V13 N2 Thursday, Aug. 17, 2006

HPR Special 2008 Presidential Report Gov. Bayh, 10 years later

By BRIAN A. HOWEY The Bayh governorship, which ended with an 80 - It seems so long ago that we percent approval rating and a virtual coronation into his watched with real an- father’s old U.S. Sen- ticipation ’s ate seat two years Hoosier governorship as later, will become one it commenced in 1989. of the basic planks It began in an era before on the now unfolding e-mail and the Internet. presidential aspira- It was an era where the tions. Evan Bayh was Cold War ended and we an executive for eight talked of the “peace divi- years, making life and dend.” Crack cocaine had death decisions, fight- yet to spread its awful ing crime, educating tide beyond Fort Wayne. the young and forg- We were still executing ing jobs. He created our worst criminals in the the modern campaign electric chair. It was a mode, matching a different administration in relentless message that instead of being the into a communication capstone of a political ca- network that went over reer as we had seen with the heads of legislators most of our govenors, it was just the ambitious beginning. See page 3 Watching Bayh’s first steps ... By DR. LAWRENCE M. BORST INDIANAPOLIS - During all of the years that Evan Bayh served as an elected official for the State of , I always had the feeling that each progression was just one more step to become the President of “I’m not anti-business. Wal-Mart the . Even as secretary of state, has become emblematic of the Evan Bayh and Ed Lewis had charted out his political future. anxiety around the country and the This political future outlined how a Conservative Democrat Governor middle-class squeeze.” from the Midwest could obtain the - Sen. Evan Bayh in Iowa at a Wake-Up Wal- See page 2 Mart rally HOWEY Political Report Page 2 Weekly Briefing on Indiana Politics Thursday, Aug. 17, 2006 Democrat nomination for President of the United States. As the “new kid in town”, Gov. Bayh’s accomplishments p. 4 he was not deterred by the fact that INSIDE others, such as Frank O’Bannon, had Bayh’s election scorecard p. 5 been around longer and had “paid Features their dues.” Evan felt that he was on a Making a fiscal conservative p. 8 mission and that the Governorship of Indiana was to be his. 100 Days until Bayh declares p. 10 Once elected as governor he formed a Task Force to ascertain how Ticker: Merritt reportedly drops out p. 11 to trim the costs of state government and how to reduce its size. The sav- HPR: Beginning our 13th Year of Analysis ings claimed were dubious but seemed to resonate with the public. He immediately made it forbidden for The Howey Political Report is The Howey Political Report state employees to accept so much published by NewsLink Inc. It PO Box 40265 as a cup of coffee. This edict was Indianapolis, IN 46240-0265. never really enforced, but again, was was founded in 1994. popular with the public. He allowed www.howeypolitics.com [email protected] for the unionization of state employees Brian A. Howey, Publisher and gave them the ability to bargain Mark Schoeff Jr., Washington Indianapolis Office: 317-506-0883. Writer collectively. This was popular with Indianapolis Fax: 317-254-0535. Mark Curry, Washington Writer his campaign financial supporters, but Washington, DC Office: 202-256-5822. Jack E. Howey, Editor then never entered into any meaning- Business Office: 317-254-0535. ful bargaining with the newly formed Subscriptions: ©2006, The Howey Political Report. unions. $350 annually HPR via e-mail; All rights reserved. Photocopying, Internet Gov. Bayh treated his support- $550 annually HPR & HPR Daily Wire. forwarding, faxing or reproducing in any ers with the philosophy: “they need Call 317-254-0535. form, in whole or part, is a violation of me a lot more than I need them.” He federal law. was absolutely right. Publically, Gov. Evan announced many innovations and of being remembered in the history were no more than four people in or changes, new oversight boards and books, as the “Gambling Governor”, out the Bayh administration that could commissions, when in fact most were has not happened, he can campaign speak for the Governor just a re-naming process or the com- nationally as an innovative I think that Gov. Bayh thor- bining of two ex-governor. oughly enjoyed moving the “Capitol” existing boards Gov. Bayh had around the state from time to time. into one with a very little contact He was very good at listening. His new name. He with the Senate guiding policy of “don’t rock the boat” was most intent Finance Com- was good for Indiana at that particular in repealing mittee. I doubt time in history. everything that that I met with By borrowing the friends Governor him eight times and associates of Ed Lewis, Bayh Orr had accom- in eight years. staffed his administration with able, plished in K-12. Whatever came competent, and honest individuals The A-Plus Pro- out of the I personally wish him good gram was taken legislature, he luck in his present efforts. Evan Bayh apart bit by seemed to ac- would certainly make a better Presi- bit. Since legal- cept. Gov. Bayh dent than some in his political party ization of river always made that are seeking the same office. boat casinos, pari-mutual horse bet- the final decisions. I would never take Personally, once again in Indi- ting, and the state lottery all occurred the word of an underling that “the ana history, the other sitting Indiana under his stewardship, his personal Governor wants this” until I had put in United States Senator would be the fear a call to the Governor himself. There better nominee. v HOWEY Political Report Page 3 Weekly Briefing on Indiana Politics Thursday, Aug. 17, 2006

From page 1 reforming welfare in a responsible way, and those kinds of things,” Bayh said. “It probably has to do with the fact that and into the minds of the people. He totally understood the I can speak with some authority about the President’s ef- message and underscored his themes time and again. forts and what he hopes to do for our country.” It’s been 10 years since Bayh walked out of his sec- ond floor Statehouse Fiscal conservatism office. That’s more than enough time for from the bully pulpit Bayh talked about fiscal an assessment. It has conservatism, a moderate been reduced down to social agenda and use of a short, tidy paragraph the gubernatorial bully pul- on Wikipedia and pit as a commanding and history books: More influential view of Hoosier conservative than his society. Bayh strayed infre- liberal Senator father, quently from the themes he Gov. Bayh ushered in talked about at the earliest billion-dollar surpluses, part of his political career. steadily increased His mantra was “no new education funding, cre- taxes,” and while Repub- ated the 21st Century licans like to remind folks Scholars program, the of his cigarette and hospi- Access Indiana website tal tax increase proposals and about 390,000 in 1993, the Bayh years jobs. He never raised U.S. Sen. Evan Bayh on a recent trip to Iowa to campaign for president. produced the kind of fiscal taxes and, in fact, Former House Speaker Paul Mannweiler calls him “well seasoned” after conservatism that back signed the biggest tax his two terms as Indiana governor. (Bayh Flickr Photo) in 1984 would have been cut in state history. The more akin to Doc Bowen. Wall Street Journal Former Republican House summed it up succinct- Speaker Paul Mannweiler, ly in 1992, saying, “Mr. Bayh’s record is one of a genuinely explains, “He wasn’t a very hands on guy. He did a lot of fiscally conservative Democrat.” Political observers in both controlling the message. He was very good at saying what parties - partially out of admiration and some with disdain was popular.” - would call Evan Bayh a “Republicrat.” Both Mannweiler and long-time Senate Finance The late columnist Harrison J. Ullmann - who Chairman Larry Borst say they had few face-to-face meet- was the initial contact between Bayh and Frank O’Bannon ings with Bayh during his eight years. “You dealt with his that forged the mold-shattering 1988 Democratic ticket staff more than anything,” Mannweiler said. - lumped him in with another ambitious man, Stephen Goldsmith, and they became the “Bayhsmiths.” “We have given the Bayhsmiths our governments A talent magnet so they may use Indiana’s public offices to demonstrate to The Bayh staffing has become one of his biggest the rest of America that they are competent for America’s legacies. His political machine not only revived the once highest offices. The Bayhsmith named Evan, returns from moribund Democratic Party, but forged upsets by Secre- conferences of governors to tell us we are envied for our tary of State Joe Hogsett (over Bill Hudnut), Attorneys cheap and tiny state government,” noted Ullmann. General Pamela Carter and Jeff Modisett, the extension of Six months before Bayh left the governor’s office, the Democratic gubernatorial dynsasty to 16 years with he delivered the keynote address before the 1996 Demo- Lt. Gov. Frank O’Bannon’s upset win in 1996 over Stephen cratic National Convention in Chicago. He explained why Goldsmith, and Bart Peterson’s epic derailing of the Marion he believed he was chosen for the keynote in an interview County GOP machine in the 1999 Indianapolis mayor’s with Margaret Warner: race. The governor had coattails, bringing along additional “I believe it has something to do with having a Democratic House seats each time he ran. He is in thor- record in Indiana of balancing budgets but still being fis- ough command of the Indiana Democratic Party to this cally or socially compassionate, of cutting taxes for working day, having selected the last several party chairs. It is a people but still finding the means to provide more for edu- party that is tacitly gearing up for the Bayh presidential run cation and health care and the other needs of our society, everyone knew would come some day. HOWEY Political Report Page 4 Weekly Briefing on Indiana Politics Thursday, Aug. 17, 2006 Key Bayh/O’Bannon Accomplishments Taxes Bayh’s two terms as governor marked the first eight-year period in 40 years without a tax increase. It was followed by eight more years during the O’Bannon- Kernan governorships without a general tax increase. Bayh slashed the state’s annual auto excise tax in half, saving taxpayers $1.6 billion over six years.

Budgets “This group of superb Bayh reduced full-time employee by 1,600 or 4 percent, outside of the public servants -- under his Department of Corrections. There, he added 4,000 new prison beds. In 1996, Bayh leadership -- laid the ground- invested $250 million in pensions. Bayh left office with a $1.6 billion budget surplus. work for his overwhelming Reduced Medicaid expenditures from 14 percent of total spending to 9 percent. Pro- 1992 re-election, and it can vided $146 million in the Build Indiana Fund from Hoosier Lottery proceeds. fairly be said, Frank O’Bannon’s success in 1996,” says William Welfare Moreau Jr., one of Bayh’s chief- Bayh implemented 50 waivers of federal welfare regulations. He claimed to of-staffs. have helped transition 1,000 familes per month, saving $140 million. Added 31,000 Mannweiler men- child care slots. Bayh claims that child support payments doubled during his eight tions current Indiana Supreme years. His FSSA reorgnization resulted in the the transfer of decision-making author- Court Justice Frank Sullivan, ity to 92 county-based step ahead councils. It combined the Departments of Human who helped craft Bayh’s fiscal Services, Mental Health and Public Welfare. Closed Central State Hospital on June conservatism into the fitful 30, 1994, claiming to redirect $19.5 million into community based care, sending 400 budgets that passed during the residents elsewhere. Critics said many of them ended up on the streets. troubled recession of the early 1990s. Another was James Education Verdier, who helped rein in Increased education spending in his four biennial budgets that included $3.1 monstrous Medicaid costs that billion in new dollars for K-12 education above rate of inflatoin. Boosted $1.5 billion had the potential of devouring in new higher education dollars. 33,000 students became 21st Century Scolars by state initiatives. keeping a C average and staying off drugs. Linked 295 school corporations to the “Evan Bayh called internet by 1997. to service some of the most remarkable human beings who have ever held positions of Crime responsibility in Indiana state Sent 50 Indiana State troopers to Gary for two months in 1995. Proposed and government,” Moreau added. signed tougher sentencing guidelines. 40 percent reduction in drunk driving. Execut- “I would happily invite any ob- ed two death row inmates, the last in the electric chair and first by lethal injection. jective analyst to match those folks’ credentials--and records Roads -- with any group of Indiana Completed I-469 at Fort Wayne, the U.S. 20 bypass around South Bend, public servants ever assembled. Mishawaka and Elkhart. Completed I-164 to Evansville from I-64 Extended four-lane These were honest, ethical Indiana 37 to just north of Mitchell. people who got up every day trying to figure out how to do Jobs their jobs better and, yes, they Added 390,000 new jobs, but that included 7,500 jobs at the United Airlines were motivated by a governor Maintenance Facility that were not realized. Major company expansions included who demanded excellence.” Toyota at Princeton, AK Steel at Rockport, Chrysler transmission at Kokomo. 7 per- Moreau continued, cent manufacturing job expansion. “Evan Bayh was the kind of governor you wanted to please Environment and the kind of governor you Largest expansion of the state park system since the 1930s by adding Fort never wanted to disappoint. Benjamin Harrison, Prophetstown, Summit Lakes, Charlestown and Falls of the Ohio There were consequences for state parks. Toxic chemical emissions declined by 82 percent. Halted almost all of disappointment, and I would out-of-state waste being dumped into Indiana landfills.v HOWEY Political Report Page 5 Weekly Briefing on Indiana Politics Thursday, Aug. 17, 2006 add to the list of accomplishments Evan Bayh’s ability to di- left in 1989. rect people to return to the private sector, when necessary. Indiana This recruitment of excellent people, tight ethical and fiscal Chamber President controls, and management decisiveness -- amplified by EB’s Kevin Brinegar, extraordinary communication skills -- convinced Hoosiers working on the Fi- that Democrats could, in fact, govern. This was no mean nance staff, recalls, feat after 20 years of rule by the other party. Indiana “It was the first Democrats had literally lost a generation to state govern- time in a long time ment service, and Hoosiers were understandably skeptical there had been a about our ability to be good stewards of their money and Democratic gover- their ambitions. nor and you had the 50/50 house. Govs. Edgar Whitcomb and Evan We’d gone through Bayh at the 2003 funeral of Gov. this period of time Frank O’Bannon. (HPR Photo by where Republi- Brian A. Howey) cans put budgets together in the House, and the 1986 Indiana Democrats would Secretary of State put in all these Evan Bayh 828,494 pet projects, Rob Bowen (R) 704,952 get it over to the Senate and it 1988 Governor would usually be Evan Bayh 1,138,574 53% the Senate which (R) 1,002,207 47% would clean it up further.” 1992 Indiana Governor Brinegar Evan Bayh 1,382,151 62% said that Ways & Linley Pearson (R) 822,533 37% Means co-chair B. Patrick Bauer put the budget 1998 U.S. Senate together “per se.” Evan Bayh 1,012,244 64% The Republican (R) 522,732 35% co-chair, current Other 23,641 1% Indiana Manufac- “He recruited people of all colors, religions, back- turers Association 2004 U.S. Senate grounds, sexual orientations, etc. There were so many President Patrick Evan Bayh 1,496,976 62% ‘firsts’ among his appointees to the executive branch, the Kiely, went to his Marvin Scott (R) 903,913 37% judiciary and boards and commissions we literally lost caucus with cop- Barger (L) 27,344 1% count,” Moreau said. ies of Democratic Learning curve amendments from While Gov. Bayh left office with the huge $1.6 bil- recent years, passed them out and said, “Who wants to lion surplus and lofty approval rating, the first years were offer this one? This one?” troubled. The new governor came into office with scant The Democrats didn’t shoot them down on the time to present his first biennial budget (and for this rea- floor; the Senate didn’t clean it up and Gov. Bayh’s first son, HPR argues that the Indiana General Assembly should budget was “hundreds of millions of dollars over balance,” convene at the first of February in long-sessions after a Brinegar said. Bayh vetoed that bill. The budget that gubenaotrial election). His second budget - in 1991 - ex- passed in the 1989 special session was even bigger. posed his enigmatic leadership skills in the Indiana Gen- By December 1990, the budget forecast was for a eral Assembly that eventually saw two contentious special $966 million deficit by June 1993. Bayh imposed a hiring sessions that lasted until mid-June. He had few Statehouse freeze, and 3 percent agency reductions. State agencies relationships and that was exacerbated by the first 50/50 returned $233 million in unspent funds; with $67 million split House in Indiana history in 1988. He didn’t submit his more reversions in 1992 that finally balanced the budget. first spending plan until fewer than 15 sessions days were His second biennial budget in 1991 was submitted HOWEY Political Report Page 6 Weekly Briefing on Indiana Politics Thursday, Aug. 17, 2006

early - in January - but didn’t conclude until after two spe- Democrats controlled the House; Republicans in the Sen- cial sessions. That produced one of the hallmark phrases ate. The only way out of these disparate spending priori- of his governorship. Frustrated by legislative leaders, ties turned out to be riverboat casinos. Democratic House Bayh turned to what he called Speaker Michael K. Phillips pushed the “white hot heat of public the casinos, but Bayh vetoed the opinion.” He didn’t distinguish budget just hours before the state’s between parties, noted John Ket- fiscal year was to end. “Everybody zenberger in a 1992 analysis for had wanted to go home,” Brinegar the Fort Wayne Journal-Gazette. recalls. “Some folks were really be- Unlike Govs. Robert Orr, ing hindered financially not getting Doc Bowen and Matt Welsh who back to their jobs. In the end, Gov. were creatures of the legislature Bayh vetoed the budget because of and worked from within, Bayh the gaming, and legislature almost took his message right over their immediately overrode. heads and drug them along. Or Through Bayh’s first three, tortur- he just claimed victory no matter ous budgets, there was one consis- what actually happened. Think tency: no new taxes, though at one of the budget he vetoed with point Bayh did propose cigarette gaming. The legislature called and hospital tax increases. his bluff on dangling gaming as While the governor and legislators a way to get his budget passed. could point to no general tax in- Instead, House Speaker Michael creases, the burden shifted to prop- K. Phillips and others took the erty taxes, leading Lt. Gov. Frank gaming and the Republican bud- O’Bannon to campaign in 1996 on a get. Gov. Evan Bayh with some of his 21st Century Schol- platform of tax reform (though that “As I recall he just ards. didn’t occur until 2002). claimed victory as time went on,” Earl Ryan of the Indiana Fiscal says Karl Berron of the Indiana Policy Institute and David Bennett of Realtors. “Same with the hospital tax increase. After it was the Taxpayer Research Association acknowledged that the killed by the legislature he took credit for keeping taxes first three Bayh budgets were creative in what was widely down with a fly-around. Our polling through that period called “smoke and mirrors.” always showed that the public trusted Gov. Bayh more than “They had to do some creative accounting dur- Republicans on taxes. It drove them nuts.” ing the course of the recession to avoid tax increases,” explained Ryan in a 1994 HPR interview. “Now that the revenue system is beginning to produce, they’ve gotten A record re-elect over the hard part.” Despite the recession and budget troubles, Bayh There are more explosives to dodge over the next had successes that included landing in November 1991 a two years. The Bayh administration targeted more than billion-dollar United Airlines maintenance facility in - half a billion-dollars in Medicaid cuts that had the potential napolis. In March 1992, he revealed plans to balance the of swamping state finances. budget. In their 1994 interview, both Ryan and There were other steps that Bayh took that im- Bennett were in chorus that Bayh, Medicaid chief James pressed upon Hoosiers a decisive leadership style. He fired Verdier and his Budget Director Jean Blackwell stepped Hoosier Lottery Director Jack Crawford after a messy affair on a lot of feet. “They made a lot of client groups mad at became public. He ended the prison furlough program fol- them,” Ryan said. “At the same time, they managed things lowing the murder of a Mishawaka woman by her ex-hus- so that no state program was decimated. Education com- band, Alan Metheny. plained, but nonetheless it was a slowdown in growth and In November 1992, Bayh was re-elected with 62 not a huge cutback.” percent of the vote, an Indiana record that still stands. His Added Bennett, “They made everybody national rising star was officially cast. mad, which means they did a pretty good job. A lot of people can take credit, but Evan Bayh was the governor. But one more messy budget This came on his watch, and he didn’t raise taxes. We go His second term commenced with one of the most through the recession without any tax increases many controversial budget sessions in state history in 1993. other states had to go through.” The state was till under considerable economic duress. HOWEY Political Report Page 7 Weekly Briefing on Indiana Politics Thursday, Aug. 17, 2006 Welfare and wages municipal construction costs. That resulted in the prevailing The latter part of the Bayh governorship was wage legislation that produced an out-raged labor move- marked by two issues that demonstrated his centrist path. ment. Some 25,000 workers gathered for one of the big- He was an early pioneer in welfare reform, coaxing out of gest Statehouse rallies ever. the Clinton administration 50 federal waivers. Both sides dug in. Mannweiler remembers appear- Gov. Bayh would claim to have helped transition ing on a WFYI-TV show taping as the session was ending 1,000 familes per month from welfare to work, saving $140 with House Minority Leader John Gregg. “He noticed that million. This was one of the hot issues that led to the 1994 Sen. (Robert) Garton and myself weren’t very animated Republican revolution in Congress that Bayh missed due about prevailing wage and he sensed something was up.” to fortunate election cycling. In fact, he was in front of the Gregg rushed back to the Statehouse where he learned issue before most in his party. Welfare caseloads had risen that Bayh wasn’t going to hold up the session with a pre- 34 percent between 1989 and 1994. vailing wage veto. He explained this facet of his fiscal conservatism That brought a great deal of grumbling from orga- to Margaret Warner on the eve of his 1996 Democratic nized labor about “carrying the water for Evan.” Brinegar Nationl Convention keynote: “I view balancing the budget said that Gov. Bayh had the attitude of, “They may be up- and fiscal responsibility as a necessary precondition to set, but where else are they going to go?” After it became social compassion and progress. The people who get hurt law, there were no studies available to verify that prevailing first in our country, the poor, the sick, the young, are those wage saved local governents anything. who depend upon the government. So if we go bankrupt as a state or a country, they’re the ones who get hurt first. The auto excise cut If we’re going to do more for education, more for health Throughout his two-year tenure as Republican care, more for the environ- Chairman, Al Hubbard constantly ment, we only can do that complained about how “Evan Bayh if we have the money. And is stealing our ideas.” that means balancing our The classic example of this budget and growing our came in 1994-95. Legislative Re- economy. So I think that publicans had been proposing an the priorities would be a auto license plate tax cut. At first, little bit different.” Gov. Bayh was not enthused. But “Many feared a as the economy heated up and social calamity after these the surpluses grew, Bayh became waivers,” notes University a convert. of Maryland Prof. Douglas “Borst had concerns,” Man- J. Besharov of the Ameri- nweiler recalled. “He didn’t think can Enterprise Institute. we could afford to do it; maybe “But in the years since, phase it in. But with so much although researchers have money coming in, Borst agreed strived mightily, they’ve and Gov. Bayh jumped out front found only small pockets and took credit for it. But it really of additional hardship. Even better, the earnings of most was a Republican plan. We sped it up.” Yet the indelible im- single mothers actually rose.” age that emerged was Bayh with the huge Indiana license Besharov, writing this week in the New York plate that read “Tax Cut” being sliced in half. Times, gives some of the credit to Bayh-style welfare reform, which he says accounts for a 25 to 35 percent re- duction in welfare caseloads, but also credits an improved Bookends on the ‘Education Governor’ economy. “Yes, welfare reform reduced welfare depen- Gov. Bayh called himself the “Education Governor” dency,” Besharov observes, “but not as much as suggested and he presided over a 7 percent increase in 1989, another by the political rhetoric, and a great deal of dependency is 7 percent in the 1991 biennial budget during the recession. now diffused and hidden within larger social welfare pro- Bayh would boast $3.1 billion in new monies for education grams.” during his two terms, and another $1.5 billion for higher The second was the prevailing wage showdown in education. He has received national attention for his 21st 1995. Republicans, swept back into control of the Indiana Century Scholars program that gave college scholarships to House during the 1994 tsunami, had been approached by some 34,000 lower income Hoosier students. local governments and contractors to help cut school and But the Bayh governorship was sandwiched in between two bolder initiatives - Gov. Robert Orr’s 1987 A- HOWEY Political Report Page 8 Weekly Briefing on Indiana Politics Thursday, Aug. 17, 2006

Plus program that raised taxes, and Gov. Frank O’Bannon’s establishment of the Education Roundtable and increased course and accountability standards. There were significant education initiatives on either side of Gov. Bayh that were far greater in reach and controversy.

A prudent governorship His crackdown on deadbeat parents for child sup- port, a 40 percent reduction of drunk driving, an expansion of in-home care for seniors, a 4 percent reduction of the state workforce (outside of corrections), and the elimina- tion or reduction of 650 fees all point to what could be termed prudent Bayh leadership. The Bayh governorship presided over the crack co- caine crisis that engulfed Fort Wayne in the late 1980s and then spread to Anderson, Muncie, Bloomington and India- napolis, which was recording 160 homicides a year in the mid-1990s. Bayh responded by adding 4,000 new prison beds. It was on the crime issue that produced one of the more memorable sequences and photos of his governor- ship. Gary had become Murder Capital USA again. On Oct. 3, 1995, Bayh paraded into the Steel City with 50 Indiana The Makings of a Fiscal Conservative State Troopers and 25 squad cars. “Our city has endured economic and social dislocation of immense proportions for Earlier this week, the New York Times recounted several decades. This support helps us to grapple with an how several sons - Jack Carter and Evan Bayh - were fol- important fallout of that dislocation--too many guns, too lowing their fathers’ footsteps into national prominence. much drug abuse and trafficking, too much violence,” said Here is an excerpt of Bayh’s experience as cam- Gary Mayor Thomas Barnes in the Post-Tribune. paign manager for his father’s unsuccessful 1980 re-elec- tion campaign against U.S. Rep. Dan Quayle: Achievements, disappointments Bayh was 24 when his father ran for re-election As for the disappointments, Moreau explains, “I in 1980; he took a break from law school to be chairman have a few. I think folks grossly underappreciated the of his campaign. It was clear, early on, that it would be a tough decisions Evan Bayh made every day to keep the tough election: double-digit inflation, a hostage crisis, an state budget in the black. I think (First Lady) Susan’s embattled Democratic president at the top of the ticket, incredible contributions were undervalued. Her literacy and the emergence of a tough new conservative organiza- efforts changed many, many lives. Certainly, there were tion known as the National Conservative Political Action some knuckleheads who snuck through the vetting pro- Committee, or Ncpac. Ncpac wanted not only to defeat cess and screwed up royally, but I do believe history must a generation of liberals — Mr. Bayh, Mr. Culver, Senator record that Evan Bayh led a scandal-free administration. George McGovern of South Dakota, Senator Frank Church I don’t think folks appreciated the way EB broke the back of Idaho and a handful of others — but also to “send a of the 2 percent clearance card system and mentality. On shiver down the spine of every other liberal senator and the political front, Joe Hogsett’s defeats were so painful, as congressman,” as one official put it. They succeeded at was Stan Jones’ and the 1994 landslide that buried Katie both. (Humprheys), Tim (Jeffers), Elmo (Gonzalez) and Allison Afterward, “I came close to being turned off to (Wharry) and cost us the House. Awful.” politics,” Evan Bayh said. “I love my father and I believe in Former Indiana Republican Chairman Rex Early him. And he lost to Dan Quayle. I had a hard time under- recalls Bayh as somewhat of a micromanager. “He knew standing how that could happen.” But Mr. Bayh said he ul- what was going on in each of his departments. He did a timately came to see the loss as “an occupational hazard.” fairly decent job,” said Early, who served with Secretary He added: “Every once in a while, an election comes along of State Bayh on the 1986 legislative and congressional and who you are and what you believe gets subsumed in recounts in Elkhart and St. Joseph counties. Early said Bayh a larger tide. It just happens.” People wanted change in was ever conscience of the polls, including the era when 1980, he said. “And I think people want a change now,” he added. v HOWEY Political Report Page 9 Weekly Briefing on Indiana Politics Thursday, Aug. 17, 2006 Toyota wanted to locate a plant at Princeton. It took Bayh safe to argue that Gov. Daniels has exposed more politi- some time to sign on, Early said, particularly after Bayh cal capital in 18 months than Gov. Bayh did in eight years. had criticized his 1988 opponent, Lt. Gov. John Mutz, over Bayh advanced to the U.S. Senate with much of his guber- the Japanese Suburup-Isuzu plant at Lafayette. natorial capital. A classic example of this contrast came in 2005 when Daniels went to his suburban conservative base A ‘caretaker governor’ and sold a tax increase for an NFL stadium to be located In 1997, HPR’s analyzed the departing Gov. Bayh: in downtown Indianapolis that will benefit a Democratic Many observers have been quick to consign the term mayor and City-County Council. That wouldn’t have hap- “caretaker” to Bayh’s two terms pened during the Bayh-O’Bannon era. A big constrast in office. The political advantages between Bayh and Daniels is that that come with that reputation there is little bitterness expressed have propelled Bayh into the by Republicans towards Bayh as national consciousness as a true he prepares his presidential cam- “New Democrat” at a time when paign. President Clinton strayed both Moreau counters, say- right and left in the spectrum. ing, “OK, it may not have been The term “caretaker” can ‘Camelot on the White River,’ be seen as negative. But Bayh but the eight years of the Bayh/ was a cautious governor who O’Bannon administration were worked the fringes and margins among the best in Indiana’s histo- of what state government can do. ry by any objective measurement The fact that he did not offer the of job creation, fiscal stewardship, bold steps of Doc Bowen on an environmental protection, support issue like property tax reform or for education and diversity of folks Gov. Bob Orr’s “A-Plus” education called to public service. Those reforms allowed the caretaker tag of us who were lucky enough to to persist. serve are all still very proud of What you have to remem- that service and remain very close to today.” ber is that Indiana’s governorship The HPR website - www.howeypolitics.com - now The difference is that like is constitutionally weak. The gov- features the Bayh Resource Center with articles most Indiana governors, their ten- ernor’s veto can be overridden by and columns about Evan Bayh dating back to 1984, ure at the Statehouse is their final a simple majority and it was such covering his career as Indiana secretary of state, political chapter. For Evan Bayh, a meaneuver that opened Indiana governor, U.S. Senator and an emerging presidential it was the second act in what lakes and rivers to casinos in 1993. candidate. Today’s special report will be added to was widely perceived as a career Bayh came to the governor’s office this resource center. with an Indiana House split 50/50 that would take aim at the White and had few working relationships House. with Republican and Democratic leadership. It wasn’t until “This is the guy who knew where he wanted to the sixth year of his tenure, for instance, that Bayh and go,” the Chamber’s Kevin Brinegar. reflected this past week. Senate President Pro Tem Robert Garton were able to settle “That was widely established pretty early and he worked into a productive working relationship that helped produce well within the boundaries of that. He worked politically as the state’s largest tax cut in history last year. governor to get to where he wanted to be.” The storminess of his relationships with the legis- The overall notion when it comes to Evan Bayh lature were not confined to Republicans. Many Democrats is that his years as governor had been good for Indiana. chafed under his elusive stewardship and the number of There were flashes of greatness and drama, as well as an unfunded programs and declining services that would have overall steadiness, along with some missed opportunities fed their political constituencies. that would have been politically perilous. He certainly pro- While Indiana has a $1.6 billion surplus, it also jected a true two-party dynamic into the state once domi- has a decrepit road system and unbuilt highway arteries nated by Republicans. from Indianapolis to Evansville and from Lafayette to Fort Perhaps, given his presidential aspirations, he is Wayne. better suited as a U.S. senator than a governor. As gover- nor, his political ambitions fettered him to policy standards The Daniels contrast that had to be kept in check. v The advent of the administration of Gov. Mitch Daniels draws a sharp contrast to that of Gov. Bayh. It is HOWEY Political Report Page 10 Weekly Briefing on Indiana Politics Thursday, Aug. 17, 2006 Well-paid reporters aren’t the only ones to wonder Where’s the buzz? if and when a Bayh campaign will be able to create that 100 days until Bayh’s big announcement spark, a buzz, some sort of sizzle that will positively sear his name in the voter consciousness. Naysayers at either By MARK CURRY fringe eagerly cite lack of such as evidence when proclaim- For the past year or so Evan Bayh has bounced ing Bayh’s centrist brand will fail. Even some friends are non-stop around the country like a senatorial version of the worried - just two weeks ago this writer sat down with an Energizer Bunny. outright Bayh fanatic at an ice cream shop south of Indy He’s visited 24 states at least once and some, like who asked much the same question. New Hampshire, several times. Earlier this week Indiana’s But these things must be handled delicately. It’s former governor made his fifth appearance in Iowa for all a matter of timing: The next Iowa presidential caucuses 2006, this time to tout his renewable energy plan among are 15 months out. Peak too soon in today’s broadband state fair goers, attend a series of fundraisers and appear world and you’re a has-been by the end of the week. at a “Wake Up Wal-Mart” press conference in Cedar Rapids. Too late and you’re a never-was. Bayh’s competitors are Afterward he was slated to begin a much over- a smart bunch with a variety of assets. Hillary is popular, due two-week vacation with Susan and the twins. He will Edwards portrays charm, John Kerry has name recogni- need the time to rest and recharge: tion, even Warner emits a neophyte Only about 100 days remain before appeal. Bayh faces the seemingly Thanksgiving when the senator is indomitable task of piercing through expected to announce he will indeed the media clutter inspired by current make a run for the White House in events and the rest of the field. His 2008. campaign must effectively deliver an So far Bayh and his support- incisive message to convince a good ers have spent millions of dollars and number of persuadable moderates dedicated thousands of hours to de- that this Hoosier is the real deal. velop a presidential-grade campaign Supporters may find comfort in organization. As previously noted on the innovative organizational plan these pages, several respected ana- implemented last week with Bayh’s lysts have been impressed with the send-off of 50 paid and trained staff- ers to the key states of Iowa, New resulting infrastructure. But some, This photo adorns Evan Bayh’s page on Hampshire, , South Carolina like Chuck Todd of National Jour- myspace.com, where the senator writes that he and Indiana. And, the senator has nal, hedge their praise with ques- would like to meet “People who think we ought demonstrated he knows how to stay tions about the Bayh persona. “Bayh to be investing more in The United States, it’s on message. He repeatedly touts has to find a base-rousing issue that people and education system. HOPE in the the substance of a successful public he can call his own,” Todd wrote in future of our country!” an article ranking the 2008 Demo- career - a former red-state governor, cratic contenders. Bayh was listed as author of a viable energy proposal, fourth, behind Hillary Clinton, John smart and tough on security, pos- Edwards and Mark Warner. “Maybe it’ll come from his sesses labor and education credentials, and so on. Any one union friends, or show up as a radical (but practical) health or combination of events, aided by dumb luck or abetted insurance proposal. Will it be enough to differentiate him by extensive foresight and hard work, could create the from the top three?” right setting for Bayh’s grand entrance into - or exit from Chris Cillizza of the Washington Post political blog, - the country’s political psyche. The Fix, is among Bayh’s most influential supporters in Evan Bayh was born to politics. He has a sig- the media. He repeatedly ranks the senator among the five nificant record as governor and senator. He demonstrates Democrats most likely to win the party’s presidential nomi- a winning work ethic. He’s assembled a staff considered by nation. In a recent article the pundit noted the value of the many to be among the best. He’s in the top tier in fund- senator’s organizational strength in Iowa, but concluded raising. He has a following, and it’s growing. Everything is with this paragraph: “Bayh’s biggest hurdle is his perceived in place for a hard charge at the tape, but sooner or later charisma deficit. In his speech yesterday Bayh was compe- Bayh must seize our attention, if only for a moment to tent and engaging but not inspiring or overwhelming. His demonstrate he possesses the ability to inspire and moti- advisers say - and we agree - that he has made progress vate and lead the nation through the good and bad that lay in his speaking and stump skills, but much work remains to ahead. If he doesn’t another candidate certainly will and be done. The question is whether Bayh’s low-key charisma Bayh’s moment will be gone, possibly forever. v will hurt his ability to generate a spark in Iowa.” HOWEY Political Report Page 11 Weekly Briefing on Indiana Politics Thursday, Aug. 17, 2006 Merritt leaving pro tem Virginia Dill McCarty and former Con- George Kehl said in a statement. “We gressman Andy Jacobs. The Saturday were having problems gaining ac- race, says Parker dinner will feature 9th CD challenger cess online for a while ... the most INDIANAPOLIS - Indiana Baron Hill and 8th CD challenger Brad problems we had was when officers Democratic Chair Dan Parker issued Ellsworth. were trying to access the system on this statement on State Sen. Jim their in-car terminals,” said Sgt. Tim Merritt’s withdrawal from the President Emmons, public information officer Pro Tempore race: “It’s nice to see AG Carter targets for the Porter County Sheriff’s Depart- that after 16 more union funds ment. “It’s still not totally corrected, years, Jim HOBART - Attorney General but apparently the service is a lot bet- Merritt has Steve Carter and the Indiana/Ken- ter than it had been for a while.” Lake decided to tucky Regional Carpenter’s Union are County deputies have not experienced stop focus- seeking to recover nearly $150,000 in any problems with the new system, a ing on what’s training grant funds taken by a former sheriff’s spokesman said Wednesday. next for officer of the Carpenter’s Union Local Jim Merritt 1005 based in Hobart, Indiana. The and start Attorney General and the Union have Donnelly talking focusing his jointly filed a lawsuit in United States oil in Porter County attention on the district and the voters District Court for the Southern Dis- CHESTERTON - Joe Donnelly, he represents. The Senate leadership trict of Indiana against Paul Hernan- the Democratic candidate running struggle has turned into a circus as dez who had been entrusted with a against Republican incumbent Chris almost every Republican tries to fight $203,000 training grant (HPR). “The Chocola for the 2nd District seat, for more power. It’s obviously time we union is to be commended for its ef- addressed a group of more than 25 elect a Democrat to District 31 who forts in seeking ways to assist in the people at a meeting of the Democratic wants to serve the people and carry recovery of state grant funds,” Attor- Alliance (Post-Tribune). Donnelly’s their ideas to the Statehouse.” ney General Steve Carter said. “The message was one of taking back the state and the union were both victims House for people, not conglomer- IDEA to honor of this scheme to divert funds for per- ates, targeting drug companies and Jacobs, McCarty sonal use and we have recognized the oil companies specifically. “The value in working together to recover future of our country is on the line. ELIZABETH, Ind. - The annual losses.” Our country shouldn’t be controlled Indiana Democratic Editorial Associa- by the lobbyists who give out steak tion Convention will take place this dinners,” he said. Policy in the Middle weekend at Caesars Indiana Casino Cops lend support East is driven by oil, he said, and the Resort. The event brings together to troubled BMV United States is funding both sides Democratic elected officials, activists INDIANAPOLIS - A pair of of the conflict through oil. He favors and supporters from across Indiana. high-profile law enforcement groups alternative energy sources, such as The convention traditionally has been came to the aid of embattled state Bu- ethanol and bio-diesel fuel, instead held in French Lick, but the hotel there reau of Motor Vehicles Commissioner of giving tax breaks to oil companies is closed for renovations this year. Joel Silverman on Wednesday (Times making record profits. “I’d rather be “We’re excited that we were able to of Northwest Indiana). After meet- putting that money into the pockets keep the event in Southern Indiana, ing with Silverman last week, the of Middlewestern farmers than Middle and we’re looking forward to a suc- Indiana Association of Chiefs of Police Eastern shieks.” cessful weekend in Elizabeth,” said and the Indiana Sheriff’s Association Indiana Democratic Party Chair Dan say they are confident that the BMV is Parker. “This is something Indiana fixing computer glitches that, in some Daniels to announce Democrats look forward to all year. cases, made it difficult for officers to more jobs next Monday It’s a time for us to get together and access electronic driving records. “As RICHMOND - A major eco- pool our energy and ideas as we come a result of this meeting the IACP and nomic development announcement for down the home stretch to November.” the ISA are pleased to inform the law Wayne County is expected Monday. The event, which is sponsored by the enforcement community of significant Gov. Mitch Daniels will be at the In- UAW, begins Friday morning with a progress made to resolve communica- diana Gateway Industrial Park for the golf tournament, which is followed by tion and interface issues” that arose public announcement. a reception and hospitality suites. Gov. after the BMV installed a new comput- Frank O’Bannon Public Service Awards er system in early July, IACP President Breakfast Saturday will honor the late