seats) emerg - a 2010 “Morning in Indiana.” ing with a 52-48 majority while some observers thought Stay tuned. v

Another key player was Mitchell Roob who came One of those ‘dark from Crowe Chizek to head the Department of Transporta - tion which later morphed into the Department of Capital Asset Management. He would later head the Health and weeks’ for a governor Hospital Corporation. In the book “To Market, To Market: By BRIAN A. HOWEY Reinventing Indianapolis,” Roob espoused Goldsmith’s INDIANAPOLIS - Every presidential and gubernato - theme of “reducing government control by turning the rial administration finds itself in one of those dark moments government’s business over to private interests.” when the world crowds in, the policy and political prospects The book is critical of Goldsmith and Roob, with dim and enemies seem to abound. For Gov. Mitch Daniels, authors Ingrid Ritchie and Sheila Kennedy at one point that moment came last week when he decided to pull the writing of HHC, “Under Roob, political considerations plug on the $1.34 billion welfare privatization deal. appeared to play a more active role in the public health Other governors have faced similar dark policy-making process, and greater emphasis was placed moments. For Gov. Robert Orr, it came on political dimensions rather than on public health and in December 1982 when the state faced safety.” bankruptcy and he had to call the General The “thesis” of the administration was that “mar- Assembly into session to pass record tax ketized” public service could be delivered at lower cost, hikes during the last severe recession. For without a corresponding decline in quality or quantity of Gov. Evan Bayh, it may have been the days services. leading to the 1993 special budget session Now, flash forward to 2005 when Daniels assumed when he had to opt for the riverboat casinos. Or Gov. Frank office and Roob headed FSSA. Roob would tell HPI in those O’Bannon who began taking strident criticism from legisla- days that the three major figures - Daniels, Roob and tors in his own party, one of which accused him of being Goldsmith - had simply “traded positions.” Daniels became brain dead just months before a fatal stroke. the CEO; Roob headed FSSA; and Goldsmith became the For Daniels, the FSSA welfare privatization deal adviser, as he currently is with Indianapolis Mayor Greg Bal - was the culmination of a two decade experiment in which lard, multiple sources have told HPI. elected leaders became “CEOs” and government functions The other element to this picture is that between were out-sourced to private vendors. When Indianapolis the Goldsmith mayoral administration and the Daniels gov- Mayor Stephen Goldsmith came to power in 1992, Daniels ernorship, Roob worked for Dallas-based Affiliated Comput - chaired his Services Efficiency and Lower Taxes for India - er Services Inc., which was eventually included in the IBM napolis Commission (SELTIC) which resulted in the privati - welfare deal. From the beginning of this affiliation, critics zation of city swimming pools, golf courses and sign shops. abounded. They pointed out that Texas had pulled the It brought in the concept of “activity- based cost analysis” plug on what the Indianapolis Star described as a “similar which Goldsmith described as a “strategic tool initiative” welfare privatization effort after thousands of people lost that tried to put a price tag on every city service. benefits they deserved.” And that’s what happened here with the situation HOWEY Politics Indiana

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exacerbated by the Great Recession of 2008-09, as tens of thousands of Hoosiers lost their jobs, their paychecks, their unemployment and their security. The computerized FSSA debacle is eligibility system that Roob oversaw was rolled out in 59 of Indiana’s 92 counties. It didn’t include some of the state’s sheer hubris most populous counties such as Lake and Marion. Last year, news reports began to surface, led by Eric Bradner of By SHAW R. FRIEDMAN the Evansville Courier & Press, who reported that south - LaPORTE - Sheer, unadulterated hubris. Egos that western legislators were getting deluged with complaints knew no bounds. The smartest guys in the room. What can from welfare applicants who couldn’t navigate the system. else can one say about the debacle at FSSA other than to That lead to a suspension of the roll out to the remaining weep over the lost lives and treasure spent on this absurd, counties last January. reckless exercise in privatizing Medicaid and food stamp While Daniels correctly states that the system intake and eligibility services? he inherited was rife with fraud and inefficiency -- tell - Nearly a third of a billion dollars ing HPI last summer that the old system was still getting spent so far on an ideological experiment more complaints from the counties yet to switch over -- the gone horribly awry. The governor and problems with IBM and ACS can be appreciated by anyone his privatization czar Mitch Roob (since trying to deal with any company where you can’t talk to a transferred to another job with a salary in- real person. crease) had to know the jig was up about Just last week, I tried to resolve a problem with my a month ago when the normally reliable AT&T Internet and TV service. It was 45 minutes before Indianapolis Star, which had previously I talked to a real person, who told me I needed to talk to offered a knee jerk defense of every one another department. After another 10 minutes, I was talk - of the governor’s hare-brained privatization ing with a someone that I suspect was at an outsourced schemes, wondered aloud whether it wouldn’t be necessary call center in India, who couldn’t find my account and I had for the state to reassume welfare functions. It must have trouble understanding his thick accent. Through automated been comparable to when Walter Cronkite turned against phone systems and outsourcing, AT&T, like so many others, the Vietnam War and LBJ announced to those closest to have cut personnel costs for themselves, but transferred him, “If we’ve lost Cronkite, then we’ve lost the war.” Hav- the cost to the consumer in time spent navigating the sys - ing lost the Star and knowing there was no way he could tem. The inefficiencies (and time) are transferred from the turn to a Democratic president to indulge his privatization company to the individual. fantasies, Daniels knew he’d run out the string. There was My wife and I often remark: We’re fairly smart nowhere else to run. people. “How do the dumb asses deal with these compa - Rather than praise this governor for finally surren - nies?” dering when he was literally surrounded on all sides, we’re Unfortunately, the Hoosiers dealing with the left to ponder how he and Mitch Roob could have allowed IBM/ACS system aren’t “dumb asses.” They are people their rigid ideology to overwhelm common sense and to who have lost jobs, who need food stamps and other social blindly ignore the failed privatization experiences of others. safety net services. And the new system became an unfor- It’s clear that the monstrous egos that drove the state over giving maze. Or as Executive Director of Second Harvest the cliff into IBM’s arms were willing and ready to ignore all Food Bank Lois Rockhill described in a published open letter evidence to the contrary that this plan to take one-on-one to Roob in the Anderson Herald-Bulletin: “People needing human interaction out of the social services equation just Food Stamps, cash assistance and health coverage have wouldn’t work. very little wiggle room. Falling through the cracks is almost Anyone who has dealt with computerized intake like falling through the gallows with a noose around your and the phone mazes at catalog billing centers knows just neck. You are at the end of your rope. The very system how difficult it can be to navigate for someone of even that was created to help you ends up punishing you.” average skills. Yet the governor’s private vendors didn’t Republicans like State Rep. David Yarde also heard take into account those countless situations where often- about the flaws. “For some time now, my constituents have overwhelmed and lower functioning individuals would have had trouble obtaining food stamps and unemployment to navigate overburdened call centers and computerized benefits from FSSA,” said Yarde, R-Garrett. “When you give application processes. the state your hard-earned money in the form of taxes, Of course, Daniels and Roob wouldn’t listen to you can expect these services should be promptly available union officials like David Warrick who represented the when they are most needed.” v state’s longtime, dedicated corps of welfare caseworkers HOWEY Politics Indiana

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in 2005. No, Mitch Daniels’ first act upon becoming gover - afford it. It would be one thing had the governor and his nor was to have ideology drive him to decertify the state’s “brat pack” chosen to gamble their own families’ medical employee unions. Indeed, why listen to the Lois Rockh - benefits or food assistance on this reckless excursion. But ills, the Glenn and John Cardwells, the Nancy Griffins and he and Roob determined they were going to move for- others whose lifetimes of experience as advocates offered ward and experiment on aging veterans who needed their insight and knowledge that could have been invaluable had Medicaid benefits, grandmothers needing their prescription this governor only heard them out, rather than spouting his medications and young, single mothers trying to provide for anti-government rhetoric believing the ‘invisible hand’ of their children. This was unconscionable and it’s not simply the marketplace somehow offered a better way. good enough to say “Well, it just didn’t work.” Certainly, why look to other states’ experi - It makes it clearer than ever before that Daniels ences? Nah, what do they know? Had he really looked, and his ideological brethren have no business being near Daniels would have found state officials in Texas admitting the levers of power. If they want to ply their “magic of the their privatization plan for welfare services was a complete marketplace” snake oil on sophisticated, well-off colleagues failure. Their $899 million contract with Accenture was in the private sector, that’s one thing. But as legislators of reduced by $356 million and ended last year, two years both political parties, social service advocates and respect - earlier than planned. As the highly respected Austin States - ed non-profit groups pointed out, the elderly, the infirm man noted in an editorial a few years ago, “The Accenture and the disabled took it on the chin with this reckless and experience has taught us important lessons that legislators ill-fated venture. On top of it all, no tax dollars were saved should take to heart. even as services suffered. Remember, the pitch Daniels and “State employees are better suited for administra - Roob made was that services would improve as costs were tive functions. Another is that privatization is no guarantee saved from closing local offices, increasing automation and that taxpayers are going to save money.” reducing personnel. Why wouldn’t Mitch turn to his former boss’s broth- It didn’t happen. er, Jeb Bush, for some guidance? The President’s younger Also, automation did nothing to aid fraud detec- brother certainly had experiences to share about Florida’s tion since prosecutions require a showing of intent, which ill-fated efforts to privatize the caseworkers with face-to-face contact handling of personnel services are critical for, whereas anonymous call for state government employ - center employees provide no help prov - ees. The Feb. 17, 2005, St. ing intent to deceive. The bottom line: Petersburg Times reported Hoosier taxpayers didn’t save one thin that while taxpayers were dime in this risky, ill-conceived experi - supposed to save nearly $100 ment and countless recipients were million, “it didn’t work out that denied the assistance they desperately way. The savings are about a needed and for which they were en- fifth of the original estimate titled. and state employees are It will take years for us furious about lousy service.” to dig out of the costly mess that the Even Republican lawmakers in governor in his defiance and reckless - Florida who once supported ness have caused – and it didn’t have similar privatization schemes to happen. v were “reported to be disillu - sioned by the reality.” Shaw R. Friedman is a LaPorte Perhaps what most attorney who served as Legal infuriates those of us who Counsel to the Indiana Democratic have fought welfare privatiza - Party from 1999-2004. He also tion from the start – aside was involved as counsel to eight from the fact that Daniels and LaPorte County public assistance his ‘New Crew” were willing recipients who filed suit in August to ignore and blunder forward 2008 seeking to block the privati- despite evidence from other zation roll-out to northwest Indi- states – is that they chose to ana. inflict this ideological experi - ment on those least able to HOWEY Politics Indiana

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shafts and rubber suction cups. Bayh has $12.72M Burton leads the pack with $433,651 and has $441,835 cash on hand after spending $369,183, including $42,000 spent on direct mail solicitations for fundraising. war chest advantage But the rest of the field has raised $798,559. Luke Messer leads the challengers with $332,442, followed by State By BRIAN A. HOWEY Rep. Mike Murphy at $204,230, Brose McVey with $154,257 INDIANAPOLIS - U.S. Sen. Evan Bayh will have and Dr. John McGoff with $107,630, according to Federal about a $12.72 million advantage over his closest Republi - Election Commission reports filed by the campaign. can opponent. Don Bates Jr. told HPI he raised $52,945.30 The Indianapolis Star reported that of the $89,893 during the third quarter and has $15,452 cash on hand. that Burton collected from individuals giving at least $200, State Sen. Marlin Stutzman told HPI he posted “between only $12,500 came from Hoosiers. Messer, by contrast, col - $80,000 and $100,000” but could not confirm a specific lected $101,429 from Indiana residents. amount. Three of the challengers are claiming success in Stutzman said that he different areas. McVey has a wide array of endorsements operated through most of the from county commissioners and councilmen, city council- third quarter as a true “ex- men and State Sens. Beverly Gard and Brent Waltz. ploratory” committee. In late Messer can claim GOP heavyweights such as for- September he officially kicked mer GOP Chairman Jim Kittle Jr., and leads the challenger off his campaign in Kendall - field in money. Murphy has the endorsement of former Lt. ville. Stutzman said that he Gov. John Mutz and claims legislative successes. was “surprised” Last Friday, for by Dan Dumezich’s decision not to enter the instance, Murphy noted race. “Obviously Dan had some strengths,” that AT&T announced Stutzman said. Dumezich told HPI he had the activation of 20 new commitments of $8 million before he decided 3G cell sites that will not to run. enhance coverage for As for Bayh’s war chest, Stutzman residents and businesses said, “Obviously this is a huge, huge chal- in more than 10 com - lenge. But we’re not afraid of hard work.” munities, including 5th Stutzman said he has hired former CD towns Sheridan, New Marion County Republican executive director Palestine, Strawtown, Robb Greene to run his campaign. He was Cicero, Alexandria, and preparing for a trip through Posey, Warrick, Bakers Corner. “I intro- Lawrence and Jackson counties. He’ll be in duced this legislation in Lake County Saturday for the GOP pork chop 2006 because I knew dinner. He said that U.S. Rep. Mark Souder, consumers, business and Senate President Pro Tempore David Long and Indiana’s economy would State Rep. Matt Bell will be hosting a fund - benefit from increased raiser for his campaign in November. competition and fewer Carmel plumber Richard Behney has regulations,” Rep. Murphy also declared for the race, but had not posted It’s been a good week politically for Sen. Evan said. “Time has shown numbers and could not be reached for com- Bayh. He posted a $12.7 million FEC total and his that we were right. The ment. Calls were not returned from his cam- top opponent took a pass on the race. (HPI Photo telecommunications paign. by A. Walker Shaw) industry in Indiana is booming. AT&T alone has 5th CD: $1.2 million spills in invested over $1 billion in Indiana.” Despite the tough climate for political fundraising, Where does this leave the race? some $1.232 million has spilled into the five-man 5th CD If you could combine all the assets of the chal- race with U.S. Rep. Dan Burton wearing the bull’s-eye on lengers, Burton would be in big trouble. We believe that his back. Burton will likely command a good third of the pie. Right The question now is whether any of the four chal- now there is not a challenger who can claim support in the lengers have any arrows of flint or granite that can sideline 30th percentile. The critical question is whether the low the incumbent, or whether they are just armed with balsa HOWEY Politics Indiana Page 9 Weekly Briefing on Indiana Politics Wednesday, Oct. 21, 2009

man in the money war - in this case, Dr. McGoff - comes to 2nd CD is one of the most evenly drawn in the state and an the determination that his campaign is futile, pulls out and upset in 2010 is certainly possible. endorses one of the other challengers. As for Donnelly’s future, HPI asked St. Joseph That’s the kind of scenario that might occur next County Democratic Chairman Butch Morgan about a lack of January or February. Such a dynamic might give one of a clear front-runner for the 2012 Democratic gubernatorial the money leaders a critical momentum boost that could nomination. Would Donnelly take a look at that? reverberate through the field. If one or two of the challeng - The answer was this: Donnelly will do what it takes er field were to drop from the race and consolidate their to get re-elected next year and then take a look at his op - endorsements on one candidate, even in a three-man race tions beyond. That, Morgan said, would include weighing a this could pose a real threat to a Burton re-elect. gubernatorial bid. Murphy told HPI last week that he doesn’t believe any of the challengers will leave the field. If that’s the case, 7TH CD: May says GOP we believe that Burton will win an unimpressive primary victory. ‘alienated’ Latinos in 2006 The fact is, it’s still very early and this race will not Three years after Republican U.S. Reps. John likely take on homestretch definition until February. The Hostettler and Chris Chocola conducted immigration hear- critical sequence may come between Feb. 1 when the fall- ings that many Latino voters found offensive - prompting a out from the fourth quarter FEC reports is palpable and the backlash in 2008 when President Obama carried the state Feb. 19 filing deadline (or the Feb. 22 withdrawal deadline). on the strength of 77 percent of the Latino vote - Republi - HPI Horse Race: LEANS BURTON can Carlos May filed for 7th CD this week. Describing himself as a “lifelong Republican,” May, 30, acknowledged that the GOP “did alienate us” during the Incumbent FEC reports 2006 election cycle. He also said the news media played up Senate: U.S. Sen. Evan Bayh, $633,000 in 3Q; the divisions because “conflict sells.” $12,730,000 Cash on Hand (COH). He said that the position 1st CD: U.S. Rep. Pete Visclosky, $141,739 in 3Q; of Rep. Hostettler - round up illegal $916,036 COH. aliens and deport them - “was 2nd CD: U.S. Rep. Joe Donnelly, $149,000; $617,000 COH. just physically impossible.” May 3rd CD: U.S. Rep. Mark Souder, $107,767; $126,635 COH. noted that “as a next generation 4th CD: U.S. Rep. Steve Buyer, $169,096; $373,493 COH. Republican, that message was not 6th CD: U.S. Rep. Mike Pence, $196,175; $462,941 COH. accepted by the American people.” 7th CD : U.S. Rep. Andre Carson, $81,618; $230,748 COH. May said he favors enforcing exist- 8th CD: U.S. Rep. Brad Ellsworth, $115,770; $388,922 ing laws, border controls and tak- COH. ing on the criminal gang element 9th CD: U.S. Rep. Baron Hill, $168,485; $541,869 COH. first. He describes himself as a Republican who is fiscally conser - 2ND CD: Walorski moved up a cycle vative, favors limited government South Bend Tribune and Howey Politics Indiana and low taxes, a strong national columnist Jack Colwell provided some insight into State defense, while backing “strong in- Rep. Jackie Walorski’s entry into the 2nd CD race against dividual liberties.” He said that the “vast majority of Ameri- U.S. Rep. Joe Donnelly. Sources close to Walorski viewed cans aren’t far left or right.” If elected, he said that he the 2nd CD as a viable option in 2012 after new lines are wouldn’t make up his mind “until I’ve heard all the facts.” drawn in the 2011 redistricting. Conventional wisdom is He added that the “problem isn’t so much with politicians, that the district will become more Republican. it’s the media. They always push one thing or another.” Walorski enters knowing that defeating the moder- “I want to do what’s right, not what’s easy,” said ate Blue Dog Donnelly will be tough this cycle, though the May, who serves as Indianapolis Mayor Greg Ballard’s Democrat faces controversial votes on health care reform neighborhood liaison. He’s a graduate of Zionsville HS and this year and possibly Cap- and-Trade in 2010. The Walor - Wabash College and earned a Doctor of Jurisprudence ski camp believes that by running this year - even if unsuc - degree at Thomas Jefferson School of Law in California. cessfully - her name ID will be much higher for ‘12 and she In front of a large crowd of supporters on West would be in the driver’s seat for the GOP nomination. By Washington Street and an Indianapolis business corridor passing on the ‘10 race, she risked allowing another Repub - his family helped build, May kicked off his challenge to U.S. lican to do the same and be better positioned in 2012. The Rep. Andre Carson by saying, “The last two election cycles HOWEY Politics Indiana Page 10 Weekly Briefing on Indiana Politics Wednesday, Oct. 21, 2009

have seen voters universally reject politics as usual. The Clere, Truitt opponents next week call has been for the next generation of Republican leaders House Democrats will be rolling out candidates to to step up. Today I am accepting that challenge.” challenge Republican State Reps. Ed Clere and Randy Truitt “Congress’ first response should not be throw - next week, according to Kristen Self, who is coordinating ing more government at the nation’s problems,” May said. races for the majority caucus. Clere upset State Rep. Bill “What I believe sets this next generation of leadership Cochran in 2008 and Truitt won the Lafayette area seat apart is that we are willing to think ‘outside the box’ and vacated by Rep. Joe Micon. look to innovative solutions rather than increasing the size of bureaucracy in Washington.” May’s top issues include: balancing the federal budget; reforming the health care Indianapolis Mayoral and insurance industries; improving benefits for veterans; Former Indiana and Marion County Democratic lowering taxes for all Americans; and providing job-finding Chairman Kip Tew will not run for mayor of Indianapo - assistance to correspond with his efforts to bring economic lis, joining former secretary of state Joe Hogsett on the development to the district. sidelines. It came as former deputy mayor Melina Kennedy On the pending health care legislation, May ques - launched her new website at www.melinakennedy.com. tioned the rush to a decision, saying that in doing so, It’s way too early to talk about “inevitability,” par - mistakes will result and messes will have to be cleaned up. ticularly with Dr. Woody Myers and his vast personal war “How can anybody read a 1,000-page bill?” he asked. “I chest that could come into play, but right now Kennedy is don’t know what the urgency is.” seen here as the emerging front-runner. May also believes the United States should stand The only other announced candidate is business- firm in the fight against terrorism: “For our country’s long- man Brian Williams and we hear more and more about him term security, it’s important to have stable regimes in Iraq that matches up with our business experience with him: and Afghanistan that view America as an ally and who help He’s one arrogant dude. v us in the battle against extremists trying to destroy free- dom.” May will face Butler University Prof. Marvin Scott in the Republican primary.

8TH CD: Risk to run as independent Long-time Spencer Republican Kristi Risk has told CAPITOL STEPS: HPI she will run for Congress as an independent. She POLITICALPOLITICAL PARODYPARODY AATT IITSTS FFINESTINEST was a Rush Limbaugh radio listener who crossed over and voted for Hillary Clinton in the 2008 Democratic presidential primary and has since been barred by Owen County Repu - TH bicans. “I had originally planned to run on the Republican ANNUAL ticket but I’m not so sure I can ever run as a Republican,” 20 she told HPI this morning. AWARDS DINNER DCCC outraises NRCC November 10, 2009 |Indiana Convention Center The Democratic Congressional Campaign Com - mittee raised twice as much as its GOP counterpart in InPartnership with September, raking in more than $7 million and ending the month with more than $14.7 million stockpiled for the 2010 midterm elections (CQPolitics). The National Republican Congressional Committee said it raised $3.4 million in September, its second-highest monthly take this year. The NRCC will report $4.3 million in cash on hand, less than one-third of the DCCC’s bank account total. However, the DCCC had twice as much debt, about $4 million compared with the NRCC’s $2 million as of Sept. 30. The DCCC said Reserve your seats today! it had more than $3 million in expenditures for September, Visit www.indianachamber.com or call (800) 824-6885 while the NRCC said it spent about $3.3 million last month. HOWEY Politics Indiana

Page 11 Weekly Briefing on Indiana Politics Wednesday, Oct. 21, 2009

Rich James, Post-Tribune: It was a Sunday in Robert Guell to envision a “post-recession” Terre Haute. early May of 1993 and John Curley was making his way Not surprisingly, Guell’s answer contained no sugar coating. across Winfield Township pretty much the way Paul Revere “I think we will come out of this recession in much worse did 200 years before on the streets of Boston. Curley was shape than we went into it,” he said. “The gorilla in the the township assessor/trustee at the time. For a rural area, room is the Pfizer departure.” The closing of that pharma - that’s kind of like being mayor. Curley, with Township Board ceutical plant last year deleted more than 600 high-paying President Garry Rinkenberger saddled up next to him, rode jobs, a cornerstone employer, and the charity giving and from farm to farm warning people that the Merrillvillites volunteerism those workers injected into community. The were coming. Word was that Merrillville was on the verge Great Recession didn’t force the Pfizer closing. Instead, the of annexing most of Winfield Township. Maybe even the infamous failure of its locally made inhaled insulin product, next day. So, Curley collected as many signatures as he Exubera, caused the shutdown. So, in a way, that event could on an incorporation petition. Thirtysome hours after created Terre Haute’s own, personal recession. The global he started, Curley plopped the signatures into the laps of recession then heaped more troubles onto this town. The Lake County commissioners. Merrillville went through the auto industry’s collapse caused downsizings and slowdowns motion of annexing the township four hours at Wabash Valley parts plants and dealerships. later. But Curley, as was usually the case, had The housing industry’s dive hurt new brick and won. Actually, the people he served had won. exterior siding factories around Terre Haute. And that was the birth of the town of Winfield. Even Sony’s high-definition Blu-ray discs, Guell Curley, the Lake County Republican chairman, said, face challenges from lower-quality, but died unexpectedly on Tuesday. The county lost cheaper competitors. “There’s not a great deal a heckuva man. I lost a friend. I always thought to be excited about at the local level,” Guell said, Curley would have made a good department looking to 2010. Clearly, Terre Haute needs a store Santa Claus. Just like St. Nick, John often had that new, positive gorilla in the room. On Wednesday afternoon, twinkle in his eye, especially when he had some hot politi - ISU President Daniel Bradley described some future plans cal news to pass on. And that was pretty often. v that could fill the economic voids left behind by the nearly two-year recession. In a nutshell, Terre Haute finally would become a college town. Bradley connected the dots be- Sylvia Smith, Fort Wayne Journal Gazette: My tween the city’s prosperity and that of the university. Thank colleague Amanda Iacone wrote a story that started out: goodness. v “About 1,100 Waynedale post office customers have signed a petition in a fight to keep the branch open.” Typical reac - tion from most readers about the possibility of fewer post Phil Wieland, Times of Northwest Indiana: Almost offices: Boo! There’s a connection between the dramatic every taxing body in Porter County is pinching its pennies decline in junk mail and the possible closure of the Wayne - until Lincoln screams because of the prolonged delays in dale and Diplomat Plaza branches. People and businesses receiving property taxes. On some of the 2009 commemo - are mailing less – 28 billion fewer pieces this year than last rative pennies, Abe appears on both sides, so his screams – and the Postal Service is looking at a $5 billion deficit. are in stereo. As they pay beaucoup bucks in interest on There are more reasons for the red ink than the fact that loans to meet daily operating expenses and lose another many of us now send Facebook birthday greetings instead heap o’ cash they could be earning in interest if the taxes of a Hallmark card with a stamp. But the trend is away were collected and distributed on time, the county is sitting from posted mail and toward electronic bill paying, e- on the money from the Porter hospital sale, a pot of money mailed notes, online banking, E-vites. Yet when Postmaster so big it is earning $7.6 million in interest a year. According General John Potter says those trends have to be reflected to state law, the county auditor is supposed to pay inter - in the agency’s business plan – fewer retail outlets, fewer est to the taxing entities on any tax payments not made mail carriers, fewer blue boxes on the street corner, fewer in the year they were due. Valparaiso just got the last of delivery days – people go ape poopie. v the money due in 2008, but a little extra for nine months of interest seems to be missing. Interesting. It appears the auditor is going to plead “difficulty in collecting the taxes” Mark Bennett, Terre Haute Tribune-Star: as an excuse for not paying the interest allowed by law. I’m Gorillas command attention. And rightly so. Ignoring one sure Valpo and the other communities would love to use — especially close by — can become a lost opportunity, that excuse when paying back all those loans, and I’m sure if you enjoy living. That primate shows up as a metaphor the banks would understand - for about as long as it took for something that is obviously dominant, yet overlooked, them to contact their lawyers about foreclosure. v denied or minimized. The creature cropped up earlier this month when I asked Indiana State University economist HOWEY Politics Indiana

Page12 Weekly Briefing on Indiana Politics Wednesday, Oct. 21, 2009

fifth from the bottom among the states, just ahead of Con - Today’s data is necticut. Earnings peaked in Indiana during ’08, whereas the national peak was two quarters later. We entered this yesterday’s news recession half a year before the nation did. There were nine other states that peaked when we did including none By MORTON J. MARCUS of our neighboring states. Florida, Idaho, and Nevada, INDIANAPOLIS - Most economists are of the where housing speculation was rampant, peaked one opinion that we have seen the bottom of the recession and quarter before Indiana. Michigan peaked before all other are in recovery mode. However, the evidence is scarce to states in ’07.3, a year before the nation. Twenty-four states support that position. There are signs here and there, frag - combined to give the nation its peak in earnings during ments of data, and stories galore. But solid evidence has ’08.3 and nine peaked a quarter later. yet to arrive. This pattern of scattered peaks is important We are finding out what because it shows how dissimilar the states are. We may the bottom looked like, assum- expect to find scattered starts to the recovery. Not that ing that the second quarter of Michigan and Indiana will recover before the nation, but this year was the bottom. This is that many states will rise before the mass of states and a like getting the pictures of your few will trail. vacation a few months after you That same disparity will exist among sectors of enjoyed the experience. So let’s the economy. Some will lead and others will follow. The take a walk down memory lane. result is that many people will not see the recovery in Last week the U.S. Bureau its earliest stages and will deny its existence. Those who of Economic Analysis released witness a change in the economy before others are the the latest personal income true-believers. The rest remain agnostic for a few quarters estimates for the U.S. and the longer. v 50 states. The second quarter Mr. Marcus is an independent economist, speaker, of 2009 (known to friends as ’09.2) showed an increase of and writer formerly with IU’s Kelley School of Busi- 0.2 percent for the nation. This infinitesimal increase was ness. far better than the 2.3 percent drop in ’09.1 and was most welcome after three consecutive quarters of decline. Indiana fared well in these data. At 0.5 percent we ranked 16th in the nation among the 37 states that saw personal income rise in ’09.2. But don’t break out the champagne yet. For both the nation and Indiana these data are correct but illusory. Personal income includes unemployment compen - sation. This is a good idea if you want to measure con- sumers’ buying power. In ’09.2, unemployment insurance payments (known as UI among those who care) in the U.S. and Indiana rose by 45 percent as more people lost jobs. This made UI in Indiana ($3.6b at an annual rate), greater than the contributions to personal income from farming and mining combined. It was that 45 percent growth in unemploy - ment compensation that accounted for the advance in the nation’s personal income. If our interest is economic activ - ity, then earnings (what people are paid working for them - selves or for someone else) is probably the best measure we can get at the state and local level. Since 1997, earnings in Indiana and the U.S. averaged 76 percent of personal income. Where personal income rose slightly in ’09.2 at the national level, earnings fell by one percent; Indiana saw a decline of 1.2 percent. Over the past year, earnings in the U.S. fell by 4.2 percent; 5.7 percent in Indiana. That decline left the Hoosier State HOWEY Politics Indiana Page 13 Weekly Briefing on Indiana Politics Wednesday, Oct. 21, 2009

Dumezich said he had commitments for $8 million Dumezich exit in campaign funding. Still, however, at least $4 million short of what Bayh already has raised. And Bayh will raise much more, including contributions from Republican business a coincidence? types. Dumezich concluded he had only one chance in By JACK COLWELL five of beating Bayh in an improving economy. Not odds he SOUTH BEND - On the day after Sen. Evan Bayh wanted. Other potential Bayh opponents face even more talked deficit reduction in the Oval Office with President difficult odds. Obama, the Republican regarded as most likely to wage a The way Bayh neutralizes Republican opposi - serious campaign against Bayh said that he won’t run. tion does, however, anger many liberal Democrats who Coincidence? Probably. But in a way there was a think he is too Republican. They would like him to get out connection. of the middle of the road politically and take the left lane Bayh, the moderate Hoo- more often. But in Indiana _ still a basically conservative, sier Democrat who will seek a third Republican-leaning state, despite Obama’s ’08 victory _ a term next year, has been warning of left-wing Democrat is known as “road kill.” the dangers of growing federal defi - Anyway, by fall of 2010, not many if any liberal cits, sounding kind of like a Republi - Democrats will vote for a Republican senatorial challenger can in cautioning about mortgaging lashing out at Obama and calling for need of a Republican- the future and urging fiscal restraint. controlled Senate. After his meeting with the In the MSNBC interview, Bayh also said he “would president, Bayh said that Obama be inclined to vote ‘yes’” on the health care bill that passed agreed with the need to reduce out of the Senate Finance Committee with Republican Sen. deficits and asked for Bayh’s help. Olympia Snowe giving bipartisan support. “He wants to put us on a “It does get the deficit down,” Bayh said of the glide path to getting the deficit down,” measure. He also praised provisions to protect those now Bayh said in an MSNBC interview. “He’s serious about this.” insured and to eliminate pre-existing condition exclusions In fact, Bayh said, Obama called him to the one- and other flaws in health insurance coverage. on-one meeting to discuss specifically the deficit problem While Bayh almost certainly would vote to break and prospect for health care legislation that would trim any Republican filibuster of health care legislation, he rather than increase future deficits. wasn’t promising to vote for a final version that contained Just a day later, Dan Dumezich, former state expensive bells and whistles that could change a deficit-re - legislator from Schererville who is a partner in a Chicago duction measure to something adding to the debt. law firm, said he won’t run for the Republican senatorial He said he would “focus like a laser” on any nomination and the chance to take on Bayh. amendments. Dumezich, involved in Republican fund-raising and Bayh doesn’t see this as talking Republican talk. a big contributor to GOP candidates, was regarded as the After all, Republican talk of fiscal sanity was double talk potential challenger most likely to wage a well-funded, ef - when the GOP controlled the White House and Congress fective campaign against Bayh. and walked backwards on the road to deficit reduction. As Well, Dumezich didn’t hear of the Bayh meeting a result, Bayh contended, Obama “inherited more than 90 with Obama and say: “That’s it. They took the deficit issue percent of this problem.” away. So I don’t stand a chance.” Now, Bayh said, Democrats should actually walk Of course not. However , Bayh’s ability to take the walk, not just talk Republican talk, on curtailing future issues away from Republicans and capture the middle deficits. v ground in Indiana elections, with Republican challengers left with not even solid support from their own party, no Colwell has been covering Indiana politics over five doubt played a significant part in Dumezich’s decision. decades for the South Bend Tribune. The potential GOP challenger told Howey Politics Indiana that his decision did involve an event last week. He said Bayh’s stock went up with the Dow. “When we saw the Dow return to 10,000, that means we’re seeing a much more robust economy. I think the Democrats will take credit for that,” Dumezich said. “Bayh voted for the stimu- lus package.” HOWEY Politics Indiana Page 14 Weekly Briefing on Indiana Politics Wednesday, Oct. 21, 2009

from the Indiana Department of Work - hold the election. Election Board mem - Indiana jobless rate force Development, the September bers took no action on Hero’s com- declines to 9.6% jobless rate is the lowest the county plaint. Their next scheduled meeting is INDIANAPOLIS - Indiana’s has recorded in all of 2009 but it is Nov. 17. preliminary seasonally-adjusted un - still the highest in the state. Unem- employment rate dropped 0.3 percent ployment numbers in Elkhart County in Septem - have been declining since hitting 18.9 Souder castigates ber to 9.6 percent in March. In August, the rate President Obama percent the was 15.9 percent and in September WASHINGTON - President Indiana 2008, the rate was 9.7 percent. The Obama is waffling on Afghanistan, Department five Indiana counties with the highest letting down Israel, abandoning of Workforce unemployment are: 1. Elkhart - 15.0; Eastern European allies and is more Develop - percent 2. Noble - 14.5; percent 3. prickly about criticism than any presi - ment re- LaGrange - 14.0 percent; 4. Adams dent since Richard Nixon, Rep. Mark ported today - 13.4 percent; 5. Fayette - 13.4 per - Souder, R-3rd, said Tuesday night (Howey Poli- cent. The five Indiana cities with the (Smith, Fort Wayne Journal Gazette). tics Indiana). Indiana’s unemployment highest unemployment are: 1. Elkhart In a 45-minute conference call with rate has dropped 1.1 percent over - 17.8 percent; 2. Goshen - 13.9 people from northeast Indiana, Souder the previous three months and is now percent; 3. Kokomo - 13.3 percent; 4. responded to questions that were lower than the national unemployment Marion - 12.7 percent; 5. East Chicago largely about American foreign policy. rate for the first time since October - 12. 4 percent. “I believe that the president so much 2008. The national unemployment wants to get along with everybody, rate rose in September 0.1 percent and he doesn’t want to choose sides. to 9.8 percent. “Indiana is bucking Lake Election Board He is nicer to Chavez, nicer to Castro, the national trend with three straight refuses referendum nicer to the president of Iran, nicer to months of declining unemployment,” CROWN POINT - Lake County all these thugs than he is to Israel, to said Teresa Voors, Commissioner of election officials all but washed their Netanyahu. What is with this?” Souder the Indiana Department of Workforce hands of a state-mandated Nov. 3 said. He was referring to Venezuelan Development. “We are encouraged by referendum vote to create a Regional leader Hugo Chavez, Cuban leader increases in manufacturing and profes - Transportation Authority, a move one Fidel Castro, Iranian President Mah- sional and business service jobs. It’s local community activist said violated moud Ahmadinejad and Israeli Prime still too early to say we have turned his civil rights (Grimm, Post-Tribune). Minister Benjamin Netanyahu. “I think the corner, but Indiana’s economy is Citing the lack of funds needed to hold he really believes we’re going to get definitely trending in the right direc - the vote and opposition from local a Palestinian state and all the Arabs tion.” This marks the first back-to- communities to the $414,000 price tag are going give up their centuries-old back monthly employment gains in In - for opening polling places across the enmity to Israel. I’m very worried diana since October/November 2007. county Nov. 3, County Election Board right now,” Souder said. But Souder, Indiana has the lowest unemployment members Tuesday ended discussion who has frequently said he will always rate of its neighboring states. Illinois on what to do when Nov. 3 arrives. stand with Israel because Jews are increased 0.5 percent to 10.5 percent. “I’d like to know how we can do our God’s chosen people and God gave Ohio’s unemployment rate decreased job without time to plan,” said Sandra them Israel, said members of Con- 0.7 percent to 10.1 percent. Kentucky Radoja, chief deputy clerk. “We can’t gress – Democrats and Republicans decreased 0.3 percent to 10.9 percent. throw an election like a party we’re alike – won’t long stand for Obama Michigan increased 0.1 percent to 15.3 going to have next Tuesday.” St. John giving short shrift to Israel. “Unless percent. Republican Party Chairman Joseph he starts to get his act together, he’s Hero said the Election Board must do going to find his Democrat friends something to hold the vote, includ- are abandoning him, too,” he said. Elkhart County at 15%, ing asking county Prosecutor Bernard Souder said Obama is “waffling” in still tops in state Carter to bring a civil lawsuit that Afghanistan because he hasn’t asked ELKHART - Elkhart County’s could force the county to open the Congress to allocate money to pay for unemployment rate dropped for the polls. Secretary of State Todd Rokita the 40,000 troops that Gen. Stanley sixth straight month to 15.0 percent in has said that any voter could bring a McChrystal, the commander in Af- September (Odendahl, Elkhart Truth). lawsuit against the county to force a ghanistan, said he wants. “Is he com- According to figures released today vote, and has advised the county to mitted to winning in Afghanistan? No, HOWEY Politics Indiana

Page 15 Weekly Briefing on Indiana Politics Wednesday, Oct. 21, 2009

I don’t see that commitment,” Souder Rokita to testify congressional districts will not said of Obama. “My personal opinion recommend any specific changes is he would like to win, but he wants on Capitol Hill (Schneider, Indianapolis Star). But to do it with not enough troops. I am WASHNGTON - indiana Sec- Sen. Sue Landske, the Cedar Lake very afraid this is how you get bogged retary of State Todd Rokita will testify Republican who is chairwoman of down and you lose life. For those of before the U.S. House Subcommittee on the Census Data Advisory Com- us from the Vietnam era, everything Elections today at 1 p.m. in room 1310 mittee, said she’s sure individual looks like Vietnam.” of the Longworth House Office Build - lawmakers will file bills on the topic ing. As Indiana’s chief elections officer, when the Indiana General Assem- Secretary Rokita will provide expert bly convenes next year. Now, the Lake GOP caucuses testimony on H.R. 1719, the Voter only requirement spelled out in the Registration Modernization Act of 2009 state constitution is that districts be scheduled Oct. 31 (Howey Politics Indiana). contiguous. Asked by one lawmaker CROWN POINT - Lake County whether he still thought using politi - Republicans will caucus Oct. 31 to cal data should be made a felony, elect a new county chairman (Dolan, Rep. Smith critical of Rokita said: “Not necessarily.” Times of Northest Indiana). GOP act- book Daniels passed out ing Chairwoman Kim Krull announced INDIANAPOLIS - State Rep. the caucus Tuesday. She said she will Vernon G. Smith slammed Gov. Mitch Panel thwarts make a further announcement today Daniels on Tuesday for passing out whether she will seek the party leader - Sunday booze sales copies of “Real Education” by controver - INDIANAPOLIS - A key ship position. The party’s approxi - sial author Charles Murray last month legislative committee on Tuesday mately 400 precinct committee and to members of the Indiana Education turned back efforts to allow Hoo- vice committee members are to gather Roundtable (Post-Tribune). Murray, a siers to buy alcohol on Sundays at at St. Elijah Serbian-American Hall, scholar at the conservative American grocery stores and other retailers 8700 Taft St., Merrillville, to replace Enterprise Institute who also authored as well as a push to expand the John Curley who died Oct. 13. He “The Bell Curve,” claims in “Real Edu - number of vendors that can sell served as county chairman from 2003 cation” that “There’s not much that cold beer (Kelly, Fort Wayne Jour- when state party leaders chose him even the best schools can do to raise nal Gazette). But Tuesday’s votes to take over a party riven by factions the reading and math achievement of were only recommendations to the and survived three challenges. Krull, low-ability children.” Smith, D-Gary, said full General Assembly, which will who was elected vice county chair- in a written statement that Murray’s consider the issues in the 2010 woman earlier this year, became the philosophy is “a throwback to 50 years legislative session. “It’s never over,” acting chairwoman on Curley’s pass - ago when African-American and other said John Livengood, president of ing. Lake County Council President students from economically struggling the Indiana Association of Beverage Larry Blanchard, R-Crown Point, and families were told they could never Retailers. “But it’s a very positive Hammond Republican activist George achieve beyond low-paying, dead-end step for preserving a system that Janiec, party secretary, said they have jobs. “Now we have the governor of serves the citizens of the state very no interest in being chairman. West Indiana and his state superintendent well.” Creek Township Trustee Rick Niemey - of public instruction dusting off this er, who ran unsuccessfully for county withered, elitist, discredited theory and chairman three years ago, declined apparently embracing it as a policy for State ranks high in to comment on the caucus. Mark our state’s educational future,” said Leyva, a Highland Republican who ran child abuse, deaths Smith, a professor at Indiana University INDIANAPOLIS - A new re- unsuccessfully against Curley in 2007, Northwest. said he is holding his options open. port shows Indiana had the eighth East Chicago Republican activist Peter highest rate of child deaths from Thayer, who sought to topple Curley No redistricting abuse and neglect in 2007 (Associ - in a party leadership earlier this year, ated Press). The report from the said he is unlikely to run. recommendations nonprofit group Every Child Mat - ters shows 3.35 of every 100,000 INDIANAPOLIS - A legislative children in Indiana died from abuse committee examining potential changes and neglect that year. That’s up 15 to how Indiana draws legislative and percent from the 2001 rate.