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Tuesday,May 20, 1997 • Volume 3, Number 30 Page 1of8

1• • Id 'Bayhsm1th Truce' 1&:1•.•:U..... THE :=w-=--· comes to an end O'Bannon,Goldsmith sparring may be natural INDIANAPOLIS - From 1992 through 1996, there was a curi­ HOWEYT ous truce between Indiana's most dominating politicians in its biggest media market. It was the "Bayhsmith Truce?' From the time that Republican Stephen Goldsmith ascended POLITICAL to the mayor's office in Indianapolis, it meant that there were two big hats in a town where Democrat Gov. Evan Bayh had established him­ self as a true power. During those four years there was never a criticism launched REPORT between Goldsmith and Bayh. They seemed so much alike: both young, handsome and highly-ambitious men. Both had visions of the The Weekly Briefing On Indiana Politics White House tucked somewhere in the backs of their minds. Both were adroit at raising millions of dollars - much of it from vendors The Howey Political Report is published 40 times a year by who did business with the city and state. Both tended to eschew the NewsLink, Inc. Founded in 1994, The Howey Political Report is traditional building blocks of politics and centered their political an independent, non-partisan newsletter analyzing the political campaigns on mega-TV advertising budgets - the so-called "air war." process in Indiana.It neither endorses candidates nor advocates positions of public policy. So comparable in their styles and even their ideology that Harrison Ullmann of NUVO Newsweekly combined the two and they became Brian A. Howey the "Bayhsmiths." editor and publisher The reason the truce worked was that Bayh and Goldsmith The Howey Political Report Office: 317-926-1433 were on different timetables. Goldsmith envisioned his succession of 2625 N.Meridian St., Suite 1125 Fax: 317-254-2405 Bayh as governor.Bayh would move on to the U.S. Senate in 1998 Indianapolis,IN 46208 [email protected] with a shot at the national ticket in 2000 or 2004. Goldsmith had his Daytime number: 317-254-2400,Ext 273 sights set on the Senate in 2000 or 2006, or, perhaps, the presidency NewsLink Home Page: http://www.inoffice.com/hpr in2004. The Bayhsmith truce was a subterranean story in Subscription information: $250 annually for 40 Indianapolis. Those outside the Bayh and Goldsmith circles in their editions via fax or first class mail Call 317-926-1433. respective parties always found the arrangement odd. Some Demo­ © 1997, The Howey Political Report. All rights reserved. crats felt that Bayh could have helped whittle down Goldsmith's Photocopying, faxing or reproducing in any form, in whol~ or in stature well before the 1996 election. part, is a violation offederal law and is ~prohibited without consent of the publisher. The truce between the mayor of Indianapolis and the gover- continued on page 2 ((QUOTE" OF THE WEEK INSIDE F E A T U R E S

''They're mad, they got out-foxed and they don't • Play of the Week: O'Bannon's shrewd move page 2 like it. .."' • Horse Race: Gauging the legislature, brains page 3 • HPR Interview: Remarks by Dr. Frank Luntz pages 4-5 -Speaker John Gregg, to the Associated Press, • Columnists: Wieland, Howey, Schneider page 6 n the amendment controversy over workmen's • Perhaps We Wander: Mike Bailey revisited page 7 compensation that n1ptured the special seul n. Page 2 of 8 Tueday, May 20, 1997 •

been a vc la tile one in nodern Inc iana politics. TICIG:::R Mayor Riclhard Lugar :s1:iarred wi1ci1 Gov. Otis nor of Indiana has Jeen broken. Bayh is a ]p'ri­ Bowen oYer the Unigcrv l'!gislation1, to the point T A P E vate citizen. GoldsmiL1 is th:: stung loser a.s where Lugar public1zecl llowen's phone number • I""''ll""'I' Tl I - II_ Bayh's successor last year and is already trying in an attempt to turn 1.l it: masses into a huge ~- to position himsdf for a thilrd try at sta.ewide lobbying 1effort But 1.l"1a t was the only significant PLAY 1Qf THE WEEK: Go1f. !Frank office in 2000. That puts him on a collisiou bump in their relatio11 ! hip. O'Barnnon.ln what is trnl!y the course with Gov. O':Bannon and, thus, the Mayor William Hudnut always main­ shrewdest and potenti :illy dis­ dynamic has significantly changed on both ends tained congenial relaiior:iships with Govs.Bowen astrous move of his yo rn r g of Market Street. and Robert Orr. In thr.! 1;11st 20 years, Hoosiers administration, O'Bam· 11rn calls In April, Goldsmith lobbed the lfirst shot were used to seeing 1 ~hf'll governor and the in !the legislative speci.11~ sec­ when he accused the O'lBannon administrntion mayor exulting over 1~c:momic victories like lur­ tion without a deal! E~· ·1 r 1 of wasting money with ithe Jlep Inc. welfart' pro­ ing the Colts to the dlor1· ·or the United Ailrlines Thursday evening it lo~1l~ed gram. O'Bannon rietalliated afoer the regular ses­ maintenance facility 10 tne airport. like a collossal mistake 1,11ith a sion of the Indiana General As:;embly ended by The Bayh-Goldrnn1ith dynamic was the legislat111re adrift and l.J~(ker­ vetoing the Marion County innkeeper !.ax 1hat first in modern times r,,rhere the t~No most con­ ing.By late Thursdai1,a b1Jdget Goldsmith sought for expansion of the RCA spicuous offices in a rni:, lia market that reaches acceptable to O'Bannc'~~ ·was Dome and the Indiana Conven1tion Center. The 45 percent of the state 1•11~re split between the produced.And now he ~ l'ts to returned volley seems to have caught Golld>mith two parti1es.So the ironr is that t11e Bayhsmith watch Indiana Hous 1e ~l'E'llUbli­ off-guard Truce lasted so long

Political fallout from HQ RSE R A ( E TICKER legislature undetectible T A P E . TRENDLINE: If a legislative body committed to making outrageous fools of itself states something, but nobody else around the state is paying any attention, was there actually Press,°! think a number of a sound? Republicans around the state have gone home in disgust." • The l lOth Indiana General Assembly:••• This is a political report, not a gauge of intelligence, so Horse Race can't jump to any instantaneous conclusions about the fallout from Indianapolis Mayor Stephen the three-ring circus on Market Street.We do know this,however:.House Republicans and Goldsmith met with Gov.Frank Democrats deserve each other.. O'Bannon late last Thursday And after reading press coverage around the state, one thought comes to mind: night to discuss the impasse Hoosiers and those who report the news to them are readily willing to believe the worst when involving a new Pacers arena it comes to the Indiana General Assembly. and the Indiana Convention · Think about it. This session has included months of little action, the slap on the Center renovation. The South wrists from the House Ethics Committee of State Rep. Charlie Brown,totally weak (and uncon­ Bend Tribune's Susan Dillman stitutional) campaign finance reform, the indictment of former Ways and Means Chairman reported, "Goldsmith, on Sam Turpin, an overtime period to get the budget done, and then the Democratic "double­ emerging from a near-mid­ cross" (or "out-foxing; according to Speaker John Gregg) on workmen's compensation. There night meeting with O'Bannon, is nothing there to inspire any real confidence. cautioned that if the The workmen's compensation fiasco that blew the lid off last week's special session Indianapolis measures fail, the was another example of payback time. Democrats insist it was only fair since Republicans whole state loses money." sprang prevailing wage reforms on them in 1995. Dillman added that the "dash The problem with this kind of logic is that should the Republicans regain control of pits not only Democrats v. the House in 1998, there almost assuredly will be another stunt pulled that will have Republicans, but the House of Democrats outraged and forlorn. Representatives vs. the state The bottom line to all of this is we don't see any clear political advantage emerging Senate; labor unions vs. man­ from this session.Perhaps one will if, say, one entire caucus is transported to the Statehouse in agement; out-state legislators limousines. Then the other caucus can cry, "Limos for Influence?' vs. Indianapolis legislators, It isn't as messy sounding as the Republican rallying cry of 1994 against welfare and those who like ... Gold­ mothers ~ "Limos for diapers" - but it smells about the same. smith and those who don't" ••• Doug Sword of the Evansville Courier reported that"Gov. • Republican U.S. Senate: All three "Republican Candidates: The Next Generation" Frank O'Bannon's plan to were out in seeking support from the National Republican Senatorial Committee. spend $945 million on new The committee is not in the business of telling people they can't run, so don't look for a win­ roads in Indiana is far more nowed field stemming from those visits. ambitious in the northern half HPR did learn that 4th CD county chairs and their vices voted unanimously - 16-0 - of the state than the state's not to endorse Fort Wayne Mayor Paul Helmke last week. That's one more perception problem southern quarter."He noted for Helmke. The old rule of thumb goes, if those who know you best don't get on board, you're an "important distinction"is not going anywhere. that northern Indiana projects Now, Horse Race has certainly been wrong before (we had the field clearing when are more likely to be slated Secretary of State Sue Anne Gilroy left the field), but we clearly think that at least two of these during the first two years of candidates "Gartonized": i.e., they won't be able to raise much money to continue. That's what the four-year plan. The second happened to State Sen.Robert Garton in the 1996 gubernatorial race.And he was smart two years have only $4 million enough to get out of the race before making a total fool of himself. allocated."While 72 percent of the dollars needed for north- continued on page 5 Page 4 of 8 Tuesday, May 20, 1997

RepubHcan p 10Uster Frank Lun1tz e

1 p 1ops sc~me 1:;D1QP bubbles at ~rf uds~:ln INDIANAPOLIS - Frank Luntz was the Negative attitudes and the GOP man - the pollster - behind Lhe wildly succ :ssful "These negath"c attitudes actually Contract With America in 1994 that helped brought forth the Republican majority. If peo­ deliver the first Republican Congress in 40 ple hadn't been so angry and so despondent HP::',R years. about their present arnl 1heir future, the It was a wat,ershed event in Indiana,. with Republicans would no! have had a majority. We INTERV~IEW the GOP picking llllP' three cc1ngressionall seats would have had very dli fferent committee chair­ :J:- based on the vision of . men and a very differe ·11: Speaker of the House:' Appearing in Indianapolis last Monday to unveil his State of the .American Dream with People are fee~ing better the Hudson Institute, Luntz popped sevewl "Here we are :in .l 997 with a RepubHcan bubbles of the notfons of the Republican right. "One of the n'~E!a­ Congress and a Demnc1-.·,tic president and No, he said, there WillS no revolution in 199'•1. sons AmerkciJru·1s are actua 1 y f ~eling bett,er about Democrats just stayed horn(· a~ Republicans h:id their government:' are feeling~,,_ Drre done in 1974.And he warned Republicans Lo fay off President Clinton, for it is he who has positive is Clinton feels your paini because BiH America "feeling good abouit itself again." Here are some exce'll' ted comments "This may bo tlm a lot of Republicans in CHnton is ma[·dng from America's preeminent pollster, Fralic the audience, but one o 1: the reasons Americans th m feel mc1 rie Luntz discussing "The Amerkan Dream": are feeling more posi:ti re is because positive. Let's is making them feel rrwr1e positiv,e. He made a There is no Canadicm Dream strategic decision in mid-1995 that instead of • face ot: He's a talking about how bad l~h ings were to take the "We are the only cou:ntry with tlhis. g1·eat commui r1 other side. Start talki11g .: bout how good things i­ There is no Canadian Dream. There is no llalian were.And let's face it· h ~':.a great communica­ cator. An awe.. Dream. There is no Russian JDream. In fact, the tor.An awiesome comm1rnicator.He feds your some commui 1·1 i­ Russian Dream and the Chines'e Dream is 10 pain.And he feels that !':;u.y's pain:' caitor. He feeh!. come to America and then to live the American Dream. It is the idea that your parents will iave your pain .... " it better than your grandpam1ts and you have it Subterranean 1equivociation p Frank Lunt;i~ better than them and your kids are suppos,ed to "Rcemember abcut four years ago on have it better than you:' MTV when he stood before those young people and a young woman wr o was maybe 17 aslked The most depressing resear,ch him, "Mr. President, bl"ie fa or boxers?" And do you remember what his actual response was to "We believe :illS Amerkans not oruy that question? "Usually boxers:' On underwear should we have it each generation doing better, the guy equivocates.Yoll compare that to Bob that it's a right and not just a privilegl!. Our kids Dole. Here is Bill Clintm11 llalki.ng about an angry will have it better th an we. When we first did government is a big gm1,; mment. JB

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.. PERHAPS... wE WANDER By Brian Howey Michael Bailey vows to win; running his shocking TV ads.Nothing hap­ T A p E pened. "To be honest, I fully expected a barrage he'll certainly create a stir of calls and media interviews the second they GEORGETOWN - The politician is a received that release.A week went by with total of that," Stilwell told the handsome young man. He has a beautiful silence ... not one call." Courier. blonde wife. His kids are cute as buttons. It was Louisville Courier Journal But I'm not talking about Evan Bayh. reporter David Goetz who broke the story and U.S.Rep.Dan Burton told CNN I'm talking about Michael Bailey. set off a firestorm of protest, with several that he expects 0 an accomoda­ "Oh, thaaaat guy!" is a common Indianapolis and Louisville TV stations refus­ tion" to be reached with the response from the mainstreamers on the ing to run the ad. In the Federal Communica­ White House that would head Indiana political spectrum. Michael Bailey is tions Law Journal article, Bailey recounted off the need for a contempt back and he told HPR, "We intend to win the how he was denied "reasonable access" that dtation.°We think we've primary and the general election?' supposedly guaranteed free speech. "For the reached somewhat of an acco­ Bailey ran one of the most conspicuous government to muzzle my voice is both uncon­ modation," Burton told the Fox campaigns in modern Indiana history. He stitutional and un-American;'Bailey declared, News Sunday TV show.Burton upset Charlie Loos, a man who had the "but that is exactly what is happening right and his House Oversight endorsement of every 9th CD county chairman now. Certain media elites in Louisville and Committee have been seeking back in 1992. Then Bailey unveiled what his Indianapolis have decided that the reasonable documents relating to John campaign called "the most shocking pro-life access law protecting federal candidates is no Huang,James Riady and television commercials ever." Included were longer serving their best interests and, there­ Webster Hubbell.0 lt appears as photos of aborted fetuses "taken from a dump­ fore, they have arrogantly defied the law?' though the threat of a con­ • ster behind an abortion clinic?' Another book excerpt from Bailey tempt dtation has shaken loose Bailey is back because he is one of three points out, "Our campaign strategy, unfortu­ some documents that other­ Republicans seeking the 9th CD nomination nately, never included the help of the wise might not have been for the seat being vacated by U.S. Rep. Lee Republican Party. County chairmen for the given to us," Burton told Fox Hamilton. He is gearing up for a campaign that Bailey for Life for Congress team came from News. will have to be taken seriously because he runs the churches and county pro-life organizations. in such an unconventional style that has Little effort was made on our part to either CNN also reported that the worked before. His campaign is already putting exclude or include local Republicans. There is National Democratic out a 302-page paperback book titled "Chris­ no doubt in my mind that we should have done Committee's finandal woes are tian Politics Rocking America?' a better job of building bridges with these local mounting because donors are It is also dispersing a Federal Commun­ county Republican organizations." reluctant to contribute in the ication Law Journal article by Bailey titled That is vividly portrayed by Bailey in face of the many investiga­ "Censorship By Media Elites Will Ultimately the GOP prism of then Indiana Chairman Rex tions. That will make it more Threaten The Republic?' Early. "Mike Bailey is just the kind of candidate difficult for the DNC to raise And there is a one-sheet"wish list"for who can beat Lee Hamilton;'Early said in a money for the 1998 mid-term the Bailey for Life for Congress '98 committee. July 20, 1992, press release. "Bailey had a sur­ elections. "If you can provide any of (these) things on prising and explosive primary victory which reported that the DNC is work­ our wish list, we would be grateful!" the list will only be outdone by his victory over Lee ing to restructure $14.4 million declares. On it are "the newest, fastest comput­ Hamilton in the fall." in debt er we can get;' a good new or used copy By Aug. 7, 1992, after Bailey had run a machine, "the use of a van or car for campaign second flight of ads, Early wrote him, "I ABC News is also reporting that use only" as well as "volunteers to help pass out received a tape of your new ads, and I do have a a Whitewater prosecutor told an appeals court in Stlouis 500,000 flyers before election?' concern. Even though your intent was not to In his book, Bailey recounts the April 6, that First Lady Hillary Rodham offend the Jewish Community, I have real con­ • 1992, press release announcing the intent of ainton could be indicted. The cerns that comparing the holocaust to abortion continued on page 8 Page 8 of 8 Tuesday, May 20, 199'7 ing the race in contrnv~:rsy. How Kellems and Perhaps, &om ]p8ge / Leising respond to B11H1~y will in large part • will do exactly that:' determine who becomf:s the perceived "front In retrospect, Bailey wrote in his book, runner:' "Th•e lack of officiall suppor1 and effort from the There is a see na r o that if neither Leising :i- party never really bothered me. I knew many in nor Kellems rises to tb1: Dccasion,BaHey could remark was attributed! !:11> the party were fai1thful 1to us:' win. It's already happeir ed in the iteeth of orga­ Deputy Independent Cmmcil So, as things stand now, an incr1~dible nized efforts to put thC' clamps on him. The real­ John Bates. 1998 primary is shaping up be :'Neen Baile:, for­ ity of the situation is tJ-,a it 9th CD Republican mer Lugar aide Kevin Shaw Kellems, and former chairmen have little dcu t. That was evident in HPR CORRECTIONS: In the Milly State Sen. Jean Leising. HPR and Washington the 1992 Bailey upse11 o• ·r Loos a1nd the 1996 9 fax version of HPR, simme analyst Stuart Rothrenberg are handicappnLg th1e gubernatorial primary 11!here Early received far subscribers read that fn1t race in similar fashion. "Wh:Ue some argue a more endorsements i·h:m Stephen Goldsmith. Wayne Mayor Paul He[11111

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