V13 N18 Thursday, Dec. 14, 2006 Gov. Daniels and a future view Inventers, not ‘statesmen,’ will bring dramatic change to state

By BRIAN A. HOWEY INDIANAPOLIS - This inteview took an hour out of the day of Gov. Mitch Daniels on Dec. 11, the day Indiana celebrated its 190th an- niversary of statehood. It came as the sounds of Connector project, it hundreds of 4th grade got me thinking about voices could be heard be- the changes in Indi- yond the massive oaken ana between 1901 doors in the governor’s and 1999. They were Statehouse office. incredible. How are we But HPR’s empha- going to be traveling sis this day was not the in 2050? 2099? Are we past - the long or recent going to be building - but a long-term glimpse something that may be of the future, coming in obsolete? a building and within a Daniels: I used to political apparatus known make that point about for a tiny attention span, Gov. Daniels makes an Indiana 190th anniversary address. (HPR Photo) the toll roads. One of great inertia and little many positive argue- vision. For instance, the ments for what we did Commerce Connector outer loop from Pendleton to the In- but below the vision of most people was that all of the risk dianapolis Airport prompted us to ask the governor, will we has been shifted. Those folks are going to spend $4- to $5- even be driving cars in 50 years? Or, as Daniels suggested, will we be in “robot flying pods?” As we wrote earlier this month, the changes between 1900 and 1999 were stun- How is privatized Indy doing? ning . Change - by inventor and scientist, not by states- INDIANAPOLIS - In just a man and politician - will likely accelerate the dynamics three-hour period on Monday morn- many Hoosiers will witness and live through in the coming ing, I found myself in the privatiza- decades. tion taffy pull. While Gov. Daniels has a long-term view, he also On the New York Times edito- revealed two huge endeavors for the public to view: fran- rial page, the evil liberal columnist chising future profits of the Hoosier Lottery to fund higher Paul Krugman (also an economist) education and student “grants,” and a privately construct- called President Bush the outsourcer- ed Illiana Expressway. in-chief, saying that “outsourcing of Here is our interview with Gov. Daniels: the government’s responsibilities - HPR: When you came out with the Commerce HOWEY Political Report Page 2 Weekly Briefing on Indiana Politics Thursday, Dec. 14, 2006 not to panels of supposed wise men, but to private companies with the right connections” is “one reason the Reforming state, county govt. p. 7 administration has failed on so many INSIDE fronts.” Bayh has lots of NH friends p. 10 He cites the $17 billion Coast Features Guard modernization fiasco (Lockheed Columnists: Smith, McCaffrey p. 12 Martin, where former Indianapolis mayor Stephen Goldsmith served as a Help choose 2007 HPR Top 50 p. 13 management consultant, and resulting cracked hulls), DynCorp training the Ticker: Bauer, Espich cool on Lottery move p. 14 Afghanistan police force ($1.1 billion spent and no cops); and Landstar Express (hired by FEMA to transport The Howey Political Report is The Howey Political Report hurricane targets; ended up hiring PO Box 40265 published by NewsLink Inc. It Indianapolis, IN 46240-0265. Carey Limousine too late to help New was founded in 1994. Orleans). www.howeypolitics.com And, a few hours later, Brian A. Howey, Publisher [email protected] there I was with Gov. Mitch Daniels, Mark Schoeff Jr., Washington Indianapolis Office: 317-506-0883. who was on the verge of proposing a Writer Indianapolis Fax: 317-254-0535. new privately financed Illiana Express- Mark Curry, Washington Writer Washington, DC Office: 202-256-5822. way and future profits of the Hoosier Jack E. Howey, Editor Business Office: 317-254-0535. Lottery to fund higher education. At this point, any reporter, Subscriptions: ©2006, The Howey Political Report. columnist and editorial writer ought to $350 annually HPR via e-mail; All rights reserved. Photocopying, Internet be dialing phone numbers that begin $550 annually HPR & HPR Daily Wire. forwarding, faxing or reproducing in any (317-327- ----) and find out what Call 317-254-0535. form, in whole or part, is a violation of actually happened between 1991 and federal law. 1999 when Goldsmith was mayor and Daniels chaired the Service, Efficiency 2004 showdown between Govs. Joe Peterson, “He didn’t change a thing. If and Lower Taxes for Indianapolis Kernan and Daniels. Kernan criticized it works, you do it.” Commission (SELTIC). About 70 city the Republican with regard to new Indianapolis officials would not agencies were privatized as Gold- toll roads, and Daniels eagerly ac- comment for this column. smith successfully aimed at reducing knowledged his interest. But Indiana Daniels even cites “Bill Clin- the city workforce by 25 percent. But Democrats decided to slug away at ton’s bible, David Osborn’s ‘Reinvent- “contractual consultants” quadrupled Daniels IPALCO stock sale in the wake ing Government’” as a must-read. to $20 milion in Goldsmith’s first term of the Enron/Adelphia scandals. Thus, This conversation and and critics said there was a lack of Hoosiers didn’t get a vivid philosophi- this reading came in the same week oversight, as problematic golf course cal tussel over the pros and cons of Pennslyvania’s Gov. Ed Rendell pon- and swimming pool privatization cases privatization. dered leasing the Pennsylvania Turn- came into public scrutiny. That’s why Indianapolis now pike) and Illinois Gov. Rod Blagojevic Shortly after Goldsmith deserves thorough scrutiny. It’s been eyed a privatized state lottery. Both was re-elected in 1995, he told the six years since Goldsmith left office. are Democrats. Chicago Tribune, “For the past three There should be plenty of trending on “It’s all about contracting for years, I’ve been the CEO of India- what worked, what didn’t. service and competing services where napolis. Now I’d like to privatize all “Indianapolis has been a it fits,” Daniels said, noting that while of Indiana.” He told the Indianapolis pretty successful city,” Daniels said. “A cuts have been made, the state has News he intended to make Indiana the pretty well-run city. If you go ask ... hired thousands of new state police “first fully privatized state” in America. ‘Mayor Peterson, you’ve got a waste- and child protective service casework- As we all know, Goldsmith water plant, a water company and an ers. suffered a stunning defeat for gover- airport all privately managed under a So perhaps the earliest sub- nor in 1996, so it would be eight years contract with European firms. How’s it plot in a 2008 Daniels vs. Peterson before the true CEO/Gov. Daniels took working?’ showdown might be played out in the the helm. Yet, Goldsmith-style priva- “Great,” said Daniels quot- neighborhoods and financial tables of tization hardly came up during the ing Mayor Peterson. Daniels added of Indianapolis. v HOWEY Political Report Page 3 Weekly Briefing on Indiana Politics Thursday, Dec. 14, 2006 Iraq: From page 1 billion. They’ve already started upgrading and modernizing that road. The good question is, what if in 60 years we’re not using roads so much anymore? What if we are all in robot flying pods or something? It won’t be Indiana’s problem, meaning the risk will be on them. But it’s the right way to ask the question. The rule of life is discontinuous change, and many people either don’t think about change at all, or “The rule of life is discontinuous only think in linear terms. “We’re driving cars today. I guess we’ll be driving more cars tomorrow.” There will be bla- change and many people either don’t tant discontinuity. That’s the way life is and how progress comes. I guess training for this came in the years I was at think of change at all, or only think Hudson Institute. That was their trademark, to think what people say is ‘outside the box.’ They lived outside all boxes. in linear terms.” They were students of history enough to know that things - Gov. Mitch Daniels don’t travel forever in straight lines. You’ll just extrapolate from today. Look at population. All the doomsayers got it totally wrong. They looked at populations 50, 60, 70 years, of human ingenuity to solve problems. extrapolated from that ... Oh my gosh ... we’ll be overrun HPR: You, probably as much as anybody in the with people; we won’t be able to feed ourselves. Complete- state, gets in so many different nooks and crannies. You’ve ly wrong. First of all, behavior changed, all over the world. seen what’s going on in nano-technology and logistics. Are Got better educated, women took up larger roles in society we at any dramatic pivot points in the next five, 10, 20 and birthrates plummeted. The biggest demographic prob- years? lem facing the world right now is we’re not going to have enough kids. HPR: Rus- sia. Daniels: Hey, even China! HPR: OK. Daniels: Europe. They are commiting demo- graphic suicide. And so the great example of all the doomsaying we’d be out of food, out of energy, com- Gov. Mitch Daniels meets with university presidents Benjamin, Gora, Helton, Herbert, Jischke and Fong this pletely overlooking morning. “We at Ball State are delighted with the governor’s desire to invest boldly and strategically in higher the fact that human education,” said Ball State President Jo Ann Gora. “Our state has an amazing range of opportunities,” said ingenuity creates Purdue President Martin Jischke. “In this high tech advanced manufacturing economy, the governor’s proposal departures. We’re will position Indiana as a leader nationally by making our universities stronger and by supporting our very best going to get them students and encouraging them to remain in Indiana.” IU President Adam Herbert said, “We must act boldly and in energy for sure. the governor has done exactly that.” (HPR Photo by Brian A. Howey) We’ve had them anyway. Energy consumption has dropped. Everybody was drawing straight Daniels: I’m sure the answer is yes. I can’t predict lines from the ‘70s and ‘80s; totally wrong because why? for you exactly which ones. It’s the nature of these things Prices went up, suddenly conservation dropped. Suddenly that if they were utterly predictable, they wouldn’t have you could make a buck on alternative sources. So, the one the impact that they do. You were talking about 1900. Just thing you know is wrong is a projection of what is today. imagine a point in mid-century or even after; these funny That’s what you came to talk about. It is the way you have little things we’ve all read about - the computer - and even to think. Also, never, never, never underestimate the power after they’ve been invented and people said you could HOWEY Political Report Page 4 Weekly Briefing on Indiana Politics serve the whole world’s needs with five big ones. Just pretty much fits what we’re talking about here. One of the astonishing, the dimension of change compared to what main things that will decide where academia takes place is supposedly smart people saw coming, but, again, the one how strong the higher education system is, and how rigid thing you know for sure is that if you project from what a technological and intellectual climate in a given place, you know today, you’ll be way off. which in this country typically happens around great uni- HPR: You have ignited what you call an agriculture versities. We have a pretty good starting point in this state; revolution in this state. I read on the biomass front, par- three great large research universities, including Notre ticularly down in Brazil, they are maybe four or five years Dame. Somehow I thought we should make a major step away from some significant breakthroughs for producing forward. And so, I think I know a way to do it and here it energy. I’ve written the next American president should is: One, a large number of Hoosier Hopes scholarship, a declare a Manhattan Project to wean us off Middle Eastern grant, several thousand dollars per year, just for Indiana oil. Tell me a little bit about what you know of the agricl- schools: keep your grades up, finish in four years, we’ll for- ture revolution here in give the loan if you stay for three years. (We) go Indiana that enters into right after the brain drain. Two, maybe more in our whole energy needs? importance, a major trust we would spend down Daniels: Let me over 10 years, with its earnings to invest in world start with one of my fa- class scholarship and research here in Indiana. vorite little quotes which Schools would approach the fund with a match. I believe should be hand- With the match (it would be) over $100 million ed out to newly elected or more for 10 years. The idea is to go from here politicians. Paul Johnson, to there. the English historian, HPR: In one generation. wrote, “The scientist or Daniels: With an emphasis on science and inventer, for good or for technological disciplines but not limited to those. ill, impinges on history Where will this money come from, perhaps a far more than any states- billion dollars? By franchising the Hoosier Lottery. man or warlord.” The By the way, I’m not even talking about franchis- politicians think they’re ing the whole thing. I’m going to propose keep- in charge of things; that ing the revenue we have now. It’s franchising they are the real driv- the future growth for 30 years or something. ers, but it’s people like HPR: Franchising ... to other states? ... Henry Ford, and (Intel Daniels: No, to a private company. There founder) Andrew Grove, and Einstein and today, people will be someone who will leap up and say, “Well, working in agriculture, that will have the most input. I’m an I’ll tell you, if we have to own and operate, I guess you appreciator but not an author of any real inventions. want me to buy the horse tracks. The state doesn’t own HPR: But you are a synthesizer and distributor of those. We license them and regulate them. Or, I guess information. you want me to buy the casino boats. State government Daniels: Well, I try to be. I believe there is a vital doesn’t own those. We just license them and regulate role for public activity to create the conditions for ingenuity them. There’s only one kind of gambling the state owns to flourish. That means everything from a best educated and operates. Why? The company runs it and we regulate populace, which increases your shots on goal. The more the living dickens out of it. Every university is going to be bright people you have means keeping traditional freedom, here; I’ve been working with them on this for a couple of economic freedom. Why is biofuel taking off in Indiana months now and every one of them is excited. right now? In part because we got organized, got a tax HPR: How does this impact a normal family? credit, went out and started marketing the state, made Daniels: It’s pretty straightforward. If that junior sure we build the roads and things and all the right pre- gets really good test scores - it will be merit based ... there conditions. But the main reason is the price of oil went up. will be some formula that includes grade point average And now somebody can make a buck. Because whatever it - (and) is one of the best students and applies for it, that’s costs, what, 40 bucks, or something to make it a gallon of 20 grand of free money. We’ll give them a grace period ethanol and oil is at $20 to $25, nobody’s going to throw for grad school. But basically if you stay in the state for their money away. Nobody likes $3 gas and $75 a barrel three years, we’ll forgive that; convert that from a loan to a oil. The economic conditions became ripe. The market calls grant. And when junior goes to an Indiana university, he’ll forth amazing ingenuity, especially in places that are recep- be more likely to encounter a Nobel Prize winner or the tive to it. kind of junior research assistant in a world class lab, you Daniels: Thursday I’ve got a little something that know, the kind of people you ask about at IU. HOWEY Political Report Page 5 Weekly Briefing on Indiana Politics Thursday, Dec. 14, 2006 HPR: And the political forces in play? it. When we formed SELTIC, the first thing I did was buy Daniels: It’s all about if you don’t cooperate, you a copiy of Bill Clinton’s bible, David Osborn’s “Reinvent- don’t go forward now. There are two ways for two years, ing Government.” It’s all about contracting for service and we can either cooperate or somehow muster party unity. competing services where it fits. On full day kindergarten, it’s something we all ought to be HPR: Do you go into each of these “franchising” able to get together on. I’ve tried to listen, integrate and situations with half the electorate lined up against you? synthesize different views. Improve on it if you want. The Daniels: I don’t know. I’m prepared to have this details have been hammered out with the university presi- discussion. The first thing I’m for is a good deal for taxpay- dents. It’s not good to look for a little more of this and a ers and who’s supposed to receive the services. Please note little more of this and little incremental changes, but to look that where we think it’s the right way, we grow; we have for equation-changing steps that might make a big, lasting added state employment: state police, case workers, 800 difference. The telecom bill was like that. I see this in that child protection caseworkers. way. Frankly, if we did it well, it could be as big as anything HPR: Are all 800 funded and working? ... because of the world we’re moving into, because of Daniels: That’s in the budget and that’s the plan. technological innovation and so forth. I want our state to We’ve been hiring them. It’s case by case what will work be a big part of it. and what is best for taxpayers. There are two examples HPR: One of the things I wanted to talk with you where we are adding hundreds if not over a thousand about was privatization, which people to state employment. the Goldsmith administration Where there’s a better way, I’m actually tried to change the for more Hoosiers on private semantics on 10 years ago. tables where wages, benefits Daniels: Let me give and career paths can be better. you one more example. You If you are on public payroll, all know the connector which we is equal as long as the job gets kind of thought of ... I’m going done. to partner that tomorrow with HPR: I see at least a se- the Illiana. You know what the mantics showdown, if not a phil- Illiana is? osophical showdown between HPR: Interstate 57 to Republicans and Democrats over 65? this. How much government do Daniels: Why not run you want? The ability of govern- it around I-94. There are inter- ment to deliver services. That is modal possibilities like LaPorte something that hasn’t even been or Porter counties. We’ve got a fully won within the Republican deal worked out with Illinois to explore that as a P-3 with Party. somebody else’s money. Someone will build that road for Daniels: I understand there is a big government us, with a franchise. lobby in the state, like everywhere. These folks, and I am HPR: Are we talking about a 10- to 15-year not questioning their sincerity, believe government ought to period to build? be big and they like it that way. There is a self-interest mo- Daniels: It would take us that long, but it won’t tive. They like a lot of state employees, compulsory union take the private sector that long. One of the good things dues and the money goes back into politics. The welfare about private capital is that they can raise it. They are only situation is the last play station to look for an argument. limited by how fast you can build. The facts are overwhelming. The report that was done this HPR: I read up on your role with the SELTIC initia- summer ... most taxpayers in this state rightly suspect their tive in Indianapolis during the Goldsmith administration. money is not well-spent in the welfare system. They don’t We are now six years removed. What lessons and achieve- know how right they are. I don’t think it’s the best way to ments did we get out of that process? have a legitimate debate; they want big government, I’ll Daniels: Indianapolis has been a pretty success- argue for limited government. They can argue on the old ful city; a pretty well-run city. If you go ask the mayor, and model for everybody on the public payroll for life. I’ll argue I remember somebody did down here about a year ago. for a more nimble, case-by-case, sometimes on a contract They said, “Mayor Peterson, you’ve got a wastewater plant, approach. I could be wrong, but I think they picked the a water company and an airport all privately managed worst factual ground they could to try and defend today’s under a contract with European firms. How’s it working?” welfare. (The governor quotes Peterson as saying) “Great.” He HPR: You’ve got a political/public policy stake in (Mayor Peterson) didn’t change a thing. If it works, you do this. It’s not going to serve your interests or your adminis- HOWEY Political Report Page 6 Weekly Briefing on Indiana Politics Thursday, Dec. 14, 2006

tration if in five years ... Romney has done with health care in Massaschussetts? Daniels: We still have the worst welfare-to-work Daniels: Sure, we looked very, very carefully. I record in America. There are more people on welfare rolls think a great contribution, not original, that Mitt made was than states twice our size. underscoring that this is everybody’s problem. We’re paying HPR: How did that happen, particularly after the for this health care now. Just because you’re lucky enough Bayh/Clinton waivers of the mid-’90s? That was supposed to be healthy or lucky enough to have health insurance to wean the state from the big welfare rolls. you’re not paying for this. You are paying for the costs Daniels: The rolls did come down, but then while smoking inflicts, the costs that obesity inflicts. This is abso- the rest of America went down 58 percent, in many states lutely a subject on which a conservative should be an activ- 80-plus percent, we stood still. At the end of 1995 we ist. We’re paying for it now, but we’re doing it in the most weren’t in bad shape. But then time stood still in Indiana inefficient, wasteful way. The group brought me a Massa- and you had this unbelieveable success nationally. That’s chussetts-like proposal, the first, second, third, fourth time. how we ended up at the bottom of the list. Go look at I said, “I want something different.” The critical differences institutions of all kinds, particularly business. There is noth- are I wanted to cap the financial exposure so ours is limited ing new in Indiana government about contracting out; 92 to strictly how much money comes in, not entitlement. You percent of FSSA was already contracted out. We’re only can’t predict those things. I don’t want to be dragged over taking this from 92 to 94 percent. The totally vertically inte- the cliff like Tennessee and some other places were. We grated business is a dinosaur that died quite sometime ago. could help ... a huge number of people but we would be HPR: Before you became governor, I questioned limited. We would always have enough money in any given this state’s ability to change and what it means to be a year to only help insure the people we had money for. I conservative in this century needs to be redefined. What also wanted it much simpler. The Massachussetts plan ... you’re saying is that from school to work, people are seeing is complicated. I wanted something that was much simpler this kind of change in their daily lives and it is now about translating that into the political perspective. Daniels: Yes. HPR: Was the opposition to Major Moves a political spasm, the fingers finally unclutching from the way things have al- ways been? Daniels: We had problems, obvi- ously, with the foreign sponsorship. It’s not really ownership. By the time it’s all said and done the share will be mostly ... owned by American pension funds and banks. I think the fact we were doing something familiar in a brand new way ... it was some of those things. HPR: Are you learning the com- munication part of this takes on a greater emphasis? Daniels: I never thought it other- wise, but yes. HPR: The BMV computer switch started under, for the newly insured person, but also for our fellow citi- what, Gov. Kernan? zens to, understand. And I wanted more personal respon- Daniels: That was flat out a mistake. That’s on us. sibility and economy in this plan. We have that. It’s not an HPR: Taking one system off line as the other went HSA ... it’s an HSA plus, because I wanted preventive care. on line? (Gov. Romney’s) state is significantly different than ours. Daniels: You’re right, it’s been going on for six Those were the differences I identified: more personal re- years. They weren’t ready and they did it at a time when sponsibility, more control for the individual, preventive care. there are lots of transactions. I’m not laying that one on HPR: Re-election in 2008: Is it something you’re communication; fundamentally that was a management going to do, or think about? mistake. Daniels: I will have something to say about it at HPR: Have you taken a look at what Gov. Mitt the appropriate time. v HOWEY Political Report Page 7 Weekly Briefing on Indiana Politics Thursday, Dec. 14 2006

elect superintendents of public instruction, auditors and It’s time to reform executive treasurers. At the county level, there are three commissioners branches of state and counties and elected clerks, treasurers, auditors, recorders and coro- By BRIAN A. HOWEY ners, all performing segments of executive branch function. INDIANAPOLIS - Whether it was before the mayors Gov. Daniels and the Indiana General Assembly at IACT, or the Association of Indiana County Commission- should address the establishment of true executive govern- ers earlier this month, Gov. Mitch Daniels has had a con- ment at the state and county levels. As Daniels told the sistent message for local government: Reform yourselves commissioners last week, “I would value your suggestions.” before the state does it for you. Since 2002, The Howey Political Report has advo- “I sometimes ask cated the establishment of people, ‘Do you know any true executive branches of businesses that haven’t government. Voters would changed their bylaws in 160 elect policy-making posi- years?” Daniels asked the tions, and the policy makers commissioners. “Nobody has would appoint those who named one yet. The only run the bureaucracies. The one I know of is the govern- reforms would include: ment of Indiana. It think State executive: The maybe it’s time.” governor would appoint The commissioners, a true cabinet that would arguably one of the most include an education super- conservative areas of gov- intendent, secretary of state, ernment, applauded. They treasurer and auditor. The have a three-option plan constitutional office of at- that came close to a vote at torney general would remain their December meeting. an elected position, acting “Do you know that as an additional check and county commissioners group balance. is close?” Daniels asked County executive: In 91 HPR. “They had a draft that LaGrange County Commissioner George Bachman asked Gov. Indiana counties - possibly was pretty (darn) exciting. Daniels a question at the December Association of Indiana County 89 if Allen and Vanderburgh As I understood it they were Commissioners convention. (HPR Photo by Brian A. Howey) counties consolidate with going to say here’s our kind Fort Wayne and Evansville of ideas. I was going to - county voters would elect a heap praise on them. They pulled back a step. There is at county executive to replace least some leadership in that organization.” the three commissioners. The executive would appoint a Before IACT in September, Daniels encouraged cabinet that would perform functions of clerk, recorder, local governments to reform themselves, insisting there auditor, sheriff, surveyor, along with a county medical ex- are “too many layers and too little accountability.” Daniels aminer to replace the office of coroner. The county council added, “If no one comes through the door, it will come would serve as the legislative branch. Voters would con- from the top.” tinue to elect a county prosecutor and judges. This comes amid controversies in two counties The Indiana General Assembly has already moved - Marion and Grant - concerning the performance of elected in this direction, moving the clerk of the court into the county coroners, and the 2006 elections, where Democrats judicial branch after 156 years as a constutionally elected missed a golden opportunity to pick up several statewide office. executive branch offices. And it underscores the fact that Govs. Joe Kernan and Daniels have supported a at the state and county levels, the executive branch of gubernatorially appointed superintendent of public instruc- government is diffused in duty, diluted by multiple elected tion. But what about secretary of state, treasurer and officials, with the buck ultimately stopping at any number auditor? The conduct of the Indiana Democratic Party is of places. illustrative of why these offices should become part of a The governor of Indiana - any governor - does not gubernatorial cabinet. For most of the past decade, the have complete control or accountability for finance, educa- Democrats have treated these offices as virtual after- tion, or security and financial regulation. Indiana citizens thoughts. The lone exception was in 2002 when then-Bloom- HOWEY Political Report Page 8 Weekly Briefing on Indiana Politics Thursday, Dec. 14, 2006

ington Mayor John Fernandez raised more than $1 million treasurer into an elected controller. “The controller could but was defeated by Republican Todd Rokita, getting just act as a financial check and balance on the governor,” 42 percent of the vote. Parker said. This year, Democrats did not unveil a candidate Parker agrees mostly with HPR’s county executive until just before the state convention in model, but would prefer to elect a sheriff. June. Joe Pearson raised $168,000 with And he agrees that we could ask state Democrats pledging to put an ad- 100 people at the RCA Dome during the ditional $100,000 in media buys. Indiana next Colts game who were the two 2006 Democrats came in with only $50,000 secretary of state nominees “and given (for the three statewide races) and Pear- Rokita’s name ID, only 13 percent would son wasn’t consulted by the party until know and 9 percent of them would be lying.” Nov. 1. Pearson had only one full-time As for the HPR proposal to create staffer. The irony of the 2006 experience a county executive, which was the subject is that Pearson could have upset Rokita. of HPR Publisher Brian A. Howey’s 2005 He ended up with 746,460 votes or 46 keynote to the Association of Indiana County percent, winning 33 counties. He had Commissioners, retiring Elkhart County Com- 119,044 more votes than Fernandez. He missioner Phil Stiver was all for it. lost 51-46 percent. “I find it hard to argue against that In fact, Indiana Democrats could point,” said Stiver, who served nine years have won all three offices had they spent as a commissioner, eight on the Elkhart City more than the $50,000. Auditor-elect Tim Council and 20 years as a policeman. “We Berry defeated Judy Anderson by a 51-49 have three commissioners and a county percent margin. Treasurer-elect Richard administrator. We don’t need the commis- Mourdock defeated Highland Clerk-Trea- sioners with a good county administrator.” surer Michael Griffin 52-48 percent. There is a distinct pattern. In presidential/gubernatorial years, Demo- 3 commissioner options Bill Haan of the Association of Indiana crats generally get between 500,000 and County Commissioners said that his organi- 800,000 votes. In mid-terms, they poll zation had drafted a three-option plan: around 500,000 to 650,000 votes. Even 1. Keep the status quo; in years when Democrats do well, such as 2. Streamline the number of elected of- 2000 when Gov. Frank O’Bannon polled ficials with three commissioners; 1.23 million votes, Attorney General 3. Go to the executive model HPR has de- Karen Freeman-Wilson (finishing out scribed with one executive, a controller and the term of the only Democrat to win a Gov. Mitch Daniels sits under the the county council acting as the legislative statewide, Jeff Modisett, in 1996) polled portrait of Gov. Thomas Marshall, body. only 978,713 votes. Since 1988, the only who served from 1909 to 1913 “We’re mulling it over within our Democrats to win statewides have been and unsuccessfully tried to form a ranks,” said Haan. “What we have now is a Evan Bayh and Joe Hogsett (secretary of constitutional convention to reform horizontal line, as opposed to a pyramid.” state 1988 and 1990), Attorney General Indiana government. (HPR Photo He said that with true executive and legisla- Pamela Carter in 1992 and Modisett in by Brian A. Howey) tive branches “we could get better efficien- ‘96. Otherwise, the Indiana political land- cies and better service.” Commissioners are scape is littered with the likes of Susan also concerned about a lack of technical Williams, Day Smith and Doug Leath- requirements for offices such as auditor, clerk, coroner and erbury, who at least gave a memorable speech at a 1998 surveyor. Democratic Editorial Association convention at French Lick. Haan said option No. 3 is popular with counties above 100,000 population. Smaller counties appear to favor Parker reacts the status quo. He said trial baloons floated by Joe Loftus Indiana Democratic Chairman Dan Parker man- of Barnes & Thornburg “have not gotten a warm reception” aged the campaign of 1994 secretary of state nominee Tim in the Indiana General Assembly. Jeffers, who ran on the platform of abolishing that office. “If you had somebody add it all up in a given Jeffers lost to Sue Anne Gilroy. Parker agrees, for the most county and you had a tax adjustment board, I think it part, about forming a true executive branch cabinet. The would add to the pressure for reform,” Daniels said on exception, he says, would be to combine state auditor and Monday. “Even people running some of the piecemeal HOWEY Political Report Page 9 Weekly Briefing on Indiana Politics Thursday, Dec. 14, 2006

government we have is to take out some of the inefficien- Justice Randall Shepard said that with regards to Indiana cies. Right now every taxing district just sets its own tax government, “You’ve got to stop thinking about these and goes about its business. If every realm of government things as if they were engraved in stone.” Shepard said was human endeavor, you figure out what your revenue the “The Constitution of our state in its present form says is and conform your spending to that. Only in property very little about the structure of local government. It says taxation does somebody decide what the spending will be that municipaltieis can do everything except the things the and writes out a bill and hands it to the property owner. It legislature tells them they can’t do or tells them to do only might propel reform forward.” in a particular way.” Asked about the government consolidation/unifi- As for the executive branch, Shepard said, “The cations in Allen, Marion and Vanderburgh counties and if Constitution provides for only five statewide elected of- there was a way for him to help these initiatives pass, Gov. ficials. All the rest of the executive branch is in the hands of Daniels said, “I may have to try to help a little more ac- the legislature and governor.” As noted above, the legisla- tively. My attitude is that this ought to be encouraged. I like ture via a constitutional amendment has removed one of it from the bottom up. I’m not even going to try to ascer- those offices. tain each and every aspect of a given proposal is perfect. I And Shepard pointed to Supreme Court rulings believe we ought to encourage more of this activity and if involving the town of Bicknell in 1923 that limited municipal there are imperfections, that will be exposed and that will debt to 2 percent and the Indianapolis Unigov (Lieber vs. inform the next group. If it doesn’t work out well, there will Borst) case that consolidated various administrative activi- be local reckoning. “ ties as “coming too late in the day” and rejected them. Indiana muncipalities responded to the Bicknell case by creating separate taxing districts for parks, schools, librar- Three stabs at government reform ies, airports. “Each one of these is treated like a little silo,” In the past century, there have been three at- Shepard said. tempts to change government. In 1908, Gov. Thomas Riley Gov. Daniels suggested before IACT the creation of Marshall (whose protrait now hangs above Gov. Daniels 92 “county tax adjustment boards” that would regulate the conference table) concluded that the 1851 Constitution was debt. "If people think the taxes are too high for the ser- “an obstacle to progress” that was extremely difficult to vices they are getting, they'll know exactly whose phone to amend. When Democrats gained control of both the Indi- call," Daniels said. He said that county executive reforms ana House and Senate in 1911, Marshall decided that not would perform the same functions as TABs. only did Americans need a really good five-cent cigar, Indi- At the HPR Forum, Chief Justice Shepard admon- ana needed an entirely new constitution. His attempts were ished those who think the Constitution keeps them from shot down by the Indiana Supreme Court on a 3-2 vote. “I reforming government. “For most purposes, other than the obeyed the judgment of the court,” lamented Marshall, who financial ones which are a disadvange, the real barriers are went on to be a two-term U.S. vice president. “I had no things in statute and in our own minds. It seems to me the respect for it, and I now have a supreme contempt for it.” real question for modern reformers is not what the Cosn- In 1970, an Indiana Constitution Commission, stution won’t let us do, but what we are ready to do with co-chaired by former Govs. Matthew E. Welch and Harold each other for Indiana’s future.” W. Handley, along with a future govenor, State Sen. Robert Said Daniels, “If it would help, I certainly would be Orr, studied resubmission of failed amendments, the areas happy to propose changes. The single biggest flaw we have of taxation and local government, and the “possibility of right now is being one of the only handful of states without holding a constitutional convention.” a super majority veto overrde. That is one I’d love to see The Commission concluded, “As is the case with go before the voters, not for me, but for future governors.” most proposals for constitutional change, there are a num-

ber of practical problems sought to be corrected by amend- ing the present contents of Article 10, Section 1. A major Epilogue problem is that whenever the General Assembly seeks to The governor has been urging local governments remove some type of property tax from the tax rolls, such to reform themselves. He has called for ideas. Indiana as motor vehicles, it is necessary to amend the constitu- Democrats have failed to fully contest statewide offices. tion. This type of inflexibility is another example of clumsy With government consolidation efforts underway in Marion, restrictions on the General Assembly in its development of Vanderburgh and Allen counties, and past Democratic sup- public taxation policy.” port for such reforms going back decades, now is the time In 2002, the Indiana General Assembly removed to create true executive branches at the state and county the office of clerk of the court as a constitutionally elected levels. v office. At the 2005 Howey Political Report Forum, Chief HOWEY Political Report Page 10 Weekly Briefing on Indiana Politics Thursday, Dec. 14, 2006 Prominent New Hampshire Dem a year away. Anything could happen. In the 1972 cycle, early Democratic favorite Edmund Muskie suffered two says Bayh ‘has lots of friends’ setbacks that proved fatal to his campaign. Publication of a document later determined to be a forgery, known as the Hoosier confronts ‘Obama Mania’ “Canuck Letter,” cost Muskie support among French-Ca- nadians, but more damaging were reports that the candi- By MARK CURRY date cried during a speech defending his wife in a snow WASHINGTON - Can “Bayh Partisanship” compete storm outside the offices of the Manchester Union Leader. with “Obama Mania” in the contest to win a spot on the “Though Muskie later stated that what had appeared to the 2008 Democratic presidential press as tears were actu- ticket? One prominent New ally melted snowflakes, the Hampshire Democrat says it’s press reports that Muskie way too early to know. broke down and cried were More than 150 voters to shatter the candidate’s from all corners of the Granite image as calm and rea- State packed the conference soned,” a Wikipedia article center at the Puritan Backroom states. in Manchester last Saturday Or, consider the evening to hear Indiana’s Sen. case of Michigan Gov. Evan Bayh explain why he George Romney, the front- thinks he should be the next runner in 1968 until he president of the United States. used the term “brainwash- The next day Sen. Barack ing” to describe attempts Obama of Illinois drew ten times by U.S. generals in Viet- that amount at the Manchester nam to influence Romney’s Radisson for a rally to celebrate understanding of the war. the state’s Democratic sweep According to Wikipedia, in the November midterms, a “Republican Congressman historic victory Bayh helped to Robert Stafford of Ver- create. mont sounded a common Bayh supporters need concern: ‘If you’re running not despair quite yet, though for the presidency,’ he as- they may be rightfully worried serted, ‘you are supposed about the prospects of facing to have too much on the Obama on the hustings. For ball to be brainwashed.’” starters, neither Democrat has Finally, Bayh sup- officially committed to a run, porters should find most though it seems highly likely comfort in the perception the junior senator from Indiana that he is actually well will commit sometime early ahead in the game in New next year. Obama, on the other Hampshire, having toured hand, has been much more coy the state a total of 13 days about revealing his intentions. over seven visits during Earlier this week the former edi- U.S. Sen. Barack Obama doffs a Chicago Bears hat prior to the current election cycle. tor of the Harvard Law Review ESPN’s Monday Night Football. Obama’s first New Hamp- Obama is just getting appeared in a clip aired during shire foray came as U.S. Sen. Evan Bayh also stumped the started. Sunday’s visit was the opening of Monday Night state. (ESPN) his first. Football that suggested he was “That’s going to be about to announce his candida- the challenge for both of cy, but finished by proclaiming his support for the Chicago those campaigns, whether or not Sen. Obama can keep the Bears instead. Yesterday, James Pindell of the Boston Globe momentum going and whether or not Sen. Bayh can reach reported that a group encouraging the Illinois senator to out and create a message that attracts enough support run for president announced it will begin airing television for him to be successful as well,” said Ray Buckley, vice ads in New Hampshire and Washington next week. chair for the New Hampshire Democratic Party. “Each one Second, the New Hampshire primary is more than of them has amazing advisors and I’m sure they are going HOWEY Political Report Weekly Briefing on Indiana Politics to try like the dickens to ac- complish both of those feats.” Buck- ley, vice chair in the past two election cycles, is schooled in New Hamp- shire and na- tional politics. He served in the state legislature for eight years and is a former House Demo- cratic Whip. He was involved in the Al Gore campaign dur- ing the 2000 election and the Lieber- Indiana U.S. Sen. Evan Bayh chats with Democrats in Manchester, N.H. last weekend. (Bayh Flickr Photo) man campaign in 2004. The Manchester they’re just excited having shook their hand or even be- native told HPR that Bayh “has a lot of friends here in New ing in the same room, where we in New Hampshire aren’t Hampshire. overly impressed by the fact that you’re running for presi- “He’s been coming up here helping out candidates dent,” Buckley said. and local parties for a number of years,” Buckley said dur- When HPR pointed out that New Hampshire vot- ing a telephone interview conducted yesterday. “He has a ers were undeniably excited to see Sen. Obama this past lot of strong relationships with people that go back to the weekend, Buckley said, “It is very exciting and he obviously days 30 years ago when his dad ran for president. He also has generated a lot of support, but there’s a long time was very involved in assisting us in this year’s election. He between now and the primary. was very engaged, very involved in assisting the election “What [Obama] needs to do now is to actually of the house majority and the senate majority, but he also go into people’s living rooms and go from coffee shop to provided support for county candidates and for the gover- coffee shop, and diner to diner, to really talk to real New nor and for the state party as well. Of all the candidates, Hampshire people and get to know them, and have con- he really was the most engaged in really assisting candi- versations with people that might not be overly impressed, dates directly.” people that he’s going to need to win over.” There’s no place quite like New Hampshire when Which is exactly what Evan Bayh has been doing it comes to presidential politics. The state has hosted the since 2004, and that may explain how he managed to pack nation’s first primary since 1952. In recent years it has be- a room Saturday night at the Puritan. come integral to electoral success. As Buckley pointed out, “All sorts of different people from across the state no candidate who has placed third or below in New Hamp- came by to see [Bayh], including the state chair and a shire has gone on to become the nominee of either party. number of state senators, house members and a number Granite State voters believe they have a responsibility to of county chairs were there as well,” Buckley said. “It was personally and thoroughly vet any man or woman who a good mixture. There was some young people, some would be president. To that end they expect to be provided students, in the room. He did a great job talking about his opportunity to meet with and question prospects. message.” “In so many other places people get very starry eyed when they meet somebody running for president and v HOWEY Political Report Page 12 Weekly Briefing on Indiana Politics Thursday, Dec. 14, 2006

Sylvia Smith, Fort Wayne Journal Ga- billion war. But the situation in Iraq is perilous and growing zette -Those of us who have freckles or kids with dastardly worse. We could immediately and totally withdraw. In less diseases or even rotten neighbors know this lesson well: than six months, our 150,000 troops could fight their way Life ain’t fair.We’re smacked upside the head by this on a along strategic withdrawal corridors back to the sea and nearly daily basis, so it’s kind of hard to forget. Yet it must the safety provided by the Navy. Several million terrified be tough for a Golden Boy to swallow arbitrary unfairness. refugees would follow, the route of our columns marked by Lately, Sen. Evan Bayh has had to cope with a pretty major the burning pyres of abandoned military supplies demol- dose of it. Bayh has done everything right – raised buckets ished by our rear guard. The resulting civil warfare would of money, won five statewide campaigns in a largely Re- probably turn Iraq into a humanitarian disaster and might publican state, worked to hone his international credentials, well draw in the Iranians and Syrians. It would also deeply cultivated opinion-setters in Iowa and New Hampshire, threaten the safety and stability of our allies in neighboring trained on-the-ground operatives and placed them in the countries. There is a better option. First, we must commit early-primary states, made connections with national me- publicly to provide $10 billion a year in economic support to dia, schooled himself (or enhanced his natural the Iraqis over the next five years. In the military inclination) to not be tabloid fodder through arena, it would be feasible to equip and increase rash or imprudent statements or actions. It’s the the Iraqi armed forces on a crash basis over the sort of position any candidate for a presidential next 24 months. The goal would be 250,000 nomination would envy or aspire to on the cusp troops, provided with the material and training of what will be an intense political year for can- necessary to maintain internal order. Americans didates. But all that effort is so much dandelion had fought and died. We owe them and our own fluff if Sen. Barack Obama remains “the Bobby national interest this one last effort. If we can- Kennedy of 2008,” as he’s been described by some national not generate the political will to take this action, it is time political pundits. Obama has been on the national scene a to pull out and search for those we will hold responsible in scant two years, yet his mega-wattage is amazing – and Congress and the administration. v undeniable. For instance, last year, Bayh’s appearance at a New Hampshire Democratic Party dinner drew 600 people. Thomas Edsall, International Tri- Obama is visiting the same group today; 1,500 bought tick- bune - Hillary Clinton is the Democratic establishment’s ets. Obama is such a political celebrity that his mere “think- anti- establishment candidate. She is simultaneously an ing about thinking about” an ’08 candidacy forces almost insurgent, seeking to end a 220-year reign of men, and everyone else into the background. Except Sen. Hillary Clin- the heir apparent — dominant in cash ($14.4 million in the ton, of course. She is the front-runner in the Democrats’ bank), in the polls and in the colossal reach of her ma- 2008 nominating process and tends to get bigger headlines chine. Clinton’s most visible challenger, Barack Obama, is and more TV air time for doing the exact same thing as similarly an insurgent, but without the former first lady’s Bayh (or other potential Democratic candidates). Yet unlike resources. He is seeking to capitalize on his ranking as an Obama’s presence in the field, Clinton’s real or perceived underdog, entering the fray as David battling the Clinton candidacy has the potential to benefit Bayh. Someone has Goliath. The head of the pack is a dangerous place for a to be the un-Hillary, and now that Mark Warner has bowed Democrat to be. Democrats excel in cannibalizing their out, Bayh is as close to that definition as anyone. v front-runners. Just ask those who were knocked out in the primary season (Lyndon Johnson, Ed Muskie and Howard Gen. Barry McCaffrey, Washington Dean) or those who limped from the ring after 15 rounds Post - A collapse of the Iraqi state would be catastrophic -- (Walter Mondale and Al Gore). The Clinton leviathan for the people of Iraq, for the Middle East and for America’s provides a perfect foil for Obama. “I think to some degree strategic interests. We need a new political and military I’ve become a short-hand or symbol or stand-in for a spirit approach to head off this impending disaster -- one crafted that the last election in New Hampshire represented,” he with bipartisan congressional support. But Baker-Hamilton said last weekend on his maiden trip to the state. “It’s isn’t it. Our objective should be a large-scale U.S. military a spirit that says we are looking for something different withdrawal within the next 36 months, leaving in place an — we want something new.” The candidates not yet in the Iraqi government in a stable and mostly peaceful country limelight — Evan Bayh, John Edwards, John Kerry, Al Gore, that does not threaten its six neighboring states and does Tom Vilsak, Bill Richardson, Wes Clark, Chris Dodd, and not intend to possess weapons of mass destruction. Joe Biden — would like nothing better than to see Clinton The courage and skill of the U.S. armed forces have been and Obama split their shared constituency, leaving each awe-inspiring. Our soldiers, Marines and Special Operations other lifeless on the slaughterhouse floor. That would make forces have suffered 25,000 wounded and killed, with many Richardson, who is Hispanic, the sole exception in a field thousands permanently maimed, while fighting this $400 composed entirely of white men. v HOWEY Political Report Page 13 Weekly Briefing on Indiana Politics Thursday, Dec. 14, 2006 Help formulate the Mauer 5. House Speaker Brian Bosma 2007 Influence List 6. Marion County Prosecutor Carl Brizzi 7. Indianapolis Mayor Bart Peterson INDIANAPOLIS - Obviously, there will be major 8. U.S. Rep. Pete Visclosky changes in the 2007 HPR 50 Most Influential List. 9. U.S. Rep. Mike Pence Senate President Pro Tempore Robert Garton, 10. U.S. Rep. Mike Sodrel U.S. Reps. Mike Sodrel, John Hostettler and Chris 11. U.S. Rep. John Hostettler Chocola were all defeated. Departing the Daniels ad- 12. State Rep. Rep. B. Patrick Bauer ministration is Chief of Staff Harry Gonso. 13. Senate President Pro Tempore Robert D. The 2006 list reflected the wave that devel- Garton oped around the Iraq War and congressional corrup- 14. Ways & Means Chairman Jeff Espich tion, as well as the Daniels administration’s Major 15. FSSA Director Mitch Roob Moves program. 16. Lt. Gov. Becky Skillman In 2007, there will be the Evan Bayh presi- 17. Marion County Sheriff Frank Anderson dential 18. U.S. Rep. Chris Chocola cam- 19. State Sen. Luke Kenley paign, 20. John R. Hammond III the bi- 21. Bob Grand ennial 22. State Rep. Randy Borror budget 23. Secretary of State Todd Rokita in the 24. Lee Hamilton Indiana 25. Fort Wayne Mayor Graham Richard General 26. Alan B. Hubbard Assem- 27. Marty Morris bly, 28. Tom Sugar mayor- 29. U.S. Rep. Steve Buyer al elec- House Minority Leader Brian Bosma (left) with U.S. 30. GOP Executive Director Jennifer Hallowell tions, Sen. Evan Bayh. (HPR Photo) 31. Indiana Democratic Chairman Dan Parker and a 32. Indiana Republican Chairman Jim Kittle Jr. huge 33. State Sen. Vi Simpson decision for Indiana Democrats: who will be challeng- 34. Farm Bureau President Don Villwock ing Gov. Mitch Daniels? 35. Chamber President Kevin Brinegar HPR has been compiling the 50 Most Influen- 36. IMA President Pat Kiely tial List since 1999. We ask our readers to suggest 37. UAW President Terry Thurman additons (or subtractions). Some of you compile your 38. Mike O’Connor own 50 list. HPR encourages this exercise in power, 39. Mike Gentry clout and accountability. Send thoughts to HPR Pub- 40. Hamilton County Republican Chairman lisher Brian A. Howey at: brianhowey@howeypoli- Charlie White tics.com. The 2007 list will be published in the Jan. 41. U.S. Rep. Mark Souder 11 edition of The Howey Political Report as well as 42. U.S. Rep. Julia Carson Brian Howey’s statewide newspaper column running 43. Baron Hill in 24 papers and reaching more than 200,000 readers 44. Vanderburgh County Sheriff Brad Ellsworth each week. 45. OMB Director Chuck Schalliol 46. Stadium Authority Chairman David Frick 2006 HPR 50 Most Influential 47. State Sen. Mike Young and State Rep. Phil 1. Gov. Mitch Daniels Hinkle 2. U.S. Sen. Richard Lugar 48. Tim Roemer 3. U.S. Sen. Evan Bayh 49. Dan Coats 4. Commerce Secretary/IEDC Chairman Mickey 50. IACT Executive Director Matt Greller v HOWEY Political Report Page 14 Weekly Briefing on Indiana Politics Thursday, Dec. 14, 2006 Espich luke warm things I think the private sector can does not have a good track record in on lottery franchise do better, but I’m not sure about this backing up its claims.” one. Because of the potential for graft FORT WAYNE - As details con- it might be better to keep it in govern- tinued to leak out Wednesday about Parker’s first comment ment hands.” Gov. Mitch Daniels’ plan to privatize on Hoosier Lottery the Hoosier Lottery, reaction from area INDIANAPOLIS - This is lawmakers was less than encourag- Bauer calls it a ‘bad idea’ a statement from Indiana Demo- ing (Kelly, and says it will unite parties cratic Chairman Dan Parker on the Fort Wayne INDIANAPOLIS - Indiana governor’s proposal for Hoosier Hope Journal House Speaker B. Patrick Bauer re- Scholarships: “Hoosiers have learned Gazette). acted to Gov. Daniels’ Hoosier Lottery that whenever the Governor issues Daniels is proposal by saying, “The governor has a proposal, the Devil is always in expected to made a substantial step forward in the details. We don’t know for how unveil the improving bipartisanship in the Indiana long he wants to lease the Lottery or proposal General Assembly, because Republi- whether he’d allow a private company – which cans and Democrats alike say that his to expand gambling in our state to would likely plan to privatize the Hoosier Lottery make a higher profit. All we know is raise money for higher education – at is a very bad idea. Finding additional that he’s decided he wants to sell off 11 a.m. today. Wells County Repub- funding for higher education should a profit-generating agency to a private lican Rep. Jeff Espich was briefed on be a goal for all lawmakers, particu- company. At this point, it’s clear that the idea a few weeks ago along with larly since the current state budget the Governor’s idea of creative financ- other key lawmakers. “The governor is – crafted by this governor and his fel- ing is to buy a second pricing gun, a man of big ideas, and I don’t think low Republicans – shorted funding for so he can slap double the number of he’s afraid to suggest them. I give our colleges and universities. Today’s price tags on our state assets, agen- him great credit for that,” Espich said. announcement follows the approach cies and services. Obviously, the “On the other hand, both the legisla- used so often by the administration Governor didn’t get the message from ture and the public will only accept so when it proposes its grand schemes. voters in November that his agenda is many big ideas.” He said he is afraid They think we will be blinded by the wrong for Indiana. In fact, we should that so many controversial programs huge dollar figures attached to these probably just start referring to him as – from implementing full-day kinder- deals – even though the numbers Outsourcer Daniels, since he doesn’t garten, getting approval to build a toll never seem to be concrete – and seem to want or be able to govern at road around part of central Indiana forget about the long-term impact of all.” and increasing the cigarette tax to their proposals. But this decision does finance a low-income health insur- have significant long-term implications ance program – might dilute Daniels’ for Hoosiers. At present, the lottery Chief Justice Shepard ability to get any of them done. And reduces the cost of our license plates Espich isn’t so keen on where the and helps to pay for retirement for to serve fifth term money would go – to support college our teachers, police and firefighters. INDIANAPOLIS - Randall T. scholarships. “The state already ranks Each year, $30 million in net income Shepard was appointed Wednesday to sixth in scholarship assistance, so I’m from the lottery goes to the Teach- his fifth five-year term as chief justice not sure that’s a good reason to make ers Retirement Fund and another $30 of Indiana by a unanimous vote of the such a bold move,” he said. Rep. Phil million toward the Local Police and Indiana Judicial Nominating Commis- GiaQuinta, D-Fort Wayne, is concerned Fire Pension Relief Fund. Whatever sion. that Daniels is sacrificing the future to is left goes to reducing excise taxes gain some cash today. “The problem is on our motor vehicles. For instance, Hill on Energy Committee he is trying to find ways to do things in Fiscal Year 2005, more than $125 WASHINGTON - Congress- now that will help him in his tenure, million was dedicated to excise tax man-Elect Baron Hill was chosen by but it leaves the next generation short relief. What impact will the governor’s Democratic leaders in the House of on some revenue,” he said. “Where proposal have on these distributions? Representatives to serve on the pow- are we then?” Others questioned the I would like to think that any proposal erful Energy and Commerce Commit- possibility of corruption in a privately would ensure that excise tax relief and tee. v run lottery. “Oh my,” was Monroe pension programs get the same levels Republican Rep. Mike Ripley’s reac- of support as in the past, but the devil tion to the idea. “There are a lot of is in the details and this administration