Politics Indiana

V14 N48 Thursday, July 31, 2008 Municipal tax revolution arrives Cities, counties grapple with caps as Zionsville & townships talk merger

By BRIAN A. HOWEY INDIANAPOLIS - With city and county budget hearings just beginning, Gov. Mitch Daniels enters one of the most fascinating and potentially explosive periods of his governorship coming about 13 weeks before he stands for re-election. With the passage of HB1001 last March, Daniels and the Indiana General As- sembly essentially threw down the gauntlet to cities and counties. This scenario, along with news today that the federal govern- ment is suspending FSSA’s automated Then candidate Greg Ballard speaking into the teeth of a property tax revolt at Monu- welfare system could impact the governor’s ment Circle in July 2007. He now faces a $20 million budget deficit. (HPI Photo by re-election bid against Democrat Jill Long Brian A. Howey) Thompson (see Horse Race, page 9). In March, Howey Politcs Indiana bypassing the organization efforts of Govs. Thomas R. compared this emerging scenario as the most profound Marshall and Paul McNutt. The Indiana Association of Cities change in Indiana government finance since Gov. Oliver P. & Towns called it an “unprecedented property tax reform.” Morton’s financial schemes of the Civil War, and perhaps See Page 3 Quayle, Bayh & veeping

By BRIAN A. HOWEY INDIANAPOLIS - As I worked the news desk at the Elkhart Truth on a Saturday night in August 1988, I penned the bold headline: “Quayle awaits GOP promotion.” When I returned to the newsroom the following Monday, the ridi- “I’m going to want somebody cule machine was in high gear. Vice President Quayle? The owner, John Dille, stopped by and ribbed who shares a vision of the me. “You must be kidding?” he said. During the Sunday sandwiched country where we need to go, in between, Quayle appeared on ABC’s “This Week with David Brinkley” at the that we’ve got to fundamentally invitation of George Will. Hooked in from Evansville, Quayle appeared on the change.” program with Bob Dole and Jack Kemp, who would all eventually be winners of - Barack Obama on his veep HOWEY Politics Indiana Page 2 Weekly Briefing on Indiana Politics Thursday, July 31, 2008 the veepstakes. In his book, “Stand- veepstakes is to be met with stony Howey Politics ing Firm,” Quayle explained, “The silence and looks like, “Why would you vice presidency isn’t an office you can even ask? Shhhhhhh. Shhsh!” Indiana campaign for. In fact, any demonstra- The Bayh folks express dis- is a nonpartisan news- tion of eagerness for it is more likely dain over all the veepstakes coverage to hurt than help.” when, in fact, if news hounds weren’t letter based in Indianapolis Quayle said he tried “as sub- asking they would be alarmed. When and published by NewsLink tley as I could to make it clear I was HPI ran a photo of Bayh looking at his both qualified and available.” He gave watch during the Obama event at Pur- Inc. It was founded in more speeches, made due, the Bayh apparatus 1994 in Fort Wayne. himself available gulped. They obviously to the press more had images of HW’s than usual, and took infamous moment when Brian A. Howey, publisher stances on the INF he was caught glancing Mark Schoeff Jr. and Mark Treaty and opposed at his watch during one Curry, Washington Democrats on man- of his debates with Bill writers datory plant closing Clinton. But if Obama legislation. had done what HW Ryan Nees, Indiana writer Quayle’s had done in 1988 and Jack E. Howey, editor decision to do the watched the tape of the Beverly Phillips, associate Brinkley show was a forum, Bayh came off ... editor “spur of the mo- superbly, or at least vice ment” decision presidentially. He passed because it violated that screen test. As for Subscriptions: his own “low-pro- his watch, he should $350 annually HPI via e-mail; file” strategy. But, take it off between now ultimately, it paid and The Announce- $550 annually HPI & HPI Daily off. Bush aide Bob ment, and if he ascends, Wire. Kimmitt showed Vice shouldn’t put it on until Call 317-254-0535. President George H.W. Bush (though November 5. There will be plenty of Howey Politics Indiana nobody used the H.W. in those days) aides to tell him what time it is. the tape of the show. “I’m sure it was These days, the Indiana po- PO Box 40265 a factor that helped to make up his litical political establishment is caught Indianapolis, IN 46240-0265. mind,” Quayle reflected. up in the Bayh moment. If Obama It’s easy to get the sense that chooses Bayh, it could dramatically Contact Us U.S. Sen. Evan Bayh had read “The transform not only the presidential www.howeypolitics.com Short List” chapter in Quayle’s book. race, but Indiana gubernatorial, Bayh laughs and says the speculation congressional and House races. Bayh [email protected] is “good for my ego.” Appearing on has had long coattails in Indiana. At Main Office: 317-202-0210. MSNBC a couple weeks ago, he kidded the end of last week, he was the hot Howey’s Mobile: 317-506-0883. with anchor Mika Brzezinski that, per- topic, with the Washington Post’s Chriz Indianapolis Fax: 317-254-0535. haps, she would win the veepstakes Cillizza placing him on the veepstakes (hmmmmm, photogenic, savvy female pole position. By Tuesday, Virginia Washington: 202-256-5822. with good national security contacts). Gov. Tim Kaine was the hot topic in Business Office: 317-254-0535. Since the May primary when the Post. Keep in mind the national ©2008, Howey Politics he helped Hillary Clinton win a nar- punditry has gotten just about every- Indiana. All rights reserved. row victory over Barack Obama here thing wrong prior to the crucial turns Photocopying, Internet forwarding, in Indiana, Bayh has played his cards of this campaign. None of them really close to the vest. He’s been somewhat have no idea what the Obamas and faxing or reproducing in any form, subterranean until he surfaced with vetters like Caroline Kennedy are really in whole or part, is a violation of Obama, Sam Nunn and other national thinking. When I asked a Bayh/Obama federal law without permission from security experts at Purdue University source if the pundits really know what the publisher. a couple weeks ago. To ask the Bayh they’re talking about, the answer was apparatus any question about the a flat “no.” HOWEY Politics Indiana Page 3 Weekly Briefing on Indiana Politics Thursday, July 31, 2008

Both Obama and McCain have kept a lid on any and out like familiar family members. knowledgable speculation. One reliable Democratic source As we all know from history, Dan and Marilyn close to Bayh told HPI on Tuesday that the decision would Quayle’s “subtle campaign” in the spring and summer of be made “within 72 hours” and announced late next week. 1988 was politics executed with finesse. The moment he If Bayh in the mix? “Absolutely.” Vetters are on the ground was ordered by James Baker to report to the Spanish Plaza in Indiana probing his past. in New Orleans, having to navigate through a sweaty With Kaine and Bayh, they have to be looking at Republican mob, in order to (surprise!) appear with HW, the Electoral College maps, where Bayh could bring in the Quayles lost control of their fate and became fodder for 11 votes from Indiana, and Kaine 13 from Virginia. The what Larry Sabato would term the “media feeding frenzy.” pundits seem to be saying that Kaine could help bring in 15 On ABC’s Good Morning America today, Quayle was now more in North Carolina. The Bayh folks could point out that said to be a possible Dancing With the Stars contestant. the Hoosier senator will translate well in the Great Ameri- Back at the Truth newsroom, the day after can Midwest, where modern elections are won and lost: in Quayle’s ascendency, I got a call from a national reporter Ohio (20), Michigan (17), and Iowa (7) with his Midwestern who literally asked, “Do you have any dirt on Dan Quayle?” roots as well as next door Kentucky (8). Bayh served two I told him that I’ve never swept the floors in the Quayle terms as governor (Kaine is in his first term) and as our house and if I had, it would have been placed in the dust- analysis pointed out last week, his Senate career has found bin of history. Bayh delving deep into Armed Services issues relating to The national press - possessing towering egos combat troop safety. matched only by the politicians - hate to be fooled and In returning to Quayle’s book, the other thing surprised. Bayh’s inclusion on the current “short list” should that jumped out at me are how the names of a generation give them all ample time to learn of the Evan Bayh story ago are still popping off the news pages. Quayle defeated (of which the HPI version was published last week). Sen. Birch Bayh in 1980, with Evan Bayh running that 1980 And, with all apologies to Ken Bode, when people campaign. Current attorney general nominee Greg Zoeller ask me if Evan Bayh will be The Chosen One, my standard could “smell it” when it came to speculation of Quayle’s as- answer is that there is a logical rationale that amply sup- cendency. Throughout the narrative, the names Dick Lugar, ports such an ascension, but to tell you the truth, how in Jill Long (who Quayle defeated in 1986), Tom Brokaw, John the hell would I know? v McCain, Sam Nunn, Diane Sawyer and Ted Kennedy flit in

Greg Ballard is facing a $26 million budget shortfall. South Municipal, from page 1 Bend is cutting 200 employees - or 15 percent of its staff - including 53 firefighters, 40 police officers and parks It estimates that local governments will face a “shortfall personel by 2010. South Bend will collect $21.3 million less, of revenues” at $524 million statewide. In Fort Wayne, according to the South Bend Tribune. Allen County commissioners have Vanderburgh County is preparing decided to no longer maintain city to slice $10 million from its $73 mil- bridges and the city is expected to lion budget. Lake County is seeking float a $30 million bond to repair to cut $15 million and instituted a 10- streets. In Kokomo, Mayor Greg day hiring freeze aimed at Surveyor Goodnight announced six layoffs George Van Til to keep him from as he begins to streamline his hiring eight new employees. budget by $2.2 million over the OMB Director Ryan Kitchell next two years. In Muncie, Mayor warns that some of the figures be- Sharon McShurley announced ing thrown around do not match up there would be no pay raises for with caps analyzed by the Legislative municipal employees and has Services Agency. “We sympathize talked of opting for a volunteer fire with the locals who are going to have department as she looks to cut $2 to make some challenging choices,” million. At Richmond, there will be Kitchell said, noting that over the last three quarters, the state has kept its no pay hikes for firefighters and Gov. Daniels with South Bend Mayor Luecke in revenue growth to less than 2 per- layoffs are a possibility. 2005. (South Bend Tribune Photo) In Indianapolis, Mayor cent. “It’s never easy and it won’t be HOWEY Politics Indiana Page 4 Weekly Briefing on Indiana Politics Thursday, July 31, 2008

this time, but local units will see more revenue growth than HB1001. “This is completely predictable.” In the governor’s we will at the state.” mind, local officials are viewing the caps through the status There’s another side of this story. Of the 51 coun- quo prism. What Daniels is attempting to do is to get them ties that have reported, the average property tax decrease to break the mold and profoundly restructure their mu- has been 38 percent, according to Kitchell. He noted that nicipalities in the ways many corporations have over the the town of Zionsville and two adjoining townships, Eagle past several decades. The Kernan-Shepard Commission’s and Union, are now in talks to combine into one municipal- 27 recommendations provide a blueprint that he hopes will ity. “I’m not sure a town and two townships have done this collapse some of Indiana’s 2,600 taxing districts and almost before,” Kitchell told 12,000 elected of- HPI Wednesday. “This ficials. has spurred some “I do think we new creativity.” Two have not yet more township fire seen the neces- departments are now sary transition talking about merging of mindset from with the Indianapolis business as usual Fire Department in to a more taxpayer Marion County after friendly world,” two did so last year. Daniels said. “By Kitchell said those transitions, the Daniels admin- I mean we have istration is working to fit spending to with the IACT and what the taxpayer the Association of can afford. The Indiana Counties to question can no relay “good ideas and longer be what the get them spread to government wants other places. You can to spend and then go to any part of the divide up the bill of state and see these what the taxpayer discussions starting. can reasonably be Muncie Mayor Sharon McShurley shakes hands with Gov. Daniels after his Republi- Units are finding ways expected to pay. If can nomination acceptance speech in June. Due to the governor’s cap and cut tax to work together.” He we can establish reforms, McShurley and the Muncie City Council are cutting and talking merger. (HPI is particularly eager true protection Photo by Brian A. Howey) to see how the county for taxpayers and councils’ non-binding force government review of all non-school taxing will “facilitate these various to adjust to taxpayer affordability and not the other way units working together.” In Clark County, the schools, cities around, I think it is very likely that many people will exam- and county governments are meeting to look at “wholistic” ine options that they would otherwise never look at.” ways of combined purchasing. Gov. Daniels is not the only one talking about Kokomo property owners will see 50 percent consolidation. Former Gov. Joe Kernan told the Indianapolis reductions in their tax bills. In Fort Wayne, most taxpay- Star, “In many communities across the state, there is a cri- ers will see reductions in their property tax bills of 23 to 29 sis that will become more acute over the course of the next percent, according to the Fort Wayne Journal Gazette. Not couple of years, and change is going to be required, This is only did Daniels hail it as a “tax cut,” it is literally the stick one way for local governments to be able to address some portion coming before the carrot. During the previous two of the shortfalls they otherwise are going to experience.” years, Daniels warned city and county officials to “reform The governor’s response in the coming weeks yourselves” before the state does it for them. will be that he is watching out for the taxpayer. Cities, Well, the state did it for them last March with counties and townships need to look at their duplications HB1001. and collapse their units into those that correspond with Few municipalities heeded the warning. “I’m the caps. Or as Daniels put it, “When someone says, ‘Our not spending too much time pouring over the fine points of community will lose a million dollars,’ I always politely say the rhetoric” he said of local officials who warned of police taxpayers will keep a million dollars. The community still and fire layoffs as the Indiana General Assembly pondered has money. It’s in peoples’ pockets.” HOWEY Politics Indiana Page 5 Weekly Briefing on Indiana Politics Thursday, July 31, 2008

South Bend Mayor Stephen Luecke said that by the time cities and counties cut budgets, in the end it will sim- ply be a staff shift. “No aspect of city government will es- cape the pain of reduced revenue as a result of the state’s tax shifts,” Luecke said at a South Bend Council meeting Wednesday night (South Bend Tribune). Exacerbating this scenario are the surging gasoline prices, on top of higher health insurance costs, that would have stretched some city budgets thin without the HB1001 caps. Kitchell said the state is on the verge of setting up bulk purchasing that local units of government can join to save money. Jill Long Thompson, who ducked the tax cri- sis/tax reform debates that raged from July 2007 through March 2008 when HB1001 passed, said at a Statehouse press conference on Wednesday, “I think that 1001 was the best compromise that Speaker Bauer could have gotten. It was important to get signed into law some kind of tax relief Jill Long Thompson and runningmate Dennie Oxley II answer ques- for homeowners. But as a member of Congress, I never tions after presenting the campaign’s most detailed policy initiative once voted to raise taxes, and I’m bothered by the fact that on green jobs Wednesday afternoon. (HPI Photo by Ryan Nees) it does raise the sales tax, and that impacts families that can least afford to pay. It falls way short of the overall tax reform of our structure that is needed. And local govern- ments are hurting and local schools as a result.” Thompson never Thompson pushed for reform of the “overall tax structure.” She explained, “Our tax structure is designed caught the jobs irony for a 19th century economy and we’re in the 21st century. I think you have way too many funding streams for some By RYAN NEES programs, it’s too complex, and I think we should be more INDIANAPOLIS - At a Wednesday presser in the strategic with our tax policy.” basement of the Statehouse, Jill Thompson and running Kitchell responded, “We think early indications are mate Dennie Oxley II announced a series of proposals to that was a great bill for taxpayers. The assessor transition create “green jobs” in the state. By directing tens of mil- has gone well. We’re very encouraged we’re going to get lions of dollars to environment research grants and millions higher quality assessments. I’m not sure which part she more in tax incentives for renewable thought is a problem.” energy companies, Thompson esti- As for Daniels’ ultimate goal, which is to get mated her administration could create cities and counties to do what Delaware County and Muncie some 30,000 new jobs in the solar and are beginning to do by consolidating redundant functions, wind industries. Thompson has come out against all but one of the Kernan- Thompson isn’t announcing any Shepard 27 recommendations. She supports the recom- new spending on the environmental mendation that only elected officials should be able to raise economic development initiatives, taxes. though she calls them “sweeping”; During the HB1001 debate, Hammond Fire Chief the state is far too strapped for that. Dave Hamm warned “there will be deaths” due to first re- Instead, as House Speaker Pat Bauer sponder layoffs in cities. Daniels told HPI in March, “Public conspicuously withholds his public support, Thompson is safety ought to be the very last place that Hammond looks sticking by her proposal to spend down the state’s budget as opposed to the first place. Another entirely predictable surplus on a suspension of the state’s sales tax on gasoline instinct of government is to threaten the least responsible - a move that would cost the state $120 million annually. changes to cut first. I would expect there will be a period And make the state more dependent on oil. of adjustment of governments which avoid looking at We’ll need those green jobs. cooperation, consolidations, elimination of overhead and Thompson’s proposal has emerged from a cam- spending and trimming expenses. Politicians will have the paign that has been relatively issues-light, or, in this case, instincts to protect their own jobs even if it means they issues-confused. And this week she continued to blast have to threaten somebody else’s.” v House Bill 1001, the legislation that bipartisan majorities in Page 6 Thursday, July 31, 2008

both the House and Senate passed last winter to cap prop- boilerplate. erty tax bills. “I think that 1001 was the best compromise The green jobs proposal is about as modest. It that Speaker Bauer could have gotten,” she said Wednes- draws on the campaign’s seemingly contrived economic day. “It was important to get signed into law some kind of development plan that proposes to divide the state into tax relief for homeowners. But as a member of Congress, three sections, “[categorizing] the state’s 92 counties into I never once voted to raise taxes, and I’m bothered by three different economic tiers based on a variety of factors the fact that it does raise the sales tax, and that impacts and then allocate different tax incentives as a way to cre- families that can least afford to pay. It falls way short of the ate jobs all across the state, focusing on areas in greatest overall tax reform of our structure that is needed. And local need of economic revitalization.” It shuttles state incentives governments and local schools are hurting as a result.” not to where companies want to build, but to counties that She told the Greene County Daily World that satisfy a need-based formula including unemployment rate, the bill was “another example of Gov. Daniels pushing state median household income, population growth and assessed problems onto local governments.” property value per capita. Thompson announced that if “I want to completely reform the tax structure, “green” companies - what a green job is, she admits, which will also include funding streams for local as well as she hasn’t defined - decided to build in counties with the state programs. We need reform of the overall tax struc- requisite tier designation, they could receive additional tax ture,” she said. breaks. Last winter she and her Democratic primary op- Thompson’s other proposals include reducing ponent Jim Schellinger took a pass as the governor and school testing requirements, but not by modifying the General Assembly worked to overhaul Indiana’s taxing state’s ISTEP testing. Instead, according to campaign structure, ultimately instituting Daniels-proposed property manager Travis Lowe, Thompson will exercise “regional tax caps with Oxley’s help in the House. Thompson said at and national leadership” to reform the federal No Child Left the time that Daniels’ “property tax plan is nothing more Behind law - a hollow proposal far more concerned with than a well-orchestrated shell game designed to shift the politics than policy. Others are as gauzy as her pledge to blame and the burden of collecting taxes to local govern- “work to encourage Indiana businesses to hire returning ment - not to reduce property taxes or government spend- [military] service personnel.” ing.” Not only did she misstate Daniels’ proposals - which A government reform initiative calls for a fundamentally come down to shifting taxing authority away “sweeping” overhaul of campaign finance in Indiana, from local government, even eliminating facets of it - but proposing that the political campaign contributions of she offered no alternative proposal of her own. limited liability companies be capped at $5,000 annually. Complete reform, of course, is something of a Last quarter, Gov. Daniels’ campaign took in $115,442.33 Thompson euphemism for no reform at all. from LLCs, compared to the $31,970 Thompson’s campaign Asked what she meant by the phrase, Thompson received. Thompson’s plan makes no mention of contri- told HPI simply, “I think that the overall tax structure needs butions from labor unions, despite - or perhaps because to be reformed. I think our tax structure is designed for of - the $700,000 she received from a single source, the a 19th Century economy and we’re in the 21st Century. I Service Employees International Union, last quarter. think you have way too many funding streams for some At the green jobs press conference, Thompson programs, it’s too complex, and I think we should be more continued to emphasize her reliance on incentives. “These strategic with our tax policy.” are not just goals,” she said. “This is a clear plan of action.” Her platform doesn’t invoke the phrase “prop- Thompson communications director Jeff Harris said erty taxes,” and it only hints at tax reform are a series of the state “needs to be smarter about how we spend tax modest tax incentive proposals. She would offer incentives dollars. If we can reprioritize some of the existing assets, - itself a vague term - “to businesses that provide health both of these proposals focus on helping individual working care coverage to their employees, [improve] efficiency by families and their bottom lines.” acquiring new technology . . . [or reduce] their impact on But none of this smacks of the kind of big ideas the environment.” And she would offer more tax deductions needed to truly transform Indiana’s economy. Half of the for individuals to offset the cost of healthcare and continu- 21st Century Research & Technology Fund will be diverted ing education. to fund the green proposal, sapping $18 million primarily Thompson often points to her MBA and Ph.D. in from the state’s burgeoning life sciences industry. business, saying in her convention video that after graduat- All of this to pay for a gas tax suspension univer- ing from Indiana University, she thought to herself, “I think sally panned as hyper populist, gimmicky, and economically I understand economics better than a lot of politicians.” empty? Even Thompson’s occasionally meaningful propos- But Thompson’s tax policy - the one of “complete reform” als have a way of being stained by the meaningless political - ends, depressingly, right there, with standard Democratic ones. v HOWEY Politics Indiana Page 7 Weekly Briefing on Indiana Politics Thursday, July 31, 2008

Islam costume), not about the revealing written portrait of Missing elements of an ambitious young pol on the climb. Lizza’s contribution (“Making It: How Chicago Shaped Obama”) is a detailed peek behind the historical leadership: Obama & curtain, revealing how a young Harvard law graduate with a funny name and no local ties boldly moved to Chicago the New York elites and quickly scaled the tricky ladder of Illinois politics. How adept Obama was at embracing Chicago’s established By KEVIN SHAW KELLEMS political order, expertly leveraging the ultimate old school politics environment, without being consumed by it. How CANAAN, Ind. - The venerable New Yorker Maga- careful Obama was to keep his machine-style tactics behind zine made a mistake recently - a big mistake – in market- the curtain. And how confident Obama was of his own ing its exceptional piece about Barack Obama’s rapid rise greatness, from the start. through the landmine-laden terrain of Illinois politics. The New York Times July 22 contribution carried New Yorker editors inadvertently diverted atten- the header: “For Obama, a First Step Is Not a Misstep,” tion from their and included such commentary as: “The Iraqi government own informa- on Monday left little doubt that it favors a withdrawal plan tive reporting for American combat troops similar to what Senator Barack on Sen. Obama Obama has proposed, providing Mr. Obama with a poten- by publishing a tially powerful political boost”. Obama seemed to have sophomoric and navigated one of the riskiest portions of a weeklong inter- indefensible national trip without a noticeable hitch and to have gained political cartoon a new opportunity to blunt attacks on his national security on the July 21 credentials.” cover. The New Never mind that the potential for a gradual and York Times also calibrated reduction of forces (as opposed to Obama’s made a mis- previously preferred withdrawal by date certain) may now take in editorial judgment last week, in its race to vindicate be possible precisely because the stay-and-fight surge he Obama’s Iraq stance(s), in space no less valuable than the opposed turned out to be the right policy. This is the policy top of its front page - real estate traditionally reserved for that was steadfastly supported by his opponent, Sen. Mc- premiere “news” offerings of the day. Cain, as well as promoted and executed by Gen. Petraeus One could say that the New Yorker erred to the (his helicopter seatmate in the ironic Army photo at the right (figuratively); the Times to the left (literally), of top of the Times’ front page, the second front page color course. Obama photo in two days). Combined, the two elite publications captured the Never mind that the yardstick for measuring a state of play during a critical juncture in the presidential potential U.S. commander-in-chief’s credentials is how he campaign on two key elements: Obama’s ever-evolving or she would protect America’s long-term security interests, Iraq “policy” and the mainstream media’s embarrassing not their compatibility with the latest statement of an Iraqi infatuation with the very junior senator from Chicago. official who must navigate the ever-shifting Iraqi political The Times chose not to use its top space on July currents. 22 to provide straight, factual coverage of his trip or a Never mind that an essential element of presiden- balanced article about results of the surge and the way tial leadership is the kind of political courage and personal ahead - the what next of policy execution on the ground backbone required to keep national security policy a notch in Iraq. Instead, their endorsement of Sen. Obama came above the ebb and flow of domestic opinion and political in the form of a “news analysis” above the fold on Page 1, discourse that surrounds most domestic issues. immediately below a 4-column color photo of the senator flying over Baghdad with an architect of the surge, U.S. Army Gen. David H. Petraeus. Two impressive generals The New Yorker’s editorial leadership made a In a July, 2003 Defense Department trip through- strategic error with dubious placement of a satiric cartoon out Iraq, two generals impressed me: David Petraeus, who on the magazine’s cover which distracted attention from its at that time was in charge of the north, including the multi- content: specifically the expert reporting and accessible ethnic linchpin of Mosul; and Ray Odierno, the Mr. Clean- writing of Ryan Lizza. The talk of the town was all about meets-Telly Savalas alpha general toiling to keep a lid on the cover art (a drawing of the Obamas in full militant the boiling Sunni heartland, including Saddam’s hometown HOWEY Politics Indiana Page 8 Weekly Briefing on Indiana Politics Thursday, July 31, 2008

of Tikrit, as commander of the U.S. 4th Infantry Division. Stripping the presidency What set these two apart was their level of cul- If layers of pomp and bureaucracy are stripped tural awareness and their relentless focus on results on the away from the presidency, at its core are a few fundamen- ground. It was clear they knew what was going on in their tal responsibilities. Making sound judicial nominations to slice of Iraqi society. They also were not afraid to speak the federal bench is among them. Serving as commander- up, appropriately, to their superiors when traditional tactics in-chief, entrusted with the longevity of the republic and weren’t working. security of her people, is the most fundamental. Petraeus and Odierno proved themselves to be In the U.S. Senate and as a presidential candidate, tough, focused and highly intelligent soldiers-turned-lead- Barack Obama opposed the surge when it was popular to ers who understood that communication with their Iraqi do so; but he made clear on his recent European tour that publics and simple efforts to make modest improvements he is now attempting to occupy both sides of the debate, in basic quality of life on the street were essential elements one foot gingerly placed in each camp (not firmly plant- of coalition military success. They ed...) also understood the imperative of According to Ryan Lizza, Penny force; they asked for more troops Pritzker, of the wealthy, Hyatt Hotel- and for more patient resolve from owning Chicago family, told freshman all U.S. officials, in both parties. Sen. Obama in 2006: “As I see it, the White House and Penta- two things that you’re going to need to gon leadership recognized and address are your executive leadership rewarded this talent in the field, skills, because your resume doesn’t even though Petraeus’ and Odier- have that in it, and the second would no’s views sometimes cut against be your credentials in national secu- the grain of convention when they rity.” pushed for fresh thinking and Petraeus and Odierno (as well as revised tactics; Petraeus and Odi- former Joint Chiefs Chairman Peter erno have been promoted twice to Pace and all who have served in the field) are heroes for positions where they could impact, first, the entire theater helping us fight our way out of a suicidal corner clinch of operations, and soon, the entire region. where we had become boxed in by a combination of policy missteps and historical fate. We had become vulnerable to Highly focused Obama our enemy’s tenacity and the asymetricalism of their nihilis- After extensive research and dozens of interviews, tic suicide tactics. The count was winding down. The New Yorker’s Lizza concluded that the Chicago-era In the first open election after September 11, 2001, Obama was highly focused on himself, his image, and on American voters should consider carefully the resumes and networking with politically powerful machine operatives and resolve of the two presidential nominees, particularly in wealthy potential donors. time of war. Lizza: “Obama seems to have been meticulous As the New Yorker piece expertly revealed, Barack about constructing a political identity for himself ... (he) Obama has proven himself to be a nimble politician with has always had a healthy understanding of the reaction he burning ambition, enormous self-confidence and a tre- elicits in others.” mendous oratorical gift. So far, Obama has seized every “Even then (1990), the essential elements of opportunity before him, and created several more at key Obama-mania were present: the fascination with his junctures in his short career. early life, the adulatory quotes from friends who thought Sen. Obama may eventually get a chance to test that he would be President one day, and Obama’s frank, whether he has the right stuff to be a leader, or even a though sometimes ostentatious, capacity for self-reflection. “stand-in for a lot of” change. But first he has to stand (‘To some extent, I’m a symbolic stand-in for a lot of the for something and be willing to explain and defend it. He changes that have been made,’ he told the Boston Globe in must demonstrate a leader’s ability to adapt appropriately 1990.’)” to changing circumstances while remaining loyal to core “He campaigns on reforming a broken political pro- principles and early supporters. cess,” Lizza writes, “yet he has always played politics by the Remarkable talent for adapting expediently to meet rules as they exist, not as he would like them to exist. He the electoral needs of the moment is not enough. v runs as an outsider, but he has succeeded by mastering the Kevin Kellems served in the Office of the Vice Presi- inside game.” dent and the Office of the Secretary of Defense from 2001-2005. HOWEY Politics Indiana Page 9 Weekly Briefing on Indiana Politics Thursday, July 31, 2008 2008 Indiana Governor the federal standard. He also said Indiana’s timetable for Governor 2008: Republican: Gov. Mitch Daniels, rolling out the changes already was pushed back because .Democrat: Jill Long Thompson. 1996 Results: O’Bannon of recent flooding. “We have a corrective action plan that (D) 1,075,342, Goldsmith (R) 997,505, Dillon (L) 35,261. we are putting together with FNS,” he said, referring to 2000 Results: O’Bannon (D) 1,230,345, McIntosh (R) the Food and Nutrition Service. Holden’s letter to Roob 906,492, Horning (L) 38,686. 2004 Results: Daniels (R) was dated June 23, the same day Roob said the state was 1,302,912, Kernan (D) 1,113,900, Gividen (L) 31,644. delaying further rollouts of welfare changes in order to 2008 Forecast: Heading into this week, things were shift staff to help victims of floods that inundated Southern looking rosy for Daniels. A Indiana earlier that month. new internal poll showed Thompson seized the opening, releasing a state- him with an 18-percent ment after her Wednesday press conferences in Fort Wayne lead. A spate of editorials and Indianapolis, stating, “This shocking news is just the praised him over the S&P latest installment in this administration’s failure of leader- bond rating and the BMV ship,” Thompson said of the federal shutdown order that turnaround. Thompson’s came on June 23 but just picked up by the news media organized labor base was today. “The Governor’s rush to make a profit and privatize in an uproar over which Indiana’s services has once again caused harm to Indiana’s one might represent state most vulnerable citizens. In a time of record high un- employees if she were to reinstate collective bargaining. employment, health care costs, home foreclosures, and Then came today, with the news that the federal govern- personal bankruptcies this further demonstrates how out ment has halted the FSSA’s automated assistance program. of touch this Governor is to the needs and concerns of the It gave Thompson just the opening she needs, when she Hoosiers he has left behind.” needs it. And it will provide fodder for TV ads this fall as The FSSA privatization that included a 10-year, she tries to convince Hoosiers that privatization is a bad $1.6 billion contract with IBM Corp. and Affiliated Computer thing. She will point out that a similar program by the same Services was a major cog in the Daniels Administration’s companies failed in Texas and FSSA Commissioner Mitch priviatization program. Coming with the jobless rate surging Roob’s financial ties kept it going as a number of Demo- to 5.8 percent and less than 100 days before the Novem- cratic blogs consistently pointed out in 2007. ber election, the news will be damaging to the governor’s The Food and Nutrition Service of the U.S. De- re-election bid. Critics note that a similar program in Texas partment of Agriculture sent a letter to FSSA on June 23 had been suspended. State data shows that foodstamp ordering the state to delay further welfare changes until it disbursements dropped from 67,370 to 59,617 despite the improves the timeliness in processing applications (Kus- increase in the unemployment rate. mer, Associated Press). “Indiana’s most recent monthly “As I have traveled Indiana over the recent months reports indicate a decline in the timeliness of application I have heard from many people about the problems they processing that has occurred in the pilot region since the have encountered with this system,” Thompson said. “The transition to the modernized service delivery model,” said Governor and his administration have heard these same the letter from Ollice Holden, Food and concerns yet apparently did Nutrition Service regional administrator, not care enough to act. The to Roob. “Indiana’s statewide applica- fact that it took the federal tion processing rate also continues to government to come in and be a concern,” the letter said. Roob’s shut down this program is agency piloted the welfare changes further evidence of how this in a 12-county region of north-central Governor’s has disregarded Indiana on Oct. 29 and expanded it to his responsibilities. It is an 27 southern and western counties on embarrassment - and the March 24. It reached 20 more coun- people of Indiana deserve ties in northeastern and southwestern better.” What really could Indiana in May. Roob said the state sting the Daniels re-elect is follows a 60-day standard for approving that this news came on June food-stamp applications rather than the 23 and it took almost five 30-day standard followed by the federal weeks to surface ... and five FSSA Commissioner Mitch Roob’s FSSA privatization government and most states, but he weeks closer to the elec- problems could pose a big political problem, (HPI Photo said his agency would work to meet tion. Thompson will have a by Brian A. HJowey) field day pointing out that HOWEY Politics Indiana Page 10 Weekly Briefing on Indiana Politics Thursday, July 31, 2008 Roob tried to mask a halt in the rollout of the program by dose of $250 million in federal aid, thrown into the bud- saying it was due to the June floods. get gap, already had been expended. The state also had The internal poll conducted forDaniels shows dipped into Teachers Retirement Fund reserves, pulling he has an 18 percent lead. TargetPoint Consulting has out $380 million to meet current obligations. Yet, despite just completed the most extensive voter opinion survey running through maneuvers that bordered on desperation, ever conducted for the Mitch for Governor campaign, the the state still faced a budget shortfall of more than $800 campaign said in an e-mail to supporters. The poll, con- million. Analysts also were pessimistic about the state’s ducted from July 13-22, found Gov. Daniels leading 53-35 ability to grow its way out of the budget mess because of percent in the head to head match-up. This is an increase an old-school economy, dependent on a traditional manu- over the June Bellwether survey where Daniels enjoyed a facturing sector long in decline. The fiscal climate of four statewide favorable rating of 57 percent and led the head years ago needs to be kept in mind when assessing the sig- to head matchup 50-36 percent. Governor Daniels enjoys nificance of Standard & Poor’s decision this week to award significant support from Democrats, independents, Afri- a first-ever AAA bond rating to Indiana. Yes, the savings to can Americans, women, and first time voters. The polling taxpayers that will come with the higher rating -- including indicates that Jill Long Thompson continues to lose ground $850,000 a year on Lucas Oil Stadium and the convention in Northern Indiana where people know her from her many center expansion -- are worth celebrating. But perhaps campaigns for Washington D.C. offices. In addition, she even more important is the fact that a respected inde- is still relatively unknown in Southern Indiana. “With only pendent firm has validated several difficult, controversial 99 days until the election, we learned today that Jill Long decisions that Gov. Mitch Daniels and the General Assembly Thompson’s first ad of the general election campaign will made to bring Indiana’s budget back into balance.” begin tomorrow and will include a negative attack against Richmond Palladium-Item: “...the Indiana BMV Gov. Daniels,” the e-mail said. “This is not surprising given has gone from one of state government’s consistently worst her desperate position and long history of negative cam- and most despised performers to recipient of the 2008 paigning.” Customer Service Excellence Award from the American Add New York to the list of states with Democratic Association of Motor Vehicle Administrators. The award is governors who are facing huge budget decicits and are presented to the state agency that most improves the qual- now considering privatizing tollways, tunnels and bridges. ity, convenience and accessibility of motor vehicle services. Gov. David Paterson is calling the New York legislature South Bend Tribune: “At the end of 2007, we into special session next month and cited “private-public praised the Indiana Bureau of Motor Vehicles for getting partnerships” as a solution for what the New York Post customer service wait times down from 28 minutes just describes as an “economic calamity.” While Thompson about a year earlier to only 11 minutes. It was a remark- unveiled her first TV ad of the fall campaign this week that able achievement. And now? The BMV just knocked two got good press, Daniels is running another of his headline more minutes off the wait time average. It’s less than 9 ads over a map that shows Indiana as one of the only Mid- minutes. western states with a budget surplus. Fort Wayne Journal Gazette: “The BMV Then there were the editorial pages, which up until used to be the epitome of government bureaucracy at today would have made a great week for the re-elect: its worst, but now the state agency is winning awards and Evansville Courier & Press: “When Daniels getting rave reviews from its customers. Stiver is right to came into office, state government was facing a $600 mil- congratulate his employees on a job well done, but he is lion deficit that was showing no sign of dissolving on its also right when he reminds them that the job is not done.” own. Almost immediately, Daniels started pushing hard for Gov. Daniels has accepted a three-debate format caps on spending, especially for local government and state from the Indiana Debate Commission, though Thompson assistance to local government. It was not well-received by had pushed for up to seven debates. local government, particularly school systems that received We’re leaving this race in the same status as last smaller than expected state payments. But Indiana ended week. But there are chinks developing that could hurt the the next fiscal year with a balanced budget, and has since governor with the Hoosier Lottery scratch off snafu, the repaid most of the back payments owed by the state to rise in the cost of the Lucas Oil Stadium from $675 million schools. Just last week, the state reported that it ended the to possibly $720 million (a danger we pointed out in 2005 last fiscal year with a $321 million surplus.” when the Daniels administration wrested control of the Indianapolis Star: “State legislators and then- project away from the Peterson administration), a federal Gov. Joe Kernan had churned through nearly every budget highway report that revealed INDOT has only worked on gimmick at their disposal by the fall of 2004. Payments to one of 20 deficient bridges, and now the FSSA automated public schools, universities and local governments -- $715 welfare program situation. Democrats are awaiting word on million worth -- had been delayed indefinitely. A one-time whether Evan Bayh joins the ticket, and all indicators are HOWEY Politics Indiana Page 11 Weekly Briefing on Indiana Politics Thursday, July 10, 2008

that he is under serious, serious consid- Indiana House Horse Race eration. If Thompson can emerge from the IDEA convention at French Lick this Democrats Republicans weekend with a resolution to her labor 51 49 problems, it could give her a thrust. Dan- iels told WTHR-TV on Wednesday that he Tossups expects a series of job announcements HD26 (Open) Polles vs. Truitt HD15 Lehe vs. Sutton coming in the next couple weeks. Daniels HD63 (Open) Messmer vs. Burger HD31 Harris vs. Pearson will also make a major policy rollout at HD52 (Open)Yarde vs. Papai the downtown Indianapolis Rotary Club HD89 (Open) Swatts vs. Barnes on Tuesday. Status: Leans Daniels HD97 Elrod vs. Sullivan

Leans Congressional HD5 Fry vs. Miller HD20 Dermody vs. Cooley HD17 Demobowski vs. MacKillop HD48 Neese vs. Hardy 3RD CD: Republican: U.S. Rep. HD 46 Tincher vs. Heaton HD35 Lutz vs. Mengelt Mark Souder. Democrat: Michael Mon- HD62 Blanton vs. Tarr HD44 Thomas vs. Michael tagano. 2008 Outlook: Montagano HD4 Soliday vs. Chubb impressed the Democratic Congres- sional Campaign Committee enough to Likely put Indiana’s 3rd District on its list of HD36 Austin vs. Burrows HD38 Clements vs. Snow “emerging” races to watch. Souder is HD68 Bischolff vs. McMillin HD92 Hinkle vs. DeKemper quick to point out that his 2006 oppo- HD69 Cheatham vs. Coates nent, longtime Fort Wayne City Council- HD37 Reske vs. Gaskill member Thomas Hayhurst, was also on HD70 Robertson vs. Hunt the DCCC’s emerging races list and lost by 8 points. But both Montagano and Safe Souder acknowledge that what’s dif- Democrats: Lawson, Harris, C. Brown, Bauer, Niezgodski, Dvorak, Pelath, ferent this year is that the presumptive Stevenson, Reardon, Dobis, V. Smith, VanDenburgh, Bardon, Klinker, Her- Democratic presidential nominee, Sen. rell, Tyler, Grubb, Kersey, Pflum, Pierce, Welch, Battles, Goodin, Stemler, Barack Obama (Ill.), is playing in Indiana Cochran, Oxley, Stilwell, Avery, Van Haaften, Riecken (Open), GiaQuinta, and the district’s former congresswoman, Moses, DeLaney (Open), Pryor (Open), Bartlett, Porter, Crawford, Sum- Jill Long Thompson, is the Democratic mers, Day. nominee in a competitive gubernatorial race. Montagano said his internal polling Republicans: Wolkins, Walorski, Ruppel, Friend, McClain, J. Thompson, shows Long Thompson well ahead of Richardson, Turner, Davis, Torr, Steuerwald, T. Brown, Borders, Foley, Gov. Mitch Daniels (R) in the 3rd dis- Culver (Open), Leonard, Dodge, Cherry, Saunders, Knollman, Eberhart, trict. The northeastern Indiana district Burton, M.Smith, Koch, Duncan, Crouch, Lehman (Open), Espich, Bell, was also one of only two districts in the Pond, Noe, Bosma, Murphy, Behning, Frizzell. v state that Obama won over Sen. Hillary Rodham Clinton in the May 6 Democratic presidential primary. Status: Leans Souder 9TH CD: Demo- crat: U.S. Rep. Baron Hill. Republican: Mike Sodrel. Libertarian: Eric Schans- berg. 2008 Outlook: The Rothenberg Political Re- port has moved this race into a “Democrat Favored” category. Status: Leans Hill v Page 12 Thursday, July 31, 2008

probably vaulted a political unknown named Greg Ballard Gov race ‘softball’ into the mayoralship of one of the most progressive cities in the United States. Daniels could come back with tax By DAVID KITCHELL reform and his claim that taxes have not been raised, even LOGANSPORT - It says something about an Indiana though the sales tax is higher for everyone in Indiana and governor’s race when the fact that the challenger is running property taxes are higher for many. a campaign commercial is front-page news. That happened Thompson could roll out footage of her driving a this week when Jill Long Thompson aired her first televised tractor, and she already has that footage on her Web site. salvo, and Gov. Mitch Daniels’ camp predictably responded Daniels could answer with footage of biofuels being devel- calling it a negative ad. oped throughout the state, as they are in other states. This has not been your typical Indiana governor’s Thompson could argue that Indiana needs race. First, you have to consider that both candidates have clean fuels and power plants, and that one environmental political backgrounds that feature more time in Washing- organization ranks several Indiana power plants among the ton, D.C., than places like Washington, Ind. Then, you worst polluters in the nation. Daniels could shirk that off by factor in the first female major party claiming his support of the FutureGen zero emissions plant candidate in Thompson. Now add across the border in Illinois will make the region one of the an incumbent governor who has most progressive in the next 20 years. already run a campaign commercial Thompson could claim the wages in Indiana have with no words, at least not spoken. not made remarkable progress since Daniels took office, His boilerplate ad touts bold-lettered and Daniels could point to a new auto plant in Greensburg benchmarks he wants to promote as an exception. during his first term. It’s a clever but But we’re just not seeing this kind of repartee from coy way of saying his record speaks the candidates, and that’s unfortunate for voters. What we for itself. At no point, do we see the are seeing is a boxing match where the bell has rung and words “controversial toll road deal,” both boxers are still in their corners, a foot from their stools “time zone debacle” or “privatiza- ready to make a charge, but waiting as long as possible. tion controversy.” What we do hear Right now, they’re only shadowboxing, hoping to win by is background music that would be more appropriate for a decision after the final bell. documentary about the America’s Cup yacht race. That’s why the Indiana Debate Commission should Mind you, Daniels is not, as former New York Gov. give Chris Mathews a call. His moderation of a debate with Mario Cuomo described Indiana’s Dan Quayle, the Cabin Daniels, Thompson and Libertarian Andrew Horning would Boy on the Titanic. Yet the economic times suggest that liven up what has otherwise been a very low-key governor’s Daniels has been more of a tugboat captain, ferrying big is- race, even by Indiana standards. sues between open seas and port, and the seas have been The only place this election is really being rough. waged is on bumpers. The “My Man Mitch” stickers are Daniels last week drew praise in an Indianapolis not as prevalent as they were four years ago, but there Star editorial for a high bond rating for Indiana. Yet, a high are various Democratic responses in the same green-and- bond rating in government is akin to having a good driving white color scheme: “Ditch Mitch”, “Not My Man” and the record if you’re applying for a CDL. It won’t get you rich, new favorite, “Privatize The Son-Of-A-Mitch.”. but it may get you hired. Whether a bond rating will get The real sticker undecided Hoosier voters could Daniels’ rehired is the question in a campaign that won’t be putting on their bumpers is “Switch Mitch?” For now, make it to Chris Mathews’ “Hardball” show on MSNBC. If the bumpers of undecided voters will look like they do any anything, this campaign would qualify as a reality show other year, even if the campaign for Indiana governor does called “Softball,” which also is a sport probably played more not. than baseball in Indiana anyway. What could change this political climate is fatigue Had this been an actual, issue-based campaign, with the presidential race. If John McCain and Barack we might have heard Thompson point out in her initial ad Obama are as close in October in polls as they are right that Indiana’s personal income growth ranked in the bot- now, the governor’s race may be off the radar screen, par- tom 10 states in 2006 and it was one of the worst growth ticularly if Indiana is in play in the presidential race.If Chris rates in the Midwest. We might have heard Daniels respond Mathews lands at Indianapolis International, somebody that Indiana has the best economic development record in tell him we’d like our governor’s race to have more traction the Midwest. with voters than Goodyear had last weekend at the India- Thompson could then have countered that the napolis Motor Speedway. v property tax system in the state hit Hoosiers for a loop that HOWEY Politics Indiana Page 13 Weekly Briefing on Indiana Politics Thursday, July 31, 2008

The governor promises to do all that he can to help Daniels isn’t to blame those left unemployed by Monaco. He will. Long Thomp- son, if she were governor, would do all that she could. for Monaco, GM What governor wouldn’t? We will hear a battle of statistics during the cam- By JACK COLWELL paign for governor. Daniels will search out the positive in SOUTH BEND - Gov. Mitch Daniels isn’t to blame seeking to convince voters that he was effective in getting for the devastating blow to Michiana’s economy from three Indiana braced for the downturn. Long Thompson will draw Monaco Coach plants closing in Elkhart County, with loss attention to the negative in seeking to convince voters that of 1,400 jobs and the negative ripple Daniels didn’t keep promises to improve the economy. effect that will leave even more people Daniels now cites statistics showing Indiana’s jobless. jobless rate is better than that in adjoining states. Long Listening to criticism of Daniels Thompson cites statistics showing that Indiana’s jobless by Democrats, you would think he is rate increase in June was the largest in the nation. While to blame. Well, Mitch didn’t raise gas Daniels talks of improvements in state rankings for favor- prices across the country and bring able business climate, Long Thompson says Indiana has about a downturn in the national slipped in state rankings of gross domestic product. Some economy. Those are the reasons why jobs pay more than others. We will hear rival statistics Monaco wasn’t selling as many recre- about the value of jobs retained, gained or lost. ational vehicles and decided to close When the candidates talk of plans for future eco- the Elkhart County facilities. nomic growth, they should focus first on a terrible problem But you can hardly blame Demo- over which a governor will have a voice. That’s the nega- crats such as Jill Long Thompson, Daniels’ opponent, for tive impact on cities and counties and the people from the using the plant closings to criticize the governor. After all, flawed property tax legislation pushed by the governor and Daniels has ballyhooed every plant opening as though it passed by the Indiana General Assembly. was something for which he should receive credit. Can- The gravity is shown by South Bend Mayor Steve didates for governor always claim they will do wonders Luecke’s projection that loss of $18.2 million in annual for the Hoosier economy to create more jobs and greater revenue by 2010 will mean cutting 53 firefighters, 40 police wealth. Daniels claimed just that in running for governor in officers and more than 100 other employees, with parks 2004. Long Thompson claims that now. closing, popular programs curtailed and public safety en- The truth is that governors really don’t have a lot dangered. of control over the economy in their states. Whether the Other cities face similar woes. If Indiana cities nation’s economy is robust or bust is the biggest fac- are forced to make cuts like that, what employer would tor. Individual states are affected a little more or a little want to locate in the state? less because of the sectors of the economy that are most But that tax legislation didn’t cause the recreation important the state. Daniels was able to brag about more vehicle closings, the downturn in just about anything auto- jobs in Indiana when the nation’s economy was good. His motive related and the increasing unemployment in Indi- critics now point to job losses as the nation’s economy has ana. turned bad. Blame decisions in Washington and Detroit more This is not to say that governors can’t do a thing to than any action or lack thereof in Indianapolis. State gov- help their state’s economies. ernment didn’t let the dollar weaken, the national deficit They can seek with promises of tax and infra- skyrocket, the dependence on oil grow and the housing structure help to lure new industries or encourage expan- crisis develop. sion of existing facilities. The Democratic governors before Mitch Daniels didn’t mess up General Motors and Daniels did this. Daniels has done this. Long Thompson Ford planning and marketing. would do this. Some might do it a little better than others. If the national economy booms under a President No matter who was governor, however, it would Obama or a President McCain, the governor of Indiana, be impossible now to convince General Motors to increase whether Long Thompson or Daniels, will preside over a re- commercial Hummer production in Mishawaka. bounding Indiana economy and take credit for it. Only fair. Indiana still depends heavily on the automotive If you’re blamed for the rain, take credit for the sunshine. industry. That’s one reason why the Indiana’s jobless rate v went up so much in the most recent report - a report be- Colwell has been covering Indiana politics over five fore any impact from the Monaco closings. decades for the South Bend Tribune. His column runs Monday’s on Howey Politics Indiana. HOWEY Politics Indiana Page 14 Weekly Briefing on Indiana Politics Thursday, July 31, 2008

Ken Bode, Indianapolis Star: Today’s pre- administration for opposing the legislation. Attorney General diction is that one day next week, you will pick up The In- Mike Mukasey told a House committee last week that if 10 dianapolis Star from your driveway and discover that Barack angels swore on the Bible that the bill is harmless, he’d still Obama has chosen Sen. Evan Bayh for the vice presidential oppose it. Pence said: “If 10 angels swearing on the Bible slot on the Democratic ticket. Don’t be surprised. If it hap- wouldn’t change your view of this bill, would 40 American pens, it is interesting to ponder what the pundits and the journalists subpoenaed, questioned or held in contempt do political class will say about the choice. Many will argue that it?” v an Illinois-Indiana ticket lacks geographic balance. For that Doug Ross, Times of Northwest Indi- reason in 1992, Bill Clinton was advised not to pick Al Gore, ana: Was it just a coincidence? I had been reading “Guns, because he hailed from Tennessee, next door to Arkansas. Germs, and Steel,” a Pulitzer Prize-winning book on the But Clinton sensed something politically invigorating in the fates of human societies, when I got a visit from chemistry of the two young families, something two people pushing for more federal funding that signaled the real change that America for scientific research. Here’s the point made by seemed hungry for. The same will be true at Daniel Suson, dean of the School of Engineering, the convention in Denver with the two young Mathematics and Science at Purdue University Obama daughters and Bayh’s twin teenage sons, Calumet: Research is how we train the next gen- along with two attractive, accomplished wives, eration of scientists, engineers and experts in Susan Bayh and Michelle Obama. Those fami- related disciplines. Obviously, a boost in federal lies, along with the two men who will raise their funding for research likely would help PUC. But hands in the traditional sign of victory, will signal Northwest Indiana is in transition. While steel is prosper- a powerful and positive view of the possibilities for change ing, jobs in the manufacturing sector aren’t as plentiful as in America. v they once were. The region is pursuing high-tech jobs. But Sylvia Smith, Fort Wayne Journal Ga- that high-tech industry won’t come to the region if the labor zette: Were you shocked last year to read about the appall- market isn’t ready to provide workers for those industries. ing conditions wounded soldiers endured at Walter Reed? And the way to attract the professors who can teach them Of course you were. Were you astounded that Defense well is to make sure they can earn tenure. Attaining ten- Secretary Donald Rumsfeld or even the head of the military ure means producing results from research. And research hospital was not the source of the details in that Washing- requires increasing federal funding, not reducing it. And ton Post series? Of course you were not. The military brass think about this: Research and development requires was not going to put out news releases about the scandal- pure research, Suson notes, to provide the knowledge upon ous conditions at the hospital and the cold-hearted treat- which the development can begin. Private companies have ment – actually, lack of treatment – provided to wounded to answer to shareholders for results, so the federal govern- soldiers from the Afghanistan and Iraq wars. That informa- ment has to fund the pure research. Larry Meyer of the Task tion came from military personnel and their families, as well Force on the Future of American Innovation accompanied as by employees at the Army hospital who were disgusted Suson on his visit to The Times. Meyer notes that China at the situation. Most did not want their names printed and other Asian nations have been pouring vastly increasing because they feared losing what little benefits they were amounts into research. So while the United States has been getting (if they were a patient at Walter Reed) or their jobs. the undisputed leader in innovation, producing a clear ma- The Washington Post relied on confidential sources to tell jority of patents, “they’re really breathing down our necks,” the American people something we really needed to know: he said. v The Pentagon was derelict in its responsibility for the care Mark Bennett, Terre Haute Tribune- of soldiers who were wounded in Iraq and Afghanistan. Star: The image of Peyton Manning watching camp 2008, The use of anonymous sources is not something journalists instead of guiding it, conjures worrisome questions about take lightly. We think readers ought to be able to evaluate the future. For longtime fans, there are two Indianapolis the information we print or broadcast based on the source. Colts eras, before Peyton, and with Peyton. A precision However, sometimes important stories will not be told un- passer with an Einstein-caliber football IQ and a work ethic less the journalist can promise the informant’s identity will like an Amish carpenter, Manning has made the days of be protected. The Walter Reed series is just one example Art Schlichter seem prehistoric. Yet, as much as they’d like of times news outlets relied on confidential sources to give to see him last longer than George Blanda, those veteran us important information. Bravo to Rep. Mike Pence, whose fans will someday experience the Colts’ after-Peyton pe- bill was resoundingly approved in the House last fall. Kudos riod. There’s a lot riding on this season. The gleaming, new to Sen. Richard Lugar, whose work on a Senate bill might Lucas Oil Stadium will be unveiled. What happens when come to fruition this week. And boooooooo to the Bush Peyton hangs up his cleats? v HOWEY Politics Indiana Page 15 Weekly Briefing on Indiana Politics Thursday, July 31, 2008 Treacy returns to security. in the state’s 92 counties are certified through Oct. 1, 2009. “The vendors Marion County chair can re-apply for certification at that INDIANAPOLIS - Newly Domingues defends time,” he said. Since there are no elected Marion County Democratic take home cars elections scheduled in 2009, Howard Chairman Ed Treacy said his party is CROWN POINT - Lake County may be forced to purchase preparing to County’s sheriff said he is complying all new equipment before the May fight head- with almost all recommendations of 2010 primary election. That could ing into this a Good Government Initiative study cost Howard County an estimated November’s but argues he cannot give up take- $500,000, according to Clerk Mona election home cars for patrol officers (Times Myers. Howard County purchased the (Indianapo- of Northwest Indiana). “It provides Election Systems & Software Optech lis Star). greater safety and no overtime costs. Eagle III in 1997. The machines use a Treacy, who That is a dual benefit,” Sheriff Rogelio paper ballot that is then scanned into was chair- “Roy” Dominguez said Wednesday a computer for tabulation. man from while presenting his third status report 2000 to 2006, was the only nominee regarding how his department in to replace Michael O’Connor in a party complying with the Good Government Edwards ducks caucus Wednesday. Treacy said he Initiative -- an efficiency push privately reporters in N.C. was inspired to take over again after financed by the county’s largest corpo- CHARLOTTE - It was only the party’s recent setbacks in the rate taxpayers and supported by U.S. three weeks ago that John Edwards prosecutor and mayoral races. He Rep. Peter Visclosky. was fielding media questions on his said he plans to bring back the win- chances of filling the Democratic ning formula that led to a doubling of Party’s vice presidential slot on Barack Democratic elected officials during his New Albany looks at Obama’s ticket or a potential Cabinet previous stint as chairman. His first position in an Obama administra- target, he said, is Mayor Greg Bal- $2 million in cuts NEW ALBANY - Facing a near tion (Charlotte News&Observer). On lard, whom he called the “accidental Wednesday, however, the former mayor.” Treacy said he plans to hold $2 million defect in its general fund for the upcoming fiscal year, the New U.S. senator and 2004 vice presi- Ballard accountable for not living up dential nominee was eager to duck to campaign promises. Marion County Albany City Council is looking for ways to cut back while still providing the press when the questions took a Republican Party Chairman Tom John tabloid turn. About a dozen report- said of Treacy’s election, “We have services to the community (News & Tribune). A loan the city took from ers and photojournalists attended further evidence of the tired disarray a speech Edwards gave to an AARP in the Marion County Democrat Party. its sewer utility in 2003 — which was pushed forward to 2005 — coupled Foundation symposium on poverty and Tonight, in their own version of Night aging in Washington. Afterward, he of the Living Dead, the Democrats with rising overtime costs in the fire department, led to the shortfall, said avoided most of the waiting report- chose to exhume former chairman Ed ers, at least some of whom wanted Treacy from the political graveyard. ” City Controller Kay Garry. She said cutbacks likely would be the only to question him about recent reports way to make-up the deficit, though in the National Enquirer that alleged Shield law stalls the State Board of Accounts does not an inappropriate relationship with a WASHINGTON - A federal bill require the difference to be eliminated former campaign videographer. Cit- initiated by Indiana GOP Sen. Richard before the city can pass a new budget. ing unnamed sources, the Enquirer Lugar and Rep. Mike Pence to give re- published a story in October claiming porters limited protection from having that Edwards was having an affair to reveal their sources was set aside Howard County may with a woman who filmed a series of by lawmakers Wednesday (Associ- buy new vote machines campaign videos. The story resurfaced ated Press). A Senate vote to consider KOKOMO - Howard County last week in the online version of the the bill failed amid a Republican push may have to purchase new voting ma- Enquirer, which claimed that Edwards to debate new energy legislation. chines by 2010 (de la Bastide, Kokomo had visited the woman and their “love The shield law would prevent federal Tribune). Jim Garvin, spokesman for child” July 21 at the Beverly Hilton in judges from compelling reporters to the Indiana Secretary of State’s Office, Beverly Hills, Calif. name confidential sources, with excep- said all machines currently being used tions for public interests like national