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2008 The olitP icians Still Don’t Get It: The orC ruption of Public Education Jeff Abbott Indiana University - Purdue University Fort Wayne, [email protected]

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Opus Citation Jeff Abbott (2008). Theo P liticians Still Don’t Get It: The orC ruption of Public Education. Indiana Policy Review Journal.19 (4), 7-9. Ft. Wayne, IN: Indiana Policy Review Foundation. http://opus.ipfw.edu/profstudies_facpubs/37

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THE NEW FACE OF CORRUPTION . The author traces our vulnerability to a subtle, new form of corruption to the progressivism . STALEY movement in the early 20th century. It was then that an expanded role for government . PAGE 3 began to be seen as the way to broaden the scope of direct democracy and thereby address . perceptions of inequality. “Unfortunately, progressives often failed to recognize how much . of an expanded government would fall beneath the radar screen of the general public,” he . wrote, “greatly weakening the theoretical accountability provided by direct democracy.” . And even as the progressives continue to rationalize infi nite government expansion, we are . warned there will come a point where the mere size of the state overwhelms the limited . number of vigilant souls needed to keep it in check. Indeed, we are there. . . A SUPERINTENDENT FINDS POLITICIANS BLIND TO SCHOOL REFORM . . The author, a professor of education and former Indiana school superintendent, compares . ABBOTT the positions of the two presidential candidates. He fi nds little to give education reformers . PAGE 7 hope that tax money raised for classroom teaching will be freed from the counterproductive . demands of an irrelevant bureaucracy. And he fears that students will continue to pay the price . until Hoosiers understand they cannot spend and regulate our schools into excellence. . . A LAWMAN TRIES TO SEPARATE THE BAD FROM THE GOOD . . Updating the advice he got as a young deputy, the author warns that it is no longer SQUADRITO just “money, women and booze” that corrupt public offi cials. More often, it is partisan . PAGE 10 political power. “Political alliances interfere, obstruct or obscure the mission of government . in totality,” he writes. Even so, he believes there still are honest, serious men and women . in law enforcement working to clean out the cobwebs of government. The question is . whether there are enough of them. . . A NEWSMAN REMEMBERS THE LESSON OF ‘PENDERGAST’S REVENGE’ . . More than 40 years in journalism, including research into machine politics, taught the LADWIG author that corruption rides in on horses named “Best Intentions,” “Inarguable Good” . PAGE 17 and “The Right Man for the Job.” He warns that the real cost is lost liberty and that direct . democracy in itself is no protection. . A PUBLIC-PRIVATE PARTNERSHIP GONE BAD . . Two Indiana businessmen explain a vision for building the Northeast Indiana Public Safety ESHELMAN Academy into a world-class model and how sudden political winds threw it off course. The . RUFFOLO authors dig deep into their experience to identify the steps needed to keep such a project . PAGE 22 focused on a community-wide goal. Their recommendations are two-fold: 1) Public safety . must transcend politics; and 2) a business-like approach rather than a politically driven bureaucratic one is essential. “Overnight, an innovative idea representing six years of work . by talented public and private experts was reduced to a shell,” said one, adding that “local . governments for all their talk of creating jobs and furthering economic development, can . only prosper in wholehearted cooperation with the private sector.” . THE THURSDAY LUNCH

. The average Hoosier will be . The New (Old) Corruption is a sad fact that there are but a handful made to pay not only in the of Indiana politicians with Sumner’s . he economically minded among economy-wide distress of understanding of the true cost of the . us, understanding how the Chris oppressive taxation but in T grandiose programs emanating from the . Dodds and the Barney Franks debased lost opportunity and choice. Statehouse and, lately, our city halls. . our fi nancial system, make the argument The average Hoosier may prosper . that a state of corruption exists whenever or may struggle. One thing is certain, . a government grows too large to be however, he will be loudly portrayed by the . monitored by democratic processes. politically ambitious as a helpless victim. . A wise observation, but the corruption And then — here comes the switcheroo . that worried the lunch table was of a . different sort the week of the Wall Street — he will quietly be made to pay for his . “bailout” debate. own salvation not only in the economy- . Economic corruption means only the wide distress of oppressive taxation but, . loss of money; Hoosiers can earn more again, in lost opportunity and choice. . money. What they cannot replace are the Nationally, this will play out with . ideals, principles and words on which their depressing clarity in government’s . state was founded. assumption of banking functions, new . The root, corruptio, contains the schemes for socialized health care and . warning — something more complicated more cooking of the Social Security . than mere stealing, books. (Environmental purity and energy perfection being mass hysterics in a The Forgotten Man. a bad thing being . switched for a good category of their own.) “As soon as (A) observes something which . thing. Yes, a Journal of Liberal Opinion seems to him to be wrong, from which (X) is . Examples are suffering, (A) talks it over with (B), and (A) To make such corruption possible, it is . included throughout and (B) then propose to get a law passed to necessary to confuse the very words we use . this journal. One of the remedy the evil and help (X). Their law always to describe our freedom or, as the case may . most costly for Hoosiers proposes to determine what .(C) shall do for be, our slavery — “affordable” housing, (X), or in the better case, what. (A), (B) and is described by our “average” homeowner, community (C) shall do for (X) . . . . What. I want to do Dr. Jeff Abbott. It is “organizer,” tax “reform,” a mother’s is to look up (C). I want to .show you what the switch that allows “choice,” economic “development,” manner of man he is. I call him. the Forgotten education dollars budget “cuts,” funding “mechanisms,” Man. Perhaps the appellation. is not strictly ($11,000 a year per American “citizen.” correct. He is the man who never. is thought student) to be assigned The most ironic example is Sumner’s of. . . . He works, he votes, generally. he prays to all manner of social term itself. Within a generation, the — but he always pays . . .” . fantasies other than “Forgotten Man” had been twisted to justify . classroom teaching, the New Deal’s massive shift of power to — William Graham Sumner, Yale University 1883 (the title quote for The Forgotten. Man: A New History including simply hiring the government. of the Great Depression. by Amity Shlaes). one’s union friends. Today we are at the point where . Even so, a far greater government functionaries sitting at desks . corruption will be on display in coming — or worse, on Capitol Hill — are thought . weeks. It is the substitution of politically to know more about progress than do free . defi ned factions for the historic primacy citizens spending, saving and investing . of the individual. their own money. All of which is why this publication . National and now state government, . insists on the archaic but historically Republican or Democrat, routinely sacrifi ce . accurate description, “a journal of classical individual opportunity for group results, . liberal opinion.” It is a reminder to its . inventing a “right,” an “equality or even editors that ego or convenience cannot . a “reform” in the process. overcome the truth in words. . The Forgotten Man For Confucius said something 2,000 . years ago that appears on these pages . This switch, this corruption, can be with regularity: “When words lose their . tracked with algebraic precision using meaning, men lose their liberty.” Page 2 . William Graham Sumner’s equation, “The Indiana Policy Review He could have said it yesterday. Fall-Winter 2008 . Forgotten Man” (excerpted at left). And it — tcl THE COVER THE NEW FACE . . OF CORRUPTION . . Where Are You, Jake Gittes, . Now that We Need You? . . by SAM STALEY . . n the 1974 fi lm-noir, “Chinatown,” Water, in a desert, drives up property . Modern corruption doesn’t I the private investigator Jake Gittes values as new land uses become suitable . fi t the mold of a classic bribe. uncovers a grand scheme within the Los for human habitation and agriculture. . Money doesn’t always change Angeles Water Department to line the hands, and public offi cials Defi ning Corruption . pockets of land developers. . today, as the Wall Street The corrupt plot worked because the Corruption is easy to identify in a . “bailout” debate made clear, land developers were the former owners of movie. After all, scandal is scripted. In . are more likely to barter to a private water department that was sold to “Chinatown,” Noah Cross and his greedy . increase their infl uence than the city. Their infl uence helped manipulate business partners worked with the city- . line their pockets. Public ethics the municipal water department, pouring owned water department to induce a . has not yet changed to refl ect valuable fresh water into the ocean and drought, devaluing farmland and forcing . this more sophisticated form. forcing farmers to sell their land. The farmers off their land. Then, Cross gobbled . department then would build a dam that up the land on the cheap knowing it . would substantially increase the value of would be valuable when water eventually . the formerly dry land, fi lling the coffers of was diverted into the farmland from the . not only the developers but the municipal new dam. . water department. In the real world, however, a different . More than any part of popular culture, type of public corruption can be much . “Chinatown” exemplifies government harder to detect because it doesn’t fi t the . corruption in a modern economy governed mold of a classic bribe. Money doesn’t . by a democracy. It’s a far cry from the always change hands, and public offi cials . simple extortion in the patronage-fi lled today, as the Wall Street “bailout” debate . halls of New York City’s Tammany Hall made clear, are as likely to barter to . of the 1850s or even 1930s. increase their infl uence as line their . Of course, classic corruption that pockets (or checking accounts). . greases the palms of public offi cials still As governments on all levels become . exists. This spring, 15 people including increasingly pervasive in most aspects of . seven Chicago building inspectors were the economy and community, corruption . indicted on federal bribery charges. A can take on less obvious but equally . year-long investigation revealed that destructive forms. Public ethics has not yet . building and zoning offi cials fast-tracked changed to refl ect this more sophisticated . applications and falsifi ed documents in form. . exchange for cash and other benefi ts. Corruption in the New Economy . Yet, in the modern economy corruption . increasingly takes on more subtle and Progressivism in the early 20th century . sophisticated forms. In “Chinatown” again, sought an expanded role for government . those in charge of the water department as a way to address the perception of . conspired with land developers to growing income inequality and to broaden . manipulate real-estate prices in subtle the scope of direct democracy. A larger . ways. The conspirators expected a long- role for public welfare and legal support . term payoff as a market for land adjusted for collective bargaining were important . to new conditions, most notably water from components of such government. More . a new dam and water system in a desert. broadly, progressives advocated for direct . . Samuel R. Staley, Ph.D., is an adjunct scholar who has been commissioned to conduct . more than a dozen studies of Indiana government, including a recent study for an . interim legislative commission that assessed the corrupting effects of government . Page 3 consolidation. Dr. Staley, who lives in Dayton, Ohio, is director of urban and land-use Indiana Policy Review policy for the Reason Foundation and teaches urban economics at the University of Dayton. . Fall-Winter 2008 THE COVER

. Agreements and deals that . democracy through both the election of progressive abuse of eminent domain, compromise the integrity of . citizens and an expanded government government’s authority to seize private government’s responsibility to . role in providing public services and property, is a case in point. The U.S. safeguard the public interest, . regulating private activity. Implicitly, the Supreme Court effectively gave state broadly and narrowly . progressive movement supported more and local governments a blank check to defi ned, can occur under . centralized government administered take private property, even if the direct the bright light of state . by professionals who, at least in theory, benefi ciary is another private property sunshine laws if no one is . would be separated from the push and owner, as long as eminent domain is there to hold public offi cials . pull of special interests. Progressivism was used for an offi cially designated “public and others accountable. . both a reaction to the economic changes use.” Public use, the Court said in the . wrought by the industrial revolution and landmark case Kelo vs. City of New . the excesses of patronage in city halls and London, could be defi ned as broadly as . state houses across the nation. the state or local government might want . Few progressive reformers, however, if the condemnation took place within a . pondered the ways that public ethics development plan approved by the local . might be challenged by this expanded government. The lower courts could . form of direct democracy. Many assumed not review the substance of the plans, . that direct democracy would provide the or the players; rather, they could simply . accountability necessary to ensure the determine whether the plan went through . decisions of state and local governments the right number of public hearings and . were in fact serving the public interest. procedures specifi ed by state and local . They believed that professional public law. . administrators would provide the The public reaction was deep. Forty- . transparency and information necessary to two states, including Indiana, enacted . enable accountability at the ballot box. eminent domain reform laws to rein . Unfortunately, progressives often failed in the power of governments to seize . to recognize how much of an expanded private property, according to the Institute . government would fall beneath the radar for Justice, a public-interest law fi rm in . screen of the general public, greatly Washington, D.C. In Indiana, H.B. 1010 . weakening the theoretical accountability passed the General Assembly in 2006 (and . provided by direct democracy. Meetings was modifi ed again in 2008) to more clearly . of school boards, planning commissions, defi ne a public use and specify procedures . township boards, city councils and county for condemnation. More importantly, . commissions are notable for the emptiness perhaps, the state’s eminent-domain law . of the rooms during deliberations over explicitly says that increasing the tax base . matters both simple and complex. Of is not a justifi cation for eminent domain. . course, most governance is mundane and Property can be seized if it presents a . routine, and there is a limited number threat to public health and safety, or is . of souls hardy enough to attend these a public nuisance, but public agencies . meetings with the vigilance necessary to cannot seize property simply by declaring . provide meaningful accountability. a government-approved use as a public . Yet, the mundane character of most use (the implication left by Kelo). . real-world governance often creates a Notably, these reforms weren’t merely . convenient mask for more substantive cosmetic. In the Institute for Justice’s path- . deliberations that create opportunities breaking report “Public Power, Private . for corruption. Agreements and deals that Gain,” attorney Dana Berliner chronicled . compromise the integrity of government’s 55 instances between 1998 and 2002 where . responsibility to safeguard the public eminent domain was used or threatened to . interest, broadly and narrowly defi ned, facilitate private development in Indiana. . can occur under the bright light of state Five projects in Fort Wayne, Indianapolis, . sunshine laws if no one is there to hold Mishawaka and South Bend used eminent . public offi cials and others accountable. domain, or threatened its use, to seize . Moreover, corruption itself may be property and to force property owners . less a discrete activity or deal than an to the bargaining table to sell their Page 4 . incremental progression that unfolds property at lower prices and benefi t Indiana Policy Review Fall-Winter 2008 . over years and sometimes decades. The private development. After Kelo, the city . of Evansville put 10 properties on its site- Where were the public watchdogs? A . The scope of local acquisition list for future development, few property-rights groups had eminent . government’s power to use according to the Institute’s follow-up domain on their radar screen (e.g., this . eminent domain expanded report, “Opening the Floodgates.” Many foundation, the Institute for Justice, the . incrementally with the of these projects are no longer possible Pacifi c Legal Foundation and state-level . complicity of a private in Indiana under the reforms enacted as grassroots property-rights associations). . sector that is supposed part of H.B. 1010. Most of the general public, however, was . to be the watchdog for While the political backlash from unaware of the extent government’s power . government abuse. Kelo resulted in substantive changes in had expanded. Most of the victims, in fact, . 42 state laws, most actions by state and were individuals without the capability . local governments do not receive similar of defending themselves. City coffers . levels of scrutiny. On the contrary, even were much deeper than the low-income . in Indiana, a controversial U.S. Supreme households living in the neighborhoods . Court case on a project in faraway New targeted as redevelopment projects. . London, Connecticut, was necessary to A case in Indianapolis may best . generate the public scrutiny required to exemplify the problems inherent in these . achieve meaningful reform. kinds of government projects. Bob Parker, . Indeed, most state and local government according to the Institute for Justice, was . decisions and actions are far from the a land developer who began assembling . public spotlight, providing more and more property for the purpose of launching an . opportunities for corruption as the scope industrial park. Meanwhile, the City of . of government involvement expands. Indianapolis had a similar idea, hatching . the idea of the 80-acre Keystone Enterprise . The Changing Character of Corruption Park. The city condemned Parker’s land . when he refused to sell. The nature of this corruption is . Parker estimated the market value of his fundamentally different than in the past. . 10 acres was close to $3.8 million. The city As the number of programs and initiatives . offered $350,000, a price at which Parker sponsored by government increase, . understandably balked. When Parker tried and its regulatory reach becomes more . to prevent the taking of his property, the embedded in private decision-making, . Indiana courts sided with the city. the potential for using the public process . It should be becoming clear that to extract unreasonable concessions from . many of those in the best position to be the general public expands as well. The . watchdogs are also the ones most likely . scope of local government’s power to use to benefi t from the process. After all, . eminent domain expanded incrementally, who was going to locate in the Keystone . with the complicity of a private sector Enterprise Park? The answer is other . that is supposed to be the watchdog for private companies who now had a vested . government abuse. interest in seeing Parker’s property taken. . The original intent of eminent domain Four private businesses currently occupy . was to facilitate the acquisition of private the industrial park: Commercial Food . property for narrowly defi ned public uses Systems, Mid-State Chemical, Tri-State . — roads, county courthouses, jails, public Bearing and Indiana Reclamation and . schools, etc. Over time, the concept of Excavating (IRE, Inc.). . public use expanded to include public and The author has no evidence these . private utilities, including grain mills and businesses were connected to the . railroads in the 19th century and electric eminent-domain action against Bob Parker . utilities in the 20th century. In the 1940s — but that’s the point. As benefi ciaries . and 1950s, the removal of urban blight of the government program, few people . and other nuisances was defi ned as a have incentives to defend programs . public use. Then, in the 1980s, courts and government actions that target . began interpreting public use even more other private-property owners, let alone . broadly to mean public benefi t, embracing potential competitors. . the general goal of economic development These confl icts may be even more . as a meaningful public use justifying the evident in the State of Indiana’s business . Page 5 Indiana Policy Review seizure of private property. development programs. The Indiana . Fall-Winter 2008 THE COVER

. The ability to hold . Economic Development Commission cities, colleges and universities and for- government accountable . reports that it has directly assisted 158 profi t private businesses. is weakened by two companies. It claims its programs have . Conclusion other practical features . contributed to the creation or retention of of local governments: . 22,627 jobs in 2007 alone. The investment Given the wide reach of government, First, those that don’t benefi t . by these companies in Indiana represented either through regulation or outright directly may well believe they . $3.4 billion. The number of deals with assistance, the scope for dissent or could benefi t in the future. . private fi rms has almost doubled, and the accountability for government programs Second, most citizens simply . number of jobs tied to these programs and largesse is seriously weakened. The don’t, or can’t, provide . has more than doubled since 2004. professionally administered government the kind of due-diligence . Yet, the success of the program means lauded by progressives a century ago accountability necessary . more people and businesses in Indiana neglected to consider a public choice under an increasingly broad . depend on the availability of government version of “moral hazard.” and activist government. . assistance, whether through direct subsidy In insurance and investment, moral . or regulatory streamlining, for their own hazard is the tendency to underestimate . success, blurring the lines between public risks by those who do not bear the full . and private interest. Inevitably, this consequences of making a mistake. In . undermines their ability to be effective the case of government corruption, the . watchdogs. watchdogs are feeding off the bones handed out by the people they are . Not surprisingly, the types of assistance supposed to be watching. The tendency . the state now provides fi rms in Indiana is for those who benefi t from government . have proliferated along with the number programs to encourage their expansion. . of industries targeted for assistance. The The ability to hold government . state targets and is trying to nurture nine . accountable is weakened by two other separate industries or types of businesses: practical features of local governments: . advanced manufacturing, agriculture, “The ultimate result. First, those that don’t benefi t directly of shielding men fi lm, information technology, insurance, may well believe they could benefi t in the from the effects .of life sciences (biotechnology), logistics folly is a world fi lled. future. Thus, they are less likely to rein in with fools.” . and motor sports. The state currently programs or initiatives that are wasteful (Herbert Spencer). targets grant programs to fund or erode civil liberties if they believe they . technology companies to diversify the might want to tap into them. . economy as well as promote industrial Second, most citizens simply don’t, . development. A grant program targets or can’t, provide the kind of due- . small businesses, channeling state funds diligence accountability necessary under . into fi rms that want a leg up on moving an increasingly broad and activist . their products into the commercial market. government. Following the actions and . Other programs include workforce activities of dozens of boards, commissions . training, technology certifi cation and six and agencies is a daunting task. Moreover, . different tax-credit programs. such effort offers little benefi t given the . The infl uence of the state programs implicit trade-offs involved with family, . exceeds the direct benefi ciaries of the 19 work and other social relationships. . separate state-level economic development Again, corruption in a modern . programs. TechPoint, an association of democracy is far more subtle and complex . technology companies supported by than the images that appear in popular culture or conventional conceptions of . the Indiana Economic Development historical graft. An expansive government, . Commission, has grown to 400 members. . deeply and broadly vested in regulatory The state’s Small Business Development . as well as fi scal authority, is an invitation . Center has 11 regional centers that in to deals, negotiations and agreements that . 2007 advised and otherwise assisted 2,700 blur the line between public and private . entrepreneurs. The state also created interest. As public and private interest . the Indiana Economic Development become one, with little or no independent . Foundation which solicits donations from constraint on local governance, the Page 6 . the business community. Its 2007 budget weakening of the institutions that support Indiana Policy Review Fall-Winter 2008 . of $847,239 included contributions from honest governance may be inevitable. THE COVER

. . . . THE POLITICIANS . . STILL DON’T GET IT . . The Corruption of Public Education ...... by JEFF H. ABBOTT . any Hoosiers believe the nation’s The problem is that Indiana’s state . The culture of Indiana Mpublic-education system is broken and federal policy-makers have not yet . public schools is to avoid and in need of repair. John McCain joined begun to comprehend that Indiana schools . mistakes and failures at the the chorus of critics by announcing “the are over-regulated and over-politicized, . sacrifi ce of creativity and deplorable status of preparation for our a situation that inhibits innovation and . innovation. This produces children . . .” and declared that public creativity by Indiana’s teachers and . mediocre schools despite schools are “safe havens for the uninspired principals. Heavy regulation and the . highly qualifi ed and able and unaccountable.” Barack Obama incessant presence of politics in schools . teachers and principals. lamented that “I don’t want to send another also do not set an environment that helps . generation of American children to failing create willingness by school staff to try . . schools.” new strategies and techniques to improve . What the two presidential candidates learning. . apparently failed to understand was that Any work environment needs to . it is the governance system of public encourage risk-taking if the organization . education that is broken. It is broken to the is to improve. If school employees are . point of corruption, raising money in the encouraged to perpetuate the status quo . name of students but actually funding the because they have learned that they are . army of bureaucrats necessary to monitor often punished for failure and seldom . thousands of regulations and schemes that rewarded for successes, they will act . are a drag on public education. accordingly. . The responsibility for this governance Unfortunately, the culture of Indiana . system does not lie on the backs of Indiana’s public schools is to avoid mistakes and . hardworking teachers and principals. failures at the sacrifi ce of creativity and . The responsibility for Indiana’s broken innovation. This produces mediocre . governance system of public education is schools despite highly qualifi ed and able . on the shoulders of the U.S. Congress and teachers and principals. . the Indiana General Assembly. Meanwhile, the Indiana public- school . Although the president of the United governance system continues to be in need . States is not constitutionally responsible of repair. Indiana’s public schools will . for the governing and improvement of suffer mediocrity until state and federal . public education, he or she can have a policy-makers recognize that the nation’s . huge impact on the vision of our country. public schools will not likely improve until . Those views and policies are critical to they are deregulated and de-politicized. . improvement by the public schools with Would either presidential candidate . the president exerting a strong infl uence deregulate and de-politicize public . over state and federal legislators. education in America? Not likely. . . . Jeff H. Abbott, J.D., Ph.D., is an adjunct scholar of the foundation and the project manager . Page 7 of its education-reform efforts. Dr. Abbott, a former Indiana public-school superintendent, Indiana Policy Review teaches in the Education Department at Indiana University-Purdue University Fort Wayne. . Fall-Winter 2008 THE COVER

. Obama argued that it . The answer to this question is based principals is his desire to give principals was time for “rethinking . upon each candidate’s policy statements greater control over school spending. the factory model” and . that appeared on their web sites. Each Perhaps McCain’s idea of removing encourages schools “to . candidate presented his best spin on the needless bureaucracy was to empower organize themselves for . issues. Much of the spin is general, of parents, presumably allowing them greater success. . . .” . course, so positions can change when the to choose private schools at taxpayer However, no mention was . successful candidate takes offi ce. expense or to create online tutors and made of deregulating . Both candidates left unstated much virtual schools to compete with the public or de-politicizing. . of the details of their education policy. schools. It appeared a President McCain . Despite this tendency toward ambiguity, might well intend to remove “needless . however, reading the education policy bureaucracy” by eliminating the public . statements yielded an understanding of the schools altogether — not a serious . candidates’ thinking and helped predict proposal in the current educational or . the policies that might result from their political environment. . election. Obama argued that it was time . McCain education policy statements for “rethinking the factory model” . failed to make any mention of de-politicizing and encourages schools “to organize . public schools. Since no mention of the themselves for greater success. . . .” . problem of excessive politicization of However, no mention was made of . public schools is acknowledged by McCain deregulating or de-politicizing the . in his educational policy statements, it nation’s public schools. In fact, Obama’s . can be presumed he does not recognize approach to public-education reform . this as an important issue. Thus, under was to develop new federal government . a McCain administration, schools would programs and expand others. This, of . likely to continue to be buffeted by course, wold require even more regulation . political winds. of Indiana public schools by the federal “If liberty. means Nor is there much hope government. anything. at all, it under a McCain administration In fact, Obama proposed 17 new federal means the right to tell that public education will be initiatives, the expansion of 10 current people what. they do not want. to hear.” deregulated. His introductory federal programs and the reallocation of (George. Orwell) policy statement claimed that funds for another federal program. McCain . his education policy “removes proposed two new federal programs, . needless bureaucracy. . . .” the expansion of one current federal . When the McCain education policy is program and the reallocation of funds . examined, however, there is no mention from four federal programs. McCain’s . of how his policy removes needless increased spending would be $507 million. . bureaucracy. Obama admitted that his proposals would . McCain proposes that providers of increase spending on his public-education . tutoring services could “bypass the local initiatives to $18 billion per year, more than . bureaucracy” and receive direct federal 35 times greater than McCain’s. . certifi cation. The “local bureaucracy” to To summarize, voters were left with . which McCain refers is the local school the choice of: 1) Electing a president who . board. His idea, then, of removing would prefer to not do much of anything . “needless bureaucracy” is to remove for public education, and, apparently . decision-making from local offi cials and would prefer an impractical promise to . give the federal government that power. privatize education; or 2) a free-spending . At the same time, there is no mention in president who believes schools need more . his education policy that there is excessive federal programs and federal spending . federal regulation of public schools. Thus, to improve. . we can expect that the federal government But is either candidate’s view acceptable . would continue to regulate Indiana public as a strategy of education reform? Is turning . schools under a McCain administration. over the public schools to private for-profi t . McCain argued for empowerment of companies the answer? Or is the federal . teachers and principals. However, he fails to government taking over more and more Page 8 . describe how he would empower teachers, responsibility to fund and control public Indiana Policy Review Fall-Winter 2008 . and his only mention of empowerment of schools the answer? . The answer to both questions is a dismantle public education they would . Both presidential resounding “no.” have voted for McCain. . candidates overlooked Whatever their disappointment, most Unfortunately, neither candidate . a simple formula for Hoosiers are not to a point they have wants to turn over the responsibility to . improving public schooling: entirely given up on the public schools. govern public schools to those closest . (teacher and principal The majority is not ready to turn over a to the children — teachers and school . authority) + (teacher and more than 200-year-old system of public principals. . principal accountability) education to for-profi t companies. But why not? Why don’t they place the . = (excellent schools). One reason is a fear, founded or not, responsibility to improve public education . that private companies will sacrifi ce the on the shoulders of teachers and principals, . needs of children for the sake of profi ts. On and then hold them accountable for their . the other hand, most Indiana citizens do decisions? Why does government not trust . not want the federal government to assume them to do what’s best for students? . all control over local public schools. The The answers may be simple: If . history of local control is long-standing. politicians did turn over such responsibility, . Public education is shaped by the local they would lose the opportunity to propose . political philosophy as well as the social “quick fi xes” each election cycle. . and cultural traditions of the people who That may explain why both candidates . are governed. overlooked a simple formula for improving . Even so, more and more Indiana voters public schooling: (teacher and principal . are looking to the federal government to authority) + (teacher and principal . solve their economic problems. This is why accountability) = (excellent schools). . the Obama education policy may have Until a president realizes that teachers . seemed more palatable to many Hoosiers and principals are the key to education . — at least to those who are in the habit improvement, and that these professionals . of expecting the federal government to must have the right to exercise their . solve their problems. judgment in a deregulated, de-politicized . However, with more new federal environment free of institutional corruption, . programs there come a boatload of federal America’s public school performance will . regulations to govern these programs. lag. And until a president uses the offi ce . In conclusion, those Indiana voters to convince Americans that you can’t . who believed that mandates and laws were spend or regulate the public schools into . the best way to govern would have voted excellence, another generation of students . for Obama. If, however, they wanted to will suffer. . . . . NARCISSISM WATCH . . OK, But Why Not Make It for $7 Billion? . . “In 1979, Bill McGill walked into a bank in Fremont, Ohio, handed the teller . a $1,500 check made out to ‘the poor people of America,’ and spent the next . 13 months in jail. The intent wasn’t robbery, said McGill (expected to lead the . Fort Wayne NAACP), but to dramatize the ‘unfair distribution of wealth.’” . — “Fresh View for NAACP,” by Kevin Leininger in the Sept. 16, 2008, Fort Wayne News-Sentinel . . Toward a Perfect World . . “An Israeli city is using DNA (deoxyribonucleic acid) analysis of dog droppings . to reward and punish pet owners. Under a six-month trial programme launched . this week, the city of Petah Tikva, a suburb of Tel Aviv, is asking dog owners . to take their animal to a municipal veterinarian, who then swabs its mouth and . collects DNA. The city will use the DNA database it is building to match faeces to . a registered dog and identify its owner.” — Reuters, Sept. 16, 2008 . Page 9 Indiana Policy Review . Fall-Winter 2008 THE COVER

...... A DEPUTY’S . NOTEBOOK . . An Indiana Lawman Tries . To Separate the Bad from the Good ...... “Gentlemen, there are two . by JOE SQUADRITO things that will get you fi red . s a young probationary police Flynn explained that upon graduation on this job — one of them . A offi cer I had the privilege of it was anticipated that we would be the comes in a bottle and the . attending the charter-pilot class of the models and salesmen for the Indiana Law other comes in a skirt.” . Indiana Law Enforcement Academy. This Enforcement Academy. . fi rst class was held at Indiana Central Since our legislators only met biannually — The late First Sergeant Joseph Flynn . of the Indiana Law Enforcement Academy College, which was then a Quaker it was critical that House Bill 1056 (Academy . institution, but is now the University of Legislation) be enacted in the coming . Indianapolis. session. It was apparent that Sergeant . The class was composed of young Flynn didn’t have much use for politicians, . men in their early 20s who had either just regardless of their offi ce or jurisdiction. . completed military service or college. Our Each morning thereafter, once open-ranks . . drill instructor was a big, barrel-chested, inspection was completed, Sergeant Flynn . red-headed Irishman named Joseph Flynn. would give us a brief synopsis of the . Joe was a former Marine who held the previous day’s academic studies. Most of . rank of First Sergeant with the Indiana the time Joe could condense eight hours . State Police. Joe was twice our age but of lecture into fi ve short sentences or . could out-run, out-shoot, out-fi ght and, less, and his verbal expressions usually . at times, out-yell the entire class. put a smile on our faces. During one of . As we stood in formation that hot, our fi nal weeks in training we received . steamy Sunday afternoon, First Sergeant 20 hours of instruction on “Ethics in Law . Flynn explained that because this was the Enforcement, Professional Conduct and . charter class, each of us had been selected Offi cial Corruption.” Standing in formation, . by the commandant. He went on to explain before dawn, in the pouring rain, Sergeant . that some local offi cials were putting Flynn summarized 20 hours of lectures into . pressure on their state representatives one sentence that I’ll always remember: . to disapprove legislation creating a state “Gentlemen, there are two things that will . training academy as they did not want to get you fi red on this job — one of them . loosen their grasp on the political power comes in a bottle and the other comes . local academies generated. Sergeant in a skirt.” . . Joe Squadrito, a founding member and a custom carpenter in Fort Wayne, is formerly Page 10 . Indiana Policy Review sheriff of Allen County. Earlier in his career, the author was the principle investigator in Fall-Winter 2008 . several high-profi le cases, including one that forced a Fort Wayne mayor from offi ce. . A year or so later, as I patrolled was a game with us and . Fifty chairs, each with a the northeast quadrant of our our side was winning. All . name placard, were set in county, I was summoned this was about to change . front of the dais. All but to the Sheriff’s offi ce, and my happy days would eight were vacant. Some of “A patriot . and informed that I must always be end abruptly in January 1975. . my classmates had passed was being temporarily ready to defend his A new sheriff had taken offi ce away, two were killed in the country against its . assigned to the government.” and he informed me that being . line of duty, and many more Law Enforcement assigned to traffi c division was an had retired or moved away. (Edward Abbey) . Academy. By inter- absolute waste of my talent and skill. . agency agreement I was He explained that he wanted to start an . going to be the Drill Instructor at Indiana Internal Affairs division, and because I . University, Bloomington. I knew even had a reputation as a stickler for detail, . before I reported for duty that I could never the general staff thought I should fi ll this . fi ll Joe Flynn’s shoes — but I was proud spot. I thanked him for his compliment . to be a part of training new recruits. and promptly refused, claiming I was . I was proud, too, that the efforts of the happy where I was. He explained that . charter class had paid off. The enabling our regulations permitted him to assign . legislation was signed into law and today me if the need could be demonstrated as . a vast new campus situated in Plainfi eld it related to the mission of the agency. . houses the Indiana Law Enforcement However, the move could not be punitive . Academy. and had to be approved by the Merit Board . At the commencement ceremonies in 30-day intervals. (Essentially, the sheriff . for the 100th academy class, all members could keep me there for the remainder of . of the charter class were invited back my career in 30-day increments.) Finally, . for recognition. Some 25 years had now after an hour of haggling it was agreed . passed. Fifty chairs, each with a name that I would get the division up and on . placard, were set in front of the dais. All its feet and then return to my previous . but eight chairs were vacant. Some of my position. As I turned to leave he advised . classmates had passed away, two were me that the new attorney assigned to staff . killed in the line of duty, and many more would be assigned to Internal Affairs unless . had retired or moved away. First Sergeant I thought otherwise. I didn’t much care . Joseph Flynn had suffered a severe stroke for lawyers, but this young man seemed . and was confi ned to a nursing home in knowledgeable. . Martinsville As part of the governor’s Internal Affairs was something new . keynote address he asked the eight in the mid-1970s. Essentially, it entailed . members present to stand. He thanked us investigating complaints of misconduct by . on behalf of the state for all that we had police offi cers. Historically, the Chief of . accomplished for law enforcement and for Detectives handled these investigations, . bringing the academy to its proper place but in the late ‘60s and ‘70s newly enacted . in Indiana’s history. Of the 50 men who civil rights laws turned the number of . graduated, 16 became police chiefs or investigations into a full-time job. Under . assistant chiefs, 10 became sheriffs, four the rules of administrative law, and . became federal offi cers and four others because the police hold a public trust, . became lawyers. As the ceremony drew they are compelled to answer questions . to a close I walked the rows of vacant related to the performance of their duties . chairs, looking at the name placards and or fi tness for duty. . trying to put a face with them. At the end I spent 12 years in this position and . of the very last row was a placard which each time I thought about returning to . read “First Sergeant Joseph Flynn, Indiana patrol duties some major case would pop . State Police.” up and my sense of devotion precluded . Upon completing the academy I my submitting the necessary forms. . returned to patrol duties and remained Almost all of the cases resulted in . there for another seven years. I was happy exoneration for the offi cers involved. . to be chasing tail lights and bad guys. The The remainder involved minor infractions . offi cers on my squad were young, smart which either resulted in admonishments . Page 11 Indiana Policy Review and effective. Although deadly serious, it or days off without pay. Few were career- . Fall-Winter 2008 THE COVER

. The law required that any . busters but some led me listening to the names of those with whom purchase exceeding a set . to the doors of political he golfed. Finally, he advised me that dollar amount had to be . scoundrels. he was a good friend advertised for competitive of my boss and he’d . “I’ll Have You Fired” have me fi red or at bid. The way around this . “When the facts was to spend lesser amounts . One of the fi rst cases I change, least back pounding than required by law, but investigated was a government I change my mind.” a beat if he lost this . (Keynes) to place several orders . institution that was spending far account because of — the open purchase order . more than the allotted amount my snooping. became a blank check and . of its annual budget on janitorial We could never the amount involved far . supplies. As memory serves, document any kickbacks exceeded the bidding rules. . the law required that any or payoffs between the . purchase exceeding a set dollar chief custodian and the vendor. In fact . amount had to be advertised I doubt that the custodian even knew . for competitive bid. The way what he was doing was wrong — he just . around this was to spend lesser picked up where the previous custodian . amounts than required by law, had left off upon retirement. However, . but to place several orders. since the new custodian was an at-will . In this particular instance it employee, he was summarily dismissed for . was called an “open purchase order” by incompetence. The political subdivision . the parties involved. However, the open involved changed all of its purchasing . purchase order became a blank check procedures. The company involved was . and the amount involved far exceeded prohibited from doing business with the . the bidding rules. political subdivision for several years. . This matter only came to light as the new While we found no criminal wrong-doing . director of the institution was reviewing we did fi nd that the unit price per some . the ledgers in May and discovered large items was excessive. The company quickly . expenditures had depleted all of the reimbursed the amount involved. . funds in that account for the entire year. By regulation my agency was . When he checked the purchase orders prohibited, absent manifest injustice, from . involved he found that only one supplier interfering with the disposition of a case . was involved. The director immediately or an individual involved. My job was to . requested an independent investigation investigate and provide the facts to the . and my superior assigned the matter to me. proper authorities and not the disposition . In turn I solicited the help of accountants of the matter. I say this for two reasons: In . so as to ensure that should this turn into a almost every case the politicians always . criminal matter the dollar amounts would seemed to have a scapegoat or fall guy. . be accurate. The second reason is I didn’t think the . Within a few days the accountants who custodian should have been dismissed exclusively handled public funds advised . See no Evil . me that this practice was a political thank- . you that had gone on in government The sheriff of a small jurisdiction . for decades. They didn’t see much of it contacted my superior and requested . anymore but it was the way the political mutual assistance in a matter which caused . party in power repaid a company or its him great concern. It seemed that for . principals for their support. Usually, no the fi rst time he could remember there . theft or embezzlement was involved; it was friction between his agency and a . was just a bad practice that stopped or municipal agency in his jurisdiction. . should have stopped years ago. Whatever it was had reached a boiling . When I interviewed the company point and he feared that it could endanger . offi cer he quickly advised me that this was the mission of both agencies. Neither he . his account and had been for years. He also nor the police chief of the municipality . explained that he wasn’t going to allow could get to the bottom of it. Rumors . anyone to take it away. I remained silent, were running wild and both department Page 12 . heads were afraid the media would get Indiana Policy Review listening. Listening to his political alliances. Fall-Winter 2008 . Listening to his fraternal alliances and the story. . After several hours of questioning one police offi cer rounded an aisle and also . The mayor explained that of the sheriff’s offi cers explained that within observed the incident. His involvement . the items taken were small his jurisdiction there was an enormous with this young offi cer was rather severe. . and the business would never warehouse and shipping terminal. The It was later learned that similar incidents . realize the loss. He also stated place was large and operated 24 hours a day, had taken place previously and although . that he had an election to seven days a week. Two and sometimes it was known throughout both agencies . deal with and didn’t need me three agencies responded to alarms or nothing was reported. Rogue cops are . making any problems for him. incidents at the facility. During one such usually shunned and fi nd themselves . alarm response, sheriff’s units arrived isolated and harassed until they either . several minutes after police offi cers had. resign or are fi red. In this particular case, . Upon entering the section of the building more out of embarrassment, both agencies . from which the alarm was emanating, were avoiding one another except in . they found one police offi cer pilfering a emergencies. . parcel. This was not only criminal, but Protocol required that I contact the chief . in police circles, viewed as lower than of the municipality involved and advise . low and an argument ensued which him of the situation. Since the police chief . resulted in a pushing match. A second was not available, the sheriff contacted .

The Historian and the Prime Minister hat should government do? I am tempted to write: ‘As little as possible.’ WBut this is not true. There are times when government should do a lot in certain areas-— but these areas are few. I used to say to Prime Minister Margaret Thatcher: ‘There are three things a government must handle, for no one else can: external defense, internal order and maintaining an honest currency.’ She was impressed by this dictum, to the point that she opened her capacious handbag, took out her pen — along with the notebook she kept for such purposes — and wrote it down. I added: ‘Of course, a government can — and occasionally ought to — do all kinds of things. But the more additional things it takes on, the more likely it is that it will neglect the three “musts.” And the one most likely to be “neglected is the currency. Do-everything governments nearly always allow infl ation to gain a hold.’ In Britain for the last 11 years we’ve had a classic and lamentable case of do-everything government. The statistics covering its meddling are almost unbelievable. During this period it has enacted more than 20,000 new laws, dealing with the most minute activities of individuals and businesses. This legislative frenzy is accelerating. During Gordon Brown’s fi rst year in power nearly 3,000 new laws were put in force — something of which he is very proud! He’s been heard to refer to the productivity of Parliament, as though the number of laws passed, irrespective of their necessity or wisdom, is the sole criterion. One proposed law will force retailers to charge customers for single-use bags, paper or plastic. As a result of such nonsense, all three of government’s real tasks have been neglected. • External defense has broken down, in that legal and illegal immigrants have been getting into Britain virtually at will. • Internal order is crumbling, too, as it’s not only governments that tend to neglect essentials if they take on too much. The police now have so many laws to enforce that they’re beginning to neglect the primary tasks of protecting life and property. • Keeping an honest currency has also been pushed aside. Most laws cost public money. New Labour’s 20,000-odd new laws have made utter nonsense of the government’s restrictions on spending.

— “Let Economies Cure Themselves,” the historian Paul Johnson in the Sept. 1 Forbes Magazine Page 13 Indiana Policy Review ” Fall-Winter 2008 THE COVER

. A young, single mother was . the mayor. In frustration the I met with the prosecutor who going to be the fall gal, and . sheriff handed me the phone cautioned me that since an elected offi cial what was to be a major . and explained that the mayor and an appointed case would turn out to be a . was furious with him and department head negotiated plea deal involving wanted this matter dropped and “Let us hear of the could be involved, . dignity of man’s only this young lady. . any reports shredded. nature, and the noble the matter must My conversation with the rank he holds among be handled with . the works of God.” mayor was much the same, except absolute propriety. . (John Adams) . he demanded that I get in my I provided him . car and return to Fort Wayne, with our agency’s . and keep my nose out of his regulations regarding . business. He explained that the this type of investigation . items taken were small and the and after reviewing them, his only . business would never realize the response was, “Excellent, excellent. Do . loss. He also stated that he had you mind if I keep these?” . an election to deal with and This young prosecutor had a great . didn’t need me making any future ahead of him and was regarded as a . problems for him. In a polite shooting star in his jurisdiction. However, . but fi rm manner I explained he also had a reputation of being more . that my report would be sent to the proper politician than prosecutor, and a bit too . authorities and his interference could have ambitious politically for some people. I had . grave consequences. To my surprise his some reservations about this individual as . only response was, “Big deal. This isn’t well. When I fi nally asked who my contact . Fort Wayne, and we deal with things person was in his offi ce, he insisted that . differently here. So write your report, big it be him and only him. . shot. I couldn’t care less.” Over the next few days I met with . I returned to my offi ce and submitted the auditors in an attempt to plan our . my report to the agencies involved. A few investigation. This essentially involved . days later the sheriff called and advised which receipts were attributed to which . that the offi cer involved was fi red by the individuals, and how much money was . police chief. The mayor then fi red the involved. The next day I was going to . police chief (reduced in rank to offi cer), present my investigative strategy to the . and the mayor’s primary opponent was prosecutor. I was absolutely stunned to . having a fi eld day. fi nd that he had assigned the case to a deputy prosecutor. . Button, Button, Who’s Got the Button? . I had met this young man once before . During a routine audit, a large sum of at a regional training session and during . money was missing from a certain account. that brief meeting he was very pleasant. . The auditors explained that they had no However, as I began briefi ng him I could . evidence of theft and it was possible the tell by his language that he was upset. . amount involved may have been entered He explained that with the exception of . improperly into another account. However the secretary the prosecutor had granted . their preliminary review found that some everyone else immunity. . funds had been spent in excess of amounts This obviously threw the case for a . permitted for per diem and travel. In loop. What was most unsettling was that . addition there were strong indications no one knew of this change except the . that the internal accounting was so poorly deputy prosecutor. When I tried to talk . recorded that following the trail would be to the prosecutor about the matter I was . diffi cult and time-consuming. told to make an appointment. . Since this was an outside agency, Although my job was to compile the . written authorization with a political facts and present them to the prosecutor . disclaimer would have to be received for his disposition his actions protected . by my superior. A few days later the those ultimately responsible and focused . prosecutor of that jurisdiction was meeting the blame on the secretary. Page 14 . with my superior and the formal request While she did keep sloppy books and Indiana Policy Review Fall-Winter 2008 . and disclaimer were received. failed to make timely bank deposits, she did . not enjoy lavish travel accommodations, over all government . “Well, down South, we meals and drinks. Essentially this young, offi cials. Research . like our politicians a little single mother was going to be indicates it takes . bit dirty. In fact you can’t the fall gal, and what was an average of seven even make it through the “In selecting men . to be a major case would for offi ce, let years before people’s trust . primary unless you’ve been turn out to be a negotiated principle be your is restored in that agency or indicted at least twice.” guide — look to his . plea deal involving only this character. political subdivision again. . — a State Police Captain young lady. (Noah Webster) Looking back at the cases . Upon presenting my with which I was involved I fi nd . completed case I had no more a few common threads. . to do with the matter. The deputy First and foremost, it is no longer just . prosecutor resigned his position the very money, women and booze that corrupt . day we discussed the situation. The young public offi cials, but rather partisan political . secretary moved on and the prosecutor power. Political power used correctly . went on to a higher offi ce. Unfortunately, can benefi t everyone. Used incorrectly it . there was nowhere else to take the case. becomes destructive. . It involved state law and in such cases the The second pitfall is the “good ol’ . prosecutor has sole discretion. boy network.” Herein, political alliances . interfere, obstruct or obscure the mission Way Down Yonder . of government in totality. Generally, . While attending a two-week seminar this involves, directly or indirectly, the . at the Southern Police Institute I had retention of political power. . occasion to befriend a state police captain The third pitfall is the silly notion that . from the deep South. The course of study no one can touch you. I’ll never know . involved police misconduct and offi cial what is so intoxicating about holding . corruption offi ce that makes some people think they . During dinner one evening we began can do no wrong. Somehow they forget . discussing case load and procedures He that our legal system has brought down . explained that until recently he had been presidents. . a district commander in the central part The three faces of evil haven’t changed . of his state and that the new governor much since recorded history began. . had campaigned on cleaning up the long- Today they are more sophisticated, covert . standing history of corruption there. and computerized. Investigations now . He was selected to head a special unit require enormous budgets and scores of . of state offi cers, accountants and lawyers investigators. . under his state’s attorney general solely . Because of this, only large agencies can . dedicated to investigating and prosecuting deal with corruption cases. Only time will . offi cial corruption. I inquired as to just tell how effective this evolution will be. I . how bad it was and he said something suspect, in time, these large agencies will . I’ll always remember: have to prioritize their cases. . “Well, down South we like our Finally, I have observed that there . politicians a little bit dirty. In fact you can’t are men and women who, in spite of . even make it through the primary unless assorted slings and arrows, are dedicated . you’ve been indicted at least twice.” to cleaning cobwebs out of the corners . Several years later I read that this reform of government. . governor was indicted, tried and convicted These people, about whom we seldom . on numerous federal corruption charges hear or see, will always garner my respect . and was imprisoned. and admiration. In spite of all else, they . Over my 32 years in law enforcement possess strength, perseverance and . I observed that the vast majority of dedication to the principle that right will . public servants and elected offi cials were always prevail over wrong. . dedicated, hard-working individuals who First Sergeant Joe Flynn is gone now, . would never betray the public trust. but his brief vignette on integrity should . Yet, that one-tenth of one percent be applied to anyone considering a . Page 15 Indiana Policy Review who do go astray cast a dark shadow government career. . Fall-Winter 2008 THE COVER

. . . by RON REINKING, CPA A CONTRACT WITH . LOCAL GOVERNMENT . ourteen years ago the speaker of the U.S. House of Representatives, Newt Gingrich, An Allen County member . Fpromoted a “Contract with America” that ultimately resulted in a surprising develops a promising model . reversal of political trends and a fi rst step toward establishing linkage between voters for appropriate governance. . and their representatives. But will anybody sign it? . In that same spirit, you will fi nd below a 10-point “Contract with the Taxpayers . of Allen County.” It is my opinion that the contract if adopted by both parties would . go a long way toward restoring confi dence in our elected offi cials and establishing . guidelines for appropriate governance in our county. — July 4, 2008 . . Contract With the Taxpayers . Of Allen County . . 1. WE PLEDGE to initiate a County Fiscal 6. WE PLEDGE that bond issues . Review staff of three fi nancial professionals secured by ad valorem taxes on property . who would operate independently and assessments will be restricted to obligations . have unlimited authority to examine fi nancing only essential city and county . and report on all municipal, county and services. Economic Development projects . affi liated entities’ activities. Items and are best determined by private-sector . activities selected for examination would assessments and fi nancing. . be made at the sole discretion of the staff. 7. WE PLEDGE that all legal and . This authority would encompass access to consulting fees will be approved and . participating vendors’ books of account. recorded by the appropriate Council and . Those vendors who select not to participate recorded in the minutes of said Council. . would be precluded from contracting with 8. WE PLEDGE to encourage the . local government. The staff would be fully fi ve-county school systems to adopt and . funded by private contributions. implement a “weighted-student formula . 2. WE PLEDGE to initiate a system plan” for equitable student funding and of accountability whereby only elected . the promotion of school interchangeability offi cials have authority to incur bonded . and freedom of choice. indebtedness, loan commitments or long- . 9. WE PLEDGE that school racial term leasing on behalf of the taxpayers and . integration resources (including will assume responsibility for such. . transportation investments) should be 3. WE PLEDGE to redirect economic . redirected to lower overall costs of development resources to support the . education in recognition that courts have . growth of existing local businesses in favor of speculative ventures. recently rejected forced racial integration . techniques as an effective solution to . 4. WE PLEDGE that interlocking . directorships and inter-municipal better educational performance and racial . relationships will be disclosed and harmony. . fi nancial remuneration, corporate as well 10. WE PLEDGE to subscribe to a two- . as personal, will be published in annual tier method of funding political activities. . reports and semi-annually in the local Individuals, corporations and partnerships . media. Confl icts of Interest, potential and making direct donations to this party will . actual, will not be tolerated. do so in accordance with existing law. . 5. WE PLEDGE that consultants However, contributions exceeding $250 . submitting pro forma fi nancial projections will preclude participation of that fi rm . supporting municipal ventures will publish of engaging in any municipal contract. . their projections and recommendations A blind trust will be established by this . in the local media and will fi le them for party to be administered by a non-local . review at the local library and record them institution. Any individual, corporation or . with the county clerk. Disclaimers of their partnership wishing to support our party Page 16 . work would preclude them from receiving with contributions exceeding $250 would Indiana Policy Review Fall-Winter 2008 . professional fees. do so in anonymity. THE COVER

. THE VIEW . FROM . . A NEWS DESK . . A Veteran Journalist Remembers Digital . Corruption and Pendergast’s Revenge . . . by CRAIG LADWIG . he man at the next desk had to Most of us, however, are blind to . Corruption rides in on horses . named “Best Intentions,” Texplain it to me. “They cut off the the corruption found under even the . fi ngers so they could take the wedding most representative of democracies: San “Inarguable Good” and “The . Right Man for the Job.” bands.” Francisco of the alternative values, Chicago . At the turn of the century, appointment of the social organizers and, to bring it . as a deputy coroner was a reward for being home, Bloomington, Indianapolis, Carmel . a loyal machine worker. The man at the and Fort Wayne of the progressively . next desk was telling us new guys that urbane. . the job carried the privilege of taking gold Perhaps “blind” is too strong a word. . rings off unclaimed bodies (occasionally Let’s say purblind. Consider the example . swollen to a point it was necessary to of my hometown newspaper: . remove a digit or two). A recent story lauded the mayor’s $14- . This grisly picture served a young million deal for ice rinks. The newspaper, . journalist well. It showed the brutality of however, initially omitted mention of . corruption without the clutter of political the mayor’s brother’s connection to the . rationale. And it taught him that corruption developer’s investment group.1, 2 . is most often an allowance rather than a What kind of publisher abides such . scheme. Indeed, it is the default setting of journalism? . we Homo sapiens. Well, in the 1987 television miniseries, . The practice evolved naturally, if “Amerika,” the last democratically elected . you will, a byproduct of a municipal president of the United States gives this . government that had grown so strong little speech: . relative to the private sector that it . was beyond monitoring by democratic Totalitarianism (utter corruption) doesn’t need armies. It only needs to control a . processes. Nor could the mass media, even couple of things — the media, and the . with constitutional protections and powers, ability to dispense privilege to some, and . always be counted upon to balance the to withhold it from others — of course, a weak and divided people helps.3 . equation. . Yes, it sounds a lot like what goes on Corruption Redux . in your state legislature or city council . Extreme corruption is of course still every day. Surely, this generation has . with us — utterly so in lands of the reverted to that default setting. . developmentally naive where heart trumps Inarguable Goods . head, where faith is placed in political . personality rather than constitutional script, If you sit at a news desk long enough . where ends rule over means, where “one you understand that corruption rides . man, one vote, once” plays out with the in on horses named “Best Intentions,” . most tragic results for economic well-being “Inarguable Good” and “The Right Man . and quality of life. for the Job.” . . T. Craig Ladwig, editor of the journal, began his newspaper career as a police reporter . on the Emporia Gazette of the great William Allen White. Later, on the editorial board . of the Kansas City Star, he edited, “The Star: The First 100 Years,” which brought him into contact with many of the reporters who had covered the Pendergast Era. And as . . Page 17 an aide to the Senate Foreign Relations Committee, Ladwig was privy to deliberations leading Indiana Policy Review up to reform and free elections in El Salvador and the democratization of Zimbabwe. . Fall-Winter 2008 THE COVER

. 7 Indiana’s most staid . The naturalization committees of other people’s money. The act stands as Republicans, conservatives . Tammany Hall, the cement companies a reminder that direct democracy is no sitting in places of honor and . of the Pendergast Machine, the ward protection without the Rule of Law. infl uence throughout the . healers of the Cook County Democratic Today’s educational corrupt were born state, saw nothing wrong in . Organization lived on a glorious promise of that 1970s ISTA deal promising one thing giving the teacher unions the . — easy access to government and the (ultimate reform of the Indiana property- power of political machines. . trappings of prosperity in viaducts, tax system) but producing something boulevards, skyscrapers, high-paying quite different (institutionalized factional . 4 . jobs, etc. divisions over education). . By the time of the Roaring Twenties, Again, corruptio, the old switcheroo. . these political machines had begun The most staid Republicans, conservatives . to organize around companies and sitting in places of honor and infl uence . institutions with business-like facades, throughout the state, saw nothing wrong . e.g., the Midwest Paving Company, in giving the teacher unions the power . the Centropolis Crusher Company and of political machines, the power to fl eece . a personal favorite, the Public Service earnest taxpayers and hardworking . Pulverizing Company.5 teachers in order to reward the inept . The Centropolis Crusher Company, among them. . incidentally, manufactured cigars, an The ISTA machine, as all machines, . inarguable good at the time (women didn’t will eventually exhaust itself. But in much . get the vote until 1920). the same way that Daley, Pendergast and . Neither cigars nor Main Street capitalism Tweed corrupted municipal government, . are as popular as they once were. Machine the ISTA leadership will have dumbed . politicians have had to fi nd other disguises, down our education system — again, by . corruption historically needing to outrun rewarding the undeserving and thereby . its defi nition. The machines of today punishing the deserving. . work from offi ces with title plates “Urban For now, though, the NEA machine . Development,” “Environment Protection” owns Indiana and most other states. And . and of course “Public Education.” the more we try to “reform” it, the worse . The ISTA Machine it gets. The situation is summed up nicely . by Lydia Segal in “Battling Corruption in . So things have changed a lot — and not America’s Public Schools”: . at all. You can draw up your own list of . modern front groups, but at the top of mine The root of the problem lies in the ever- . is the National Education Association and tighter traditional corruption controls its local affi liate, the Indiana State Teachers — the layers of bureaucratic oversight; the . detailed standard operating procedures, . Association (ISTA). The teacher unions, rules and regulations; and the over- . love them or hate them, fi t the historical specifi cation of money — that schools model of political machines in that they imposed on their operations over decades. . These control mechanisms were supposed . claim to serve a community good but in to ensure against fraud and waste. But . fact serve the narrowest of interests. as urban schools grew larger, they have . The oldest root of corruption is thought actually eroded oversight, discouraged managers from focusing on performance . to be the Latin corruptio, meaning a and made it so diffi cult to do business with . perversion of purpose. It explains why districts that employees and contractors . the Indiana Collective Bargaining Act, have sometimes had to seek “creative” or 8 . as corrupt a document as you will read, illicit ways to get their jobs done. . passed the Indiana Legislature with the . blessings of the most sincere reformers.6 Dr. Jeff Abbott, an adjunct scholar of . And there has never been a serious attempt this foundation, makes the astute, albeit . to repeal it or even change it. depressing, point that reform cannot be . That is true even as experience has a simple matter of consolidating or even . shown that its passage meant teacher eliminating the education bureaucracy. . unions here no longer needed to be This is a bureaucracy, he reminds us, . concerned with “education” or “teaching.” that is anything but superfl uous. Rather, it is Page 18 . Rather, they can busy themselves quite sadly necessary to ensure compliance with Indiana Policy Review Fall-Winter 2008 . openly and legally hiring their friends with the thousands of little social-engineering . tasks that the Legislature and Congress have the First World War. The late William F. . The only part of the imagined given our schools, jobs that have nothing Buckley loved to tell his story: Central Canal of Indiana that 9, 10 . to do with teaching students. (Congressman Rich) uttered only a single . actually functioned was an declamation in all those years on a dozen eight-mile stretch closest to A Flood of Corruption . or more occasions each year. The debate the center of political power. on a spending measure would take place . Those of you compiling your corruption and, after it became obvious that it would . list in northwest Indiana, Fort Wayne, be approved, Congressman Rich would . Indianapolis, Carmel and Evansville will raise his hand and, recognized, would say, “Gentlemen, where are we going to . want to consider the scam of economic get the money” and sit down.13 . “development,” particularly in the form of . sports stadiums, music halls, conventional Representative Rich never got his . halls and other Potemkinesk efforts. answer, of course, but even so he was in a . These are marvelous projects from the better situation than those today. The good . viewpoint of the corrupt: 1) They can be congressman at least had some confi dence . in how much a spending bill would cost sold as a public good; 2) they require . even if he had doubts whether there was the services of politically connected . money to pay for it. Today, we don’t even professionals of all sorts paid percentage . know the size of the bill. fees; and 3) land must be purchased in . Of the many examples provided by large lots — perfect. . Ernest Christian and Gary Robbins in Indiana’s historical example is the . “Stupidity and the State,” this paragraph Mammoth Internal Improvements Act of . stands out: 1836. It allowed state government to get . into what was then the high-tech business The government says that the tax burden . will be $2.6 trillion in 2008. But counting of canal building. the “deadweight” loss from damage done . It’s a short story but typical: The only by taxes to the private economy, the real . part of the imagined Central Canal of tax burden is twice that — roughly $5.2 . trillion, according to various estimates, . Indiana that actually functioned was an including ones published by the National eight-mile stretch closest to the center of Bureau of Economic Research and the . political power. And by 1841, the state Congressional Budget Offi ce. On the . spending side, a study by the Offi ce of . couldn’t pay the interest on its internal Management and Budget showed that debt and went bankrupt.11, 12 government programs on average fall 39 . But my favorite is the system of viaducts percent short of meeting their goals. Thus, . in 2008, government will spend $2.7 trillion . built in the 1920s by Tom Pendergast’s to provide $1.65 trillion of benefi t.14 Ready-Mix Cement Company of Kansas . Designer Chairs . City. The cement in the viaducts that . crisscrossed the city was said to have been They don’t cut fi ngers off cadavers . six feet deep in places. Politically driven anymore. Instead, they close down family . cements sales helped fi nance four decades businesses, burden the young with the . of machine operations there. debts of previous generations and force . A few years after the last Pendergast old people to sell the houses where they . died, a freak storm dumped water in just raised their families. . the right place for the viaducts to reroute The deputy-coroner system, please . a creek through the Country Club Plaza, know, represented the least damaging . a posh shopping area. The resulting fl ash kind of corruption. It involved only a . fl ood killed 25, some of them upper-class painless cash transfer from the innocent . professionals relaxing in the area’s many — statically so — to the greedy. More . fi ne restaurants and bars. The 1977 fl ood is serious is today’s transfer of power from . remembered as “Pendergast’s Revenge.” the accountable to the unaccountable. . The mayor of Fort Wayne, to choose ‘Where Are We Going to Get the Money?’ . the silliest example from the stack on . Any account of corruption must include my desk, has placed designer chairs on . the heroic example of Robert Fleming Rich a downtown street. . of Pennsylvania. Rich served some 40 years The chairs, designed by Phillippe . in the U.S. Congress, elected to the U.S. Starck, whoever he is, cost $6,864. They . Page 19 Indiana Policy Review House of Representatives sometime before were partly fi nanced through property . Fall-Winter 2008 THE COVER

. A city like Fort Wayne that taxes on certain downtown businesses and nationalism and common good and . 15 can plop designer chairs in . a special income-tax bond. fairness, Zimbabwe, cradle of the new the middle of its deserted . The chairs can now be seen near the democratic man. downtown and call it . Fort Wayne-Allen County Convention and Only a fool could not have seen economic development, is . Visitors Bureau. The mayor says they are the warning signs of corruption in a functionally unaccountable . helping make downtown “a fun place Zimbabwe that depended on democracy — and it doesn’t get more . to go.” rather than Rule of Law, a raw democracy corrupt than that. . A harmless bit of procurement that encouraged systemic misalignments . fun? Perhaps, but a city that can producing the cesspool that country has . plop designer chairs in the middle become. . of its deserted downtown and call it And yet, when collapse came, the New . economic development, is functionally York Times and most other prestigious . unaccountable — and it doesn’t get more newspapers reacted with surprise. Their corrupt than that. explanation was that personal failings in an . evil few had brought down an otherwise . Corruption Translated solid plan of governance and a noble . human effort. . As a journalist, I am concerned about corruption of word as much as deed. An Hogwash. I would have Chart 1 . tattooed to the forehead of anyone . anecdote from my days on Capitol Hill will illustrate: seeking high offi ce. It is a reminder of . what happens the moment corruption . The issue before the U.S. Senate Committee on Foreign Relations was takes full hold, i.e., when private property . becomes a matter of political negotiation whether the Reagan administration should . rather than written law.16 yield to the demands of the Sandinistas . The Zimbabwean plan, as it turned out, and continue a protest embargo against . was to take the property of productive the pro-capitalist planters in control of El . farmers and give it to political cronies. Salvador at the time. . It was a plan, incidentally, that was The AFL-CIO had shipped up a . fully legal, approved in what at the time pair of honest-to-goodness peasants to . were fair and free democratic elections testify against President Ronald Reagan’s . indistinguishable from those we have . foreign policy. The peasants didn’t speak in Indiana or at least in neighboring . English but my friend next to me spoke Chicago. . Spanish. Please note the years 2001-2007 under . Midway through the testimony, my the label “Land Reform.” Those were the . friend sat up straight. “That’s not what years that Zimbabwe abandoned even . they’re saying,” she whispered. They were a semblance of private property. Corn . saying that they wanted the embargo lifted production dropped to levels experienced . as “Presidente Reagan” had recommended. during only the most severe drought. . The peasants were trying to explain to (Compared with human corruption, global . Sen. Richard Lugar, Sen. Joe Biden and the warming is a teddy bear.) . other powerful men peering down from the Those years on the chart refl ect the . elevated committee seating they needed fact that even the henchmen of President . the U.S. loans to buy seed corn. Robert Mugabe, the very ones given the . The next day the transcript in the fertile land farmed by Rhodesia’s original . Congressional Quarterly had been edited settlers, would not invest in labor or seed . to yield the desired AFL-CIO testimony. corn. They invested instead in foreign . Innocent to the end, we took our case banks, where their money would be safe . to a member of the Senate leadership. He from people like themselves. . told us in the most fatherly way that if we Conclusion . made a stink the Democrats would just ship . up a load of better-scripted peasants. That last is the core lesson of my 40 . years as a journalist — years watching The Zimbabwean Corn Chart . the quick and the clever maneuver for . Before we set aside the international advantage on the smallest town boards, Page 20 . nature of corruption, let me say a few in the largest municipal councils and in Indiana Policy Review Fall-Winter 2008 . words about that great hope of African the chambers of Capitol Hill. Chart 1: Zimbabwean Corn Production 1975-2007

2,500,000 Severe. drought years Take one more look at my little chart . and know that a similar one could be 2,000,000 . drawn for any Indiana city. . For men like Mugabe aren’t confi ned to 1,500,000 . Zimbabwe any more than tyrants always . come onto the world stage wearing funny . 17 1,000,000 little toothbrush moustaches. Tons Produced . Their political vision, with its promise . of cost-free economic and social change, 500,000 . Land reform captures democratic majorities everywhere . and in all times. And no matter how noble 0 . the stated cause, the actual policies left . behind produce a production chart like the 1975 1977 1979 1981 1983 1985 1987 1989 1991 . 1993 1995 1997 1999 2001 2003 2005 2007 one on my bulletin board — an economic Source: John Robertson, “August 2007 Forecast Paper,” Robertson Economic Information Services for Zimbabwean Statistics, http://www.economic.co.zw. . wasteland in a town, city or nation, one . that will take generations to restore. . It is my bet that the masters of the 5. Ibid. p. 154. . The corrupt aren’t confi ned new corruption that Dr. Staley and Sheriff 6. Charles Freeland. The Indiana Policy . to the Third World. Their Squadrito generally defi ne elsewhere Review, Vol. 12, No. 3. . political vision, with its in this journal, perhaps even the civic 7. Ibid. . promise of cost-free economic boosters in Indianapolis and Fort Wayne 8. Lydia Segal. Battling Corruption in . and social change, captures and a half dozen other cities growing rich America’s Public Schools. Northeastern . democratic majorities on the great public projects of our age University Press, 2004. . everywhere and in all times. (stadiums, conventional halls, downtown 9. Jeff Abbott, Ph.D., J.D., “Beyond . developments, music halls) will not be Consolidation: A New System of Education,” . buying “seed corn” for planting in their The Indiana Policy Review, spring 2008. . Indiana home towns. 10. Neal McCluskey. Corruption in the . No, like the loyal functionaries of the Public Schools. The Cato Institute. Policy . Tammany, Daley, Pendergast and Mugabe Analysis No. 542. April 20, 2005. . machines, their money will go to other 11. Pamela Bennett et al., Eds. “Canal . cities and states, places where the Rule of Mania in Indiana.” The Indiana Historian, . Law prevails rather than the politics of good June 1997. . 12. http://www.indianamuseum.org/ intentions or factional infl uence. These will . uploads/docs/Central_Canal.pdf. Last be places where corruption is held in check . viewed on June 20, 2008. by free markets and constitutional counter- . 13. William F. Buckley. Miles Gone . weights, not dependence on that always By: A Literary Autobiography. Regnery . fallible commodity human nature. Publishing. 2004. . The corrupt are corrupt, you see, not 14. Ernest Christian and Gary Robbins. . stupid. “Stupidity and the State.” The Wall Street . Endnotes Journal, June 7, 2008. . 15. Benjamin Lanka. “Downtown . 1. Ben Lanka. “$14-Million Investment Gets Colorful Additions.” The Fort Wayne . Brings Rinks to North Side. www. Journal Gazette, July 22, 2008. . journalgazette.net. Last viewed Sept. 16, 16. David Coltart. “A Decade of . 2008. Suffering in Zimbabwe.” Cato Institute, . 2. Kevin Leininger. “Developer, City March 24, 2008. . Reach Deal for New Ice Rinks.” www. 17. Tony Paterson. “Hitler Was Ordered . news-sentinel.com. Last viewed Sept. 16, to Trim His Moustache.” The London . 2008. Telegraph, May 7, 2007. Adolph Hitler, . 3. Wikipedia. “Amerika.” http:// along with other veterans of the World . en.wikipedia.org/wiki/Amerika_%28TV_ War I trenches, trimmed their moustaches . miniseries%29. Last viewed June 17, to fi t inside the new gas masks. It can be . 2008. supposed, then, that Hitler retained the . 4. David McCullough. Truman. Simon distinctive moustache because it was a . Page 21 Indiana Policy Review & Schuster, New York, 1992. status symbol of a combat veteran. . Fall-Winter 2008 SPECIAL REPORT

...... A PUBLIC-PRIVATE . . . . PARTNERSHIP . . GONE BAD . . . . The Northeast Indiana Public Safety Foundation: . . A Hard-Earned Lesson for Community-Minded Businessmen...... by PETE ESHELMAN and JOE RUFFOLO . Understanding why the . . vision for Fort Wayne’s safety . trusting and strong working The Cost. of Politics as Usual academy did not become Arelationship between private and . by RONALD REINKING,. CPA reality and understanding . public leaders is a requirement if northeast . why bad politics pushed out . Indiana is to deal with its immediate he accompanying. article tells of good policy is important . challenges, let alone emerge as a region Tcivic-minded. leaders volunteering if our communities are . known for its quality of life and economic time and money. for community good going to prosper in these . prosperity. This type of relationship was a but spurned by. politicians with other economic times. . characteristic of Fort Wayne’s past success. incentives. On. the face of things, it’s . It can be seen at work today in Indianapolis diffi cult to conceive. that such a well- . and other thriving communities. meaning and .meticulously planned and . That is why several in the business funded gift would. be so unceremoniously . community here were overwhelmingly dumped. But .private-public “partnerships” . supportive when former Mayor Graham rarely work (e.g.,. Fanny Mae). Public . Richard approached them with the idea of offi cials are always. a little more “partner” . a public-safety training facility organized than “volunteer,”. and the taxpayers end . around a private-public partnership. This up paying for. good ideas gone sour. . partnership would serve not only Fort The annual. budget for the academy . Wayne but the region and become a was calculated. at about $1.3 million. national model of excellence. . Principals of the. private trust were intent Soon after discussions began, it became . that, after initial. start up, no public clear that Mayor Richard’s idea could work, . monies would. be required. In addition, that combining the abilities of the private . business leaders. directing the trust for and public sectors could provide a training . the academy, had laid out plans to capability larger and more effi cient than . establish a $10-million endowment that otherwise would be possible. Best of all, . could assure the continued operation it could be self-supporting. . of the academy far into the future. . Understanding why that did not become . reality, understanding why bad politics The reporting of the workings of the . pushed out good policy, understanding academy has now been absorbed into the . how six months of political delay destroyed black hole of governmental accounting . business momentum, losing clients and and will become a small ingredient in . sales indefi nitely, is important if Fort Wayne the murky fi nancial soup of pensions, . is to prosper in these economic times. police cars, hotels and baseball stadiums. . Individual taxpayers will probably Pete Eshelman, left, was the former board lose $400 to $600 annually forever. The . chairman of the Public Safety Foundation of . Northeast Indiana and Joe Ruffolo, a former opportunity of a $10-million fully funded . member of his board. The two endowment to guarantee the academy’s are nationally prominent in their Page 22 . continued tax-free operations also is lost. Indiana Policy Review industries, active in a wide range Fall-Winter 2008 . of civic and charitable projects. . This will not require the assignment • An educational consortium that . Initial plans for the regional of blame. It will require, however, the would deliver a cohesive public-safety . safety academy in northeast ability to discern sincere effort from mere curriculum to future public-safety . Indiana included something posture, systemic reform from political leaders. . remarkable for a public maneuver. • Partnerships with state-of-the-art . project: The goal of fi nancing technology providers to empower fi rst operations independent A Realistic Vision . responders. . of taxpayer dollars. Let’s begin with why anybody would • Public-safety curricula and training . want to create a public-safety foundation focused on regional business needs. . in the fi rst place. • A fi nancial plan with the goal of . In the post-9/11 world, Richard saw the fi nancing academy operations independent . need to provide improved and modernized of taxpayer dollars through outside sources . training facilities for “fi rst responders,” of revenue to include grants (federal and . those emergency personnel who would private), sponsorships, user fees, lease . be fi rst on a disaster scene. And it became revenue and value-in-kind services from . equally clear after Hurricane Katrina that the private sector . fi rst-responder training was a regional • And fi nally, an endowment that . concern, one that demanded a cohesive one day would reach $10 million and . and coherent emergency response to provide the funding necessary for training . protect and serve our communities. all regional fi rst responders. This was to . Richard again, working with regional ensure that regional safety would never . and state offi cials, proposed creation of a be compromised for a lack of money for . world-class facility for northeast Indiana’s fi rst-responder training. . about 5,000 emergency responders in To accomplish this plan, organizers . 12 counties. The anchors for this facility searched for the best way to manage . would be the Fort Wayne police and fi re the project. Richard, once again, saw the . departments and would include regional need for a unique private-public sector . responders to deliver state-of-the-art management structure, one that would . service for the northeast Homeland Security realize the strategic and fi nancial goals of . District. the academy while insulating its operations . Richard secured public funding to from political infl uences. He recognized . construct the necessary building. He that the success of the academy required . also helped create an independent non- management of a self-sustaining business, . profi t foundation, the Northeast Indiana not just management of a building. This . Public Safety Foundation, to act as the in turn required control by a board that . governing structure for a private-public would be independent of the City of Fort . partnership. Wayne. The academy itself must be led by . This foundation, which one of the a staff qualifi ed and capable of building . authors would chair, was designed to bring and managing an actual business. . to reality the Public Safety Academy of A staff was recruited to fi ll the key . Northeast Indiana. The foundation would positions of academy director, chief . guide both public and private investment fi nancial offi cer, grant specialist and . in the academy and, most exciting of curricula specialist. Richard proposed that . all, the goal was to achieve 100 percent the foundation’s role expand from advisory . private funding. and fund-raising to include responsibility . for managing the academy’s strategic A Solid Plan . vision and tactical operations. . Construction began in 2005 and was The board of directors of the newly . completed two years later. While the focus created Northeast Indiana Public Safety . was on building the facility within budget Foundation scrutinized the magnitude of . and on time, on a parallel track efforts were this additional responsibility and ultimately . made to develop a regional business plan. voted unanimously to propose to the . That plan called for the following: Fort Wayne City Council this new role as . • A state-of-the-art “best-practices” supported by the mayor and City Hall. . training program to meet regional In September, the council unanimously . Page 23 Indiana Policy Review needs. authorized that a contract be drawn . Fall-Winter 2008 SPECIAL REPORT

. Several of the original board . whereby the foundation would assume us in supporting the guarantee far into the members believed in the . expanded management and operational future. We believed that this guarantee public-private concept to . responsibilities for the academy. This was would not only relieve the city of fi nancing the point they would put . codifi ed in an ordinance with the format operational expenses, but would: up their own money to . of a “letter of intent” specifi cally outlining 1) Help cement the private sector’s guarantee operations. . the foundation’s responsibilities and its commitment to the academy’s vision; . working relationship with the city. and . It is important to know that council 2) facilitate a strong, trusting working . approval in this instance, as well as approval relationship with the public sector as well . of a construction bond and the state’s as the agencies utilizing and benefi ting . approval of a start-up grant, was based from the facility. . on this detailed organizational precept. In this model, the City of Fort Wayne . Elected representatives sponsoring these and its taxpayers would be relieved of . measures assumed that the academy would any fi nancial obligation to operate the . be regional and quasi-governmental, and regional facility. At the same time, Fort . they assumed it would be supported in part Wayne would benefi t from a world-class . by its own fund-raising efforts and those integrated training facility dedicated . of an independent managing foundation. exclusively to public safety, one that it . Their assumptions proved wrong. could not afford without the foundation’s region-wide support. . What Went Wrong . Many of us, including leading fi gures . Following the favorable council in the Richard administration, believed . decision, members of the foundation that the innovative private-public sector . board turned their attention to formalizing approach plus a commitment to regional . the agreement. Until a contract was world-class emergency-responder training . signed, new responsibilities could not be would become a national model not only . assigned nor could the business plan be for public-safety training but for private- . implemented. Such steps are what come public partnerships. . to mind when we think of a government If the contract had been approved as . being run “like a business.” expected in August 2007, the board’s plan . The plan anticipated estimated revenue was that the academy would by now be . from the following sources: earning $300,000 more in annual income . • $304,000 provided by the City of Fort from regional industries, well on its way . Wayne for its fi re and police operations. to fi nancial independence. . • $350,000 in federal grants. The large regional companies that were . • $300,000 in private donations and sold on the concept were put off, perhaps . fund raising. forever, by delay and political shenanigans. . • $145,000 in lease revenue from Gone with them is the possibility of . educational partners. creating safety-training. programs tailor- . • $133,000 in user fees. made for them that. in turn could be sold . Here it must be re-emphasized that the nationally and .industry-wide. A dollar . revenue plan relied heavily on the academy estimate of that. loss is impossible to . staff and the foundation to secure dollars calculate for either. Fort Wayne taxpayers . from outside Fort Wayne. In the academy’s or for the regional. economy. . fi rst year, 2008, operational expenses were Right here it must. be emphasized how . projected to be $1.1 million with revenue important momentum. was to this project. . providing a break-even scenario. For the Delays at City Hall. made it impossible to . next two years, however, expenses were go about creating. those industry-specifi c . expected to rise minimally with revenue training programs. — programs that the . projected to exceed expenses. regional companies. told us they needed . The authors had faith in the concept and would purchase.. Nor could the . to the degree that they were developing a academy staff build. the bridges of trust with . plan that would guarantee any shortfall in industry experts. on questions of design . outside revenue during 2009 and 2010. The and operation, trust. necessary to develop Page 24 . even more useful training programs for Indiana Policy Review board’s plan was to develop a consortium . Fall-Winter 2008 . of individuals in the region who would join national markets.. . Trusting City Hall PUBLIC SAFETY ACADE . A telling moment came when the city WA . YNE AND THE P surprised those familiar with the project . E T O PAGE SECTION MY A by making a public announcement that 1. RET UB GREEMENT. B LI ENTION OF M CSA . there would be an annual revenue shortfall 2. AGR TABLE OF CO FET Y FOUNDATIONET OF NE for the academy in 2009 and 2010. This 5 Term EEME . WEEN THE CITY OF ANAGE 3. FO NT TE was puzzling because, again, the shortfall MENT SER NTENTS. M5 UNDATI RM had been anticipated by the foundation Gener . The Citya of Fort Wayne R lR ON’S RESPONSIBILI 5 VICES ,IN FORT Executi espo board, and a plan was being developed nsibili . a eyVlae6 Safety Village is5 ve Per ties . to guarantee any shortfall. Moreover, 6 6 Security sonnel Energy Ma IS5 epres TIES . during the many months of discussion Found entative between City Hall and the foundation, 7 Annua ation nagement . Collec l C (s) ear 8 Repairs 8 Businesson Plan t trol of the Faci . city offi cials never mentioned any 9 Capital Improvements ion of Rents and Other Inc concern in this regard. Leasi . Curricng Homeland Secu 7 lity Ma ulum Mana City Hall seemed to use r . tn 9 Noticeketing m 8 ome . 5 this supposed shortfall as a stoCityofFortWaynegem 9 rity Uses 4. ent rationale for its takeover of INSURAN . Ma ndatory Insuranc the academy and evisceration 10 Policy Canc CE . Cert . of the foundation. In any Indemniificate Holde lain11 ellation eRequirements 10 Contr case, the projection by fication . Waivera ofctors Sub r11 9 the city ignored the most 12 Service Contracts ’ and Subc . lis13 Claims 9 gto 12 rogation ont . essential element in the Perf r o act academy’s business 5. JOB SAFETYrmance C and Pa 12ors’ Insurance . plan, i.e., to allow the 6. DRU yment Bo . G OMP . academy to become 7. HOUR FREE WORKPLACE 13 CERTIFICATnd LIA C 13 NCE . a self-supporting SOFOPERAT and politically 12 . independent entity. 1 ION . In other words, ostensibly 13 ION . to avoid a shortfall, City Hall would: . 1) Alienate the foundation offi cers who . had been willing to make good the shortfall . . Pag The foundation board, and create a long-term plan for fi nancing e 2 of 31 academy operations independently; and 2) 3 . the academy staff and He was assured . dismiss or effectively force the resignation outside consultants were that the fi nal . of others (academy offi cers) who had been concerned by Fort Wayne’s details would be worked . working to achieve the academy’s regional unwillingness to engage in out quickly. A few weeks later, . vision and free city taxpayers from any meaningful discussions to however, the doors to City Hall in effect . future cost whatsoever. conclude the contract. closed. They would remain closed for . The more politically savvy around another four months as the city stalled . town, particularly those who had read the negotiations. . letter of intent supported by Richard and Again, there would be real costs to this. . those who had followed the discussion City Hall’s failure to bring closure to the . in City Council, understood what had contract not only prevented the academy . happened. from customizing training programs for . Failure to Bring Closure to the Contract sale to regional industry but also put its . director and employees in impossible . Through November and December of positions. Their roles, responsibilities and . 2007, the city and the foundation worked authority became confused — hopelessly . diligently to negotiate a mutually agreeable so, as it turned out. . contract. Negotiations began to languish, Leadership was urgently needed from . however, when the new administration the public side of the partnership. The . took offi ce. foundation board, the academy staff and . One of the authors contacted the new outside consultants were left frustrated . Page 25 Indiana Policy Review mayor in hopes of expediting the process. and disappointed. They were concerned . Fall-Winter 2008 SPECIAL REPORT

. Extraordinary leadership . by City Hall’s unwillingness to engage in sectors. Without it, the level of trust found is needed to overcome . meaningful discussions to conclude the in the most prosperous communities the systemic differences . contract. cannot be realized, the various incentives in the public and private . Those concerned were well founded. In do not align to produce the intended sectors. Without it, the level . April, the new mayor abruptly announced policy results. of trust found in the most . to the foundation board that the academy For such a partnership to work, both prosperous communities . would become a division of Fort Wayne sides must rise above themselves. Members cannot be realized, the . with its director reporting to his offi ce. of the private sector must set aside any various incentives do . Shortly afterward, the academy’s key thought of advantage for themselves or not align to produce the . staff members were dismissed or in effect their businesses. They must be willing to intended policy results. . fi red (despite assurances from the mayor provide unrequited support for the chosen . that the academy would retain its regional civic project, support extending into future . mission and the academy staff would be generations. They must understand that . offered the opportunity to operate under the project, serving the largest number of . this new city-run structure). As for the their fellow citizens, would be impossible . foundation, it became a mere fund-raising without their unqualifi ed assistance. . vehicle, and a hamstrung one at that. Leaders of the public sector, for their . Overnight, an innovative idea part, must strive to treat tax revenue . representing six years of work by talented as carefully as the money in their own . public and private experts was reduced wallets. Just as important, they must . to a shell — one fi lled with nothing more somehow rise above political ambition . substantial than politics as usual. and the ever-present cronyism of a city A few days before the mayor’s . hall. Otherwise, government cannot be announcement to the foundation board, . run “like a business.” Its contracts will one of the authors of this article resigned. . not be worth the requisitioned stationery Another author, disappointed with what . on which they are written. he viewed as mishandling of the contract . In the case of the Public Safety and disagreement with city control, also . Foundation of Northeast Indiana, the resigned. . private sector, in good faith and with Since then, as City Hall has attempted . passion, tried to do its part. It was sensitive to explain the takeover to reporters and . to the needs and preference of its City others, it has resorted to practices that . Hall counterparts. . the authors believe to be unprofessional, . disappointing and damaging to the The authors, however, would not . Northeast Indiana Public Safety Academy. compromise a regional vision or a . And again, the most potential damage fi nancing plan that creatively engaged the . has been to the academy’s future as a private sector in fi .nding a way to free future . world-class regional training facility, which fund-training needs. from dependence on . would be self-sustaining fi nancially and tax revenue. . . a national model for Homeland Security It is the experienced. opinion of the . excellence. authors that it was. the Fort Wayne public . For this reason, we said yes to a sector that failed. — and, if City Hall . request to write a factual account of this continues to approach. private-public . experience. It is part of a larger effort by partnerships in . the same way, other . those on the private side of the partnership projects will likely. fail as well. . to understand why their plans for the The needless. six-month delay in . academy failed. They are reviewing their drawing up a contract. was an obvious . own decisions and judgments in hopes of factor. There were. three other factors as . determining how a future private-sector well, factors that. may prove even more . effort might succeed. of a problem for. future projects. . There was resistance. from the city. The . The Critical Factors kindest explanation. is that city offi cials in a . Economists tell us that extraordinary new administration,. fi refi ghters and police . leadership, even heroic leadership, offi cers simply did. not have enough time Page 26 . is needed to overcome the systemic to embrace the concept. of a private-public Indiana Policy Review . Fall-Winter 2008 . differences in the public and private partnership. . As a result, there was misunderstanding . about how the academy’s training . programs would be sold to private industry . or what these clients would expect from . the city’s public-safety professionals. They . did not seem to grasp the potential for . themselves, for regional public safety or . for taxpayers. . A third factor was that innovative . ideas necessarily produce friction . — creative friction, yes, but . friction nonetheless. People who . prosper in bureaucracies are . people expert at preventing . stress. They are not always . the type of people, despite . other fi ne qualities, who . embrace friction as a . constructive element of . daily operations. . Which brings us . to a fourth factor . in the failure of . our private-public . partnership. As . the authors have noted, . leadership at several points in . the academy’s history could have . saved all. . A lack of focused leadership combined . with a bureaucratic mindset that avoided . In the end, a lack of both accountability and creative friction endowment for the . focused leadership, a made for an impossible partnership. future training needs of . . bureaucratic mindset Conclusion our region; that eschewed both 4) recruit an academy staff that will . What would get the vision for the . accountability and build and manage not just the building, creative friction combined academy back on track? but the innovative vision; and . That we are “all in this together” . to make even the most 5) write a fi ve-year business plan that promising of public-private is more than a cliché. Public Safety in . includes benchmarks for success and . partnerships impossible. particular transcends petty politics and accountability. fi nger-pointing. City Hall, the Fort Wayne . In our businesses we occasionally use . City Council and the academy’s foundation sports metaphors to clarify a course of . should: action. We fi nd them helpful in breaking . 1) Revisit the mission of the down complex problems into manageable . Northeast Indiana Regional Public Safety solutions. . Academy; With regard to the Public Safety . 2) restore independent management Academy, the ball has been fumbled . through the foundation board in a on the one-yard line. The thing to do is . collaborative working agreement with the pick it up and run for a game-winning . City of Fort Wayne; touchdown. . 3) establish a regional board, one This will require all of us, private . representative of private-public interests and public, to summon the extra effort . in the region, one vigorously engaged that always accompanies such feats of . in a fi nancial plan to lighten the burden excellence. . Page 27 Indiana Policy Review on taxpayers and to create a signifi cant . Fall-Winter 2008 INDIANA WRITERS GROUP

. “No elected offi cial or elected . Taxpayers’ Lament: Dec. 19 in a group of routine resolutions body played any offi cial role on a voice vote. The resolution made . Where’s Our Money? in the decision to rescind . no mention of the fact that it would cost the taxpayer protection . by ANDREA NEAL taxpayers millions. language (in the Pan Am . (Aug. 27) — For a recent example of Paul Ogden, the lawyer who fi led the Plaza agreement). The . government offi cials playing fast and loose lawsuit on behalf of citizens Clarke Kahlo idea originated with the . with taxpayer money in a public-private and Howard Elder, fi nds that fact especially Sports Corp., which had . partnership, consider the case of the Pan troubling. “If they were so above board an obvious self-interest . Am Plaza in Downtown Indianapolis for in what they were doing, why doesn’t the in keeping the money.” . which taxpayers should have received resolution mention those things? The fact — Neal . $6 million. is they didn’t want to raise red fl ags.” . The operative word is “should.” Last The timing is also problematic. The vote . year, Indy’s powers-that-be decided that took place a week before Christmas during . the Indiana Sports Corp. need not honor the transition time between outgoing . a 1985 agreement that required it to Mayor Bart Peterson and incoming Mayor . maintain an 88,000-square-foot plaza as Greg Ballard, who ousted Peterson in . public space or else pay the city $3 million part thanks in part to property tax ire. . plus infl ation for it. Now two taxpayers Why wouldn’t something this important . have gone to court to try and get those to taxpayers have been put on hold for . dollars back. the new mayor’s review? . The plaza was part of a block of real Susan Williams, president of the Sports . estate along Capitol Avenue bought by Corp., said she is certain the Ballard team . Indianapolis, then given for investment was briefed on the matter. “I asked for . purposes to the Sports Corp., a not-for- assurance from the Peterson administration . profi t organization set up by city fathers to that this had been done. I didn’t do it . attract national and international amateur personally. But I was assured that that . sporting events. This was one of Indiana’s happened.” . earliest public-private partnerships. If Ballard were briefed on the issue, . Late last year, the Sports Corp. asked the as Williams was told, it’s strange that he . Metropolitan Development Commission didn’t stand up for taxpayers, especially . to rescind the taxpayer buyout language, after campaigning on a pledge for open . which it did on a batch vote with no public government. But Ballard hasn’t been . input. In April, the Sports Corp. sold the open about this topic. “We are not going . plaza, which includes two ice rinks used to comment while there is a pending . by the public, for a reported $3.8 million lawsuit,” said his spokesman Marcus . to private developer KRG/CP. The Sports Barlow. No comment on a lawsuit that . Corp. pocketed the money. Taxpayers, seeks to reimburse taxpayers $6 million? . who ironically are still paying debt service It seems that money could help cover . on the land, got nothing. the city’s projected $26 million operating . The transaction is disturbing on so defi cit. . many levels it’s hard to know where to This is not an argument for letting the . begin. For starters, there’s the question Sports Corp. go out of business. Since its . of accountability. No elected offi cial or founding in 1979, it’s done great things for . elected body played any offi cial role in the central Indiana, including luring the Pan . Am Games in 1987, the 2001 World Police . decision to rescind the taxpayer protection . language. The idea originated with the & Fire Games and Men’s and Women’s . Sports Corp., which had an obvious self- NCAA Final Fours, to name just a few. But . interest in keeping the money. it’s also made poor fi nancial decisions; the . The Metropolitan Development fact it had to sell off all its real estate to . Commission, whose members are appointed raise money is evidence of that. . by the mayor, City-County Council “We need to have more public scrutiny . and county commissioners, of these public-private partnerships,” . approved the resolution on says Ogden, who notes that the situation Page 28 . Indiana Policy Review Andrea Neal, an adjunct scholar of the foundation and a history teacher at St. Richard’s Fall-Winter 2008 . School in Indianapolis, is the former editor of the Indianapolis Star editorial page. . is hardly unique to Marion County. to be among those Neanderthals who . “We are not told when and Throughout the state, similar partnerships think the taxpayer ought to be the one . how the city acquired (the fi nance sports facilities and economic who determines where his or her charity . property given to Sports development ventures with little reporting dollars go. . Corp), nor what the fi nancial back to citizens. A second extensive article, about the . cost was to the city — the Public scrutiny should be automatic collapse of the Pan Am Plaza concept, . taxpayers. We do know it when taxpayer money is involved. In its ends up informing us how benefi cial the . has been off the property 2006 tax returns, the most recent available, Indiana Sports Corp. has been for the . tax assessment rolls since the Sports Corp. reported $4.8 million in city. We would suggest there are some . 1986. Apparently the only revenues and handled at least $429,488 in questions to be answered before that . consideration was that the taxpayer money. Yes, citizens deserve to judgment can be made. . Sports Corp. was to maintain know about its operations and business For instance, we are told that “. . . the . a ‘fi rst-class urban plaza.’” deals and shouldn’t have to go to court to city gave the Sports Corp. the properties . — McCarthy fi nd out. known as Square 88 in 1986. . . .” (The . Hudnut administration.) That just happens . to be the full city block bordered by Capitol Indy Tax Dollars . Avenue and Maryland, Illinois and Georgia . by FRED MCCARTHY Streets. We are not told when and how . (July 12) — Interesting food for thought the city acquired that property, nor what . in the Indianapolis Business Journal that the fi nancial cost was to the city — the . hit our mailbox today: taxpayers. We do know it has been off the . For starters, an article on page fi ve property tax assessment rolls since then. . gives the cost of the new stadium as $675 Apparently the only consideration was . million. Another item on page six tells us that the Sports Corp. was to maintain a . the fi gure is $715 million. “fi rst-class urban plaza,” which it has . It cost $40 million just to turn the not done. A penalty fee of $6 million . page. At that last fi gure, frankly, our guess — supposedly destined for the city till . would be that the second item probably — has now been waived. . should have been back another page or Here are a couple of random sentences . two or three. from elsewhere in the same article: “In . The page fi ve article discusses the 1995, the Sports Corp. defaulted on a loan . increased cost of operating the signifi cantly for the parking garage and had to sell . larger building — without stating any it for $4.25 million — less than its loan . specifi c number. We recall at one point balance of $10 million. . . .” and, “In 2003, . an estimate of an increase of $10 million after losing millions on the 2002 World . per year. Of course, that was a pretty wild Basketball Championship, the group had . to return the 139,000-square-foot offi ce . guess since the folks making the guess at . the time also said they had no idea of what building to lender John Hancock Financial Services, which sold it to Coastal Partners . the actual cost of operating the RCA Dome . had been. Something about throwing all for $8 million.” All of this is justifi ed, according to an . the money in a big iron pot . . . . We also learned that the Capital offi cial of the Sports Corp. who says, in the . Improvement Board (CIB) has become a last paragraph of the article, “People still . philanthropic organization with taxpayers’ talk about their experience with the (Pan . dollars. The CIB, it turns out, makes grants Am) games. That will not be forgotten.” . to private organizations “. . . including It seems to us that this city has been . Indiana Sports Corp., Indiana Black Expo, spending huge amounts of money, which . Arts Council of Indianapolis and the Indiana expenditures have contributed directly to . Cultural Development Commission. . . .” its fi nancial problems, resulting in making . The word “including” gives us no indication a few people rich and giving a few more . of how many others. (The only specifi ed some “happy memories.” . amount was $150,000 to Black We don’t happen to believe it has . Expo annually.) We happen been worth it. . . Page 29 Fred McCarthy writes the popular blog, Indy Tax Dollars, www.indytaxdollars.typepad.com. Indiana Policy Review For three decades, McCarthy was the chief lobbyists for the Indiana manufacturing industry. . Fall-Winter 2008 INDIANA WRITERS GROUP

. In 1995, the parking More Questions . the properties to return to the tax rolls for garage was sold for $4.25 . (July 14) — In an effort to keep the the fi rst time in 20 years.” That certainly is million to a “distressed . last post — on the fi nancial debacle of the a novel, and much needed, approach for property specialist” based . Pan Am Plaza — reasonably brief, we left downtown. We’ll ask questions anyway: in New York. Did that sale . out some comments and some questions In 1995, the parking garage was sold include the land? If not, . that probably ought to be asked. for $4.25 million to a “distressed property is there a lease providing . In the news article we cited, the specialist” based in New York. Did that sale revenues? To whom? . dreams for the offi ce building were set include the land? If not, is there a lease — McCarthy . out as follows: “The offi ce building, providing revenues? To whom? Where . originally built as a media center for the did the $4.25 million go? Has the building . Pan Am Games, would house national — and land — been on the assessment . sports governing bodies at below-market rolls for these 13 years? If not, why not? . rents, supported by revenue from tenants Is the owner paying property taxes? . paying market rents.” (Subsidies piled on What governmental entity is receiving the . subsidies. We wonder whether the full-load revenues, if any? . tenants were ever told they were carrying In 2003, the group (Sports Corp.) . the folks next door.) handed the (offi ce) building back to the . As indicated in the previous post, the lender who, in turn, sold it to Coastal . city “gave” the land to the Sports Corp. in Partners for $8 million. Again, did the . 1986. The article says a developer now has building go on the tax rolls fi ve years ago? . “. . . acquired the remaining Sports Corp. If so, where are those revenues now? . holdings.” (Purchase price not disclosed.) Actually, we have to think the whole . Does that include the land the city gave thing is pretty typical of the smoke-and- . away in 1986? We are also told the city’s mirrors fi nancial deals so prevalent in the . move (waiving a $6-million penalty charge downtown area for the last two or three . against the Sports Corp.) “. . . allowed all decades.

Oops — Funding Percentage ‘Adjusted’ for Fort Wayne Stadium Project Thanks in large part to sweeping changes in state tax law, the city will not keep one of its founding commitments regarding public fi nancing for Harrison Square. Greg Leatherman, Fort Wayne executive director of redevelopment, said Monday the city estimates revenue for tax increment fi nance districts will fall 23 percent next year because of the state’s effort to cut property taxes for Hoosier homeowners. This will mean less money for future improvement projects, and it will also mean a larger percentage (60 percent) of existing revenue will have to be used to fi nance the debt for the public portion of the $130-million Harrison Square development. When presenting the downtown project, city leaders promised not to spend more than 50 percent of the revenue from the Jefferson Pointe tax district on Harrison Square. . . . City Councilman Tom Smith, R-1st, said while he “understands the circumstances have changed with the taxes, he said the city should come back to the council with an update. He said the redevelopment commission may have the offi cial say in the matter, but the public interest in the project necessitates it come before the council. Smith originally voted against Harrison Square. While the commission members discussed the revenue, expenses and budgets for the taxing districts in open session, city offi cials denied several requests Monday to release the same worksheets to the Journal Gazette.

— Excerpt from Ben Lanka in the Sept. 16, 2008, Fort Wayne Journal Gazette Oops Again — Colts May Let City Plug Latest Stadium Funding ‘Gap’ Everybody knew the great civic party called Lucas Oil Stadium was going to run up a big tab. But oh, the surprise bills that keep hitting us on this long morning after. Two years after learning that unexpected expenses had eaten two-thirds of the $50-million contingency fund for construction, and a year after learning” the original $675-million cost was nowhere near reality, taxpayers this week found out the city budget for running the stadium has a hole the size of the retractable roof. As reported by the Star’s Brendan O’Shaughnessy on Wednesday, the Capital Improvement Board says extra — that’s extra — costs of operating the now-$750 million facility may reach $20 million, not the $10 million originally projected. “ — Excerpt, editorial, the Sept. 18, 2008,” Indianapolis Star . The Virtues of Contrary Voting he is free to break any campaign . We busy ourselves studying by CRAIG LADWIG promise. . the deeper stories, logic and So, no, we aren’t afraid of losing our analysis that formed the (Aug. 14) — A few of us have found . democratic franchise. Indeed, Charles . intellectual underpinnings peace with the upcoming elections. We Murray, the social scientist, is convincing for what once was our limited have joined the Anti-Usurpation Party, a . that it makes no difference for whom we . government. A generation growing force out here in the fl own-over vote so long as the courts allow legislators may need to know that states. . to reward certain factions and to punish . stuff again one day. We Usurpians vote against anybody in others. public offi ce and sometimes even against . — Ladwig These are the factions, incidentally, that . those demonstrating enthusiasm for public the Founders warned us against. They are offi ce. . not the political parties, exactly, but the . Usurpians, observing the current infi nite number of special interests and situation, conclude that those in offi ce — in . other courtesans claiming all manner of . one way or another, to avoid accountability right, privilege and earmark in precise or to secure advantage — are usurping . numerical ratios without regard for Rule . powers reserved for free citizens and their of Law or Constitutional precept. state governments. . We Usurpians, then, save our breath . Even so, Usurpians threaten no one. and our money. Most important, we remain We rarely run for offi ce and never re- . in good spirits even while following events . election. The prognosticators can count through the fi lters of network news or the with certainty the Usurpian vote — in . national press — good enough spirits, at . any race, regardless of issue or charm, least, to keep working toward a future . between Republican or Democrat, liberal that will actually work. . or conservative. We busy ourselves studying the deeper . Ours is true bipartisan partisanship. We stories, logic and analysis that formed . don’t particularly care, for example, who the intellectual underpinnings for what . wins the presidential election; we’ll just once was our limited government. A . vote for his opponent in the next cycle. generation may need to know that stuff . How do we feel about having to vote again one day. . against offi ce-holders doing a good job? And since we aren’t in constant political . Or more seriously, are we afraid we’ll lose quarrel with our neighbors, we can live in . our voice in the democratic process? peace, continuing to believe, to hope and . A recent Rasmussen survey found that to pray there are suffi cient numbers of our . the approval rating of Congress — or of fellow citizens who share our devotion to . all political bodies, would be our guess personal liberty and responsibility. . — has fallen into single digits. The number Usurpians unite, or at least stay in . of people who think Congress is doing a touch. . good job can be explained by estimates of those wandering around drunk or, most plausibly, seeking psychiatric care. IN ANY CASE, statisticians tell us The Gipper our individual votes are mathematically “Ultimately, the choice before the American people is the choice insignifi cant. That must be especially true between two visions: on the one hand, the policies of limited government, when you take into account the small economic growth, a strong defense and a fi rm foreign policy; and on the number of competitive elections. And other hand, policies of tax and spend, economic stagnation, international common sense says that if we cannot reach weakness and accommodation and always, always, from them, ‘Blame a city councilman by phone we won’t America fi rst.’ It’s the choice between the policies of liberalism or the have much luck with a representative or policies of America’s political mainstream.” senator. Nor does it matter when a candidate happens to win by expressing our position “In our administration, our mission has been to appoint the best qualifi ed on the issues. Once in offi ce, under the people we could fi nd, to fi ll substantial jobs with substantial individuals. cover of multi-issue legislation, And the result of this merit-based approach, not surprisingly, is that more women have served in top-level policy positions in our administration T. Craig Ladwig is editor of the journal. than in any previous one. And they’ve served with distinction, earning promotions and reappointments at a high rate.” — Ronald Reagan INDIANA WRITERS GROUP

. The word “effi cient” merely . An Alaskan Model speaks to how government . For Hoosier Reform resources are used, not . (Sept. 15) — We are told by promoters Indiana’s Kernan-Shepard report — that the amount of resources . of the sports plazas, stadiums, convention local governments must be made more expended or, most certainly, . hotels and other Potemkin projects effi cient through consolidation. who gets to expend them. . throughout Indiana that we cannot attract Yes, proponents will grant that . the investment our cities need, that public appointing rather than electing county . subsidy is required. sheriffs may have disadvantages, as does . The argument is politically effective forcing rural school districts to consolidate . because it plays on our economic fear. And with their football rivals down the road. . like any bogeyman, it cannot be disproved. You have to break some eggs, though, to . Nobody who receives favors in the form make an effi cient omelet, etc. . of rebates, cheap loans, monopoly rights But again, given the example of . Governor Palin, we might want to think a . or cash transfers is going to say that they . might have invested bit deeper about that. anyway. Isn’t a smaller, more . “What kind of government . That is what is accountable government so instructive about forces people to make gasoline what we want, not . out of food, artifi cially boosts . the experience of necessarily a more Alaska Gov. Sarah the price of corn to $6 a bushel, effi cient one? . guarantees that infl ated price . Palin in dealing with History tells us the gas producers as the ‘base’ for higher federal that “streamlining” . subsidies to corn farmers in the . over a North Slope government can mean pipeline. future, and then tries to hide its making it larger and . own depredations by excluding . Governor Palin more diffi cult to monitor was able to prove that high food prices from its measure through democratic . of ‘core’ infl ation?” . the considerations processes (Mussolini granted a consortium getting the trains to run . — “Stupidity and the State” by of companies were Ernest Christian and Gary Robbins in on time). Indeed, the . the June 7, 2008, Wall Street Journal. . not necessary to attract word “effi cient” merely . their investment. speaks to how resources . Indeed, the considerations were nothing are used, not the amount of resources . more than corruption masked as economic expended or, most certainly, who gets to . development. expend them. . In her gubernatorial campaign, In Alaska, one of the most backward . Palin proposed making states in the nation by the standards of the . pipeline bidding open Kernan-Shepard report, a self-described .“All the world would and competitive. The oil hockey mom got elected mayor of a city . gain by setting producers warned that if her with a budget little bigger than most commerce at perfect Indiana townships. . liberty.” reforms were implemented nobody would help build From there, using nothing more . (Jefferson) . the pipeline. effi cient than her small-town common . As it turned out, fi ve sense, Palin strung together a series of . groups submitted proposals. election victories that turned the power . Here is Kimberly Strassel of the structure upside-down. . Wall Street Journal: And she didn’t have to eliminate a . And a few months before the Legislature single elected offi ce or bus one child an . awarded its license to TransCanada this extra mile to do it. July, Conoco and BP suddenly announced Now, you may be one of those who . they’d be building their own pipeline with . no state inducements whatsoever; they’d think it a bad idea to turn the power . suddenly found the money. structure upside-down from time to time. If so, consolidation and government . Hmmm. . effi ciency are your tickets. Page 32 . On a related matter, Alaska’s experience Some, though, will be looking around Indiana Policy Review Fall-Winter 2008 . contradicts the core recommendation of for Hoosier versions of Sarah Palin.