V21, 30 Thursday, April 7, 2016

The Joseph Albert Hollingsworth III effect A millionaire walks into a congressional district and creates a tossup race By BRIAN A. HOWEY FRANKLIN – The credible Republican 9th CD field is a study of contrasts. There is two-term Attorney General who served as an aide to Vice President and deputy to his predecessor, Steve have been delegates to state and national conventions. Carter. There is State Sen. Brent And then there is Joseph Albert Hollingsworth III Waltz, the former Johnson County – or “Trey” (get it?) – a millionaire still registered to vote Council president and a four-term in Tennessee, who moved to Jeffersonville last September senator. And, State Sen. Erin after he hired a national political media consultant and Houchin, a former child protec- pollster, who registered to vote in last October, and tive services worker, a former 9th is in the process of spending what will probably be more CD Republican chairwoman, and than $1 million to essentially buy an open congressional a staffer for U.S. Sen. . They have all come up seat. through the party ranks, attended dozens if not hundreds When Hollingsworth was introduced at the Orange of county Lincoln Day dinners, marched in scores of pa- Continued on page 3 rades, served as legislative and congressional interns, and A huuuge RNC 2nd ballot By CRAIG DUNN KOKOMO – It’s looking more and more each day as if the Republican candidate for president of the will be decided at a contested Republican National Convention in Cleveland, this July. With each passing primary the likelihood of any of “As my grandpa used to say, the three remaining candidates locking up the 1,237 votes ‘You ain’t got no socks, you can’t necessary to win the first ballot pull ‘em up.’” seems more remote. Kasich is mathemati- - Rexford Early, Donald cally unable to get to 1,237. Cruz would have to just about Trump’s Indiana complete a clean sweep of the chairman, on Gov. John remaining primaries. Trump had the best chance of doing it, but Kasich’s viability at the a variety of forces have come GOP National Convention together in the past two weeks Page 2 to make his task an extremely chal- Gov. Holcomb, called out the Indiana lenging one. vote without so much as a glance my Let’s recite the rules one more way. He didn’t need to count votes. time so that everyone can get on The rules were clear. Romney got board with the process. The Repub- them all. lican National Committee rules have Four years later, we may be always required a majority of the del- confronted with an entirely different egate votes to secure the nomination. set of circumstances. The Republican Even Abraham Lincoln needed three Party faces the very real possibility of ballots to rise from second place to a contested convention in Cleveland. Howey Politics Indiana lock in his nomination. Dwight Eisen- Notice that I didn’t say “brokered” WWHowey Media, LLC 405 hower received 700,000 fewer primary convention? Contested and brokered Massachusetts Ave., Suite votes than his opponent, Sen. Robert conventions are two different animals. 300 , IN 46204 Taft, but with judicious convention Contested conventions exist when no strategy was able to defeat Taft. candidate has a lock on the first ballot www.howeypolitics.com Just in case anyone was victory. The last time we saw this hap- sleeping, I’ll state it again; in order to pen was at the Republican Convention Brian A. Howey, Publisher lock up the Republican nomination for in 1976 between Gerald Ford and Ron- Mark Schoeff Jr., Washington president, you must have a majority ald Reagan. It was a tough battle, but Jack E. Howey, Editor of delegate votes and that magical Ford was able to win on the first bal- number is 1,237. What happens if lot. If he had not received a majority Mary Lou Howey, Editor no one receives 1,237 votes on the of the votes, there would have been a Maureen Hayden, Statehouse first ballot? Well, this is where it gets second ballot. No big conspiracy here. Mark Curry, photography interesting. Brokered conventions are a Each state has its own rules quaint thing of the distant past. They regarding delegate fidelity. Most existed before the days of 24-hour Subscriptions states, but not all, require that their cable news channels, internet news HPI, HPI Daily Wire $599 state’s delegates vote according to and social media. The lack of trans- HPI Weekly, $350 their rules on the first ballot. Some parency allowed a few key leaders in Ray Volpe, Account Manager states require candidate loyalty both political parties to wield outsized 317.602.3620 through two ballots and a few states influence over the convention process require delegate fidelity to email: [email protected] the bloody end. Indiana is Contact HPI one of the states that has a [email protected] specific method of award- Howey’s cell: 317.506.0883 ing delegates and requires its delegates to vote in that Washington: 202.256.5822 method on the first bal- Business Office: 317.602.3620 lot. After the first ballot, all delegates are freed to vote © 2016, Howey Politics their conscience. Indiana. All rights reserved. Indiana’s method of awarding delegates is Photocopying, Internet forward- simple. We award three ing, faxing or reproducing in delegates for each congres- any form, whole or part, is a sional district won, and our Then Indiana GOP Chairman announces violation of federal law without 30 at-large delegates are all the delegation vote for Romney in Tampa in 2012. (HPI permission from the publisher. awarded to the candidate Photo by Randy Gentry) who wins the overall vote. We are a winner-takes-most, if not and how the delegates voted. The -all, state. Republican Party doesn’t have those In Tampa, Florida, where I all-powerful influence peddlers any served as a delegate to the Republican longer. National Convention in 2012, I never You can’t turn on the televi- was asked to vote for Mitt Romney. sion or read an internet blog without Republican Chairman Eric Holcomb, seeing someone railing at the Repub- yes, the same guy we now call Lt. lican Establishment for trying to inter- Page 3 fere in the nominating process. Please let me assure you unanimous in their steadfast support for the Republican that there is no Republican Establishment trying to guide Party. Second ballot votes, if needed, will be cast for the the nominating process in one direction or another. What person who each delegate deems to be the best person to is my proof? What “establishment” with half a brain would represent our Republican Party next November. have created a system that would see 15 initial candidates, Herein lies the problem for Donald Trump. The 12 circus debates, name-calling and a convoluted nomina- party has worked very hard under the leadership of tion process that would lead to a possible contested con- National Chairman Reince Priebus to expand by reaching vention? Big shot string pullers, lighting cigars with $100 out to women, young people, people of color and groups bills, would be a lot tidier than that. who may share much of our vision but not all. Many of the No, our current nomination process, for bad or Republican delegates will see Trump as a serious danger good, is an honest one. The rules were clear at the very to down-ballot races and to the future of the Republican beginning. Win 1,237 votes on the first ballot or face the Party. Those delegates, and there will be “huuuuuuge” political winds of a second ballot! numbers of them who will relish with glee the opportunity Who will the delegates be who may be called to cast a second ballot vote. upon to cast a vote on the second or subsequent bal- My mother used to have a saying for those people lots? For the most part they will be people who have a who were rude, mean, uppity, bullies, crude, dishonest or long track record of supporting the Republican Party. They just plain cooties. She liked to say, “What goes around, won’t be delegates who just show up every four years. comes around.” If I get a chance to cast a second ballot They will be the folks who serve as precinct chairpersons, vote at the Republican National Convention, that saying help get commissioners and councilmen elected, help raise will be foremost on my mind. v money for auditor and coroner races, and who do the hard work of running the party when no one is watching. They Dunn is chairman of the Howard County Republican may differ with each other philosophically, but they will be Party

shady attacks on Greg Zoeller,” Houchin said while seated Joseph Albert III, from page 1 in a Franklin City Hall conference room. “These anonymous County Lincoln dinner earlier this week, the room was still. attacks aren’t anonymous to . He knows No one knew him. who is behind them. Since Trey has no donors to his cam- When Clark County Republican Chairman Jamey paign, and no support in Indiana, it’s unfathomable that Noel was first contacted by Joseph his super PAC would be funded by anyone other than him- Albert Hollingsworth III, the future self, his family, or his close associ- candidate refused to tell him his ates. Trey Hollingsworth should name. Noel, who is sheriff of Clark immediately disclose whether or County, did a background check not he is funding these attacks on the candidate. “I have never out of his own pocket, or who is seen anyone as clean as this guy,” behind them.” said Noel, referring to a lack of Zoeller, the target of a much documentation about the widely run TV on behalf of Hol- man. lingsworth assailing him for “I had never heard of supporting “amnesty” on immigra- Hollingsworth until October,” tion, decided to call Hollingsworth said Zoeller, who like Waltz and a “political scam artist” during Houchin had heard rumors of a National Consumer Protection self-funder coming to the race last Week in March. “We were talk- fall. “He doesn’t have any relation- ing about the red flags associated ships. I’ve had relationships with with a scam,” said Zoeller, who as people in these counties my whole attorney general has been vigilant life.” over the past seven years try- Said Waltz, “He’s still reg- ing to protect consumers. “We’ve istered in Tennessee. He has no been warning, beware of the scam ground game.” artist. If you show up from out of On Tuesday, Houchin tried state, if you have no one who can State Sen. calling on Hollingsworth to to call him out. “I’m calling on Trey give you a reference, if there are reveal his funding sources at the Franklin City Hall on Hollingsworth to come clean on his no bona fides, the red flag goes Tuesday. (HPI Photo by Brian A. Howey) Page 4 up. If the claim appears too good to be true, the red flag are focused on experience. When they look at me, they is going up. I’ve got a political scam artist here.” see a genuine, decade-long tradition of doing work and “If you thought about running for Congress for a creating jobs in Indiana. I get the sense from talking to long time, you might have had an opportunity to create a people that this should be about who has the right experi- super PAC with a much larger collection of donors,” Zoeller ence to solve some of these problems facing us. I don’t said on Tuesday morn- think it’s about being ing. “If you show up in in politics your whole my state in September life.” and write your check for He dodged Tully’s $680,000, did the super questions about the PAC have any lead time? Super PAC funding. Or is there a very big His campaign supporter who wrote a website has no very big check?” phone number, no Houchin, “contact” information whose husband Dustin and lists a post office is Washington County box in Jeffersonville prosecutor, told HPI, as an address. “I find “This is not how Hoosier it odd that a con- conservatives conduct gressional candidate themselves, though I has had limited wouldn’t expect Trey to media contact,” Noel know that, given he only said. moved to Indiana a few There was no months ago to try to buy grand opening of this seat in Congress.” a campaign head- In the wake of quarters. He filed his the U.S. Supreme Court’s candidate financial Citizens United decision, disclosure late, and State Sen. Brent Waltz believes his ground game will yield a win on May 3. super PACs can spend he presides over a an unlimited amount of labyrinth of compa- money on a congressional candidate. But it is illegal for nies here in Indiana and several other states. a candidate or campaign to coordinate in any way with On his campaign “bio,” Hollingsworth explained, them. It’s the biggest wink-wink, nod-nod in American “Right out of school, I started HCP, a company that reha- politics in this era. bilitated abandoned warehouses and manufacturing sites When State Sen. pondered a U.S. in Indiana and across the country. Because of the produc- Senate bid last year, he told HPI that Terre Haute attorney tivity of the American worker, the ingenuity of American Jim Bopp Jr., who waged the Citizens United case before companies, and the durability of the American economy, the Supreme Court, urged him not to declare his candidacy I believed American manufacturing could compete with until after he had met with Washington super PACs. anybody in the world, even as others rushed to the exits. Indiana Jobs Now is the super PAC which has I renovated facilities enabling companies to expand, start, spent more than $200,000 on behalf of Hollingsworth and and grow in their new, American locations. Today, my firm then leaked a National Research Inc. live caller February is one of the fastest growing private companies in the poll to Roll Call showing the Tennessean’s name ID stood country with over 65 facilities that are home to thousands at 61%, compared to 70% for Attorney General Zoeller. of employees.” In head-to-heads, Hollingsworth had 17%, Zoeller 16%, As for “what I believe,” he says, “there is a big Houchin at 9%, Waltz at 4% and Bloomington engineer difference between people in the private sector earning a Robert Hall at 3%. There has been no credible public poll- living and politicians living off our earnings. In my opinion, ing in the race. you shouldn’t ask for the right to spend our tax dollars The Hollingsworth campaign doesn’t return media until you have had to honestly earn them from outside phone calls. He doesn’t appear to have relationships with government.” He believes in term limits, shrinking the county chairs, precinct officials or other officeholders. size government, Christian family values and “I believe in In the one known sit-down interview in March with the America,” he says. IndyStar’s Matt Tully, who called him the “most mysterious candidate,” Hollingsworth said, “First and foremost, I am a How the 9th is shaping up businessman by trade. … It’s my experience as a business- The candidates who are talking to media – Zoeller, person that has shaped me into who I am. I think people Waltz and Houchin – all believe the race is a pure tossup. Page 5

Waltz, who upset legendary Zoeller has been meeting with former congress- Finance Chairman Larry Borst in 2004, in a campaign he man several times a month. He said he hasn’t intricately laid out for Howey Politics during the summer made a practice of giving or receiving endorsements, of 2003 when many Republicans leaders thought he was though he has the backing of Indiana Right to Life and committing political suicide, said Tuesday, “Eight months the Fraternal Order of Police. “I’ll go into neighbor- ago, Zoeller wins this race hoods, restaurants and people based on his name ID. A recognize me,” Zoeller said. month ago, Hollingsworth “I feel pretty good about the would win after spending connection to people in the $1 million. Right now I see 9th CD.” But he acknowledges it as a tossup. With my this Trumpian election cycle ground game, I think we’ll is breaking the mold. “Who be there.” shows up, and the traditional Waltz puts the GOP primary, and where do magic number at 20,000 the new voters come from?” votes, a total Houchin he asks. “There are a lot of would not dispute. unknowns. Having name ID Waltz believes will be good.” he will carry his home of On the “who Johnson County as well as shows up” question, Waltz Morgan and Brown coun- notes that there are 2,000 ties, and will do very well newly registered voters in in Clark, Floyd and Mon- Johnson County, and he be- roe, where he dispatched Attorney General Greg Zoeller is counting on his name ID after two lieves there have been similar a field director this week. terms at the Statehouse, and his long ties to the 9th CD. increases in many of the other “My ground game wins 9th CD counties. Some may elections,” Waltz said. “I’ve be part of the Donald Trump spent 14 months developing a good ground game. We are phenomenon, some may be Bernie Sanders supporters. actively engaged in all 13 counties. Last weekend, we had No one seems to know for sure, he says. five sign crews in eight counties. We are walking in four Houchin has a slew of endorsements and beyond counties and those will be increasing. From that perspec- Hollingsworth, reported the most money in her year-end- tive, I feel very comfortable.” And it’s true, there are Waltz ing FEC report, $111,000 to $101,000 for Zoeller. Holling- banners and yard signs spackled throughout Johnson and sworth kicked in $680,000 to his campaign and raised less Brown counties, as witnessed by HPI. than $10,000 from others. “We continue to raise money,” As for Hollingsworth, Waltz observed that the Ten- she said. “We feel real good.” She sent out a mailer this nessean has a “high burn rate” saying that he has been week, as did Hollingsworth. using network TV “as a nuclear weapon when he needs a Like Waltz, Houchin won her Senate seat defeat- fly swatter.” Waltz continued, “There is only so much cable ing long-time former Senate Minority Leader Richard you can buy, only so many mailers you can do. He has no Young by an impressive 21,395 to 15,419 in the 2014 ground game, no local support, no political network he can mid-term elections. She represents four of the counties, draw on, but he’s got a ton of money.” And, for that mat- and believes she will do well in her home county of Wash- ter, so does Waltz, though he is much more inconspicuous ington, as well as Clark, Floyd and Harrison. She also about it. believes she will find traction in Johnson County, where Zoeller, who has Anne Hathaway as his media Greenwood Mayor Mark Myers is a campaign co-chair, consultant, started with the highest name ID due to his and she has the support of Sen. Brent Steele in Law- two attorney general terms. He has been in the news con- rence County. She, like Waltz, maintains she has a strong stantly in that role. “We’re getting earned media,” he said. ground game. That will continue as a spate of bills passed by the Gen- As for Hollingsworth, Houchin says many voters eral Assembly and signed by Gov. , including a she talks with believe he is a classic carpetbagger. “They controversial abortion bill, are headed for the courts, with are not happy about him,” Houchin said. “They say, ‘Who Zoeller defending the state and potentially making more is this guy?’ Once they learn he has no ties, one donor headlines (See Ticker Tape on page 20). and only 1% of his money from Indiana, they don’t be- “We started with a campaign plan and we got it lieve he is a Hoosier. Voters are leery.” mostly funded,” Zoeller said. “At this point we’re executing “We will be running through the tape,” Houchin the plan. I’ll admit the super PAC attacks on me were not said of May 3. “The race is wide open.” part of that plan and we’re doing some things to counter Clark Chairman Noel agrees, calling the race a criticism that I’ve taken.” tossup. Primary Horse Race Status: Tossup v Page 6

ran in May, announced his Senate candidacy last summer, Sandlin v. Shreve race ran in November and was sworn in in January. If he wins, we’ll have to hold a special election to fill his seat.” Shreve counts Purdue President as about life experiences a political role model. “Fiscal policy is really important,” By BRIAN A. HOWEY Shreve said. “I’ve heard Gov. Daniels say again and again, INDIANAPOLIS – The race for the open SD36 ‘You’ll always be amazed at how much government you’ll comes down to Indianapolis Councilman and never miss.’” He said a goal is to “hold the line or reduce his former colleague Jefferson Shreve in the Republican the amount of spending and regulation.” primary, both of whom believe they will bring a different Having said that, Shreve backed tax hikes while set of life experiences that will be on the City-County Council, one that closed a vital fund- helpful to the Senate. ing gap for public safety. So did Sandlin, who explained, For Sandlin, it is his career “I agreed we needed to raise the public safety tax. There in law enforcement where for was a good public discussion on how it was going to be years he focused on public cor- applied. When we got to final analysis, we weren’t creating ruption investigations. “No one in a slush fund. I think if you’re forthright with voters, they’ll the Senate has the kind of urban understand.” policing experience that I have,” Sandlin said. “I can bring Sandlin, who retired as the Indianapolis Police a different level of discussion to the legislature.” Department’s deputy chief of investigations and then spent For Shreve, it is his business experience that has 14 years in community policing in Southport, said he will seen him forge self-storage units in 66 of 92 counties bring a unique skill set to the Senate. “We have created a along with several other states. “I know our state,” said system that inhibits communication between law enforce- Shreve, who served part of Indiana Republican Chairman ment agencies. One thing we learned after 9/11 was that Jeff Cardwell’s south side council term, opting not to seek agencies weren’t talking with each other,” he explained. reelection in 2015 so he could run for the Senate. “I’ve “The way we have forfeitures structured, we have created made investments all across Indiana. I think I know our an incentive for police agencies not to talk with each other. state better than anyone. I want to be a community con- If they start talking during the course of investigations, nector.” they have to share forfeitures. We have incentivized them Normally contests for to withhold informa- the nomination end at the tion.” Marion County slating conven- On the educa- tion in February. Like his coun- tion front, Sandlin cil caucus, Shreve won the believes in funding SD36 slating with about 70% pre-K education. of the precinct committeeman “The state needs to vote. Sandlin opted to stay in step up and take a the race, saying that voters in harder look at fund- Johnson County, which makes ing pre-K,” he said. up around 18% of the district, “Education is one of had no say in the slating. the greatest ways to Shreve, who spent his break the cycle of early years growing up on the poverty. If we don’t south side, noted the contrast address poverty, with Sandlin. “Our life experi- particularly in urban ences are different,” he said. areas, we’re going “I think I have more to offer. to be raising a whole group of people who I know he knows some more Indianapolis City-County Councilman Jack Sandlin (left) and his former are doomed. Early on public safety because of council colleague Jefferson Shreve are battling for the SD36 nomination. end education is a his experience. I know a lot (HPI Photos by Mark Curry and Brian A. Howey) of K-12 and higher education good time to start funding, which makes up 60% that process.” of the state budget, Medicaid takes 25% and is the fastest His third major issue is infrastructure, and he sup- growing part of the budget. I know more about infrastruc- ports finding a long-term funding mechanism to maintain ture. I don’t think Jack’s life experiences are as good.” the state’s roads and bridges. “If we can improve road- And he points to Sandlin’s decision to seek reelec- ways with gas tax, I’d be in favor of that. I’m telling you tion in 2015, while Shreve opted to focus on his Senate as a conservative Republican, it’s a last thing I’d want to bid. “I didn’t run for reelection. Jack’s hedged his bet. He do, but I won’t take a pledge never to raise taxes,” Sandlin Page 7 said, adding that citizens can support funding mecha- nisms that result in good roads. On civil rights expansion, Sandlin noted that President Clinton backed religious freedoms and believes that federal laws protect the “homosexual community. If someone were to fire someone, there are protections under federal law. There are also protections on housing released issues.” Shreve said that in his extensive door-to-door conversations, the LGBT civil rights expansions have not been mentioned. Primary Horse Race Status: Leans Shreve.

Governor

Sabato moves race to ‘leans’ Pence One of the surprising margins on Election Night 2012 was now-Gov. Mike Pence’s closer-than-expected win over former state House Speaker John Gregg (Sa- again. Since winning, Pence has had some shaky mo- bato’s Crystal Ball). Pence won by just three percentage ments, most notably a controversy over a 2015 bill that points and ran about 4.5 points behind Mitt Romney, who some believed would legitimize discrimination against gays easily carried the state in the presidential race after Barack and lesbians. More recently, Pence signed a bill that made Obama very narrowly won it in 2008. Gregg is running Indiana just the second state (along with North Dakota) to outlaw abortions that parents seek because the fetus Page 8 has been diagnosed with a disability. Gregg, who opposes is a new time for us,” said page supporter Kelly Kerr. “We abortion rights, argues that the bill goes too far. While have not had to deal with these kinds of draconian mea- Indiana is the most conservative state in the Midwest, it’s sures in over 40 years. And to be able to participate in the fair to wonder whether social issues could hurt Pence in discussion and the dissent online is really a great oppor- his reelection bid. But the bigger problem for Pence is one tunity.” The IndyStar reported today that there have been he shares in common with the other incumbents discussed 19,000 likes. Gov. Pence ended the 2012 election cycle here: The GOP’s problems at the top of the ticket could hemorrhaging female support after Richard Mourdock’s de- potentially trim the Republican presidential nominee’s bate “rape” remarks and it almost cost him the election to margins in Indiana, or even allow the Democratic nominee John Gregg. Since then, he has dumped Lt. Gov. Sue Ell- to carry the state, as Obama did once. Obama’s 2008 vic- spermann from the ticket, is facing a potential top-of-ticket tory didn’t prevent Pence’s predecessor, Mitch Daniels (R), millstone with Donald Trump as the presidential nominee from easily winning reelection with 58% of the vote, but who is completely under water with women voters, and Pence isn’t Daniels, and he has not yet displayed the kind now he finds the “Periods for Pence” Facebook campaign of crossover appeal that his predecessor enjoyed. Pence by women upset by his signing HEA1337, which appears to remains a favorite in his rematch with Gregg, but we’re be gaining social media momentum. A similar social media moving the race from Likely Republican to Leans Republi- movement was a key ingredient in Glenda Ritz’s upset vic- can. tory over Supt. Tony Bennett in 2012. On the education front, the Fort Wayne Jour- ‘Periods for Pence’ creates nal Gazette’s Niki Kelly reported that Gregg reported a social media wave $150,000 donation from education advocate Christel A social media movement opposing a controversial DeHaan on March 24. She has given millions to GOP can- abortion bill is gaining attention beyond Indiana (Heinz, didates over the years but seems to have chosen a Demo- WRTV). The Facebook page “Periods for Pence” launched crat for governor over incumbent Republican Gov. Mike last week. It’s already drawn more than 18,000 people to Pence. She also gave Gregg $50,000 in 2015, bringing her “like” the page, and the number keeps growing. In post total support to $200,000 for Gregg this campaign cycle. after post, supporters of “Periods for Pence” share details According to the campaign finance database, DeHaan gave of their phone calls to the governor’s office. Many include $20,000 total to Pence in 2011 and 2012 but none so far personal details of the women’s menstrual cycles. “This

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To learn more about how our pro-jobs, pro-economy focus can help your company grow, www.indianachamber.com contact Brock Hesler today at (317) 264-7539 or [email protected]. Page 9 in this race. Chamber nods ‘overwhelming’ for Young Gov. Pence spent the week making headlines The decision to endorse Rep. , R-9th, signing the Regional Cities Initiative bills at Evansville and rather than , R-3rd, for a Senate seat was Elkhart. It brings about $130 million to projects in three “overwhelming,” representatives of the Indiana and U.S. regions of the state, and will generate a slew of potential Chambers of Commerce said Thursday (Francisco, Fort ribbon cuttings in the coming months ahead of the No- Wayne Journal Gazette). “It was a landslide. Overwhelm- vember election. “Through the Indiana Regional Cities ing. Not one member reached out to me in support of Initiative, we have seen regions across the state working Marlin Stutzman. And I think that’s telling,” Rob Engstrom, in partnership to inspire and generate the development of national political director for the U.S. Chamber, said in long-term and dynamic plans for the future,” Pence said Fort Wayne. He said the business advocacy organization’s in Evansville. “Indiana’s Great Southwest plan will be key public affairs committee, which numbers about 60 people, in attracting and retaining a skilled workforce and culti- made the endorsement for Indiana’s May 3 Republican pri- vating a strong business climate for long-term economic mary election. Caryl Auslander, a vice president for the In- development and improving quality of life for the benefit of diana Chamber, said Young and Stutzman met twice each Hoosiers.” with that group’s congressional affairs committee, which

Pence visits to Elkhart County up Elkhart County has become a home away from home for Gov. Mike Pence. Since June, the Republican governor has made six visits to the Elkhart County area, including stops Wednesday in Middlebury and Goshen. Prior to that, he had stopped here just twice in his first 2½ years as governor — on April 18 and Oct. 2 in 2013 — ac- cording to a review of his online public schedule (Vande- nack, Elkhart Truth). Pence says the flurry of visits — four since December — stem from his “excitement” over the various developments in the region. “To see the rebound in the economy here in Elkhart County and all across the region, I think it’s a real testament to the resilience of the people of this area,” he said in Middlebury on Wednes- day, after ceremonially inking “Kirk’s Law,” which creates a public online registry of child abuse perpetrators. His Democratic foe in the governor’s race this year, though, puts a political slant on things. “We’ve noticed the gover- has three dozen members. “And the vote was overwhelm- nor traveling a great deal more than he had previously,” ing. Todd Young was the candidate for us,” Auslander Jeff Harris, spokesman for the John Gregg gubernatorial said. Auslander, Engstrom and Young had a news confer- campaign, said in an email. “It’s clear that Gov. Pence is ence at Fort Wayne Metals as part of a two-day media utilizing the trappings of his office to bolster his re-election blitz across the state to endorse Young. Engstrom said efforts.” General Horse Race Status: Tossup. Stutzman’s criticism this week of the endorsements was “sour grapes” as Stutzman had met with him and sought U.S. Senate the U.S. Chamber’s backing. Stutzman said Thursday in an email that “it should come as no surprise to Hoosiers Stutzman, Young get A+ from NRA that these groups would endorse a moderate establish- U.S. Rep. Marlin Stutzman received an A+ rating ment candidate like Todd Young” because of the groups’ from the NRA Political Victory Fund. Stutzman was co-au- moderate stances on education, religious freedom, immi- thor of Indiana’s lifetime concealed carry permit and has a gration and federal spending. “It is clear the Washington, strong record of defending the 2nd Amendment. Stutzman D.C., insiders and crony capitalists are circling the wagons has also received the exclusive endorsement of Gun Own- to save establishment Todd Young because I am winning ers of America for his strong stance defending the 2nd this race,” Stutzman said. Primary Horse Race Status: Amendment (Howey Politics Indiana). “Hoosiers enjoy a Leans Young natural right to self-defense preserved by the 2nd Amend- ment. This liberty should not be forfeited when state lines Hill forms advisory council are crossed. Unfortunately, this fundamental right has Democratic U.S. Senate candidate been under attack from the anti-gun lobby on both the released the starters on his team of advisors who will help federal and state levels,” Stutzman stated. U.S. Rep. Todd him win in November. Hill’s advisory council consists of Young also picked up an A+ grade from the NRA. business owners, union members, community leaders, civil rights activists and advocates for the disabled. “Since I’ll Page 10 be representing all of Indiana in the Senate, I want my Tom of Leesburg received an A and state Sen. , advisory council to reflect all of Indiana as well,” Hill said. R-Fort Wayne, received an A-. Tom’s grade was based on “Winning takes teamwork, and I’ll be counting on this his answers to an NRA-PVF questionnaire because he does team and listening to folks across the state to help me win not have a legislative voting record. this election and ensure that Washington reflects Indiana’s values.” Anthony Fund endorses Brown The League of Conservation Voters (LCV) Action The national pro-life organization Susan B. An- Fund, which works to elect candidates who will imple- thony List (SBA List) announced its endorsement of State ment sound environmental policies, today announced its Sen. Liz Brown, who is running for Congress in Indiana’s endorsement of former Congressman 3rd Congressional District. The seat Hill for U.S. Senate from Indiana, is being vacated by Rep. Marlin saying, “Through a long and distin- Stutzman, a dependable pro-life guished career in public office, Hill ally in the U.S. House of Repre- has fought to grow Indiana’s clean sentatives. “Susan B. Anthony List energy economy and is committed to is proud to endorse Liz Brown in addressing climate change.” Indiana. If elected, Brown will be a champion for unborn children 3rd CD and women, as well as for pro-life taxpayers,” said SBA List vice presi- Banks airing second TV ad dent for government affairs, former State Sen. , Repub- Congresswoman Marilyn Musgrave. lican candidate for Indiana’s 3rd CD, “State Sen. Brown has been one of will begin airing his second television our strongest allies in Indiana, advo- advertisement of the race tomorrow cating much-needed legislation to with a spot titled, “Battle-Tested.” protect the lives of the most vulner- The advertisement focuses on the able as well as their mothers. We growing threat posed by radical Is- look forward to having her strong lamic terrorists and how Jim will use leadership in Washington.” Primary his experience as an Afghanistan war veteran to defeat our Horse Race Status: Leans Banks. enemies. “I will work to ensure our military personnel have the weapons, training and technology they need to defeat General Assembly our enemies,” said Banks. “The federal government has no greater duty than to provide for the common defense of Long, Miller, Kenley receive NRA nods our citizens. Rebuilding our military and restoring American Senate President David Long in SD16, Sen. Luke greatness will be top priorities for me in Congress.” The ad Kenley in SD20, and Sen. Pete Miller all received A grades can be viewed by clicking https://youtu.be/rdXAm33GGso. from the NRA. Long’s opponent, IPDW Prof. Kessler, Here is the script: “Voiceover: Radical Islamic terrorists are received a C grade. Kenley primary challenger Scott Willis attacking. But, one battle-tested conservative leader has did not fill out the survey. a plan to defeat them: Jim Banks. Navy Reserve officer. In SD22, Sen. Miller received the Indiana Right to Afghanistan War veteran. Husband and father of three. Jim Life endorsement. His opponent, John Crane, is working Banks will give our military weapons and training needed the grassroots as are Kessler and Scott Willis. Outside of to defeat our enemies. Endorsed by Combat Veterans for two mailers from Kessler against Long and Crane’s posi- Congress, Jim Banks will fight to reverse Obama’s failed tive digital advertising, there have not been signs of real polices and restore America to greatness. Defending our money in these races. The Senate Majority Campaign tells families, our values, and America. Jim Banks for Congress. HPI that it is expecting attack ads to be launched against Jim Banks: I’m Jim Banks and I approve this message.’” Long and Miller in the near future.

NRA grades candidates SD20: Mayor Brainard backing Willis? The National Rifle Association’s Political Victory Hamilton County Republican sources are telling Fund has given high grades to Republican candidates run- Howey Politics Indiana that they believe Carmel Mayor ning for congressional seats that represent northeast In- Jim Brainard is backing Scott Willis over Sen. Luke Ken- diana (Francisco, Fort Wayne Journal Gazette). State Sen. ley. They point that long-time Brainard political ally Alan Jim Banks, R-Columbia City, and former Wisconsin state Sutherlin is running the Willis campaign. And they point to senator Pam Galloway of Warsaw also received an A+. Brainard’s displeasure with Kenley, who chairs the Sen- They seek the Republican nomination for Stutzman’s 3rd ate Appropriations Committee, over past TIF legislation. District seat. Also in the 3rd District, Republican farmer Kip Primary Horse Race Status: Likely Kenley v Page 11

pation in this great American experiment of ours. The meaning of the In the outsiders, we find what happens when one refuses to get involved. Had those who willingly chose to word ‘establishment’ disengage from the process taken a different path, the make-up of the establishment would be different and By PETE SEAT perhaps the political climate cool to the touch. Instead, INDIANAPOLIS - What is the establishment? It’s the anti-establishment forces, rather than infiltrate and the dirtiest word in politics today – even worse than that re-brand from within, chose to scream from beyond their naughty rabble-rouser “compromise.” Makes you sick just self-imposed barrier for fear of becoming the dreaded reading it, no? But do people know what the word really establishment. means? The establishment wins. I can’t begin to count Here are four things you need to know about the the number of candidates who cry out, “I’m an outsider,” establishment before the next time you use the word: when the only reason they are an outsider is because they There’s a Republican establishment and a Demo- lost all their previous bids to be an insider. Losing cam- crat establishment. First, before anyone’s head explodes, paign after campaign is not an attractive electoral resume let’s clear the air and understand that both major political builder. parties have an establishment, Running, winning and governing, however, is the regardless of the other points name of the game. And those who are considered the below. There are Republicans establishment are the establishment because they ran and and Democrats who court can- won. didates, raise dough and sway The establishment is not ideological, it is genera- votes. There’s no mutual exclu- tional. This is something I addressed in my book, “The sivity here. So when you hear War on Millennials,” which was published two years ago a Republican scream about the this week. Without a doubt, there are ideological fault lines establishment, remember it within the Republican Party. We see this in the Donald goes the other way, too. Trump versus (I Pray For) Anyone But Trump race. Some The establishment is of that is based on ideological considerations, some of that engaged, outsiders are disen- is based on personality, but where the true divide lies is in gaged. The folks who will at- the generations. tend tonight’s Vigo County Lin- Older Americans are the ones who have worn out coln Day Dinner (at which I am the keynote speaker) and their shoe leather as well as worn out their welcome on the Lake County Lincoln Day Dinner on Saturday (which I the political stage. Yes, they consistently show up to vote, will attend) are the establishment. What?! It’s true. They consistently run for office and consistently win office com- may not agree with my assessment, but that’s what they pared to my younger cohorts, but they also consistently are. And it’s not because they are rich and powerful and make poor decisions that shackle the futures of Millennials dictate how the system works, it’s simply because they got such as me. When given the opportunity to pass bills that off their couches and got involved. secure long-term benefit, they time and time again take I know this because I have been party to this the short-term path. part of the establishment since 2001. It was a Saturday On two of the three points, I’m guilty as morning in Tucson, Arizona, when I, an 18-year-old col- charged. And, as such, I’m not ashamed to carry the label lege freshman, showed up to walk door-to-door in a city as a meritorious award for my efforts and neither should I knew next to nothing about for a candidate I had never anyone else be ashamed. heard of before. It was on that morning that I signed my We spend so much time arguing over labels when oath to the politically engaged. For years of Saturdays to we could accept the truth and move on to the issues that come, and countless evenings, I volunteered my time to matter to our future rather than reward people who are get Republicans elected to office. It made no matter to me proud of their disengagement from the world around if a candidate was running for governor or city council; I them. v did not discriminate when it came to helping elect good people to public office. Those efforts led to an internship Pete Seat is senior project manager at the India- at The White House which later led to a full-time job in napolis-based Hathaway Strategies and author of the George W. Bush Administration. the book The War on Millennials. He was previously Now, here’s what the establishment is not: a spokesman for President George W. Bush, U.S. the Monday Morning Quarterbacks who enjoy complaining Sen. Dan Coats and the . about how bad the process is but don’t take the time to be a part of the process. They are the same people who stay home. The same people who always have something bet- ter to do and prioritize other pursuits above active partici- Page 12

Quinnipiac University poll, told Politico. “Historically, I can’t Hoosier Republicans imagine anyone having worse numbers with women. But historically, there’s never been anyone like Donald Trump.” on Trump straight razor Trump is oblivious, with his spectacular brain dis- missing the polling with his biting tongue, while claiming By BRIAN A. HOWEY he will be “the best thing that ever happened to women.” INDIANAPOLIS – The Marlon Brando character in These are the kinds of numbers that will have “Apocalypse Now,” playing the rogue Col. Walter E. Kurtz, Gov. John Gregg, U.S. Sen. Baron Hill and U.S. Reps. David famously told Capt. Willard: “I watched a snail crawl along Orentlicher, Lynn Coleman and celebrating the edge of a straight razor. That’s my dream; that’s my next January. nightmare.” And so it goes with Coleman, the Democrat who is challenging Wal- Hoosier Republicans. As the Don- orski in the 2nd CD, gave a preview of what’s ahead for ald J. Trump Political Reality Show Hoosier Republicans tethered to a nominee Trump. “The heads our way, there is palpable voters of the 2nd District deserve to know if Jackie Wal- fear prompting an epic straddle. orski agrees with Trump’s statements, and why we should Indiana Republicans see her silence as anything but standing in agreement with would never conduct themselves Donald Trump,” Coleman said following Trump’s state- the way Trump has. They would ments last week on MSNBC on punishing women who have never talk about punishing a had an illegal abortion. It was a statement that Trump woman for having an abortion, quickly backtracked on, but his first take was revealing. even the most ardent Right to “Hoosiers deserve to know if will support Life supporter. They would never the presumptive nominee of the Republican Party. Instead, make fun of a disabled reporter. Jackie Walorski has remained silent, even as Trump’s rhet- They don’t use profanity in public. Gov. Mike Pence would oric climbs higher and higher on the scale of the absurd.” never talk about punching someone in the face like in the Walorski told the Elkhart Truth on Tuesday, “Of good ol’ days. The cruelest thing Pence could ever conjure course, I’m going to support the Republican nominee. is that poor turtle on the fencepost. Marlin Stutzman would I’m not going to vote for Hillary Clinton. The presidential never brag about paying legal fees for a violent supporter (race) is going to run its course. What these folks say in assaulting a black protester at a rally. the rhetoric of politics is what they choose to say.” Hoosier Republicans don’t make fun of their op- If you’re Walorski, Young and Stutzman, finding ponents or call them degrading names. They would never themselves in the midst of contested primaries, the fear tweet a risqué photo of an opponent’s wife, or take on the and caution are real. They can’t afford to alienate the Holy See. potential scores of new Trump voters. Attorney General But here we are, with Trump still a very likely Greg Zoeller, running in the crowded 9th CD field, told HPI presidential nominee, or, if denied, the steward of a revolt on Tuesday that Trump could carry the 9th CD “by a two- on the Mistake on the Lake, or a third party insurgent that to-one margin.” State Sen. Brent Waltz notes 2,000 new will destroy any chance of Republicans keeping the gover- voters have registered in Johnson County this cycle. nor’s office for a fourth straight term, regaining the White “There’s a little bit of a protest vote going on,” House, maintaining a Senate majority, not to mention deci- Zoeller said. “The fact that he makes the Washington es- mating the conservative wing of the U.S. Supreme Court. tablishment nervous, he gets on the nerve of the press, all To date, Gov. Pence and Reps. Todd Young, Marlin of that is kind of popular. I hear it all the time. People are Stutzman, and Jackie Walorski are vowing to saying, “I think he will shake things up.” support the Republican presidential nominee, even if it’s In Wisconsin, the upper Republican echelons Trump. have responded to Trump. Gov. Scott Walker (not on the To them, picking up the Col. Kurtz narrative, ballot this year) endorsed Cruz on March 23, saying, “After they will be . . . “Crawling, slithering, along the edge of a all these years of the Obama-Clinton failures, it’s time we straight razor... and surviving.” elect a strong new leader and I’ve chosen to endorse Ted Good luck with that, particularly when it comes to Cruz.” When Walker dropped out of the presidential race in female voters. September, he said, “I encourage other Republican presi- Recent national polls reveal a staggering disap- dential candidates to consider doing the same so that the proval from women voters, perhaps the most important voters can focus on a limited number of candidates who voting bloc: 67% (Fox News), 67% (Quinnipiac Univer- can offer a positive, conservative alternative to the cur- sity), 70% (NBC News/Wall Street Journal), 73% (CNN/ rent front-runner. This is fundamentally important to the ORC) and 74% (ABC News/Washington Post). “Those are future of our party, and, more important, the future of the stunningly unfavorable numbers. It would be tremendously country.” difficult for Donald Trump to win the general with those House Speaker Paul Ryan, without mentioning kinds of numbers,” Tim Malloy, assistant director of the Trump by name, though it was clear who he was talking Page 13 about, said last month, “We shouldn’t accept ugliness as mary, observed, “Here is the problem of lot of those peo- the norm. Instead of playing to your anxieties, we can ple have. We know there’s an anti-establishment leaning, appeal to your aspirations. Instead of playing the identity possibly a tsunami developing across the U.S. People are politics of our base versus their base, we unite people leery of anyone who is part of the establishment. There is around ideas and principles. And instead of being timid, a real danger in somebody like Mike Pence or we go bold. We don’t just resort to scaring you, we dare to attacking Trump and disavowing him. The narrative then inspire you.” becomes ‘so and so is part of the establishment.’ Gov. Trump had appeared in Janesville, Ryan’s Pence really finds himself in a very awkward position.” hometown and trashed the Speaker. Ryan responded, say- It comes down to angering and alienating Trump ing, “We are slipping into being a divisive country. We are supporters in the Spring, or experiencing the wrath of speaking to each other in echo chambers, where we only female voters completely repulsed by Trump in Autumn. talk to people who agree with us and we think that there As Sen. Lindsey Graham might say, pick a gunshot to the is something wrong with people who don’t agree with us.” cerebellum or poison. And then there are Hoosier Republicans who “The good news for Indiana,” Waltz continued, aren’t facing a primary (Pence, Reps. Luke Messer or Todd “is that Indiana seems far more selective. Voters switch Rokita) who might have an opening to avert a Trump back and forth. Evan Bayh can be elected governor while primary win here by endorsing Cruz or Ohio Gov. John a Republican vice president from Indiana is elected at the Kasich, create an open convention that might yield a dark top of the ticket. Barack Obama can win Indiana and Mitch horse (new face) nominee like Speaker Ryan, and stave off Daniels can win reelection.” an autumn GOP catastrophe. That seems to be the game plan: Slithering, slith- Sen. Waltz, one of five running in the 9th CD pri- ering on the edge of that straight razor … and surviving.v

Elkhart County, was in terrible shape. My chief of staff, The perils Renee Howell (Hudson) prevailed upon me to hire a poll- ster. We hired David Winston, who I believe to be the most useful Republican pollster because of how he does his of coattails work. David was also the Republican pollster for CBS. We By were friends who had worked together when he was poll- FORT WAYNE – All victorious candidates for ing for Speaker Newt Gingrich and I was on the speaker’s public office believe that success was due to their own planning team. hard work, thousands of volunteers, and brilliant strategy. The Democrat CBS pollster kept telling Da- Losses, of course, are due to other factors. vid that I was a goner, that I was “dead meat,” and even Few in election night victory speeches confess panicked David about the need to do one last poll. It again they won because of their party showed me with a solid lead. I had insisted that with a label, strong candidates on the 15-point lead in Allen County, plus what we felt on the ticket that helped pull them ground, that we were in no danger in spite of the wide- through, the economy, the spread panic. I won by 15%. failures of their opponent, or The problem in the most polls, and perceptions, the fact they had more money. was the negative coattail effect. In the South Bend-Elkhart I was not one of the few. television part of the district (around a third of the popula- For all the negative talk tion), presidential candidate McCain was getting pounded, about worthless political par- as in below 30%. While I was running well ahead of Mc- ties, the fact is that a strong Cain, I was still below 50% in what should have been the team helps pull along the group strongest part of the district. as a whole. Parts of the team But my assumptions proved to be true: 1.) I be- hopefully pull friends, ideo- lieved that ultimately the Elkhart-Kosciusko region would logical allies, a demographic vote Republican (an advantage of straight tickets); and 2.) cluster, or attract fundraising that helps build the vote base holding Allen County by 15 anchored winning the district of the party ticket. by 15%. I also knew that working jointly with then- Presidential candidates certainly influence Congressman (who also represented part of races. In my 2008 race, many (actually most) commen- Elkhart County) on the region’s economy and veterans’ tators wrote me off. The national GOP was panicked; issues, would help both of us at different times. 2008 was an awful year for congressional Republicans. There are several pertinent points to this specific The economy in my region, especially the RV industry in example: 1) polls aren’t always right in the head-to-head, Page 14 you have to analyze the numbers – the moderate establish- underneath the top numbers; 2) ment – many in the Republican almost any nominated candidate Party have lost touch with the can win when the winds are blow- middle. And to snarky Demo- ing right; the skill is to win when crats: Here is back at you. The they are blowing against you; and 3) people backing Bernie Sanders excessive partisanship and ideology have lost touch as well. is especially dangerous if you face a What does matter to the headwind. Republican Party and conserva- One would think that 2016 tives long-term is that we save should have been a slam-dunk Re- as many of the positions we publican year. Look at the variables: currently hold as we can. A A prolonged stagnant economy, the candidate can face a presiden- world in chaos, the deficits extraor- tial loss, say with Cruz as the dinary, the nation is a mess, and candidate, and win, as I did in many, many people are mad. 2008. For Republicans in Indi- Astoundingly, the Democrats ana, the key is to have strong are determined to run candidates congressional incumbents, already rejected by the voters (Hillary nationally, Gregg and then add a well-qualified solid conservative but less and Hill in Indiana). It is just inconceivable that to ad- risky Senate candidate like Todd Young and other dynamic dress the problems we face in this state, the Democrats statewide candidates such as for attorney gen- would nominate failed re-treads whose public careers were eral to help Gov. Mike Pence hold the state for the GOP. mostly in the last century. Furthermore, Clinton can’t even With the right team, perhaps we even survive put away a self-proclaimed socialist. Hillary can’t seem a national Trump debacle. But we cannot take big risks to inspire people, especially those under 50, and may be because there is no margin for error. We need our best soon indicted. candidates who can help hold those who otherwise will Yet here we are. The Republicans seemingly reject the party. Both parties need to hold their base, but have been intent on nominating a presidential candidate in fact, elections are won by persuading less ideological who could seize – not snatch – a crushing defeat from swing-voters to join with you. It is the dominant lesson of the jaws of what should be an easy victory. At this point, American politics. v if Trump wins the nomination, the entire party may crash and burn. If Cruz wins the nomination, Trump is more Souder is a former Republican congressman from likely than not to run as an independent. Indiana and a regular HPI contributor. Cruz would likely have difficulty defeating Hillary in the fall anyway. Kasich or another candidate could only be nominated by over-riding the clear choices of the Republican primary vot- ers. While Kasich, Rubio or Ryan would increase chances of win- ning, it is still likely they would lose, assuming Trump would run as an independent or support Hill- ary. It would again be labeled by many conservatives as yet another defeat of the Republican establish- ment, who “stole” the nomination. The only counter-balance to that argument is that if Cruz or Trump loses, it will be blamed on the “establishment” anyway. It should also be noted that when John Kasich, Mike Pence, and Dan Coats are now the “Republicans in name only” Page 15

an endorsement of marriage between a man and woman GOP facing marriage as “the foundation of society.” Robertson said the phrasing is too divisive. “The job of the party is to win elections,” she said. “We need to bring more people into the party, platform fight not alienate them.” By MAUREEN HAYDEN Efforts to change the platform to avoid the mar- CNHI State Reporter riage issue have precedent. The state GOP struck one- INDIANAPOLIS – Already fractured Republicans man, one-woman language from its 2012 platform in are facing a new fight over whether to keep language de- hopes of keeping its message focused on the economy and fining marriage in the state party’s jobs. But the language went back into the 2014 platform, platform. as a nod to social conservatives who were unhappy that Activists who fought law- lawmakers didn’t pass a law banning gay marriage. makers’ attempts to ban same-sex Bopp said the effort to remove the language is unions now want to strike wording overblown by the media. He was quoted in a Politico story, that describes marriage as “be- published Monday, about Republicans behind the American tween a man and a woman” from Unity Fund, a group encouraging delegates to the national the state GOP’s policy statement. GOP convention to adopt language that accommodating A similar debate is brewing on the same-sex marriage. national level. “Conservative forces need to understand there is a The division pits social conservatives against serious challenge, and they need to take it seriously,” Bopp moderates who see the issue as unnecessarily divisive at a was quoted as saying. time when Republican unity is already Pulling marriage language out of strained. “The platform is something the state platform may prove difficult. that’s supposed to be bring every- Rep. , who supported efforts body together,” said Megan Robert- to lock a same-sex marriage ban into son, a political organizer who wants the state Constitution, leads the party one-man, one-woman language platform committee that is holding removed from both the state and na- hearings and taking input online. tional platforms. “The platform needs He was appointed by state GOP to be something we can all point to Chairman Jeff Cardwell, a close ally of and say, ‘This is why I’m a Republi- Gov. Mike Pence. The governor, a social can,’” she said. conservative and gay-marriage oppo- Jim Bopp, an influential con- nent, stood against efforts this year to servative, said traditional marriage is extend Indiana’s civil rights law to cover a key Republican tenet, and the lan- gay and transgender Hoosiers. guage needs to stay. “They represent Robertson said the platform an extreme minority in the party,” he process is rigged to discourage opposi- said of its opponents. tion – a charge that Koch rejects. Koch Debate is heating up over said opinions are being gathered from what, if anything, to say about mar- all members of the party and will be riage as the party’s summer conven- Tom John of Marion County (top) and Rush given fair consideration. tions draw near. State delegates are County Chairman Michael Dora wage a floor Some party leaders who support scheduled to vote on a platform at a fight on the marriage issue at the 2014 Indiana removing the language say it will be June 10 meeting in Indianapolis, after Republican Convention in Fort Wayne. (HPI a tough haul. State Republicans are a series of public hearings that began Photos by Brian A. Howey) weary of the debate, worn out by a Wednesday. contentious presidential primary sea- The national platform goes to delegates at the son, and would prefer to skip it. Republican National Convention in Cleveland in July. Craig Dunn, Howard County Republican chairman Robertson co-managed the bipartisan Freedom and member of the state committee, predicted that there Indiana coalition that stopped lawmakers from passing a won’t be enough support to remove the marriage lan- same-sex marriage ban in 2014. She’s now part of a new guage. “I just don’t think we have the stomach for a fight,” group called Enterprise Republicans, founded by former he said. v Angie’s List CEO Bill Osterle, who also ran Republican Gov. Mitch Daniels’ first campaign. Maureen Hayden covers the Indiana Statehouse Robertson said Enterprise Republicans and its sup- for CNHI’s newspapers and websites. Reach her at porters aren’t asking the state party to include language [email protected] supporting same-sex marriage. They just want to remove Page 16

ning mate with Eric Holcomb, a former state Republican Pence-Gregg rematch chairman who is better suited than Ellspermann to con- front Gregg and Democrats in political combat. Pence knows the race will be different this time. will be different He knows he must defend his record, and he’s stressing By JACK COLWELL the lower unemployment and additional jobs in Indiana SOUTH BEND – Although the ballot this fall will and contending that his tax and budget policies have list the same candidates as four years ago for governor of helped to spur the economy. Instead of ignoring Gregg, he Indiana, Democrat John Gregg vs. Republican Mike Pence, will hit at what Gregg proposes to do differently. Gregg says he challenges a different opponent this time. Gregg is citing Pence’s budget priorities as leaving Now, Pence is the gover- Indiana with lagging road repairs and serious problems nor. Now, says Gregg, Pence with education. He says improvements in the national “will have to run on his own economy and efforts of individual Hoosiers rather than record,” not on the record of Pence initiatives have brought the additional jobs. former Gov. Mitch Daniels, Education will be a major issue, with Glenda the popular two-term Repub- Ritz, the state school superintendent, again right in the lican governor who preceded middle. Ritz pulled a 2012 upset, defeating Republican Pence. Now, Gregg contends, Supt. Tony Bennett in a teacher-led backlash against Re- voters know that Pence is no publican education policies in Indiana. She and Pence have Mitch Daniels. Back in 2012, battled ever after, with the governor seeking to diminish Gregg says, Pence won their her power as superintendent and Ritz seeking education close race with support of Re- approaches different from those favored by Pence. publicans “who wanted a third As they campaigned together in South Bend on term of Mitch Daniels.” Dyngus Day, Gregg and Ritz, who once was planning to “This race is about Mike Pence and his record,” run for governor, were campaigning together and stress- Gregg says. He predicts that many Republicans as well as ing that they share the same campaign headquarters. The Democrats will find that record one of “divisiveness and no message was clear. They would work together, not battle leadership.” over education philosophy. Republicans portray Ritz as a The governor has a different view of that record, troublemaker and will contend that she and Gregg, if both and he will be a different candidate this time. He will hit win, would set back education reform. back. Last time, Pence prided himself on running a posi- While Pence won’t present a “roadmap” this time, tive campaign, concentrating he will stress that he and Republican-controlled legislature on promoting his “roadmap found a way to for Indiana” rather than going spend an extra on the attack against Gregg. billion dollars Few voters paid any attention on roads. Gregg to that stuff about a roadmap. counters that Pence, who began with a big the budget still lead against the underfunded is woefully inad- Gregg, began slipping in the equate for roads polls and won narrowly as the and other infra- entire Republican ticket was structure needs. hurt by losing GOP nominees Gregg is a for the U.S. Senate and state different candidate school superintendent. this time, too. He’s Pence signaled the better-funded and different style for his 2016 better-known. campaign when he dumped Lt. Also, however, he Gov. Sue Ellspermann as his will be in the spot- running mate for the rematch light, having to with Gregg. She resigned amid differences with Pence explain and defend his proposals, no longer able to move over how to respond to the controversy over “religious up almost unnoticed, as he did four years ago to the brink freedom” legislation that was denounced as “freedom to of victory. v discriminate.” Ellspermann favored expanding civil rights protections in response. Pence sought no action in the Colwell has covered Indiana politics over five de- 2016 legislative session on the divisive issue. And Pence cades for the South Bend Tribune. replaced Ellspermann as lieutenant governor and as run- Page 17

the past 20 years, why is this a hot topic today? How can Middle class loses Bernie and Donald exploit the idea that the drift of income upwards is speeding to catastrophe? Perhaps actual income disparities are not truly income to the wealthy important. What matters most may be absolute standards By MORTON MARCUS of living which have improved for almost everyone in the INDIANAPOLIS – Let me not be a spoilsport. But past 40 years. Perhaps “income equity” is mostly a percep- why are we now talking about income disparities when the tual problem that blinds many to reality. v problem, if it is a problem, has been with us and growing for more than 40 years? Mr. Marcus is an economist, writer, and speaker I wish I knew the answer. Maybe the Great Reces- who may be reached at mortonjmarcus@yahoo. sion actually was the Great Reawakening. Maybe America com. woke from the Great Delusion that all was just fine if more people moved into single family homes, had retire- ment plans, and unlimited sports programming on TV. The economic downturn of Worker problems 2007-09 demonstrated that even those who felt quite secure were vul- nerable to an economy built on hope fueled by tax turned to hype. The working class, who were now called “middle class,” Incentives for Capital found themselves immersed in a crisis formulated by the wise guys of the financial industry. Yet, By MICHAEL HICKS those underwater on their mortgages and credit cards MUNCIE – Countless issues fuel the populist knew they too were culpable for applauding and encourag- wave that animate this election cycle. Many of the con- ing obsessive optimism. cerns are easily refutable by facts, Enough conjecture. Let’s look at the facts as but there is one issue that is the reported by the U.S. Bureau of the Census. In 1974, the main policy contribution to the lag- lowest fifth of all American households received just 4.3 ging labor markets, the rising wealth percent of money income. The top fifth of all households inequality and the unease among so got 43.5 percent of that income. By this time, the War on many workers. It is the very unequal Poverty was nearly a decade old. way we treat workers and investors. Come forward to 2014. Now the lowest fifth re- Workers and investors contribute ceived 3.1 percent and the top fifth enjoyed 51.2 percent labor and capital to the economy, ac- of money income. What’s going on? The top fifth’s share counting for about 85 percent of the of money income went up 7.7 percentage points, while input share of GDP. Entrepreneurs the lowest fifth’s share declined by 1.2 percentage points. pull them together to make a profit. Where did the top households get their shares from? Industries use labor, capital, and entrepreneurship in dif- It turns out the lower 80 percent of all house- ferent proportions. Over time, technology change, cost holds, which includes many very well-off people, lost and relative productivity cause businesses to change their income shares to the top 20 percent. To put it simply, mix of workers and capital. the overwhelming majority of American households lost Typically the shifting mix of capital and labor is ground to their most wealthy neighbors. slow, giving workers years if not decades to adjust. But, There has been, however, no acceleration in since the rocky 1970’s federal, state and local govern- this trend of the rich getting a greater share of income and ments have increasingly subsidized capital investment, the poor getting a lesser share. If anything, the pace of while increasing the cost of labor. change in income shares declined sharply from the 1974 At the federal level, taxation strongly favors to 1994 period to the more recent 20 years, 1994 to 2014. capital, both in the general tax schedule and more pain- For example, the share going to the top fifth fully in the raft of government giveaways; think Solyndra, of households rose by 5.6 percentage points from 43.5 Tesla and GE. At the state level, Indiana is a prudent actor, percent in 1974 to 49.1 percent in 1994, but only by 2.1 although many states (e.g. New York) feature hefty capital percentage points during ’94-’14. Likewise, for the other, giveaways. At the local level, property tax abatements lesser income groups, the pace of decline in their shares are stunningly heavy. Here in Indiana, roughly $8 billion slowed as well. per year in new capital (more than $2,500 per family) is With this slowing of change in income shares in abated from local property taxes. This trims the typical Page 18 new factory’s property tax bill to less than 1 percent over opers to bond attorneys, are also outsized beneficiaries. its lifetime. That is why so many peddle rampant untruths about the In contrast, labor gets walloped. Payroll taxes benefits of tax incentives. shave $1 out of every $7 off of take home pay, and man- These concerns aren’t repackaged Marxism or dated health care payments are more than $6 an hour. latent populism. I hold neither in high regard. Simply put, All sorts of policies simply make it more expensive to hire market economies should not value capital over labor, or people than to buy equipment to replace them. The effects vice versa. The huge web of tax incentives and abate- are beginning to show. ments we now have is a prime source of worker unease Since 1990, the ratio of capital to labor has and wealth inequality. The initially well-meaning subsidies doubled and the demand for labor in many industries has for capital investment have been corrupted beyond recog- declined. Nearly all GDP growth since 1990 is caused by nition. It is time to rethink them at every level of govern- capital investment. This is partially fueled by tax incen- ment. v tives, creating stagnant wages, especially among low income workers. On the flip side, the benefit of higher Michael J. Hicks, PhD, is the director of the Cen- demand for capital accrues to those who invest and those ter for Business and Economic Research and the who transact capital investment. George and Frances Ball distinguished professor of The sum of this is that labor income as a share of economics in the Miller College of Business at Ball the economy is down over the past 25 years, while wealth State University. inequality has been fueled by huge capital gains. Those who work on these capital transactions, from local devel-

Modisett. She was defeated by Republican Steve Carter Gregg running mate when she sought reelection in 2000. There is a greater reason why Gregg’s running mate shouldn’t be a resident of Northwest Indiana. It ap- not likely from Lake pears that Lake County resident Lorenzo Arredondo will be By RICH JAMES unopposed at the June 18 state convention for the attor- MERRILLVILLE – Talk is increasing over Demo- ney general nomination. Arredondo retired six years ago cratic governor candidate John Gregg’s selection of a as Lake Circuit Court judge. It’s also pretty rare to have a lieutenant governor candidate. It has been tradition for the Lake County resident on the ballot for a statewide office. governor candidate to select a running mate from a differ- And to have Arredondo and a Lake County lieutenant ent geographic part of the state. governor candidate on the same ballot would be unprec- The thinking, of course, is edented and likely not good for the Democratic Party. that a ticket with geographical The only other statewide office to be nomi- balance has the best chance of nated this year is superintendent of public instruction, and wooing the most voters. And, incumbent Democrat Glenda Ritz is seeking reelection. because Gregg is from Sand- Meanwhile, Gregg continues to spend a consider- born, a town of 415 people in able amount of time in Northwest Indiana, rallying the far southwest Indiana, he has troops and raising money. He did fundraisers in Lake and a lot of state left to form geo- Porter counties a week ago. Lake County Sheriff John Bun- graphical balance with his selec- cich, who is Democratic chairman, has worked tirelessly tion of a lieutenant governor for Gregg. Porter County Sheriff David Reynolds hosted a candidate. Because Northwest Gregg fundraiser last Saturday. Indiana is far from Sandborn, Meanwhile, speculation continues over Gregg’s and is a heavy Democratic area, selection of a running mate. It’s a pretty good time to rule there has been speculation that Gregg will look to that out Lake County. v part of the state for a running mate. The most recent name to surface was that of Rich James has been writing about state and local Gary Mayor Karen Freeman-Wilson. She said she was hon- government and politics for more than 30 years. He ored to be mentioned but had work to do in bringing back is a columnist for The Times of Northwest Indiana. her city. Freeman-Wilson has statewide experience in that she was named by then-Gov. Frank O’Bannon to fill the vacancy created by the departure of Attorney General Jeff Page 19

Nolan Finley, Detroit News: In the early 1990s, the state appears poised to lose because of the new law. when Kmart Corp. was rapidly unraveling, then Chair- The National Basketball Association has threatened to pull man Joe Antonini was a frequent visitor to our offices, its All-Star game out of nearby Charlotte next year. Finan- each time bringing another big idea for brightening the cial analysts say that could be a $100 million hit for the fading image of the giant discount retailer. With Target city and state. stealing his customers on one end and Wal-Mart on the other, Antonini was frantically trying to make Kmart hip Gary Welsh, Advance Indiana: Gov. Mike Pence’s to shoppers who scratched off the store’s label to hide Regional Cities Initiative is nothing but pork barrel politics where the purchases came from. He remodeled stores and at its worst. Public dollars are being passed out to bolster brought in domestic goddess Martha Stewart, supermodel Pence’s re-election without any regard for the public ben- Kathy Ireland and other big names in hopes of changing efit those dollars provide. The best example of this is the the perception of Kmart. Evidence that celebrity endors- $2.8 million that has been awarded to Fort Wayne’s Skyline ers and new signage weren’t going to save project by the Northeast Indiana Regional Devel- Kmart came when Antonini offered to buy the opment Authority from Pence’s original $42 million entire output of a Texas jeans factory that Regional Cities Initiative, which got doubled during Levi Strauss & Co. had slated for closure. Levi this year’s legislative session. The City of Fort chose to shutter the plant rather than see its Wayne had already approved the $98 million Sky- brand in Antonini’s stores. Kmart just wasn’t line downtown project and kicked in $39 million cool. I thought about the Kmart experience a in local money for the project, So why is nearly few weeks ago while reading a survey in which a major- $3 million of our state tax dollars being handed out to a ity of young, single Republican men said they don’t reveal private developer for a project already under construction? their political affiliation on a first date. They don’t want So much for Mike Pence being a fiscal conservative. He’s a their amorous prospects hurt by the negative assump- tax-and-spend pork barrel politician who thinks our public tions attached to the GOP. Republicans are the blue light tax dollars are fungible when it comes to running his re- party. The brand is tainted, perhaps irrevocably. Instead election campaign. v of being identified as the party of entrepreneurs, of ef- ficient government, of rational taxes and of strong national NWI Times: When you’re working in defense, it is widely viewed as the place for the angry, the Doug Ross, the trench, your view of the big picture can be obscured. intolerant, the extremists and, as much as party regulars So can the fact that the picture sometimes changes. U.S. are fighting it, the party of Donald Trump. Part of this is Attorney David Capp adjusted that picture last week, self-inflicted. The GOP is consistently on the losing side of discussing trends in gangs, drugs and public corruption the culture wars, and as such has established itself as out with The Times Editorial Board. If your idea of drugs was of step with modern values. v rolling a few joints in college in your bifold LP album cover, you might not know how much things have changed. Il- John Krull, Statehouse File: The waitress at legal drugs, even marijuana, are far more potent today the restaurant rolls her eyes. I’d just asked her about than they used to be. For marijuana, the THC content the emergency session North Carolina legislators — like — that’s the active ingredient — is far higher today, the Indiana’s lawmakers, a very conservative and heavily ger- result of selective breeding over the past few decades. If rymandered Republican bunch — had convened to adopt a you smoked it when you were a teen, you might not know measure banning transgender people from using any rest- how much more dangerous it is for teens today. It’s not room that does not conform with the gender of their birth. the same organic product you smoked. Heroin is differ- The North Carolina lawmakers — who, again, like their ent today, too. Back in the day, police made a big deal Hoosier counterparts like to boast that they believe in lim- out of a drug bust in which the heroin being seized was 6 ited government and respecting boundaries — also banned percent pure. Now, it’s 10 times more potent. Police today local communities from adopting different ordinances. So often find heroin that is 67 percent pure. The drug world much for local control and returning power to the people. isn’t the only area where Capp is seeing change. Gangs, North Carolina Gov. Pat McCrory, a Republican, signed too, have been evolving. It’s difficult to compare them to the bill into law as soon as the printer spat it out. Almost respectable entrepreneurs, but one thing gangs have in as soon as McCrory put his pen down, at least one North common with successful businessmen is they know to read Carolina community filed suit against the state government the trends in the market and adapt accordingly. The U.S. for exceeding its authority. “Idiots,” the waitress says. I attorney’s office in northern Indiana has taken 65 gang ask her if she’s talking about the governor, the legislators members off the street in recent years. These are major or the social conservative activists pushing the bathroom gangs, too, not just wannabes. Capp’s team is using the bill. “All of them,” she snorts. “We could use that money Racketeer Influenced Corrupt Organization statute to go here.” I ask if she’s talking about the $40,000-plus the after gangs, and other U.S. attorneys are paying attention legislators spent on the emergency session or the business to the results here. v Page 20

syndrome and other conditions have has been named chairman of Trump’s Legal test likely increased, and the accuracy of those campaign in the Hoosier State. The screenings has improved dramati- Trump campaign also appointed for abortion law cally. A 2012 study, published in the Suzanne Jaworowski as its Indiana Journal of the International Society for director and Tony Samuel as a vice By MAUREEN HAYDEN Prenatal Diagnosis, found that more chairman. Jaworowski had worked on CNHI State Reporter than 60 percent of mothers terminate Carly Fiorina’s presidential campaign INDIANAPOLIS – New abor- pregnancy when Down syndrome is until Fiorina quit the race in Febru- tion restrictions, already the subject detected in the fetus. ary. Samuel runs a consulting and of public protests, are headed for a public relations firm. Samuel said at a court fight. Opponents of the limits - Pence signs RCI Wednesday news conference in India- deemed among the most restrictive napolis that Trump and his campaign in the country - are expected to try in Goshen “are taking Indiana very seriously” to stop the law before it takes ef- GOSHEN — Elected officials and that the New York real estate de- fect July 1. They call the restrictions and business leaders from St. Joseph, veloper plans to visit the state multiple unconstitutional and part Elkhart and Marshall coun- times. “He’ll be here. (We are) going of a continuing effort to ties gathered once again on to try to get him in several times,” narrow abortion access at Wednesday to celebrate the Samuel said. The campaign will open the state level after failed area’s winning application at least three offices in the state, he attempts to overturn the for a $42 million grant from said. “I think they really dislike each U.S. Supreme Court’s the Indiana Regional Cities other. That’s not a show,” Early said 1973 decision in Roe v. Initiative (Allen, South Bend Wednesday about the rivalry between Wade legalized abortion nationally. Tribune). And this time, everyone at Trump and Cruz. Early said he did not The American Civil Liberties Union the party could be sure the region think Kasich had enough delegates to and are prepar- really will get the money. Gov. Mike compete for the nomination. “As my ing a lawsuit to file in federal court. Pence announced in December that grandpa used to say, you ain’t got no It could come by the week’s end. three areas of the state had been socks, you can’t pull ‘em up,” Early Experts in constitutional law say the selected to receive $42 million grants said. rules’ sweeping language prompts through the Regional Cities program. the challenge. “I couldn’t believe The other two are centered around Sanders says how far and wide it went,” said Dawn Evansville and Fort Wayne. But the Johnsen, a constitutional law profes- still needed Clinton unqualified sor at Indiana University and head of to appropriate one-third of that grant the U.S. Justice Department’s office money during this year’s legislative NEW YORK— On Wednesday of legal counsel during the Clinton session. State lawmakers — after night, Bernie Sanders laid into Hill- administration.“They’re enacting some negotiations — approved the ary Clinton with a harsh attack on her something groundbreaking, and it’s Regional Cities boost last month. qualifications for the presidency (CBS unknown what its consequences will “There were some uncertain moments News). “I don’t believe that she is be,” she said. during the course of this last session, qualified,” Sanders said to a cheering The law, signed two weeks when we weren’t quite sure we were crowd of more than 9,000 people in ago by Gov. Mike Pence, caused an going to get all the way there,” Pence Philadelphia. Sanders then listed the outcry from abortion rights advocates said on Wednesday before ceremo- reasons behind his assertion that she’s who are planing a rally at the State- nially signing the measure, House unqualified, pointing to her super house on Saturday. Opponents of the Enrolled Act 1001, in front of an audi- PAC’s acceptance of millions from spe- law also have been calling Pence’s ence at the Goshen Theater.. cial interest groups; he attacked her office daily to express their displea- prior support for trade agreements, sure by reporting on details of their Early says Trump her vote for the “disastrous” Iraq War menstrual cycles. The law expands serious about state and her support of the Panama free Indiana’s already restrictive abor- trade agreement. “I don’t think you tion laws by banning the procedure if are qualified if you supported the based solely on a mother’s objection INDIANAPOLIS – Republican Panama free trade agreement. Some- to a fetus’ race, gender, disability or presidential candidate Donald Trump thing I very strongly opposed and other anomaly, such as the detection has set up a campaign operation in which as all of you know has allowed of Down syndrome. It holds doctors Indiana ahead of the state’s May 3 corporations and wealthy people all liable if a patient has an abortion for primary election (Kelly, Fort Wayne over the world to avoid paying their those reasons. In the past 30 years, Journal Gazette). Rex Early, a former taxes to their countries,” Sanders said. prenatal diagnosis tests for Down Indiana Republican Party chairman, The crowd booed.