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Thursday, February 14, 2002 ! Volume 8, Number 22 Page 1 of 9 Daniels tantilizes The victory starved GOP Howey !"#$%&'()*%+,%-+().#%/+0%1233)" By BRIAN A. HOWEY in Indianapolis and MARK SCHOEFF JR. in Washington OMB Director Mitch Daniels tantilized those attend- Political ing the Indiana Republican Congress of Counties last week- end. The dead-panning Daniels set the crowd up, saying, “I don’t intend to be a candidate for governor ... of New York.” Report Those in attendance told HPR that Daniels spoke about the War on Terror, the new morality in the White The Howey Political Report is published by NewsLink House, and then a homeward view of Indiana, which Daniels Inc. Founded in 1994, The Howey Political Report is deems to be at a decisive economic and, ultimately, cultural an independent, non-partisan newsletter analyzing the crossroads. political process in Indiana. The speech sent the GOP rumor mill in full bore. Brian A. Howey, publisher Several county chairs told HPR that Daniels “sounded like a Mark Schoeff Jr., Washington writer candidate.” Others openly hoped he’d come home and run. Jack E. Howey, editor The Daniels speech came during a week when the Indiana Republican 2004 gubernatorial derby seemed to The Howey Political Report Office: 317-968-0486 spring into action. In part, the cross-currents and undertows PO Box 40265 Fax: 317-968-0487 Indianapolis, IN 46240-0265 Mobile: 317-506-0883 of the tax restructuring issue proved to be dangerous territo- ry for those trying to operate on the home front. [email protected] www.howeypolitics.com David McIntosh conducted a Statehouse press confer- ence with Libertarian Andy Horning. McIntosh’s call for Washington office: 202-775-3242; spending caps and education cuts prompted Senate Finance Business Office: 317-254-0535. Committee Chair Larry Borst to reject the notion, saying he Subscriptions: $250 annually via e-mail or wouldn’t be doing any kind of a “McIntosh budget” as he fax; $450 annually including the HPR Daily reworked HB 1004. Wire. Call 317-254-1533 or 254-0535. State Sen. Murray Clark pushed his spending cap leg- © 2002, The Howey Political Report. All rights islation (which was denied a hearing by Borst despite 20 reserved. Photocopying, Internet forwarding, faxing or Senate co-sponsors) with a statewide radio advertising cam- reproducing in any form, in whole or in part, is a viola- paign. Clark also had to endure a front page Indianapolis tion of federal law and is strictly prohibited without Star photo of him filling his plate at a buffet. The photo consent of the publisher. continued on page 2

“To do nothing would be a horrible mistake by Ticker: Bush approval at 82 percent p. 2 the legislature ...” Congress: Daniels needles p. 3 HPR Interview: Gov. O’Bannon p. 4 - Gov. Frank O’Bannon, on tax restructuring Horse Race: GOP gunning for JLT p. 6 Perhaps: Helmke and Moses p. 7 Thursday, Feb. 14, 2002 Page 2 of 9

BUSH APPROVAL RATING AT 82 PERCENT: A CNN/USA Today/Gallup poll of 1,001 adults, conducted over February 8-10 (+/- 3%), shows: 82% approve of President George W. Bush's job performance. When told that "Congress' investiga- tive arm, the General Accounting Office, says it will file a lawsuit to force the White House to release information about the con- sultations with business leaders by Vice President Cheney's energy task establishment figuring (perhaps hoping) from page 1 force," 69% said "Vice Daniels, that Daniels will tire of the Bush deficits, President Cheney should ... accompanied a story about how lobbyists anthrax letters, and DC bloodsport and turn over information to fork out food and ducats to influence leg- come back home to run for governor. His Congress about the task islation. The headline read, “Groups woo- speech before Indiana Republicans along force meetings"; 26% said ing legislators with parties, receptions.” with recent appearances in Fort Wayne he should not; 5% were not Advance America’s Eric Miller called for and Evansville and his method of keeping sure. another Statehouse rally this week in in touch with the Hoosier news media ERHARD TO ANNOUNCE hopes of topping one last month that drew does little to douse the rumor and much to FOR HD8: James P. Erhard 800 people. titillate a GOP tired of losing the big ‘uns. will announce today that he No one in the prospective 2004 In an interview Tuesday with HPR, is a candidate for the field, however, came close to capturing Daniels played down his speech last Republican nomination for the attention paid to Mitchell E. Daniels weekend in Indianapolis. He said that he HD8, the seat being vacated Jr., both in Indiana and Washington. He’s was scheduled to be home anyway -- his by State Rep. Mike Dvorak, not the most popular person in the Bush family continues to live in Indianapolis -- who is running for St. administration in Congress. and that he did it as a favor for "two Joseph County prosecutor. quoted Daniels as saying the practice of dear old friends" -- state GOP chairman Erhard, 27, is currently Jim Kittle and former secretary of state Ed practicing law with the firm earmarking in the federal budget “has got- Hardig Lee & Groves, where ten out of hand.” Simcox. "I would walk across hot coals he focuses primarily on Roll Call reported, “Senior House for Jim Kittle and Ed Simcox," he said. general civil litigation. He Appropriations Committee lawmakers and Daniels stressed that for each of graduated from Notre Dame aides said this week that the Bush admin- the appearances he has made in the state Law School in 2000 and istration has committed a political misstep since joining the Bush administration last earned his Bachelor of Arts and sown unnecessary resentment on the year -- one each in Fort Wayne, Indiana- degree from the University Hill by focusing too heavily on eliminat- polis, and Evansville -- he has declined 10 of Chicago in 1997, having ing Members' pet projects. Of particular others. He also pointed out that he keeps studied American history. concern to GOP lawmakers is the OMB's the focus on his current job when he Dvorak’s son, Mike Jr., is expected to seek the plan to eliminate funding for hundreds of speaks. In Indianapolis, "I scrupulously earmarked health and education projects.” stuck to the president, his agenda and Continued on page 3 With much of the Washington national subject matter." Page 3 of 9 Thursday, Feb. 14, 2002

Still, the speculation swirls in director for corporate development at Hoosier political circles about a possible the Nuclear Threat Initiative. "He's the Daniels bid for governmor. One source one candidate in the state who could said that prominent Republicans are garner the money to take on Kernan." In "waiting on Mitch to make a decision." addition, "16 years of Democratic Daniels insists that his priority is to rule works against the incumbent party." serve the president. But Daniels, a master Kittle acknowledged the GOP is Democratic nomination. of political rhetoric, stops short of a swooning for Daniels. “All sorts of people Shermanesque denial when answering a came up to me after he spoke and said I WELCH TO SEEK THIRD question about Hoosier Repulicans wanti- should recruit Mitch,” Kittle said. “What TERM: State Rep. Peggy ng him to run in 2004. "It's not good man- I’m doing is creating a political party that Welch announced Monday ners to propose to a girl who's spoken will be strong enough to help great candi- she'll seek a third term in for," he told HPR. "And I'm spoken for." dates when they become available. We District 60. The Bloomington Democrat said An Indiana GOP political insider in want to recruit best of class candidates. it has been "a privilege" the Washington said Daniels has the best shot But there was no clear signal that Mitch past 3 1/2 years to represent at defeating Lt. Gov. Joseph Kernan, the has changed his position.” the concerns of district resi- likley Democratic gubernatorial The hopeful Republican might top dents on state spending, nominee in 2004. "I think he could win," off Kittle’s last sentence with a single taxes, education, health said Mark Helmke, a former top aide word: “Yet.” " care and other issues (Kurt to Sen. Richard Lugar and currently the Van der Dussen, Bloomington Herald-Times).

Daniels, Congress clash on budget EARNEST RESIGNS FROM REPUBLICAN STATE COM- By MARK SCHOEFF JR. deficit in FY 2003. In order to hold down MITTEE: 5th CD Chairman The Howey Political Report non-defense spending, the Bush John Earnest, who lost the WASHINGTON -- White House Administration wants to cut $1.3 billion in race for Indiana Republican Budget Director Mitch Daniels is no "earmarks" for health, education and chair to Jim Kittle in threat to win a popularity contest in workforce programs and put the savings January, has resigned from Washington. But despite conflict with into low- the state committee, where members of Congress whose re-election income col- he had served for more than a dozen years. depends in part on spending projects that lege grants. he has vowed to slash, Daniels is confi- Targeting RUPPEL WON’T RETURN dent that the administration's $2.13 trillion earmarks has TO LEGISLATURE UNTIL budget proposal will survive. raised the MARCH: State Rep. Bill "There's bipartisan support for the hackles of Republicans and Democrats on Ruppel, R-North principal objectives of the budget, and the Hill. House Appropriations Committee Manchester, had heart most of them will be enacted," Daniels Chairman Bill Young (R-Fla.) wrote a let- surgery at Parkview said in an HPR interview on Tuesday. ter to Daniels that stated: "All the wisdom Hospital Jan. 28 (Niki Kelly "We heard as much from members of both of the allocation of federal grant funding and David Griner, Fort parties last week," when he testified on does not reside in the Executive Branch." Wayne Journal Gazette). He was one of two Republicans Capitol Hill. Democrats were harsher. "He's (Rep. John Ulmer was the The agenda Daniels laid out con- making a big stink over roughly 1/700 of other) to miss the HB 1004 centrates resources on the campaign discretionary spending," said a spokesman vote. Ruppel was scheduled against terrorism--strengthening the for the Democratic side of the House for an angioplasty. During Pentagon ($50 billion increase) and fund- Appropriations Committee. "He's putting the surgery, a guide wire ing homeland security ($38 billion)--and the wrong foot forward. He needs to real- slipped, cutting his artery fighting the recession with tax cuts. But ize that this is not an autocratic process; and necessitating immedi- the effort will cause a $106 billion deficit it's a democratic process. So far, Mitch ate action. "I was awake on in fiscal year 2002 and an $80 billion the table when the doctor continued on page 9 continued on page 4 Thursday, Feb. 14, 2002 Page 4 of 9 O’Bannon lays out his priorities

INDIANAPOLIS - Gov. Frank Garton and Sen. (Richard) Young this O’Bannon conducted this Q&A session week. As the bill has moved forward, I’ve with the news media last Thursday. It chatted with Sen. Borst off and on for sev- said I had to submit to came at the mid-point of the legislative eral months, including at the Formula One emergency bypass session that could go a long way in estab- race. We talked then about things that surgery," said Ruppel. "I lishing his legacy. O’Bannon opened with could come up. I think he’s a person of asked God to guide the doc- tor's hand so He must have a statement, excerpted here. great experience in taxation. He’ll certain- felt I needed the bypass." O’Bannon: Over the past few ly have some very important ideas for the Ruppel, 55, returned home months we’ve seen some changes (in state of Indiana. Feb. 1, and is slowly recu- HB1004) in the way we look at the chal- Howey: What about the specifics perating. He is not allowed lenges we have and recognize them now. we’re starting to hear that involve a pay- to drive or work, and proba- The votes showed in the House that it was roll tax, ending the personal property tax bly won't return to the ses- vitally important to move forward. The for business, schools 100 percent off the sion until at least March. leadership of the Democrats in the House property tax rolls? certainly stepped up with strong support O’Bannon: HOWELL TO CHALLENGE for both the balanced budget and certainly We’ve dis- GIAQUINTA: Fort Wayne Republican Kevin Howell for protecting our schools and personal cussed all has filed to challenge Rep. services in the state as well as restructur- those. It will Ben GiaQuinta, D-Fort ing taxes. It cut property taxes in the face go through the Wayne, for the District 80 of the court-ordered reassessments. It was process. House seat (Kelly and a remarkable step forward. I think the Certainly the Griner, Fort Wayne Journal alliance of groups that are interested in the inventory tax should be phased out or Gazette). Howell, 46, is a future of the state - such as the Chamber taken care of. I think he talked about teacher at Village Woods of Commerce and the teacher organiza- funding 100 percent of the school operat- Middle School. He served tions, labor unions, the Farm Bureau, the ing from a state level. We did just part of one year on the Fort Wayne mayors, the university presidents all see it because it gets into a conversation about Community Schools board in 1990 and was unsuccess- this is an important direction for the state local control and home rule of schools. I ful in two runs for Fort of Indiana to go and meet these challenges think he will have some innovative ideas. Wayne City Council. Howell, of a balanced budget and restructuring He talked in 1998 about extending the who does not yet have a taxes this year. It’s a great opportunity to sales tax to other kinds of services and I Republican opponent in the hold that support group together and give don’t think he’s approaching that this May primary, announced his strength to legislators that this is vitally time. So it’s a mix of things we’ll contin- candidacy at a news confer- important to Indiana’s future. The vision ue to look at, My purpose is as long as the ence at the flagging and purpose of 1004 is cutting taxes, but goals are met, certainly making sure our Southtown Mall. all they talk about is raising taxes, raising fiscal condition is proper with a balanced budget, protect homeowners, create new GREGG LEAVES TWO taxes, raising taxes. It gets to be the politi- VACANCIES: The shuffling cal talk up there - it’s going to raise taxes. jobs and cut property taxes. already has started in the The message is: We’re cutting property Mary Beth Schneider, Indiana- Indiana House of taxes and we’re restructuring business polis Star: (Borst) says you can deal with Representatives to decide taxes so we can create jobs, cut property the budget deficit if they help you find who will replace John taxes to protect homeowners. These are money available in the state. Can that be Gregg as Speaker, but there all long-term goals that are vitally impor- done? is another vacancy he tant. That’s why we must act in this ses- O’Bannon: Do you know what that leaves: The 45th District sion. means? Does that mean we borrow from a representative (Peter Brian Howey: What kind of con- saving’s account? Reduce a savings Ciancone, Terre Haute account? Balanced budget means that we Tribune Star). There had versations have you had with Sen. Borst? been no hint of anyone O’Bannon: I’ll be meeting with have to have revenue coming in at the Sen. Borst next week. I met with Sen. same amount to fund the budget. I think continued on page 5 Page 5 of 9 Thursday, Feb.14, 2002 what I’ve heard them say (is) there are worse. We still have that $800 million that pots of money all over the state we can can be used in emergencies. But we use to fund our budget. That’s not a bal- shouldn’t put ourselves in emergencies anced budget. We can use the reserves of and still have that backup. what you’d call the surplus that we now Niki Kelly, Fort Wayne Journal have on hand and spend that. That’s not a Gazette: When did you find out about planning to run against him, and Greene County GOP Speaker Gregg and will that have an responsible way to conduct our state busi- Chairman Lavon Yoho said, ness. It will affect our credit rating. So impact on the rest of the session? “Everybody’s jockeying for what they’re saying is we’ll just keep tak- O’Bannon: Speaker Gregg had position right now.” As of ing from pots of money and not answer kept it close to the vest and when he Friday, only one candidate the question of how you have sufficient called to notify me, we had already left had filed for the position: funds coming in to fund the budget that’s the Statehouse. But I got the message Democrat Alan Chowning, on-going. Period. That’s like spending the right away. I’ve talked to him since then 52, former Sullivan County surplus down and not fixing the budget. and I complimented him on the great lead- commissioner. Sullivan With some kind of revenue enhancement ership he’s provided the State of Indiana attorney Richard Bramer said he is considering a run next year, what’s it going to be? Sales tax? in many ways and in a way it brings peo- in the Republican primary. Income tax? Cigarette tax? Gaming tax all ple together instead of moving people Feb. 22 is the deadline for goes for tax restructuring. That’s where apart, even when it’s political. I certainly filing. we ought to be looking at and thinking, understand his desire to be with his family Lesley Stedman, Louisville and two young sons. Now, when he CROSBY GETS COMPETI- Courier-Journal: Do you think we’d be announces that, how does that affect his TION: Andrew P. Thomas of in this situation if you had insisted on a leadership through the rest of the session? Brazil, a Republican, has balanced budget under your definition ... I think his leadership is already in place announced his plan to run in your first term? when they passed last Monday 1004. He’s in the primary for the House seat in the 44th District cur- O’Bannon: In the first term we committed as is the rest of leadership to rently held by Rep. Susan were balancing every budget except the carry this forward. They know in their Crosby, D-Roachdale (Terre one in 2001. own minds the best policy is to pass these Haute Tribune Star). Stedman: You weren’t taking any two plans in 1004; the best political rea- Thomas practices law with surplus money in 1999? sons for any of them running this coming his uncle, former State Rep. O’Bannon: We did it the right way. year is to do something positive; to step John J. Thomas and former Let me go through it one more time. We up and show leadership and solve these U.S. Rep. Edward A. Pease. had $2 billion. Some in the building here challenges. To do nothing would be a said spend it all, give it back to the tax- horrible mistake by the legislature. PFLUM TO RUN IN HD56: Phillip C. Pflum of payers. Well, we cut taxes to remove that Terry Burns, Times of Northwest Cambridge City will run in increase in spending stream that gives us Indiana: Do you feel some of the House the Democratic primary for more than we need to match our budget. Democrats may not feel beholden to the the house seat in District 56 We had a balanced budget but we had a Speaker any more since he no longer has currently held by Dick surplus where we spent $800 million and the big stick? Bodiker, D-Richmond. left $1.2 billion in reserves - 12 percent - O’Bannon: I don’t think so. I Pflum, 58, has worked in which is fiscally responsible. If we hadn’t think they’ll come together to win the manufacturing and as a done that, we’d be in worse shape today. election and majority. It depends on farmer. He has owned and But then the economy changed and the whether cutting property taxes after operated a farm in Wayne County since 1973. national economy took us into a downturn reassessment is a winning message or that and then into a recession. That killed our you do nothing and don’t raise any taxes INDIANA’s NATIONAL reserves. Out of that $2 billion, we’ve still to replace property taxes and do nothing SHARE OF PERSONAL got $800 million. That’s not like it’s all on the budget. INCOME DECLINES: spent; all piddled away. Now last year, Eric Berman, WIBC: Are there Indiana's share of the that budget was $500 million out of bal- single components you have to have in nation's personal income ance. That’s when I asked for the cigarette 1004 for passage? tax last year. Now that continues to get continued on page 6 continued on page 6 Thursday, Feb. 14, 2002 Page 6 of 9

O’Bannon: Let me point out how do all that by raising the sales tax? important it is to have broad support to O’Bannon: Yes. Any that meets meet these two challenges. I don’t think that goal will be the No. 1 priority. I’ll you have broad support if you pick only look at whatever it is except for an expan- one of the challenges. If all you do is bal- sion of gambling. ance the budget, all you do is pick up Burns: What is your definition of shrank to a record low last those interested in education. You have an expansion of gambling? year, according to an those who want tax restructuring very O’Bannon: Dockside would be an Indiana University study badly. The Republicans were telling me if expansion of gambling. Pull tabs, which I (Norm Heikens, Indianapolis the Democrats picked up their amend- finally figured out; somebody told me Star). Personal income is ments, they’d probably get some votes for what pull tabs are. When you talk about still rising in Indiana, econo- it. But each time you move toward that dockside, you’re talking about expansion mist James C. Smith direction, you lose support with the of gambling big time with new facilities emphasized, but it isn't keeping up with the national Democrats; you lose support outside, like going up, the number of stations increase. average. "There's just a labor groups. If you want enough votes to I’d rather see us control that. long-term underlying trend," get it passed, you have to move both of Burns: In SB 333, they call for no Smith said. "It's consistent- them. barge provisions, it’s just flexible board- ly in the wrong direction." Stedman: Is there any one compo- ing. Does that satisfy you? Personal income, which nent you will insist on in 1004? Does the O’Bannon: I’ll certainly look at includes wages, salaries, inventory tax have to be gone? that final product. That isn’t the same as investment income and gov- O’Bannon: It’s important in that dockside to me. ernment payouts such as bill that we have enough funding for edu- Schneider: What about French farm income and unemploy- cation. It’s important we cut property Lick? ment benefits, is considered among the most revealing taxes. Then the business tax restructuring O’Bannon: French Lick is another gauges of economic perfor- to create jobs. Those corporations are thing you’ve got to look at. The 11th boat mance. In the year that looking at all the states. They look at was in the French Lick area - Lake ended Sept. 30, the latest Indiana’s inventory tax and gross receipts Patoka. I’ll look at that when it comes government figures avail- tax and they say they don’t even want to down, but that was part of what was put in able, Indiana generated 1.94 look at Indiana. the law originally. percent of the nation's per- Berman: So any bill that reaches " sonal income. That was your desk would be acceptable if it would down from 1.97 percent in 2000 and 2.5 percent in 1969, the first year the U.S. Bureau of Economic Indiana 2002 Racing Form Analysis began tracking the Republican: Chris Chocola. Democrat: Jill Long figure. Congressional District 2: Thompson, Mark Meissner, State Sen. William Alexa, Kathy Cekanski Farrand. Geography: DOBIS BELIEVES TAX South Bend, Michigan City, Mishawaka, Elkhart, Kokomo, Plymouth, Logansport; LaPorte, St. RESTRUCTURING WILL Joseph, Starke, Marshall, Pulaski, Fulton, Cass, PASS: “If we can get all of Carroll and parts of Howard, Porter, Elkhart and this done this year, it will be White counties. Media Market: South Bend- a historic session,” said Elkhart, Indianapolis, Lafayette, Chicago. 2000 Rep. Chet Dobis, D- Result: Roemer (D) 107,076, Chocola (R) 98,367. 2002 Forecast: South Bend Tribune’s Jack Merrillville (Steve Walsh, Colwell reports that Republicans are aiming at Jill Long Thompson. Colwell wrote on Sunday, Gary Post-Tribune). “I can’t “Republicans apparently have decided, in their strategy to win this race, a contest that could say what the final package determine which party controls Congress, that Long Thompson will be their opponent -- The will look like, but I believe Target.” Primary Status: Leans JLT. something will pass,” said Congressional District 3: Republican: U.S. Rep. Mark Souder, Nick Metel. Dobis, who carried the tax Democrat: Rodney Scott, Jay Rigdon. Geography: Fort Wayne, Goshen; Kosciusko, Whitley, restructuring bill in the LaGrange, Steuben, DeKalb and parts of Elkhart and Allen counties. Media Market: South House. Bend-Elkhart, Fort Wayne. 2000 results: Souder (R) 131,051, Foster (D) 74,492. 2002 Forecast: Helmke will make a final decision over the weekend, but many allies believe he’ll Page 7 of 9 Thursday, Feb. 14, 2002 run (See page 8). Indiana Republican Chairman Jim Kittle observed of a Helmke candidacy, “That would come as a great surprise. Mark is strong up there. The two new counties - Elkhart and Kosciusko - are very Republican, but they would tend to support Mark. It would be a tough race for Paul to win.” Primary Status: LEANS SOUDER. Congressional District 6: Republican: U.S. Rep. Mike Pence. Democrat: Melina Ann Fox. Geography: Anderson, Muncie, Richmond; Wells, Adams, Blackford, Jay, Madison, Delaware, Randolph, Henry, Wayne, Rush, Fayette, Union, Decatur, Franklin, and parts of Bartholomew, Shelby, Johnson and Allen counties. Media Market: Indianapolis, Fort Wayne, Dayton, Cincinnati. 2000 results: Pence (R) 106,023, Rock (D) 80,885, Frazier (I) INVENTORY TAX REPEAL 19,070. 2002 Forecast: Fox brings Chris Worden in as campaign manager. Worden managed REQUIRES CONSTITUTION- Pam Carter’s (1992) and Jeff Modisett’s (1996) successful attorney general campaigns and AL AMENDMENT: Bill served as a deputy under Modisett. Pence spoke on the House Floor Wednesday, at the request Styring, an economic consul- of Majority Whip Tom DeLay, in opposition to the campaign finance reform bill introduced by tant and former state budget Reps. Chris Shays and Marty Meehan. "I strongly oppose the Shays-Meehan bill principally analyst, cites the not-so- because of the oath of office that I took a little over a year ago," said Pence. "That oath of minor detail that it would be office charged me with upholding and defending the Constitution of the of against the law to wholly America. James Madison, the father of the Constitution, penned these very simple words: repeal the inventory tax. The 'Congress shall make no law abridging the freedom of speech.'” Pence called for a balanced Indiana Constitution requires federal budget. "If Enron has taught us anything, it is that when the books don't balance, peo- all property in Indiana to be ple get hurt," said Pence. Status: Leans Pence. uniformly assessed and Republican: Brose McVey. Democrat: U.S. Rep. Congressional District 7: taxed, and that includes Julia Carson. Geography: Indianapolis. Media Market: Indianapolis. 2000 Results: Carson inventory, Styring said (Rex (D) 91,300, Scott (R) 61,818, Ali (L) 2,513. 2002 Forecast: Perhaps the key development in Huppke, ). this race happened this week: Democrat Frank Anderson officially declared for Marion County To completely do away with sheriff. That could have a big impact and a boost for Carson, as many African-American vot- the tax would require a con- ers will jump at the chance of electing the county’s first minority sheriff. Carson is good at stitutional amendment, moving her troops out, but this heightens that incentive. McVey commisserated with Beech which is no small task. "The Grove Amtrak workers who were laid off. “With our central location, infrastructure, and excel- way to do it is just to get rid lent transportation companies, Indianapolis needs to look at light rail, over the road, and all of it, period, but under the transportation issues,” McVey said. “This is why one of the first Committee assignments that I Constitution you can't do will seek upon election is to the Transportation committee.” Status: Leans Carson. that," said Senate Finance Congressional District 8: Republican: U.S. Rep. John Hostettler. Democrat: Chairman Larry Borst, R- Bryan Hartke, Frank McCloskey. Geography: Evansville, Terre Haute, Greencastle; Posey, Greenwood. "We're propos- Vanderburgh, Warrick, Gibson, Pike, Martin, Daviess, Knox, Sullivan, Greene, Owen, Clay, ing several constitutional Vigo, Vermillion, Parke, Putnam, Warren and part of Fountain counties. Media Market: amendments to take care of Evansville, Terre Haute, Indianapolis. Lafayette. 1994 results: Hostettler (R) 93,529, that problem, but that could McCloskey (D) 84,857. 1996 Results: Hostettler (R) 109,582, Weinzapfel (D) 106,134, Hager take four or five years. It (L) 3,799. 1998 Results: Hostettler (R) 92,227, Riecken (D) 81,381, Hager (L) 3,395. 2000 needs to happen sooner." Results: Hostettler 116,860, Perry (D) 100,461. 2002 Forecast: Hartke reported $7,475 in his The plan currently before the year end FEC report. He also had $15,619 on hand as of Dec. 31. In comparison, 2000 nomi- House would eliminate the nee Paul Perry had $157,657 during the same time period of 1998 nominee Gail Riecken tax for the first $37,500 worth raised $146,721. Hostettler reported $143,113 and may have raised as much as $125,000 last of inventory, something week during a campaign stop by Vice President Dick Cheney. Status: Likely Hostettler. Democrats say would free 87 Congressional District 9: Republican: Mike Sodrel, Jeff Ellington, Chris percent of businesses from Redmon. Democrat: U.S. Rep. Baron Hill. Geography: Bloomington, Columbus, the tax. The proposal says Lawrenceburg, Rising Sun, New Albany Jeffersonville, Madison, Nashville; Spencer, DuBois, the tax on inventory above Orange, Crawford, Perry, Harrison, Washington, Jackson, Brown, Jennings, Scott, Floyd, the $37,500 mark would be Clark, Jefferson, Switzerland, Ripley, Ohio, and parts of Dearborn and Monroe counties. cut in half. Media Market: Evansville, Indianapolis, Louisville, Cincinnati. 1994 results: Hamilton 91,459 (D), Leising (R) 84,315. 1996 Results: Hamilton (D) 128,885, Leising (R) 97,747, FORMER KOMET OWNER Feeney (L) 2,315. 1998 Results: Hill (D) 92,477, Leising (R) 87,278, Feeney (L) 2,397. 2000 WELKER FILES FOR DILLON Results: Hill 125,978, Bailey (R) 101,790, Chambers (L) 4,634. 2002 Forecast: Ellington SEAT: Republican David Dan officially entered the race. He cited campaign issues such as the exercise of personal freedom Welker has filed to run for "from gun control to (limits on) political contributions," jobs and economic development, and the House seat held by Rep. health care. "I'm pro-life and pro-gun," he said. Primary Status: LEANS SODREL. " continued on page 8 Thursday, Feb. 14, 2002 Page 8 of 9

Old foes Helmke and Moses by Helmke’s on-line book released a cou- Gary Dillon, R-Columbia prepare their next steps ple of years ago that was critical of the City (Fort Wayne Journal Moses administration. Gazette). Dillon hopes to fill FORT WAYNE - One of the most Today, Hoosiers find Moses and the vacancy left on the vivid rivalries in Indiana politics was the Helmke contemplating new stages of other side of the statehouse one between two mayors who ran the power in a pair of scenarios that will offer by the retirement of Sen. state’s second largest city for five terms - a fascinating exhibition of clout execution. Potch Wheeler, R-Larwill. Democrat Winfield Moses Jr. and Helmke is pondering a GOP prima- Welker, the former owner of Republican Paul Helmke. Their epic race the Fort Wayne Komets, is ry challenge to U.S. Rep. Mark Souder. occurred in 1987 when Helmke chal- While allies believe he is running, Helmke perhaps best-known for lenged Moses, who was seeking to restore moving the team from Fort told HPR on Wednesday, “I have not his good name after resigning the office Wayne to Albany, N.Y. In made a final decision yet but will do so 2000, he said he was going for 10 days due to misdemeanor campaign this weekend. Reaction to the possibility to offer $100 million to buy finance violations. Prior to that episode, of my running has been very positive but I the Memorial Coliseum, but Moses had “governor” written all over know the campaign would not be easy and him, to the point where he might have commissioners insisted the that I would be getting a late start.” building was not for sale. even impeded Evan Bayh’s arrival on the Souder raised only $74,000, leaving Longtime Whitley County scene. He had guided Fort Wayne through him vulnerable on the money front. He’s a Councilman Bill Overdeer its finest moments - the terrible floods of hard worker who knows his district, but has also filed to fill Dillon's 1982 - earning the reputation as the “city he’ll be in session for much of the time seat. who saved itself.” between now and May. He’ll also have Moses was leading Helmke going INDIANA TRAFFIC FATALI- two new counties, Elkhart and Kosciusko, into the 1987 homestretch until TIES DROP SHARPLY: The that are two of the most Republican in the Republican Allen County Prosecutor number of traffic fatalities in state. Some believe Souder’s evangelical Indiana fell sharply in 2000, Steve Sims dropped the bombshell that support will serve him well there. marking the biggest decline Moses’s brother was being investigated ever for the state. Indiana for homicide (the story was not credible However, Helmke notes that in 1998, he had 890 crash-related and he was never charged). “My numbers carried Kosciusko with 66 percent of the deaths in 2000, down from collapsed overnight,” Moses recalled. He vote against conservative John L. Price. 1,020 in 1999, according to would also add, “What was I thinking A Helmke-Souder showdown Jerry McCory, director of about running for a third term?” would be an epic battle, giving Indiana the Governor's Council on Helmke went win on to win and three primaries involving Members (Reps. Impaired and Dangerous Buyer vs. Kerns in the 4th; Jill Long Driving. McCory said the become a three-term popular mayor, Thompson’s comeback in the 2nd). final figures for 2001 also always with one eye cast on Congress. were expected to be low at Moses went into exile for five years, In the wake of the retirements of 894 crash fatalities, but that spending some time in Texas. He came Speaker John Gregg and Majority Leader number could change as back to Fort Wayne in 1992 and ran for an Mark Kruzan, Moses’s goal of becoming death certificates are Indiana House seat that was supposed to speaker is a distinct possibility. Several issued. "That's still too high be created for African-American City Democratic sources see the early battle for in our opinion, but the good Councilman Charles Redd. Moses spent speaker coming down to Moses and Rep. news is over the last two about $10 on the campaign and easily B. Patrick Bauer, with the early edge to years, our numbers have Moses. Bauer’s post on Ways & Means headed in the right direc- won, restoring not only his name, but tion." political fortunes as well, having steadily could cut either way: He’s powerful, but INDIANA WELFARE ROLLS risen up the ranks of the Democratic there are colleagues with axes to grind. BULGE: After declining for House Caucus. Moses has revealed a prowess for raising years, welfare rolls in There’s one other thing about the money, managing the caucus campaigns Indiana are growing again. Moses-Helmke rivalry: They can’t stand and winning elections. “We haven’t lost a The number of Hoosiers each other. It was a situation exacerbated seat since I’ve been here,” he said." Page 9 of 9 Thursday, Feb. 14, 2002

In the wake of Sept. 11, the Bush Congress, from page 3 Administration can raise defense spend- Daniels' motto has been: 'My way or the ing without dissent. "It is very hard to highway.' That's not the way to work with move a democracy and get a democracy people." to focus on a single threat that prior to But Daniels, a former Eli Lilly Sept. 11 had never hit this country," said getting welfare checks jumped executive and chief of staff to Sen. former Rep. Lee Hamilton in an HPR interview last month. But now President 23 percent in the last six Richard Lugar, makes no apologies for months of 2001 -- one of the Bush can achieve that singularity of pur- getting tough. "It's called nation's biggest increases leadership," he said. "That's pose. (Michele McNeil Solida, what real presidents do, espe- Although members of Indianapolis Star). In cially in times of war. We Congress support defense December, about 137,000 can't run a war and provide increases, there will be Hoosiers received monthly homeland defense effectively plenty of other budget checks. Just six months with a committee of 535. The executive fights. "Political exigencies before, welfare recipients num- branch, particularly in times of crisis, has are forcing politicians to spend," said bered about 112,000. Previously, the highest number to execute. We'll always be open to con- Marshall Wittmann, senior fellow at the Hudson Institute. "At the end of the day, of welfare recipients in recent sultation and will work hard at it." years was 134,501 in 1997, and it doesn't matter what his relations are." A Hoosier political insider in state officials fear the numbers Washington believes Daniels benefits Daniels' experience--he was President will go even higher. from his role. "It's easy for Mitch to be Reagan's chief political adviser--may the white knight," said Mark Helmke, a stoke the conflict. "He's an exceedingly PRISON EXPANSION DUE former top aide to Lugar and currently bright individual who knows what moti- SOON: Phase II in the expan- director of corporate development at the vates politicians. And that frustrates him," sion of the Miami Correctional Nuclear Threat Initiative. "There are said Wittmann. Facility at Bunker Hill will going to be a lot of Republicans across Daniels downplays his dust-ups. begin in July when the first four houses begin receiving the country who like that tune -- cutting "Our relations with 95 percent of Congress are just fine. I can do my duty inmates (Kelly Voss, Peru down on pork-barrel projects. What's Tribune). There are eight hous- to the president or be universally popular, more important, an earmark in South es in Phase II, each holding Dakota or the war?" but not both." " 204 inmates. When the facility reaches capacity the popula- tion will be 3,188 inmates. There are 1,801 inmates in the prison’s six houses currently.

SAUNDERS TO RUN AGAIN: State Rep. Tom Saunders, R- Lewisville, is in his sixth year in the General Assembly and has announced his intent to seek re-election.

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