V18, N21 Thursday, Jan. 17, 2013 Inauguaral challenges for Gov. Pence

the torch that Gov. Mitch Daniels had Top legislative priority passed to him on a crisp, cold Mon- day morning as the Indiana state flag will need positive April gracefully billowed below him on the revenue report western stairway of the Statehouse. By noon he was greeting hundreds By BRIAN A. HOWEY of Hoosier constituents, friends and INDIANAPOLIS – All of the former colleagues. pomp, optimism, sunshine and prose His first actions were to sign six was just exactly as it should have been executive orders, including one that as Gov. Mike Pence became the 12th would shift the state board oversee- Indiana congressman to ascend to the ing teacher contract negotiations so state’s top executive position. Pence rhetorically reached for Continued on page 3 Gregg: 2016 ‘options open’ By BRIAN A. HOWEY NASHVILLE, Ind. – If you’re an Indiana Democrat, don’t throw away your mustachioed John Gregg for Gover- nor signs just yet. ‘‘I never dreamed I’d get the Gregg told Howey Politics Indiana in chance to perform on Broadway, an exclusive inter- let alone in my favorite subject - view last Friday, that “I’m going to government.” keep my options open” when it - LaPorte Mayor Blair Milo, comes to a poten- on her role on a ‘No Labels’ tial 2016 rematch panel in New York City with Gov. Mike HOWEY Politics Indiana Page 2 Weekly Briefing on Indiana Politics Thursday, Jan. 17, 2013

Pence. “When it comes to voter ID for 3%.” It was the closest gubernatorial Democrats, other than Evan and Joe, race since 1960 when Democrat Mat- no one else is even close.” thew Welsh defeated Lt. Gov. Crawford He was referring to former Park 50.4% to 49.3%. Gregg said he www.HoweyPolitics.com governor and senator Evan Bayh and also knew that Supt. Tony Bennett was newly elected U.S. Sen. Joe Don- in trouble when his internal polling last nelly. Gregg doesn’t believe Bayh will summer showed him winning by just Howey Politics come back and run, echoing similar 1% against an unnamed candidate. Indiana comments we’ve heard from other “He didn’t have any idea he could get is a non-partisan newsletter close Bayh confidants. Other potential beat,” Gregg said. based in Indianapolis and candidates beyond Bayh include for- Gregg defended what HPI Nashville, Ind. It was founded mer Congressman Baron Hill, current called his “schtick” Sandborn ads Southern District Attorney Joe Hog- where he appeared in Carol’s Clip N’ in 1994 in Fort Wayne. sett, former Evansville Mayor Jonathan Curl and downtown with his kids on It is published by Weinzapfel, and former state the roof spraying his umbrella with WWWHowey Media, LLC health superintendent Woody 405 Massachusetts Ave, Myers. Gregg said he called Suite 300 Hogsett on Thursday to con- gratulate him on finally placing Indianapolis, IN 46204 above Bayh on the 2013 HPI Power 50 list (Hogsett was at Brian A. Howey, Publisher No. 5, Bayh No. 20). Mark Schoeff Jr., Washington When he began his Jack E. Howey, editor campaign in 2011, Gregg had 7% name ID and he did best in areas with an H.H. Gregg Subscriptions appliance store. That grew to $350 annually HPI Weekly 71% in his final internal poll, $550 annually HPI Weekly and compared to 78% for Pence. Pence spent $17 million HPI Daily Wire. and won just 49% of the vote. “If it a hose. “I know people either loved 'Call Adrian France had gone another four or five days, them or hated them,” Gregg said. 812.455.4070 or email I might have won,” Gregg said. “We But he said there was method to the [email protected] were gaining. And we were gaining madness. The ads created the buzz his even before Richard Mourdock’s rape campaign needed, more so than if he comment. We were already moving.” had done the buttoned-up “I’m a for- Contact HPI Pence campaign sources told mer House speaker” ads. The Sanborn www.howeypolitics.com HPI they watched internal numbers ads actually helped draw him closer to [email protected] showing his lead falling to 3% at one Pence, before he opted for ads tying 'Howey’s Cabin: 812.988.6520 point. Pence to the Tea Party and then to Gregg said he had planned to Mourdock. 'Howey’s cell: 317.506.0883 raise $7 to $9 million, achieved that Most early polls showed 'Washington: 202-256-5822 goal, and expected the Democratic Gregg trailing Pence in the 12% to 'Business Office:812.455.4070 Governors’ Association to kick in about 15% range. Pence never polled above $2.4 million. Instead, the DGA came in 47% in any of the media polling, © 2013, Howey Politics Indiana. under $500,000 and that might have including three conducted in the All rights reserved. Photocopy- altered the course of the race. “If we Howey/DePauw Indiana Battleground could have gotten that money in June, Poll. The final poll in October showed ing, Internet forwarding, fax- it would have helped,” Gregg said. Gregg trailing Pence 47-40%, up from ing or reproducing in any form, HPI noted that Gregg lost the September poll which showed whole or part, is a violation of by 3%, but Gregg corrected the num- Pence up 47-34%. Gregg surged federal law without permission ber. “We got beat by 2.7%,” he said. among independent voters where from the publisher. v “That sounds so much better than Pence had a 40-20% lead in Septem- HOWEY Politics Indiana Page 3 Weekly Briefing on Indiana Politics Thursday, Jan. 17, 2013

ber, while Gregg overtook him 39-34% in October. In exit Was he surprised that Pence stayed positive? polling, Pence actually lost the female vote to Gregg by a “It would have been a huge story if he had narrow margin, according to the Associated Press. gone negative,” Gregg said. “Gov. Pence honored his Howey/DePauw Republican pollster Christine Mat- pledge. I walk away from the race with a much better repu- thews observed, “I wasn’t expecting him to lose women tation and much higher name ID. I was out-spent two to by the 47%-52% he did and I think there was definitely a one and I almost knocked him off.” Pence became the first ‘Mourdock’ impact on his race.” Essentially, Pence dropped modern Indiana governor to win with less than 50% of the from a 13% lead among women in the Sept. 22-25 Howey/ vote. As for a potential 2016 Pence presidential run, Gregg DePauw poll to a 5% deficit on Election Day – an 18% said, “He’s not ready for a national race.” hemorrhage. Gregg predicted that there will be fallout from the Gregg said the $50 million U.S. Senate race departing Daniels administration that will “land on Pence’s “sucked the oxygen out of the room.” plate” without getting into specifics. “I could have shown my weeny and no one would Gregg said that changes in the Indiana news media have noticed,” Gregg said at one point. “But the question I impacted the race. He had to rely on earned media for a ask is, ‘Who’s going to affect your life more? A U.S. sena- good part of last summer, and that did little to help him tor or a governor?’ We raised the social issues, and I felt gain ground. He cited a smaller Statehouse press corps, like John the Baptist in the wilderness. I predicted the tort which he said has undergone vast change since he left the reform was coming, even though they never talked about speakership in 2002. But it has also changed throughout it.” Indiana. As for Pence, Gregg said, “He was the most dis- “You used to go to any town and stop by the news- ciplined candidate. I slapped him for 22 months and he paper and the radio station,” Gregg observed. “Now many never answered. I could tell it ticked him off, but other than of the newspapers have gone to being weekly, and most showing some irritation in the debate, he stayed disci- of the radio stations are satellite. There would be only two plined. I’ve got to give him credit. It was hard to explain to people there and most of them are in sales.” v people he changed his stripes.”

Page 6). Gov. Pence, from page 1 Pence huddled with legislative leaders, and as to that it reports to the governor’s office and another requires be expected there were smiles and nods of assurance from “family impact statements” that would help to ensure that Republicans and optimism by Democrats. House Minority “intact married families” won’t be hurt by state rules and Leader Scott Pelath told reporters that Pence had “struck regulations. the right tone,” explaining, “We all have important jobs Reporters, sniffing for the first controversy sur- for Indiana. Sometimes those jobs are to disagree and to rounding the state’s 50th governor, were disappointed discuss our differences. But we also have important roles when Democrat Education Supt. Glenda Ritz signed off on (and need) to have the types of relationships where we the shift, noting that after can work together when we do years of the status quo her agree that things are for the predecessor, Tony Bennett, good of the people.” had been the one to take over House Speaker Brian C. control of monitoring teacher Bosma drew on his lengthy contracts. friendship with Pence dating Perhaps the most back to Indiana University eye-opening event occurred Law School and reinforced the Wednesday morning when Pence campaign slogan that Pence gathered his cabinet, became his inaugural theme. which looked like the Repub- “He is a man of great integrity lican Party. Beyond Lt. Gov. and will lead our state to our Ellspermann and Director of shared goals of fiscal integrity Personnel Anita Samuel, the and job creation. I have had cabinet was overwhelmingly Gov. Pence signs his first six executive orders Monday just the privilege of working with white and male (see list on hours after taking the oath of office. Lt. Gov. Ellspermann when HOWEY Politics Indiana Page 4 Weekly Briefing on Indiana Politics Thursday, Jan. 17, 2013

she was a legislator in per year. This means that our chamber. Together, the added revenue will we will reach our mutual just about cover the cost goal of taking Indiana of providing current state ‘from good to great.’” services at higher prices If there were to a larger population.” any doubts about the (Read DeBoer’s entire fledgling administra- column on Page 6.) tion, they were allayed DeBoer concluded, until Tuesday, when OMB “That probably means no Director Chris Adkins – added services from the the architect of Pence’s current revenue stream. campaign “Roadmap” And it probably means no and his policy wizard – Gov. Pence meets with legislative leaders on Tuesday. House Minority additional tax cuts with- rolled out the first bud- Leader Scott Pelath said that Pence had “set the right tone.” out cutting the services get. It was there that the that the state provides.” policy cornerstone of the Pence campaign met the realities School funding friction point of Statehouse sausage production and a fitful economy The Fort Wayne Journal Gazette reported the that has seen Indiana’s jobless rate hover in the 8% range school funding proposal this way: The budget would pro- for more than two years. The 10% income tax cut which vide a 1% operating increase for K-12 schools in its first Pence unveiled last July without input or the imprimatur year, worth about $63 million. In the second year, high-per- of Speaker Bosma, Senate President David Long, or Sen- forming schools could receive an additional 1% increase. ate Appropriations Chairman Luke Kenley would serve as To qualify for the additional funding in the second year, the $790 million thrust of the proposed $28 billion biennial schools would have to hit certain benchmarks. For instance, budget. 40 % of those dollars would be tied to schools reaching an School funding would increase by a tiny 1%, and A or B accountability ranking. In 2012, 1,276 schools hit there was $64 million diverted from pension fund pay- that mark, or 61%. More schools would be eligible if their ments to provide grants for high performing schools and ranking improved one grade. The next 30 % of that fund- transportation funding. The obese budget elephant in the ing would be tied to a 90% passage rate for the third-grade room – Medicaid funding – would constitute a hit of 17% reading test. And the rest would be available if schools that could potentially eat up 80% of the $1.2 billion surplus have a 90% non-waiver graduation rate. in the first year and 40% in the second. That element was State Rep. Terry Goodin, D-Crothersville and a creating what Pat Kiely, former Ways & Means chairman school superintendent there, sounded the cautionary note and current Indiana Manufacturers Association President , on the Pence education funding priority. “Our public schools would call a “surplus mirage.” Pence signaled on Wednes- are the number one economic development tool in our day that Medicaid should come through the Healthy Indi- state,” Goodin told Indiana Public Media. “So if that’s the ana Plan. case, we need to fund those economic development tools properly. One percent’s probably not going to do that.” Revenue forecasts ‘overly optimistic’? So the friction points have been revealed over the Larry DeBoer, the renowned Purdue University tax cut and education funding. But with super majorities in professor of agriculture economics, observed of the De- the House and Senate, Pence has a luxury no other Indi- cember revenue predictions: “The forecast offers an update ana governor has had since Paul McNutt in 1933. Another for fiscal year 2013 revenues. The committee put 2013 governor who inherited sizable same party majorities after revenue at $14.34 billion. The forecast for 2014 was $14.66 a wave election, Democat Roger Branigin in 1965, ended billion, an increase of about $320 million. For 2015, the up vetoing more than 100 bills. committee forecasts $15.09 billion, an increase of $750 As the Pence administration began on a cold Janu- million over 2013. For the two-year biennium, the General ary morning, the temperature permeated the reaction of Assembly will have $1.07 billion more than it will have in legislative fiscal leaders with frosty pragmatism. “We’d like 2013. That sounds pretty good. But the growth in forecast to be heroes and cut taxes,” said Kenley. “You also need to revenues for 2014 is 1.5%. The growth in revenues in 2015 be prepared to take care of your priorities and you need to is 2.9%. Global Insight says inflation will be about 2% per have enough money to do that. Some would argue that if year. Indiana’s population has been growing by about 0.6% you lower the corporate income tax a little more, closer to HOWEY Politics Indiana Page 5 Weekly Briefing on Indiana Politics Thursday, Jan. 17, 2013

where the individual income tax is, you’ll draw more busi- first week in office is to present a budget to the budget nesses and more jobs in Indiana.” committee and initiate a process. I’m looking forward to “Governor-elect Pence will present his case, we’ll working through this with the General Assembly. I really look, present his numbers,” said Ways & Means Chairman do believe that the focus going forward is how do we seize Tim Brown, like Pence new to his role at the fiscal helm this moment? I would just say to you I will welcome the in the House. “And we’ll take it under advisement and go dialogue and the discussion.” forward. It is on the priority list. I don’t know where it falls right now.” An inaugural flourish Pence’s rhetorical prop was the torch at the center April forecast will be crucial of Indiana’s state flag as he prepared to steer the state into Essentially, the Pence income tax cut will be held its bicentennial era. “Our flag signifies that in a time of -un hostage by events and statistics beyond his control, until certainty, Indiana raised up a torch of liberty and enlighten- the April revenue forecast is manifest. Thus, the success ment that banished the darkness, lit the way to the Ameri- of the No. 1 Pence priority will be outside of his hand for can West, and has become an enduring beacon ever since,” almost three months. the 50th governor said before several thousand Hoosiers. It is a risky proposition for a politician who has “For many Americans today is another, if different, time aspirations for the White House, possibly as early as 2016. of uncertainty. It is a time where the disconnect between Thus, getting strongly out of those who serve and the the gates is vital in that con- served has never seemed text. wider. Where the common Rookie governors sense of everyday people do not always get what they seems absent from public want. In 2005, Gov. Daniels life. But not here in Indiana. sought a one-year 1% tax Indiana has chosen a differ- hike on “the very rich” and ent course. that was rejected. But he did “While many of forge what he and now Pence our sister states – some on like to call “honestly balanced the coasts, and some nearby budgets” without smoke and – are struggling, our state is mirrors. That Pence is delay- poised for an era of growth ing pension payments and Gov. Mike Pence greets U.S. Rep. Todd Young just minutes after like no other in our lifetime,” raiding the tobacco settlement taking the oath. (HPI Photo by Brian A. Howey) Pence said. “This is our time fund appears, on its face, to to shine.” be a return to the Bayh/O’Bannon era of creative budget- “We dare not squander this moment with compla- ing. cency or self-congratulation,” he said. “With so many Hoo- Both newly minted Gov. Evan Bayh in 1989 and siers hurting in this economy, we must meet this moment Frank O’Bannon in 1997 inherited 50/50 split Houses, and with resolve, determined to leave our state more prosper- both ended up with special sessions in their first year in of- ous, our children more prepared, and our communities and fice. Both relied on historic policy – with Bayh the passage families stronger than ever before. With so many families of riverboat casinos in 1989, O’Bannon with a deal that and businesses struggling just to get by, we have no choice included a worker’s comp increase for a new Indianapolis but to remain bold, optimistic and relentless in our work basketball arena – to get them into a biennial budget by until good jobs, great schools, safe streets and strong fami- July 1 of those years. lies become the hallmark of every community in this state. A number of Republicans we’ve talked to, rang- This we must do.” ing from legislators to party operatives who express great Pence paid homage to recent predecessors – Mitch affection for Gov. Pence, have expressed concern about his Daniels, Joe Kernan, Frank O’Bannon, Evan Bayh, Robert top priority and what it will mean to him in the long term if Orr, Doc Bowen and Edgar Whitcomb. “We honor them all: it doesn’t pass. Governor Whitcomb, whose patriotism and individualism Pence told HPI last week, “While we have in recent exemplify Hoosier character, and Governor ‘Doc’ Bowen, years provided tax relief on inheritance taxes and business whose caring bedside manner led a state through a sea- taxes, I think the most important and effective way is to son of reform. We honor the memory of Governor Orr, lower taxes on job creators in the cities and on the farm whose graciousness and vision began a season of educa- through the marginal income tax rate. What we’ll do in our tion reform ahead of its time,” Pence said, continuing, “We HOWEY Politics Indiana Page 6 Weekly Briefing on Indiana Politics Thursday, Jan. 17, 2013

honor Governor Bayh, whose youthful energy and frugality defined Indiana in the 1990s. We honor the memory of Pence Cabinet

Governor O’Bannon, whose civility and good will remain Gov. Mike Pence is expected to round out his team of top vivid examples for all in public life, and we honor Governor aides today. The new governor’s schedule for Thursday Kernan, who steadied us at a time of shock and sorrow, afternoon showed him announcing more members of his and faced with determination and grace challenges he had administration. Pence has yet to appoint the leaders of not sought. FSSA and Department of Child Services and the Depart- “And to Gov. Mitch Daniels, on behalf of a grate- ment of Agriculture. Here is the current cabinet: ful people, I thank you and Cheri for all your service, for leaving our state the fiscal and administrative envy of the Alley, Michael Commissioner Revenue nation,” Pence said. “You leave office the most respected Atkins, Chris Director Management and Budget governor in America. It’s a good thing I am only succeeding Baltzell, Paul CIO Office of Technology you, because no one can ever replace you.” Brown, James Director Veterans Affairs Cardwell, Jeff Executive Dir. Faith Based & Community From ‘Good to great’ Initiative Pence then turned to his theme of turning Indiana Carter, Doug Superintendent Indiana State Police from “good to great.” Carter, Rob Director Natural Resources Throughout his first day as governor, there was a Cline, Michael Commissioner INDOT valedictory feel to the swirl of events. Meeting with Re- Doden, Eric CEO IEDC publican Party officials and campaign volunteers at Union Easterly, Thomas Commissioner IDEM Station, Pence said, “As we raise our right hands today, you Gargano, Michael CEO FSSA the volunteers will be chief among the people to whom we Hill, John Exec. Director Homeland Security feel appreciation and gratitude. I’ll work every day for the Keefer, Sean Commissioner LABOR next four years to prove your trust is well placed.” Lemmon, Bruce Commissioner Correction Lt. Gov. Ellspermann added, “We didn’t get here Ryan, John Director Child Services alone. It was your time, talent, hard work and most impor- Samuel, Anita Director State Personnel tantly your prayers that got us here.” Sanders, Scott Commissioner Workforce Development Pence lauded First Lady Karen Pence. “She could Smith, Victor Secretary Commerce have done anything in the world, but all she wanted to do Umbarger, Martin Adj. General Indiana National Guard in her life was be a teacher, be in the classroom with kids,” VanNess, Bill Commissioner Health said Pence. “She was the first volunteer in the campaign.” Waddell, Scott Commissioner BMV As Pence defends his budget and his education funding Wynkoop, Robert Commissioner Administration proposals, the school teacher First Lady will almost cer- tainly play a role in turning that pivotal corner. Ellspermann Senior Staff About an hour after taking his oath and greeting Lt. Governor Sue Ellspermann announced her the hundreds of Hoosiers who streamed in out of the cold, executive office team. The staff is made up of individuals Pence ascended to the meditation room in the Statehouse, from former Lt. Governor Becky Skillman’s office as well as Room 432 on the top floor, the Columbus Republic report- several additional hires from the public and private sectors. ed. Three pastors stood behind him and placed their hands “I have surrounded myself with a professional and devoted on his shoulders and prayed that Pence “find rest, comfort staff that will make Indiana a better place through their and peace in Christ.” About 15 people were in the room. hard work and dedication,” said Ellspermann. “I will chal- Some people took pictures on their smartphones, others lenge my staff to exceed the expectations of Hoosiers.” bowed their heads in prayer. Legislative Director: Ryan Heater He was then off for what will almost certainly be Deputy Legislative Director: Daniel Workman one of the most interesting and pivotal periods of his life, Intergovernmental Affairs: Marita Steltenpohl the cascading chapters on the way toward the state’s bi- Press Secretary: Tyler Stock centennial impossible to predict. Scheduler: Nancy Ketterman The “Good to Great” theme will almost certainly Constituent Services Director: Karen Davis be one Gov. Pence expounds on when he delivers his first Special Assistant: Joey Fox State of the State address at 7 p.m. Tuesday, Jan. 22. Administrative Assistant: Sara Rossier This governor has set a high bar for himself, his Chief of Staff: Tonya Brothers-Bridge state and the 6.5 million Hoosiers within. v Senior Advisor:David Terrell v HOWEY Politics Indiana Page 7 Weekly Briefing on Indiana Politics Thursday, Jan. 17, 2013

because governing an entire state creates the need for Governors tend to pragmatism. On Monday, Pence delivered his inaugural address that set the spiritual tone for his administration. Next Tues- hew to the center day, Pence will give his first State of the State address. In By BRIAN A. HOWEY this statewide televised speech before a joint session of the NASHVILLE, Ind. – As Gov. Mike Pence prepares to Indiana General Assembly, Pence will lay out a vision for give the second of two important speeches of his career in the first years of his governorship and rally both Republi- the span of eight days, there is one thing to keep in mind: cans and Democrats. presidencies and governorships tend to pull even the most Pence has given dozens of speeches to bipartisan ardent ideologues into the center. groups, such as the one he delivered to the Detroit Eco- Pence is arguably the most conservative politician nomic Club in November 2010 when he was the object to be elected Indiana governor in modern times with that of speculation on a potential presidential run. And while reputation forged during eight congressional campaigns, his he has spoken at Indiana energy forums and Chamber of TV and radio talk shows, and his role as Commerce events in recent months, his gubernatorial run president of the Indiana Policy Review found him speaking mostly to partisan Republican groups Foundation. When you sort through the where he could rally the troops. During his campaign in television-age Hoosiers who have served 2012, Pence entered an uncharacteristic phase when he in Room 206, Matthew Welch, Roger was not readily available to the news media. Branigin, Edgar Whitcomb, Doc Bowen, In the first six months of 2010, when he was Robert Orr, Evan Bayh, Frank O’Bannon, the Republican U.S. House Conference chairman, Pence Joe Kernan and Mitch Daniels are rarely was quite conspicuous, giving 87 Indiana radio interviews, referred to as “radical.” nine TV interviews, 64 national radio and 74 national TV Some might make the case that talks. Daniels’ decision to lease the Indiana What we saw in 2012 was a Pence campaign deci- Toll Road to fund Major Moves and his sprawling education sion to become one of the most disciplined gubernatorial reforms were radical, but Democratic Chicago Mayor Rich- candidates in memory. Pence talked almost exclusively ard Daley leased the Chicago Skyway years before. Presi- about jobs, expanding vocational education, and other edu- dent Obama and Education Secretary Arne Duncan have cation issues. It echoed his Detroit Economic Club speech pushed for many of the same reforms that Daniels achieved when he talked of restoring “American exceptionalism” by in Indiana, though they do ending “all this Keynesian spending and get back into the not advocate vouchers. practice of free To find true “radi- market econom- cals” you have to go to ics.” times of crisis, such as the “The free Civil War when Gov. Oliver market is what P. Morton disbanded the made America’s Indiana General Assembly economy the after Copperhead Demo- greatest in the crats won control in 1862, world, and we forcing Morton to finance cannot falter in Indiana’s war efforts with privately secured loans. The our willingness to defend it,” Pence said, while outlining Great Depression prompted newly elected Democratic Gov. his economic agenda using the acronym START: Sound Paul McNutt, along with two super majorities in the House monetary policy, Tax relief and reform, Access to American and Senate, to overhaul the state’s bureaucracy, initiate the energy, Regulatory reform, and Trade. gross income tax, while creating work programs that would Spurred by Democratic gubernatorial nominee eventually forge jobs for 75,000 Hoosiers. John Gregg’s prediction that Pence was preparing to pull Like McNutt, Pence comes to office with two off a bait and switch, cloaking his social agenda behind a super majorities, 69 to 31 in the House and 37-13 in the rhetorical facade of economic and education issues, there Senate. Thus, Pence finds himself at a unique juncture. has been considerable recent media speculation about Most of the Hoosier governors have come out how Pence will actually govern. Late last week, his critics of the mainstream of their parties. Even governors who pointed to a bill by State Sen. Mike Delph, who said he filed might trend left or right are often pulled back to the center it on behalf of the administration, to pass “loser pays” civil litigation reforms. HOWEY Politics Indiana Page 8 Weekly Briefing on Indiana Politics Thursday, Jan. 17, 2013

The reason for this speculation is while Congress- man Pence had taken on President George W. Bush and Pence, legislature face Republican congressional leaders on drunken federal spending, while advocating progressive immigration reform and sustainable entitlements, Pence developed a reputation a possible overly as a social firebrand. He was a lead instigator of defunding of Planned Parenthood, which prompted Republicans in the optimistic revenue forecast Indiana Senate to initiate legislation here that was eventu- ally signed by Gov. Daniels. By LARRY DeBOER There will be external forces pulling at Gov. WEST LAFAYETTE – Starting in January, the Indi- Pence. Social conservative allies will seek his backing of a ana General Assembly will craft a budget for the state. The constitutional amendment barring gay marriage and ad- budget is a plan for spending on state services from July 1, ditional abortion restrictions. Their take might be similar to 2013 through June 30, 2015, fiscal years 2014 and 2015. congressional Democrats who, with control in 2009 of the To create the budget, legislators need to know how White House and both houses of Congress, pushed what much revenue they’re going to have. On Dec. 17, Indiana’s eventually became known as “Obamacare.” The reasoning forecast committee offered its best guess. The forecast was there is that such emphatic power could be fleeting. Pence a bit more than a billion dollars above current revenues. could find himself being beseeched by social conservatives A billion dollars is a lot of money. But this is a to install the ultimate wish list. Democrats lost control of pretty conservative forecast. the U.S. House just months after the passage of Obam- Indiana’s revenue forecast is done in two parts. A acare. forecast committee creates equations While Pence has said that as a pro-life governor that link Indiana revenues to the he would be inclined to sign any such bill that reaches his economy. Then Global Insight Co. desk, he has signaled the marriage amendment will not provides a forecast of the economy be a “priority.” Senate Education Chairman Dennis Kruse through 2015. The economic fore- pushed a “creationism” bill in 2012, but he did not spon- cast is plugged into the equations to sor that bill in this session. Pence sources told HPI that the come up with the revenue forecast incoming administration did not try to dissuade Kruse from for the state’s general fund. renewing a push for that legislation. The forecast offers an update for Seeking such an agenda – particularly when he fiscal year 2013 revenues. The com- didn’t campaign on it - and with the state unable to shake mittee put 2013 revenue at $14.34 off an 8% jobless rate it has endured for several years billion. The forecast for 2014 was could be dangerous in the context of 2014 mid-term elec- $14.66 billion, an increase of about tions. $320 million. For 2015, the committee forecasts $15.09 Last Wednesday, Pence was focused on jobs billion, an increase of $750 million over 2013. For the two- and fiscal integrity. “Because of the progress we’ve made year biennium, the General Assembly will have $1.07 billion over the last eight years, Indiana is on the verge of timely more than it will have in 2013. That sounds pretty good. growth, educational attainment like no other time in our But the growth in forecast revenues for 2014 is 1.5 lifetimes,” Pence said. “I think we have to lean into the percent. The growth in revenues in 2015 is 2.9 percent. fight to make Indiana more attractive for investment by Global Insight says inflation will be about 2 percent per businesses that are here and businesses which want to year. Indiana’s population has been growing by about 0.6 come here. I truly believe that lowering taxes and improv- percent per year. This means that the added revenue will ing the quality of our work force represent two great op- just about cover the cost of providing current state services portunities to do just that.” at higher prices to a larger population. As Pence walked to his waiting State Police escort, That probably means no added services from he paused on the sidewalk outside of HPI’s Massachusetts the current revenue stream. And it probably means no ad- Avenue office and talked with great vigor of tying eco- ditional tax cuts without cutting the services that the state nomic development to the research universities of Indiana, provides. Purdue and Notre Dame. Viewing Google Earth of the array Why so little added revenue? Revenues in this bi- of dynamic companies surrounding Stanford University, ennium have grown faster than the forecast: 6.4 percent in Pence said, was an exciting prospect he intends to push for fiscal 2012 and 3.3 percent so far in fiscal 2013. Revenues Indiana. v in 2013 were running a little above the December 2011 forecast. But the Dec. 17 forecast revised 2013 revenues HOWEY Politics Indiana Page 9 Weekly Briefing on Indiana Politics Thursday, Jan. 17, 2013

downward. That’s a conservative forecast. Indiana Members react to Slower growth is not due to the famous fiscal cliff. If Congress fails to act, federal taxes will rise and spending will drop in 2013, and Obama gun proposals Global Insight (like everyone else) says we’ll WASHINGTON - Braced for a fight, President Barack Obama have a recession. But that’s not the forecast on Wednesday unveiled the most sweeping proposals for curbing used for the revenue projections. The forecast gun violence in two decades, pressing a reluctant Congress to pass has Indiana income growing 4.4 percent in 2014, universal background checks and bans on military-style assault which is more than it grew in 2012 or 2013. weapons and high-capacity ammunition magazines like the ones The sales tax forecast shows that used in the Newtown, Conn., school shooting (Associated Press. growth. Sales tax revenue is projected to grow A month after that horrific massacre, Obama also used his 3.7 percent in 2014 and 4.1 percent in 2015. It’s presidential powers to enact 23 measures that don’t require the the other revenue sources that create the drag in backing of lawmakers. The president’s executive actions include the forecast. ordering federal agencies to make more data available for back- State income tax growth is reduced be- ground checks, appointing a director of the Bureau of Alcohol, cause the budget agency will establish a reserve Tobacco, Firearms and Explosives, and directing the Centers for for local income taxes. A reserve for the locals Disease Control to research gun violence. means less revenue for the state. “To make a real and lasting difference, Congress must act,” Corporate income tax rates are coming Obama said. “And Congress must act soon.” The proposals got an down, and we’re phasing out the inheritance tax. icy reception from Indiana congressmen. Lower tax rates mean slower revenue growth. U.S. Rep. Todd Rokita said, “President Obama’s gun In the past two years we’ve used more control proposals are a radical overreach by a power-hungry execu- cigarette tax revenue in the general fund, but in tive branch that is committed to restricting the 2nd Amendment the next biennium, some of that money will go rights of law-abiding Americans, without any concern for either the to the retiree health-benefit trust fund. constitution or how this plan would actually work in the real world. And, gaming taxes are likely to drop. More laws and regulations will not and cannot stop evil – only Riverboat casinos and racetrack casinos seem to strong families and communities can.” have reached market saturation, which means U.S. Rep. Luke Messer called the proposal an “assault.” that everyone who might gamble at a casino al- Messer said, “The Second Amendment protects the right of the ready is. Revenue growth has slowed. Now we’re people to keep and bear arms from being infringed. I will defend expecting more competition from new casinos in this constitutional bedrock against the unwarranted assaults the Ohio, particularly in the Cincinnati region. There President announced today. The President’s attempt to circumvent may be more competition from casinos in Illinois, Congress to implement part of his gun grab should concern all too. That will reduce gaming revenue in Indiana. Americans, regardless of whether they own a firearm.” All these reductions add up. In- U.S. Sen. Dan Coats reacted by saying, “The Newtown diana income growth is projected to average shooting was a horrific tragedy that had an impact on all Americans more than 4 percent per year, but state revenue but especially every parent, teacher and student, and it is right for growth is projected to average only 2.2 percent our country to reflect on how we can prevent such events in the per year. Again, it’s a conservative forecast. future. As we learn more about the president’s proposals, we must All this assumes no recession from the protect Second Amendment rights and ensure the federal govern- fiscal cliff or European financial collapse, or due ment does not punish responsible gun owners. I will not support to slower growth in Asia. If those things hap- legislation or executive actions that would affect gun ownership pen, this revenue forecast will be too optimistic. rights for law-abiding citizens, including any assault weapons ban.” There’s always a forecast revision in April, right U.S. Rep. Jackie Walorski said, “Congress must pursue before the budget is passed. This time, the fore- a step-by-step bipartisan approach to improve relevant issues—par- cast revision may be more important than ever. ticularly better access to mental health care—instead of forcing gun v restrictions. Enactment of future legislation must strike a balance to protect the rights of responsible Americans, while keeping guns out DeBoer is a professor of agricultural eco- of the hands of the mentally ill and those who intend to cause harm nomics at Purdue University. to others. As the wife of a schoolteacher, the tragedy at Sandy Hook Elementary truly hits home for our family.” v HOWEY Politics Indiana Page 10 Weekly Briefing on Indiana Politics Thursday, Jan. 17, 2013

at Howey Politics Indiana, referring to a plan that blew up Rokita sees ‘morality’ on House Speaker John Boehner. “So people ask, why were you against the fiscal cliff? Well, Plan B didn’t increase spending. The fiscal cliff delayed the sequester and added in fiscal dilemma $330 billion in new spending over the decade. That’s the By BRIAN A. HOWEY opposite of what I came to do. I couldn’t get myself to be INDIANAPOLIS – When U.S. Rep. Todd Rokita talks for the fiscal cliff. But if tax increases are part of a solution about “morality” as it pertains to his job, it isn’t about gay in the sense that it gets those who believe in tax increases marriage or some of the other social issues that tend to and only tax increases give me a start to entitlement define the term. reform, if I get entitlement reform so I know this debt situ- It’s all about debt and the viability of future gen- ation will be solved down the road, I would be one for tax erations to live better than the previous one. There are no increases.” congressional districts devoid of grandchildren. He notes That is rare talk for a Republican member of Con- that current Medicare recipients will pay an average of 32% gress, who since Vice President George H.W. Bush vowed of what they’ll take out. “Why do your grandchildren have in 1988 to “read my lips, no new taxes,” has lined up to pay that 70% for you?” Rokita asked. “What makes that against virtually any tax increase for any reason. OK?” Now the nation is faced with a $16 trillion debt, The subject came up in the context of the recent a budget deficit more than $1 trillion for five consecutive fiscal cliff issue. He was specifically asked about how many years, and 10,000 Baby Boomers retiring every day. Republicans talk about “We’re in this situ- the need for spending ation because we failed cuts, when common to solve the problem sense suggests that the and the problem is the answer to U.S. solvency long term debt trajec- involves spending cuts, tory and the spending tax hikes or, better yet, driving that debt. Until reform of the tax code. you solve the spend- “I want to ing, you’re going to make sure the folks continue to have this,” understand the moral- the sophomore Repub- ity of the decision,” he lican explained. “It’s said of his vote against not that Republicans the fiscal cliff. “I’ve are trying to be con- gotten great feedback frontational with the when I do my town White House, causing halls and lay out all of this uncertainty. The the facts and figures. reason this country is so weak from a fiscal And also the moral ar- U.S. Rep. Todd Rokita believes there will be four opportunities before sum- standpoint right now, guments. I’ve not met mer to enact spending cuts to help solve the long term U.S. decifit and debt and the reason that is a senior citizen who problems. doesn’t want the next causing that is because generation to be better we are spending more off. Everyone. I can tell you right now that it’s a concern. than we take in and you can’t take in enough to match the I cannot let the tax comment go without a response. I see spending.” a tax increase as part of a solution, but not a mathemati- Asked about the bipartisan Simpson Bowles Com- cal solution. By the way, we’ve already had a tax increase, mission plan that President Obama initiated, and then OK?” ignored, Rokita observed, “They say they have to be re- Rokita has taken some arrows for his vote against formed, which is a great start, but they didn’t color in how the fiscal cliff, and a second vote in which he opposed aid we start. That’s why you come back to the Ryan budget, to Hurricane Sandy victims in New York, New Jersey and which is the only plan out there. I would be willing to raise Connecticut. the eligibility age. The original assumption was we live to “I was for Plan B,” said Rokita during an interview age 58 on average.” The average American now lives to age 78. HOWEY Politics Indiana Page 11 Weekly Briefing on Indiana Politics Thursday, Jan. 17, 2013

“I would consider a much more significant means ing to our debt with new off-budget disaster spending, we test,” Rokita said. “A lot of people on my side would con- should make cuts that equal these additional expenses. sider that a tax increase. So be it. Right now there is an There is no shortage of wasteful spending that Congress annuity. I paid in and I take out. Take Medicare: We’re only could cut. For example, an estimated $4.5 billion in im- paying in an average of 32%.” proper or illegal food stamp payments by the Department While he was one of 150 Republicans to vote of Agriculture and $3.2 billion in college tax credits doled against the fiscal cliff plan in the House, he observes that out by the IRS to prisoners and other ineligible applicants. Obama and Democrats have finally achieved a tax hike By simply eliminating improper payments in programs like on the upper 2% of earners. As for Obama, Rokita said, Medicare, Medicaid and unemployment insurance, we could “I think what he’s going to want is more tax increases save more than $100 billion per year, enough to pay for for spending cuts. I’m not just for spending cuts. I will Sandy relief and other disasters that might come.” take them when I can get them. But I’m not for spending On Tuesday, he supported an amendment by U.S. increases. But in order to solve the debt problem, if you Rep. Mick Mulvaney which would make across-the-board really want to solve the debt problem, you have to reform, cuts of 1.63% to all discretionary spending to offset the not just cut.” cost of new spending related to Hurricane Sandy. It was Asked if his constituents understand that President defeated 258-162. Obama will be in office for the next four years, Rokita ex- plained, “I think my constituents understand. Who I hope Four chances for reform understands is House Republican leadership. For my first In Rokita’s worldview, there are opportunities for years in Congress, we weren’t supposed to do anything too President Obama and Congress to get the U.S. fiscal house bold for fear of rocking the boat before the election and a in order. “I actually see an opportunity,” he said. “Between chance to get a Republican president. Quite frankly, that now and June, there will be four opportunities to address time has come and gone. So we have nothing left but to be the spending issue. The same arguments we heard from bold.” November through New Year’s Day will reappear. “If he comes back and asks for reform,” Rokita said “We’re going to have to face to raise the debt ceil- of Obama, “if he does that, then Todd Rokita doesn’t need ing again by March, maybe by mid March. So that’s one. to be a congressman anymore.” No. 2, I talked to (House Budget Committee Chairman) As for criticism over his vote against Sandy aid Paul Ryan last week, he is committed to writing another – he and U.S. Rep. Marlin Stutzman opposed it – Rokita budget and he has asked for my help on the Budget Com- explained in an op-ed article for the Lafayette Journal & mittee. We are committed to do that by April 15, which Courier, “When Indiana was hit by flooding and tornadoes is the legal deadline. That will all come up again because in 2011 and 2012, I asked the federal government to tap we are certainly going to address in the narrative of that some of that already budgeted – and therefore already budget.” prioritized – emergency funding to pay for relief. They No. 3 will be that the sequester has been delayed did, and Hoosiers were better for it. But that fund ran dry because of this fiscal cliff deal, for two months. “So that is before Hurricane Sandy ever hit land. Does that mean we going to hit again in March. And by the way, the continuing shouldn’t help our fellow Americans? Of course not. What resolution ends in March. So there’s four times right there it means is that we must make room in our national budget where these same issues and the same narrative is going for the new situation by reducing spending on what would to come into play. The reason I call that an opportunity is now be less important priorities, just like we did with the it’s daunting work, it’s an opportunity to have this conver- budget and continuing resolutions before the fund ran dry, sation again with the American people. I think every time and just like every family would do in times of emergency. we do it, since the last debt ceiling vote, and the last two This is far from hypocrisy. It’s the opposite of it.” Ryan budgets, we’ve been able to wake people up and say, Rokita said the Sandy bill “did nothing to prioritize ‘Look, this is what’s driving the debt.’ Because we want to spending in light of Sandy.” put more on our social entitlement plate now, and making “So I reluctantly voted against it and would do our kids and grandkids pay for it. How is that moral?” so again under the same circumstances,” he said. “Before Some see dollar signs and danger signs. Rokita voting, I asked the same question to myself that I ask sees them in the context of morality. v before most all votes: Will this be better for the children of tomorrow? If they have to pay for this borrowed spending because those who want it refuse to pay for it with cuts elsewhere, the obvious answer is ‘no.’ Rather than add- HOWEY Politics Indiana Page 12 Weekly Briefing on Indiana Politics Thursday, Jan. 17, 2013

mayor of Strivers City – a fictional Midwest town hard hit LaPorte Mayor Milo joins by the economy and Glickman and Davis played congres- sional leaders from opposing parties. Walker played the Secretary of the Treasury and Bill Galston was Chief of Staff Huntsman, Manchin in to the President. Milo is one of five Indiana mayors age 30 or under and mentioned often as ‘one-to-watch.’ No Labels offensive “I was so honored to have been part of such a fascinating group. I never dreamed I’d get the chance By S. WADE GARRARD to perform on Broadway, let alone in my favorite subject – NEW YORK – About 1,300 citizen leaders, 10 government,” the 28-year-old Milo said. “I wasn’t sure what members of Congress, and one Hoosier mayor gathered to expect with the simulation, but I think it was a really in- on Monday in New York City’s Marriott Times Square for novative and effective way of succinctly boiling down what a national conference of the No Labels movement (www. some of the sticking points have been on a complicated nolabels.org). Their aim was not to create a third party but to encourage Democrats, Republicans and Indepen- dents to establish better relationships in order to solve problems. The group unveiled 12 of the 24 members of the 113th Congress who have committed to be- ing part of the No Labels Problem Solvers Coalition. In the absence of any other true bipartisan caucus, The Problem Solvers Coalition has met three times and will continue to meet through- out the year in order to “to build trust across the [political] aisle.” The 12 members who attended the NYC event, hailed as the Meeting to Make America Work event included: U.S. Reps. Reid Ribble (R-WI), Peter Welch (D-VT), Charlie LaPorte Mayor Blair Milo with former Agriculture Secretary Dan Glickman and U.S. Rep. Tom Davis, Dent (R-PA), Kurt Schrader R-Va. (HPI Photo by Wade Garrard) (D-OR), Scott Rigell (R-VA), Jim Himes (D-CT), Michael Grimm (R-NY), David Cicilline (D-RI), Dan Lipinski (D-IL), subject - all while still showing that there are options to Janice Hahn, (D-CA), Sen. Joe Manchin (D-VT), and Sen. move ahead.” Angus King (I-ME). The No Labels group aims to grow the Problem Mayor Blair Milo of LaPorte participated in a Solvers Coalition in Congress from 24 to 70 lawmakers, panel simulation during the afternoon program along with with former Gov. Jon Huntsman R-Utah, who ran unsuc- No Labels Co-Founder David Walker, Former Comptroller cessfully for president in 2012, and U.S. Sen. Joe Manchin, General of the United States, and former Congressmen D-W.Va. — two politicians known for bucking their parties Hon. Dan Glickman (D-TX) and Hon. Tom Davis (R-VA). In — at the helm as national No Labels Co-Chairmen (unpaid). the exercise, which attempted to demonstrate both the dif- No Labels was co-founded by Nancy Jacobson, ficulty and possibility of reaching bargains across the aisle, Evan Bayh’s long-time finance consultant and former DNC Mayor Milo played the role of an up and coming young Finance Committee Chair, and Mark McKinnon, chief media HOWEY Politics Indiana Page 13 Weekly Briefing on Indiana Politics Thursday, Jan. 17, 2013

strategist to George W. Bush and John McCain for Presi- Other reforms include bipartisan seating in commit- dent in 2010. Sen. Bayh spoke at the 2010 launch of the tees and during the State of the Union, up or down votes movement but did not attend this week’s Meeting to Make on Presidential appointments within 90 days and filibuster America Work. Former Indiana Gov. Mitch Daniels spoke reform. on one of No Labels National Tele Town Hall calls with over “Of course major reforms are needed in the area 20,000 citizens calling in mid-2011. of opening primaries, redistricting and the influence of Key elements of the movement’s Make Congress money in politics and there are other organizations who are Work reform agenda include the No Budget No Pay legisla- focused on these issues already,” No Labels founder Nancy tion which suggests that Congress must perform one of its Jacobson said. “These big issues will take decades, so No basic responsibilities of passing Labels is focused on procedural a budget and all appropriations rules and changing incentives bills or else members do not and attitudes – things that can get paid. The No Budget No be enacted immediately.” Pay bill, was introduced in the No Labels announced Senate by Dean Heller (R-NV) national partnerships with the and received 90 co-sponsors in League of Women Voters and the 112th Congress and also re- the Junior Statesman of Ameri- ceived a hearing in the Senate ca. thanks to Sen. Joe Lieberman. The conference includ- The bill was introduced in the ed speeches by Newark, N.J. House by Bill Cooper (D-TN). mayor Cory Booker, U.S. Sens. U.S. Reps. Todd Rokita (R-IN) Dean Heller (R-NV) and Angus and Congressman Stutzman (R- King (I-Me.). IN) were the only two members Special video addresses from the Hoosier delegation were shown by President Bill who signed on to co-sponsor Clinton, U.S. Sen. John McCain the bill last year. Former Utah governor and ambassador to China Jon Hunts- (R-AZ), U.S. Sen. Kelly Ayotte No Labels is also calling man (left) and U.S. Sen. Joe Manchin, D-W.V., are leading (R-NH), and U.S. Rep. Jack for Congress to get back to a the No Labels movement to get Congress to work construc- Kingston (R-GA). five-day work week. “People tively. (HPI Photo by Wade Garrard) “We have to build trust, would be outraged if they knew and you can’t build trust if that members of Congress and especially members of both you don’t have relationships,” said U.S. Rep. Charlie Dent parties don’t even know each other. It didn’t used to be (R-PA). “And what I like about No Labels Problem Solvers that way. Nowadays everyone arrives on Monday night or group is that we actually sit down and break bread and talk Tuesday morning and leaves town by Thursday and there- about things. That’s not a small thing.” v fore friendships are not developed between members and members’ families,” said Gov. Jon Huntsman. “No Labels provides a safe venue for members to come together and Indiana Committee to Fix the Debt talk about the issues.” INDIANAPOLIS - Local officials, business leaders Huntsman established a friendship with his national and concerned citizens will host a teleconference call to No Labels co-chairman, U.S. Sen. Joe Manchin (D-W.V.) officially launch the Indiana chapter of the Campaign to Fix when they were both freshmen governors in 2004. “Gover- the Debt at 2 p.m. today. Each chapter is working to call on nors and especially mayors are more capable of establish- our leaders in Washington to reach a comprehensive agree- ing friendships and working relationships across party lines ment to put America on a path of better fiscal health. The than members of Congress seem to be able to do,” Man- group is headed by Monarch Beverage CEO Phil Terry and chin said. “Somehow it has become guilt by conversation… Jim Schellinger of CSO Architects. party leaders punish members for simply going to lunch Steering committee members include Pat Kiely, with someone from the other party.” State Rep. Tim Brown, John Mutz, Mary Ann Sullivan, John “We are calling for Congress to have work Thompson and John Hammond III. three 5-day work weeks and then spend a full work week Participate in the conference call at 2 p.m. today: back home in their districts. The rest of the world has to do Call in number: (888) 285-4585 Access Code: 970906 work five days a week, we should expect Congress to do v their jobs,” Huntsman added. HOWEY Politics Indiana Page 14 Weekly Briefing on Indiana Politics Thursday, Jan. 17, 2013

direction – could Region Top 10 become the eco- nomic engine for Northwest Indi- Power List ana. Although By RICH JAMES Freeman-Wilson MERRILLVILLE – It is a new year and a non-elec- (pictured right) tion year in Indiana. never will be The Republican and Democratic parties will elect a politician’s county chairmen in March but politician, she nothing else. For the most part, controls the the politicians in Northwest Indi- precinct organi- ana will spend much of the year zation with the maneuvering for a host of races in most Democratic 2014 and 2015. votes in the It is a good time to identify region. the players in this corner of the No. 5. state. Valparaiso Mayor Jon Costas is the leader of Porter With apologies to Brian County on a number of levels, foremost of which is region- Howey, who annually names the alism. He is a supporter of the NWI Regional Development 50 most influential politicians in Authority and has been one of the few Porter County offi- Indiana, here is my list of the 10 cials to push for area regionalism. Costas continues to long most influential local elected of- for statewide office. ficials in Lake, Porter and LaPorte counties. No. 6. Lake County Commissioner Gerry No. 1. Thomas M. McDermott Jr. heads the list. Scheub has considerable clout because he represents the Not only is he the chairman of the largest chunk of Lake County, controls millions of dollars in Lake County Democratic precinct county funds and has years and years of experience. organization, he is mayor of Ham- No. 7. State Sen. Earline Rogers. This Gary mond, the largest city in Northwest Democrat has long been the voice of reason, regardless of Indiana as a result of the 2010 which party controls the Legislature. She has been particu- Census. larly effective in working with Republicans. If there is to be Besides controlling the a land-based casino in Gary, Rogers will have been the one Lake County Election Board, Mc- to negotiate the deal. Dermott, (pictured right) can have No. 8. State Sen. Ed Charbonneau and State a significant impact on who will be Rep. Ed Soliday are Valparaiso Republicans. The two candidates in local races. have considerable clout within the Republican caucus in the No. 2. Lake County Legislature and are vital to NWI, especially since the GOP Sheriff John Buncich is the heart of law enforcement has a super majority in both the House and Senate. As is and works closely with municipal departments around the the case with Democrat Rogers, Charbonneau and Soliday county. He also heads the largest office on the county level also are voices of reason. which means jobs, jobs, jobs. An endorsement by Buncich No. 9. County Commissioner Roosevelt Allen. can go a long way for local candidates. While Buncich likely The Gary Democrat and Scheub have controlled the Board could win the county chairmanship, he isn’t expected to of Commissioners for years. Outgoing Commissioner Fran- challenge McDermott. ces DuPey was the “odd man out.” Allen also sits on the No. 3. State Rep. Scott Pelath. The Michigan Gary Airport Authority Board City Democrat shot up in the power rankings when he was No. 10. State Rep. Charlie Brown, D-Gary, elected minority leader of the Indiana House, essentially authored the smoking-ban bill and remains the leading becoming the lead legislative voice for the area. Democratic voice on health care issues, a position that is No. 4. Gary Mayor Karen Freeman-Wilson. Af- taking on increasing importance. Brown, too, will play a ter a year on the job, it is clear that Freeman-Wilson wants role if a land-based casino comes to his city. v to play a role in uniting the area. With the Gary/Chicago In- ternational Airport about to reach the capability of handing James is the former editorial page editor for the any type of aircraft, the facility – under Freeman-Wilson’s Post-Tribune. HOWEY Politics Indiana Page 15 Weekly Briefing on Indiana Politics Thursday, Jan. 17, 2013

on Congress. Obama shot up to a 56 percent approval How much lower rating in the Gallup poll last week, with just 39 percent dis- approval. Is this because of great accomplishments of the president since his re-election? Or because he is seen as can Congress go? the good guy fighting the good fight against the bad guys By JACK COLWELL in Congress? SOUTH BEND - How low can Congress go? Well, Congress could sink even lower if it forces lower than a cockroach. Really. A nationwide poll last week government shut-downs or does further damage to the na- conducted by Public Policy Polling found Americans had a tion’s credit rating with games of chicken on the debt ceil- higher opinion of cockroaches than of Congress. ing. Maybe it would sink enough for Lindsey Lohan to top it But the roaches had to in popularity. She only trails Congress now by 4 percentage scurry. They were more popular points. than Congress by only 2 percent- More significantly, of course, it could help the age points. Close race. Actually president climb even higher in approval ratings after having within the margin for error. been down so close to possible defeat not so many months No contest, however, in ago. many other comparisons. Colo- Also, Christie won’t be the only Republican to lash noscopies, root canals, used car out at House Republicans. It’s politically profitable. salesmen and lice all were se- How can you lose among voters if you are seen as lected way ahead of Congress by taking on a Congress so uniformly unpopular, lower than a more than 20 percentage points. roach? OK, Congress did come The Public Policy Polling survey found every group- out more popular than meth ing in the poll joining in a dismal rating _ Republicans, labs, North Korea, gonorrhea and Democrats, Independents, men, women, all age and racial Lindsay Lohan. groups and all on the ideology scale from very liberal to While all of this provides a little humor and also very conservative. stresses the depths of the dislike for Congress, the key But lower than roaches? finding still was in the traditional question: Do you have a A poll analyst theorized: “Cockroaches are a pretty favorable or unfavorable opinion of Congress? The percent- good reason to call the exterminator but voters might ages: be even more concerned if their homes were infested by Favorable: 9 members of Congress.” Unfavorable: 85 Respondents certainly had different reasons for Not Sure: 6 their dislike of Congress. Some would find it too “tea Those percentages are in line with findings in other party.” Others, not “tea party” enough. polls. Some would put more blame on the Republican- And with Congress lower than a roach, it’s easy to controlled House. Others, on the Democratic-controlled see why a political figure such as New Jersey’s Republican Senate. But the wrangling, lack of action on important Gov. Chris Christie skyrockets in popularity after excoriating issues and insistence on going to cliff’s edge before kicking the House Republican majority and Speaker John Boehner the can down the road once more has almost everybody for failing to vote to provide assistance to areas devastated upset. by Hurricane Sandy. There were distinct differences in response to some “It’s why the American people hate Congress,” of the comparisons. said Christie. Congress came out 3 percentage points less Yes, and blasting Congress is why Christie, already favorable than Washington, D.C., political pundits, largely high in polls after working in a bipartisan way with Presi- because both the very liberal and the very conservative dent Obama in the wake of the storm, shot up to an amaz- respondents went heavily against the pundits. One side ing 73 percent job approval rating in his heavily Democratic likely was thinking of Fox News pundits; the other evaluat- state. ing those on MSNBC. Christie also has gained popularity nationally in While Genghis Khan finished better than Congress, polls and favorable publicity _ on the current cover of Time there was a gender gap. He did much better with men than magazine. with women. Here’s another poll finding no doubt involving views Colonoscopies were tied with Congress in the HOWEY Politics Indiana Page 16 Weekly Briefing on Indiana Politics Thursday, Jan. 17, 2013

18-29 age group. But all older age groups favored the procedure by wide margins, deciding as the poll analyst Colwell has covered Indiana politics over five de- theorized that colonoscopies are not terribly pleasant but at cades for the South Bend Tribune. least have some redeeming value. v

of money. Of course, they make exceptions for snow re- Plain talk about moval and a few other services. But those exceptions lead to all sorts of problems. debt and deficits Is it all right for a government to borrow money to buy snow plows that last five years and pay off the debt By MORTON J. MARCUS over time? Can government make productive investments? INDIANAPOLIS - For those of you who like to run to The answer for some people is no - - - the government the dictionary while reading this column, I apologize for the should rent the plows. In fact, they might say, the govern- simplicity and directness of the words I am going to use. ment should hire businesses to plow the streets and not be Governments get and spend money. There the in the snow plowing business itself. comparison with households and businesses ends. Govern- Why? Because government, according to these ments (federal, state, and local) have the power to tax. people, cannot be as efficient as private businesses. This is They can pass laws that require citizens to pay money to an argument, not a fact. It is this argument which powers the government. You and I and the business down the the great debates between liberals and conservatives in our block cannot require such payments. time. Governments spend money, just as we do, and they Neither side has conclusive proof to support its also give money to people who have claims. Liberals believe governments out-perform the certain needs. Thus governments may private sector in many areas because the profit motive is give money to the poor for housing or not at work and the focus is on the benefits to the public. food or medical care. Conservatives generally believe that the profit motive will Since governments are elected benefit the public by driving down costs that tend to grow by the people, it is thought that the ac- in public services. tions of the governments are approved If the public sector is a cesspool of waste, then the by the people. Unfortunately, most public debt is a danger. If, however, the private sector is a people no longer believe that Congress sinkhole of greed, private investment would be a danger or other parts of government act with to the public good. Beware of anyone who thinks either of the approval of the people. these statements is completely true. v If a government spends less than it gets in revenue (taxes and Mr. Marcus is an independent economist, writer and fees), there is a surplus. If government spends more than speaker. revenues, there is a deficit. But the books must be bal- anced. When there is a deficit, the government can borrow money; it can go into debt. If it borrows year after year, the debt becomes the sum of the yearly deficits. Government debt is popular with people who have money to invest because they believe the government will pay the interest on the debt and pay back the amount bor- rowed (the principal) when the debt is due. How much debt is too much? No one knows. When people stop being willing to invest in the government (buying its notes and bonds), interest rates will rise and we will have a clear clue how much is too much. That’s what happened in Greece. Some people get very excited about government deficits because they think government spending is a waste HOWEY Politics Indiana Page 17 Weekly Briefing on Indiana Politics Thursday, Jan. 17, 2013

Duke’s predecessor in the state, Public Service Indiana, and Power outage in Indiana the largest natural gas provider in the state, Northern In- diana Public Service Company. That happened back in the institutional memory 1980s when nuclear plants were closing down left and right after the Three Mile Island accident in Pennsylvania. By DAVE KITCHELL Somewhere, the institutional memory of this LOGANSPORT - Circuit-breakers trip every day state lost in the turnstiles of the Indianapolis Star, the for- in homes across America because too many appliances, mer Indianapolis News and dozens of other Indiana media computers, lights and televisions drain off more power than outlets that have churned out quality reporting on this power lines feeding the house can provide. issue, we were destined to repeat the mistake of our past Unfortunately, there is no circuit-breaker for power because we didn’t learn from our own history. While line companies that hemorrhage debt workers are dispatched as a matter of urgency when power when power plants in Indiana are lines are down or power is lost in every county in the built beyond the scope of necessity. state, there was no urgency on the part of any state official When the construction stops and to say to Duke, “You shouldn’t be doing this unless you’re projects are halted or power plants prepared to pay for it without making the ratepayers suffer simply become exorbitantly expen- for the inadequacy of the bidding or your oversight.” sive to build, the consumer becomes If Edwardsport had been a municipal power plant, the circuit-breaker. A case in point there would have been public bidding, public scrutiny, state is a ruling issued during the dead- oversight and more consumer control. But in Indiana’s cur- est news week of the year – that rent scenario for investor-owned utilities, the utilities have period between Christmas and New all the control until it’s too late. Meanwhile, businesses will Year’s. The Indiana Utility Regulatory suffer, heads of households will suffer as Duke will make Commission ruled that Duke Energy is its bottom line for its quarterly report. responsible for cost overruns at its new Edwardsport plant. If there is a lesson to be learned from this lat- A plant that was to have been built for slightly less than $2 est episode of the Indiana Utility Follies, it’s that the IURC billion is going to cost close to twice that. probably should have been more empowered –no pun Although the IURC ruled that Duke, the largest intended – to oversee the project. If there is another lesson investor-owned utility serving the state, would have to pick to be learned, it’s that state government, either through ac- up the majority of the tab, its customers across the state tion or inaction, should not allow the power industry in this will be making a New Year’s resolution to start paying the state to do what BP did to the gulf of Mexico and the resi- bill beginning this month. Duke has raised its rates, and if dents and businesses that depend on its water quality. If you think Duke’s customers won’t be paying part of Duke’s there is a lesson to be learned, it is that the Duke debacle share from its bottom line, I have some property in the goes beyond a move by Duke to hire away the IURC’s Scott middle of the Wabash River to sell you. Storms in a controversial move that led to disciplinary ac- The problem with this story goes beyond the fact tion at Duke and in state government. that the IURC ruled that Duke should have been more vigi- It’s time for investor-owned utilities in the state to lant in monitoring cost overruns that jacked up the cost for be required to own up to their own mistakes, and for state consumers. There is no argument that more power plants government to unplug their power to punish consumers for in Indiana are necessary, but there is plenty of argument to their own mistakes. v be made about why corporations such as Duke should not be allowed to spend beyond its means and then hand the Kitchell is an award-winning columnist based in bill to consumers. Logansport. It’s almost too American to reel off the phrase “If you don’t understand history, you’re condemned to repeat it.” The Edwardsport plant may be modern in the sense that it is a coal gasification plant, but it is old-fash- ioned in the sense of living up to the axiom in the previous sentence. Indiana has been down this road before when it comes to major power plant debacles. The Marble Hill Nuclear plant in Madison and the Bailly Nuclear Plant in northwest Indiana racked up nearly $4 billion in debt for HOWEY Politics Indiana Page 18 Weekly Briefing on Indiana Politics Thursday, Jan. 17, 2013

Eric Bradner, Evansville Courier & Press: On put restraints on local government. There are plenty of ex- Monday, Indiana traded an old governor for a new one, and amples of this. The Indiana Constitution has been amended though they are both Republicans, the differences between to limit the amount of property taxes local government can the two — and they are stark — are rooted in their per- collect, the types of income taxes that can be levied are sonal ambitions. Outgoing Gov. Mitch Daniels didn’t grow spelled out by state law, even the municipal budgets are up dreaming of running for office, and he often viewed subject to state review. Stahura’s position, on behalf of the national and state legislatures — at least those that hadn’t state association, is that state lawmakers should deal with been shaken out of their age-old routines — as impedi- state government and local officials should deal with local ments to progress. He decided to run for governor be- government. “People in Whiting, there is nobody that hesi- cause he thought important things needed to be done and tates to walk into my office or pick up the phone and come believed, or at least was convinced, that no one else would to me when they have a problem,” Stahura said. That’s not do them. Though he developed a better touch along the as easy in larger cities, but you get the idea. It’s a shorter way, he never feared personal political blowback, or even trip to City Hall than to the Statehouse, too. v losing an election, for the sake of progress. He demonstrated as much by earning the universal hatred Bonnie Erbe, Evansville Courier & Press: This is of Congress during his early-2000s years as federal budget a tale of two female politicians, one a longtime supporter director. He underscored it as governor in a first of gun rights who is now coming down on the side term that saw him infuriate northern Indiana by of more gun control. The other is also a longtime leasing its key tollway, complain that a Demo- supporter of gun rights who is still with the Na- cratic leader had “car bombed” his legislative tional Rifle Association. Former Rep. Gabrielle Gif- agenda, and drive to shift Indiana to daylight fords and husband Mark Kelly last week launched saving time no matter who hated it. To Daniels, an anti-gun violence group called Americans for being governor meant paying what he calls “the Responsible Solutions. The move came sadly on rent we owe” to the society that propelled him the second anniversary of her near-fatal shooting to great wealth and personal achievement. He only came at an Arizona shopping center. Before being shot, Giffords, to see himself as someone who could run for president to- a Democrat, was nonetheless a pretty ardent supporter of ward the end of his tenure. As a child, incoming Gov. Mike gun rights. One needs to recognize that it’s virtually impos- Pence idolized then-Congressman John F. Kennedy and sible to get elected from a gun-happy state like Arizona dreamed he’d one day be like him. After 12 years in the without supporting gun ownership. While in Congress in U.S. House, Pence often says he has “tremendous respect 2008 she opposed Washington, D.C., prohibitions on pos- for the legislative process” — and generally, he means it. session of handguns in the home as well as having usable Pence is a happy warrior. His ever-positive and unfailingly firearms in the home when she signed onto an amicus brief humble demeanor rarely changes even though his voting with the U.S. Supreme Court to support its overturn. Con- record demonstrates an unflinching conviction — “tea party servatives in Congress, who normally stand up for states’ before it was cool,” he’s said — no matter the pressure he rights, went out of their way to take over what should have is under. He’ll never be as deeply involved in policy details been local control of gun laws. Despite Giffords’ support as Daniels, but he’ll spend more time on communications. of the override of that law, gun-rights groups saw her as a He’s a “collaborator,” he said Thursday — in other words, turncoat. Nothing but absolutely fealty to unlimited access no micromanager. He’ll spend his time laying out a broad to even military-style weapons will satisfy those groups. vision and building public support for it, while trusting his She received a D-plus rating from the National Rifle Associ- aides to work state government’s levers to carry it out. v ation. Again sadly, her attempted assassination apparently at the hands of a mentally disturbed man, gave her the Doug Ross, NWI Times: Whiting Mayor Joe Stahua courage to speak out. Then there’s North Dakota’s newest is championing the Trust Local campaign for home rule that senator, Heidi Heitkamp, also a Democrat from a gun- seems to be picking up steam among Indiana municipali- happy state. Last week on ABC’s “This Week” she said of ties. It offers an opportunity for local government reform, a reported plan from the White House to pursue a ban on but are the locals willing to pay that price? The Trust Local assault weapons, universal background checks and stricter campaign is the brainchild of the Indiana Conference of penalties for giving guns to minors: “I don’t think that pro- Mayors, of which Stahura is president this year. Stahura posal necessarily fit the bill for me … I’m not a big believer said other state associations representing local government that this is a one-size-fits-all solution. We need to have a are getting on board with the idea of granting more au- balanced approach and we need to live in reality, what can tonomy to local government. Indiana political tradition is to you actually get passed.” v HOWEY Politics Indiana Page 19 Weekly Briefing on Indiana Politics Thursday, Jan. 17, 2013

ing for an expansion of Medicaid. The education progress. But some Hoosiers Gov. Pence vows state’s new governor said, though, he fear the new standards are weaker to finish U.S. 31 would consider doing so through the than those Indiana had in place health savings account-based program previously. Others who testified also INDIANAPOLIS - In what was that Indiana launched in 2007. “Any expressed concern that the standards possibly his first speech outside of the expansion of Medicaid would have to will be used to federalize education. State House after being inaugurated be fiscally responsible, and it would That’s because President Obama has as Indiana’s new Gov. Mike Pence also have to permit Indiana to ex- used Common Core as part of a major yesterday addressed the Legislative pand it in a way that reflected recent financial rewards program called Race Day Luncheon of the US 31 Coalition innovation in health care — namely, to the Top. Sen. Scott Schneider, R- at the Columbia Club in Indianapolis. our Healthy Indiana Plan,” Pence said. Indianapolis, authored the bill for the During his remarks to the large gath- His comments came as the General second straight year. It died in com- ering of elected officials, legislators, Assembly starts a four-month ses- mittee last year. He said parents and and supporters of US 31, Governor sion, and several lawmakers say they teachers no longer have any control as Pence pledged to “finish the job! We are hesitant to turn down the federal educators in both public and private are going to do our best to finish I-69 funding that would come with the schools adjust to the standards and from Indianapolis to Evansville, take health care law’s Medicaid expansion. the new testing being developed. care of the Ohio River Bridges and “Hospitals are sometimes in small “When we cede that control to some- finish the rebuilding of US 31 between communities the largest employer, one else, that voice is lost,” he said. Indianapolis and economic driver,” said Rep. Tim Brown, New Superintendent of Public Instruc- South Bend,” he R-Crawfordsville, who chairs the tion Glenda Ritz asked legislators to said. “We were budget-writing House Ways and Means put the matter through a state review honored to have Committee. “So we have to be com- process within the Indiana Department Governor Pence mitted and concerned to that.” “The of Education that would also include attend our Affordable Care Act is here and it’s public participation. She then would luncheon and here to stay,” said Rep. Charlie Brown make a recommendation to the State support the US (D-Gary.) (WISH-TV)“We need to stop Board of Education later this year. 31 Project as one of his first acts after ignoring it or running away from it being inaugurated as our new Gover- because it is there. It is the law.” “We nor,” said John Letherman, President need local control,” said Sen. Karen Papa president of of the US 31 Coalition. “His support Tallian (D-Portage,) “and participation for the US 31 Project is a huge plus in this is inevitable.” Zionsville Council for US 31 and for Indiana. Our goal of ZIONSVILLE — The Zionsville creating a free flowing freeway from Town Council gavel turned over to a South Bend to Indianapolis – without Sharp divide new hand. The council elected Jeff stop lights or curb cuts - has taken a Papa as president and Steve Mundy huge step forward with the Governor’s over Common Core as vice president (Zionsville Sentinel endorsement, “he said. INDIANAPOLIS – A divide over Times). new national education standards hit Pence: Medicaid the Indiana Senate on Wednesday, with the education panel hearing four Indiana 7th most expansion via HIP hours of testimony criticizing and supporting the measure (Kelly, Fort Pro Life state INDIANAPOLIS — The Healthy Wayne Journal Gazette). Senate Bill INDIANAPOLIS - Americans Indiana Plan must be the vehicle for 193 calls for Indiana to withdraw from United for Life announced Indiana is providing any new Medicaid cover- the Common Core standards, which the seventh most pro-life state in the age if the state opts to offer any as a were backed by former Republican country. “Our seventh place pro-life result of the federal health care law, Gov. Mitch Daniels. Indiana’s State ranking is news worth celebrating be- Gov. Mike Pence said Wednesday Board of Education voted unanimously cause it means Indiana is becoming a (Bradner, Evansville Courier & Press). in 2010 to adopt them. Common Core safer place for children in the womb,” But the two-year, $29 billion budget he was created by the nation’s governors said Mike Fichter of Indiana Right to has proposed does not include fund- as a way to accurately gauge national Life.