Friday.April 11, 1997 • Volume 3, Number 26 Page 1of8

1• •Id Republicans have .••••••.:.- .... THE ----· lost their soul Gingrich, Senate stray on taxes INDIANAPOLIS - The Republican Party has lost its soul. HOWEY Both nationally and in Indiana, the GOP is floundering on a series of issues that could cause them problems in the 1998 election cycle. POLITICAL When history is written of the so-called "'' and House Speaker , Indiana's three mem­ bers of the historic class of'95 - David Mcintosh, and John Hostettler - will have played key roles in the drama. Souder and REPORT Hostettler were at the epicenter of beginning of the end of Gingrich. Not only had the first Republican Speaker in 40 years been upstaged The Weekly Briefing On Indiana Politics by a White House photo on Air Force One, but Souder and Hostettler rebuked him over a budget vote and a subsequent cancelling of The Howey Political Report is published 40 times a year by fundraisers in Evansville and Fort Wayne in January 1996. NewsLink,Inc.Founded in 1994, The Howey Political Report is This past month, it was Souder who was one of 11 an independent, non-partisan newsletter analyzing the political Republicans who embarrassed the Republican hierarchy by rejecting process in Indiana. It neither endorses candidates nor advocates positions of public policy. an increase in committee funding. That was followed by scathing attacks from William Kristol and Mcintosh over Gingrich's position Brian A. Howey on no tax cuts until the budget is balanced. editor and publisher On the state level, it was only four years ago that new The Howey Political Report Office: 317-926-1433 Republican Chairman Al Hubbard confronted Republican members 2625 N.Meridian St., Suite 1125 Fax: 317-254-2405 of the Indiana Senate about enacting a cigarette or hospital tax. Indianapolis,IN 46208 [email protected] History has proven Hubbard correct, as the state sits on a surplus of Daytime number: 317-254-2400,Ext.273 almost $2 billion (pension liabilities not included). Yet Indiana NewsLink Home Page: http://www.inoffice.com/hpr Senate Republicans have pushed through a series of legislation that can be only described as bad politics. Subsaiption information: $250 annually for 40 The first was a gasoline tax hike, which in light of a $2 billion editions via fax or first class mail. Call 317-926-1433. surplus is an absurdity because recent Republican anti-tax dogma. © 1997, The Howey Political Report. All rights reserved. Then came Senate Finance Committee Chairman Larry Borst's 36 Photocopying, faxing or reprodudng in any form. in whol~ or in percent legislative pay hike, and the ramrodding of a telecommunica­ part, is a violation offederal law and is ~prohibited without consent of the publisher. tions reform package that independent analyses has been deemed a continued on page 8 ((QUOTE" OF THE WEEK INSIDE F E A T U R E S

------• Play of the Week: Arneritech's hang up page2 "That is not in my memory... :" • Horse Race: No Mcintosh Senate bid page3 - State Auditor Morris Wooden, to the • HPR Interview: State Rep. Brian Hasler pages4-S lndlanapolls Star, on whether he had been warned • Columnists: Kitchell, Howey, Mannweiler page6 by staffen to check Into aUegatl ns of sexual har­ • Legislative campaign '98 issues emerging page7 rassment by his depulJ, Tom WIWams. Indiana's fastest growing source ofpolitical news ------~---·------~-·=------· Friday,April 11,. 1997 Page 2 of 8 01I

8th CD Deff1ocrats me12t for five hours to plot TICI

Mcintosh ducks Senate; HQ RSE R A ( E TICKER Gilroy wants to debate T A P E TRENDLINE: U.S. Rep. David Mcintosh hasn't slammed the door completely shut, but he told the Anderson Herald-Bulletin, "Most people in the district said they liked the job I wouldn't work. uwe believe it was doing as congressman and wanted me to stay. I have not ruled it out, but chances are I will would be very, very difficult to not run for the Senate. I should be focusing on becoming a good congressman with the White lifttolls,"said INDOT's Phil House investigation and other activities:' As for Secretary of State Sue Anne Gilroy, sources say Schermerhorn. "I don't think she had intended to return from her Florida vacation with a decision on whether to make the it's going to work out." Senate race or run for re-election. Gilroy has accepted an invitation to "debate" other potential O'Bannon also suggested a Senate candidates Peter Rusthoven and Fort Wayne Mayor Paul Helmke at 9 p.m. Thursday deal with the federal govern­ April 17 on WIBC-AM in Indianapolis. The show will be hosted by WIBC political reporter ment might be worth pursu­ Eric Bermen. ing to waive the $2 one-way • •• fees on the Chicago Skyway. The Chicago Tribune respond­ THE NEWT AND BILL SHOW: It's time to check and see how the potential national ed to that idea saying that millstones are faring in the latest public opinion polls.In the latest CNN-USA Today-Gallup while O'Bannon's idea has Poll (whew!), House Speaker Newt Gingrich reached an all-time low with a 25-percent some merit, it would be foolish approval rating. In the same polling sequence, President was basking in a 59-per­ to lift the tolls there now that cent approval rating (1,009 people; March 24-26, +/- 3 percent). Roll Call's Morton Kondracke the Skyway is finally prof­ posed the question: "How come scandals haven't hurt President Clinton? 'IWo explanations itable. The Tribune suggested come to mind: I.) It appears the public doesn't trust the press or Republicans, and 2.) at least redudng the fare to $1.50. so far, no one has produced solid evidence of serious presidential wrongdoing." As for who a clear plan for solving the country's problems, 15 percent said Clinton, 12 percent said the On the second Lake County Republicans,29 percent said both, and 41 percent said neither.Finally, on taxes, the question front,O'Bannon has raised the was,"Should Republicans postpone tax cuts in budget plan?" 70 percent said no and 21 per­ ire of St.John residents cent said yes. steamed about his dedsion to update the county's 1997 2000 REPUBLICAN PRF.SIDENTIAL RACE: A February survey conducted by pollster property tax rates which will Anthony Fabrizio had the race like this: Colin Powell 22 percent; Jack Kemp 14 percent; cost many homeowners Elizabeth Dole 12 percent; 9 percent; George W.Bush 7 percent; Steve Forbes 6 $1,000over1996 levels. percent; Pat Buchanan 4 percent. The poll had some bad news for Quayle. "Thirty-five percent O'Bannon said last week he of those surveyed said there was no way they would support Buchanan, while 24 percent said had no legal authority to ask that about Quayle. In contrast, only 15 percent said they would not support Kemp." the State Board ofTax Commissioners to recalculate OLD HORSE RACE: We recognize that this particular horse item may be ready for Lake County's property taxes. the glue factory. But here goes, anyway. This is how the four legislators likely to sit as conferees That prompted a group of St. on campaign finance reform - Republicans Becky Skillman and Robert Behning and John residents to distribute Democrats Earlene Rogers and Thomas Kromkowski - fared in their last campaigns: more than 500 copies of a form letter addressed to 44th SD 3rd fil2 ~HD 1.1h HD O'Bannon."How can he not Skillman (R) 24,922 Rogers (D) 31,384 Behning (R) 11,491 Kromkowski (D) 11,886 have something to do with Pritchett (D) 16,075 Unopposed 0 D.Brown (D) 5,851 Unopposed 0 this?" asked resident Chris Wallace.aHe's the governor." FINALLY, HORSE RACE HEARD this joke last week: President Clinton and wife (Robin Biesen, The Times). Hillary were opening presents on Christmas morning. Said the president, "Oh, honey, how sweet of you to frame the subpoenas:' This joke comes on the heels of New York Times colum­ Further evidence that nist William Safire acknowledging that all the scandals have prompted a case of"subpoena Indianapolis Mayor Stephen envf. continued on page 5 Page4 of 8 Friday,April 11, 1997

Rep.Has~E~r 1:>re~oaring fior ru1 ··1 at

Hostett~er j1n Jlthe Bloocly 8th1'CD 1 INDIANAPOLIS - The "Bloody 8th" make this race? Congressional District i5 2Jready shaping up as Hasller: That includes former eliected one of the premier :races in 1998. officials, current elected! nFficials, county chair­ As reported on page 2, 8th CD men, and party activis1 :;, some in labor and Democrats gathered in Vincennes last wee:long the . one-candid 1te primary? sides spent HPR caught up with Hi!Lsler in the bal­ Hasller: There's a I ot of interest in the 8th roughly $500,ii:ll{j()) cony of the Indiana House, where the Greene District to avoid a prima qr; to focus resources County native is servinE his first iterm. behind a single candid at·~ and my hope would last time and ~ lfil>R: Where do you officially stand on be that I would become that consensus candi­ thinllc that wm be an 8th CD candidacy im 1998? date. We need to conserv1~ our resources in 1:) the case if not lllasler: I have received a great deal ::>f order to take John Hostel t].er out in 1998.And . t" ,, encouragement from Democrats and even some that's one of the ways we can accompl·sh that. m~re th1s nne .... Republicans to look at the 8th District race.My HPR: What kind 1Jf conversations have ~ Rep. Brian HC11~!der plan is to take a look at it after the session is you had with Chuck De!p Jert and the AFL-CIO, over, after adjournment, and to meet with party which is already running an ad blitz against activists and county chairmen and those people Hostettler? who worked with me in mir campaign. I like Hasller: I have had some discussions what I am doing now. I reaUy 1 ~ t my woE in with Chuck Deppert ar.,dl olther representatives the General Assembly, J11t I do f.eel I need to from labor to let them know that I am inter·est­ look at this, considering the encouragement I've ed in the race. I will be :talking to people about it received. and if the finances and s 1pport are there, I will lfil>R: How do you foel your background be a candidate. Genera y the response has been benefits a congressional ccmdidaiey? pretty positive. They h<11'1' a high degre1e of inter­ Hasler: I did work ·with Congmsman est in John Hostettler t.ilr. mg an early retirement McCloskey for eight y·ears 1n the district, for and they're looking for a candidate wb o can do most of that time as his director of economic that. development.Prior to that I worked for HPR: Where do you see Host,ettler being •• • II Ill Congressman Lee Hamilton air.id also a cor_­ most vulnerable during the 1998 election cycle? .•• • •. ..• ...... gressman from Texas.] worked ·Mo sessions olf Hasler: I don't think John Hosettller has a ·-·­--· the General Assembly lp here. [ rJso have good grasp 011 what it taJkes to be an ef£ective --- worked for the Indiam1 Depart m~nt of congressman. He's won b;1 52 and 50 percent of Commerce under Frank O'Ban.rwn when he was the vote. He has not cons·)lidated his position in lieutenant governor. That expedience prepares the district.He has missed many opportunities me with a greater understanding of the district to bring funding and S'K :essful projects back to to be able to get things done for the 8th District the district. I don't belie~ e he has been attentive m>R: Who has been encouraging you to to the needs of working people and constituents Page 5of8 Friday,April 11, 1997 and constituent issues, which was something Harris Poll this week shows that 60 percent of a Frank McCloskey was excellent at. I don't think the public are not happy with the job the Whe's been a very effective congressman when Republicans are doing in Congress. So in TICKER you look at Doppler radar and the 1-69 issue essence you have two incumbent parties and and others.It's time we elected someone who that opens up opportunities for challengers on T A P E can do a much more effective job as congress- both sides. man. HPR: Does the specter of Clintonian Goldsmith is serious about a HPR: What do you think Rep. Hostettler scandals concern you, that they t might nation­ second run for governor.At the should be doing on 1-69? alize the race ? Allen County Lincoln Day din­ Hasler: Hostettler has sworn off any Hasler: If the situation deepens with the ner earlier this month, effort to identify and secure designated funding president, that could be a problem on the Goldsmith joined U.S.Sen.Dan for the project. He's sworn off demonstration national front. However, the Republicans have Coats and former Govs.Bob Orr projects and invested himself solely in the effort similar problems with Newt Gingrich, Dan and Doc Bowen on the dais.He to redirect the highway trust funds into projects Burton and others in the Congress. I think also went table-to-table, like 1-69. That's all well and good if that can be there's going to be an increased interest in cam­ working the crowd. It was a accomplished, but my sense is that there will be paign finance reform and I think John departure from Goldsmith's a major increase in the budget deficit and I Hostettler's on the wrong side of that issue. I campaign mode when he don't believe the will is there to accomplish that. would support the provisions laid forth in would often breeze in, give his So if that's not successful and he swears off McCain-Feingold and I think we have to stop quick 10-minute speech, and demonstration projects,l-69 is dead in the the runaway costs of these campaigns. In terms breeze out. water. of affecting the district, most people look to the HPR: The AFL-CIO ads are trying to congressman to be responsive to the needs of State Rep.Esther Wilson of soften Rep.Hostettler up on education and cor­ the area and I think that will be the battle­ Portage has announced that porate welfare issues. Do you see him vulnera­ ground in this race. she will not seek re-election. ble there? HPR: Hostettler has rejected PAC money. The news prompted Chuck Hasler: I think he is. I don't believe he's Would you take a similar stance? Moseley, president of the been very attentive to the needs of working peo­ Hasler: Political action committees are Portage Township School ple. He's not been aggressive in seeking job cre­ representative of working people. They are an Board, to announce that he ations for the 8th District, which is something I alternative to corporate and large contributor will seek the Demoaatic nomi­ did for Mccloskey and Frank Mccloskey was dollars. I certainly accept PA.C dollars in this nation in 1998. very active on. I think there is a sense among race. It is deceptive for Hostettler to say he does­ the public that we need to hold corporations n't accept PAC money. He does accept PAC Fort Wayne fire investigators accountable. We see too many companies pack­ money; it's just redirected through other were looking into the March ing up and going overseas like Thomson in sources. house fire that severely dam­ Bloomington, taking jobs out. We need to insti­ HPR: Soft money? aged the home of Republican tute greater safeguards. John Hostettler's weak Hasler: Soft money. This is going to be a City Coundlman Marty Bender. on that position and that is certainly something very expensive race. Both sides spent roughly I would push in Congress. $500,000 last time and I think that will be the Gov.Frank O'Bannon told HPR: President Clinton and Speaker case if not more this time. Susan Dillman of the South Gingrich could have a major impact on this HPR: Rep. Hostettler has put some dis­ Bend Tribune that he won't election and many others. Where do you see tance between himself and Gingrich. What is need the help of the legi~la­ that impacting this race? Will Bill Clinton hurt you perspective on that? ture in blocking a land-based you? Will Gingrich hurt Hostettler? Or is it a Hasler: He has done a somewhat effec­ casino proposed by the wash? tive job of giving the impression that he is inde­ Pokagon Band of the Hasler: There's concern about the six­ pendent of the speaker. However, when you look Potawatomi Indians. O'Bannon year itch election. at his votes, 95 percent of the time he votes with said he believes he must give HPR: I was going to get to that next. Newt Gingrich.If anything his efforts at inde­ the OK for casinos to be estab­ Hasler: You were? OK.I think 1998 is pendence on the re-election of the Speaker may lished. 0 And Iwon't give it," going to be unique in that the Democrats con­ hurt him and I would be surprised if Newt O'Bannon said. trol the White House and the Republicans con­ Gingrich would work hard for him when it trol Congress. I think it's very significant that a comes to choose what races he'll work hard. continued on page 6 Friday,April 11, 1997 Page6 of 8

0 N () 11 TICKE,R []Cj[j]LI'-1i: __:.LJ..111: 11111LUL.J11urnml1Jrn1~~-m1 :~t 11111 :IHI :: 11rn1i T A p Dave Kitchell, Logrmsport Pharos-Tribune­ Now that you are done reading these words, you In the 1980s,Kewanna High School, struggling know you're one of the fools, too. I don't like nn- for acceditation, was closed_ A f;~ tr years later, being a fool.How do you lied about being a fool? Craig Whitney of the Hucl~,,ofil the elementary school dosed.Eiut what hap­ Institute will be leaving his pened after that, whether Kewa 111na parents David Mainnweilei:, rndianapolis News - I post as vice president for knew it or not at the time, was a progressivre don't know how much our legislators spent to external affairs in Ma)rtll join thing.Students and 1thdr families were given the get elected the last timf:, hut I'm sure it was Dan Quayle's Campaign choice of attending one of :three school conora­ more than $.11,600.A s,~n ate comm1tlec has America PAC. Whitney ha i: tions - Rochester, Caston o:r fa:~tem Pulaski. proposed a 36 percent pay increase for legisla­ workred for Quayle beforE', as Twellve states now have school d10ice, but Union tors. Sounds like a lot, but they haven't had a well as tile 1996 presidenl.ial Township in Fulton Corn ty is one of only two pay raise since 1985.M :·s voters, I bet, got a pay campaign of U.S.Sen.1Rid1,~rd places in Indiana wher,~ students have a choice raise in the last 12 yean, .. md maybe some of Lugar. of school corporations. In Kewimna and Union them even got 36 percertt more in compensa­ Township, students have virtually divided them­ tion.I liked comments T1 tde by Sen.Earline U.S. Rep. David Mcintosh lr1~s selves into thirds, each al.tending one of the Rogers last week. Rogers ,.:rid she doesn't think begun to come under firE• from three school corporaticns. Less than 5 percent the public wants lawmakr~rs to lose money by Democrats looking to sofl 11!n of the 242 students tra;asfer to another school. being public servants. Shi~ said that after noting him 111p as a key investigat:~r in Checker Finn, an education a11Etl rs t for the she's paying $1,200 a month in rent during the the White House databasr~ Indianapolis-based Hudson In:i.titute,says what legislative session. Silly rn e. I would have scandal as well as a pote11r I] al Kewanna and Union Township have is not :the thought cheaper digs wcnild be available.She 1998 Senate nominee. The kind of school choice ~hat really matters-'~"-- thi.> can live at my house fo1 ~· ~.oo a month. () Wall Street Journal's Gerail1d point, ifs sort of a hollcw form of choice;' he 'I Seib noted that campaigl1i con­ says. "h's sort of like being able to say you can Brian Howey, HPR - Proponents of class ',I tributions from Eli Lilly, Phillip go to any McDonald's you wish." basketball point out that :ittendance at high Morris, American Airlines, school games has dropped by 16 percent over Amoco and the National J!lrwto Harrison U1lmamJi, NUVO Newsweek!)• - the past 10 years. In a wo:·ld of dozens of TV Dealers Association came ,h·fter Think about it. One of Unigov's J.1 school dis­ channels, video games and the Internet, the representatives sought h1e,n­ tricts is closing schools while the rest of IHSAA never figured out that a good marketing ings before Mdntosh's sllill­ Unigov's school districts are bu:ilding schcols. campaign trumpeting cru ·treasure might have committee. "That correla Ii rcrfil Think about it! Instead of busing white kids solved that problem. Think of what a guod rota­ between subcommittee c1~n­ into empty schools in the city, we're busing tion of TV ads featuring 1he stars of the past tacts .and political contriblJl­ black kids to fill new schools in tthe towns~1~ps. and those presently year.ring for glory could do tions fits a broad 1er pattern f n 0 Think about it! We are wasting 'enough money in the weeks leading up tu a single dass tourna­ Seib wrote. Acheck of m1! 11!l:­ on these useless schools to finaltlce a new arena ment? The NBA, the NR and the Olympics are ings listed on the submmlflllit­ for the Simons and a rn~r d.eal for the frsays, robust because their ev ~ nts are marketed. What tee's internal reports as wdl ;.-~ with enough money left over to repave our the IHSAA in all its backwardness and igno­ Mr.Mdntosh's campaig11 wn­ streets and rebuild our Se"Ners . .So, now you rance has done is turn i:ts back on the r,emain­ tribution lists for the past itla'IO know a few reasons why black p1~ople in ing fan base.A poll recent )'conducted by years shows that a numb1e1r of Indianapolis believe they a.re surrounded by a TeleResearch in Marion,~ ancock, Hamilton, companies and assodatio1ms bunch of white people who are so crazy with Boone,Hendricks,Morga1 land Johnson coun­ contributed to th 1e Mcl11tc1~~ racism they will spend millions. by the hundreds ties revealed that 64 percmt "strongly disagree" re-election effort around 1:11 e to keep 11 school distri::I~ 1.hat costtoo much with the new four-class :system Ano1ther 12 per­ time of the meetings with 11Jhe and don't give us anything that's worth the cent "somewhat disagree:' "If you redesign your subcommittee, often witM111 a money.And now you al;o know why they say product and four out of fi 1e of your consumers C) month." The story quoted fools and their money