Thursday, June 24, 2004 Volume 10, Number 44 Page 1 of 10 he Kernan, Daniels T and the glass half ... Howey Site Selection magazine data contested By BRIAN A. HOWEY in Indianapolis It’s almost certain that in your living room, your doctor’s office, or on your dining room table you won’t find Political a copy of Site Selection magazine. Until this March, most Hoosiers had never heard of the publication. But since it ranked Indiana No. 1 for its competitive Report business climate for 2003, it has become a centerpiece of Gov. Joe Kernan’s re-election campaign, mentioned in two The Howey Political Report is published by NewsLink Kernan TV ads. At the party convention on June 12, Lt. Gov. Inc. Founded in 1994, The Howey Political Report is Kathy Davis said in her acceptance speech, “Joe Kernan an independent, non-partisan newsletter analyzing the political process in Indiana. decides and takes action. We make the right changes and we get results. Indiana has just earned the No. 1 ranking from Brian A. Howey, publisher Site Selection magazine. We’re recognized as the best state Mark Schoeff Jr., Washington writer for business investment based on our economic climate, our Jack E. Howey, editor outstanding system of higher education, and our low cost of doing business.” The Howey Political Report Office: 317-254-1533 PO Box 40265 Fax: 317-254-0535 In the March 2004 edition, Site Selection listed 102 Indianapolis, IN 46240-0265 Mobile: 317-506-0883 new manufacturing facilities in Indiana for 2003, and 401 [email protected] total facilities that expanded to create at least 50 new jobs or www.howeypolitics.com $1 million in investment. Those numbers were generated from two lists, one Washington office: 202-775-3242; Business office: 317-254-0535. submitted by the Indiana Department of Commerce that detailed 50 “state-assisted projects,” and one from the Subscriptions: $350 annually via e-mail; Indiana Chamber of Commerce, which had sent a list of 700, $550 annually including the HPR Daily of which 241 occurred in 2003. “The combined lists total of Wire. Call 317-254-1533 or 254-0535. 291 is well short of the 401 figure cited by Site Selection,” © 2004, The Howey Political Report. All rights said Daniels campaign manager Bill Oesterle. reserved. Photocopying, Internet forwarding, faxing or The 102 new manufacturing projects were better reproducing in any form, in whole or in part, is a viola- than the 98 in New York, 51 in Texas, 22 in California, 39 in tion of federal law and is strictly prohibited without Florida, 68 in Michigan, 80 in Illinois, and 75 in Ohio. consent of the publisher. Ticker: Nader won’t be on ballot p. 2 “I’m not going to be casting votes to make HPR Interview: Bill Oesterle p. 4 anybody in the hallway happy. I’ll do what’s Horse Race: Governor’s update p. 6 right to try and get this state fixed.” Columnists: William Safire p. 9 - Brent Steele, the new Republican nominee Photos, words & Reske’s courage p.10 in SD44, to the Louisville Courier-Journal HPR Forum Will Feature Dr. Larry Sabato on Oct. 1 at the Downtown Marriott Thursday, June 24, 2004 Page 2 of 10 “It’s absolutely inconceivable that the legislature, along with a diverse group Indiana, with a tenth of the population of of people from business, universities, edu- some of those states, would out-perform cation, labor unions and statewide associ- them,” Oesterle said. “There has been no ations, as well as the governor and lieu- change in business activity. There was no tenant governor, took bold steps that have change in the business climate. There was made Indiana stand out among its peers.” KERRY UP 3 POINTS IN a change in how the Chamber counted. It Monger’s article takes issue with RASMUSSEN TRACKING: A turns out they just counted differently.” Oesterle’s assessment that there has been Rasmussen Reports poll Site Selection failed to return “no change in business activity” in the (6/23) of 1,500 likely voters phone calls and e-mails to answer HPR’s nationwide, conducted over only state to restructure its taxes in recent June 10-22, (+/- 3%) using questions about its data base and criteria years. an automated polling sys- for its list. Monger explained, “From our his- tem, shows 47% would vote toric tax restructuring – which, among for John Kerry; 44% would Shared database other things, eliminated the gross receipts vote for George Bush; 4% Cindy Monnier, director of the tax and the inventory tax – to the unprece- would vote for another can- Chamber’s Business Research Center, dented investments made through didate; 5% were not sure. provided HPR with the Chamber list, but Energize Indiana, we have taken initia- tives that will pay off for years to come. KERRY COMING TO INDI- when asked about how Site Selection The outcomes speak for themselves. ANAPOLIS ON JULY 6: came up with its final numbers, she Democratic presidential referred HPR to Dennis Paramore of the When Indiana stepped to the table, the pri- candidate John Kerry is Department of Commerce. vate sector in turn invested nearly $3 bil- scheduled to be in But in a May 11 e-mail to the lion in 2003, compared to only $900 mil- Indianapolis July 6 to Chamber staff, Monnier explained, lion in 2002. Those investments were laid address the worldwide con- “Indiana’s rank in Site Selection maga- out in data that Site Selection used to vention of the African zine’s Governor’s Cup was around 30th in determine its ranking of the states, data Methodist Episcopal 1999, before I began to share our library’s that included investments by new and Church, say church officials New Plants & Expansions database with expanding businesses of all sizes.” (Indianapolis Star). Kerry Monger also noted that last year plans a morning appearance them.” Monnier also said, “I started giv- at the Indiana Convention ing Commerce our data about three years Indiana reached a record $16.4 billion in Center, where about 30,000 ago because I realized that they were only export sales, more than $2 billion higher church members will attend submitting those projects where the state than the totals calculated in 2002. That the event, which runs from had given financial support, about 30 (in puts Indiana at 12th in the nation for June 30 to July 7, officials 1999). Hundreds of other projects were export sales and demonstrates the state’s said Wednesday. "He's not being submitted because no one was ability to compete globally. reaching out and trying to collecting it. This data was just what we Monger continued, “Some have touch all the constituents in had in our New Plants & Expansions data- expressed concern that the bulk of this the nation," said Bishop base here. They accepted my offer to con- investment came from existing Indiana Philip R. Cousin, who will become the senior bishop tribute and it has raised Indiana up into companies. Yes, the state did pay attention of the AME Church at the the top 10 ranking each year since.” to its ‘existing customers,’ and therefore convention. "There's noth- When Paramore was contacted, he strengthened our base in a way that earned ing wrong with appealing to referred HPR to an article written by us a first-place national ranking in a mag- faith-based groups and Dept. of Commerce Director Tim Monger azine read by 45,000 business executives, denominations." Kerry cam- that was published in Indiana Business site consultants and economic developers paign officials wouldn't con- Magazine. Of the No. 1 ranking, Monger worldwide. The qualified submissions to firm the trip. Democrats explained, “It reflects the fact that in Site Selection included over 400 new and Jimmy Carter, Bill Clinton recent years we have taken significant existing companies from life sciences, and Al Gore addressed the steps to strengthen our business climate. advanced manufacturing, 21st century AME Church during their presidential campaigns. Hoosiers should be proud because these logistics and technology. It should also be actions were the result of bipartisan unity. noted that the magazine selected only a Continued on page 3 Together, members from both parties in few existing companies as examples. Page 3 of 10 Thursday, June 24, 2004 Indiana’s economic plan focuses on mod- nies grow and add jobs. But the minute ernization as well as diversification of our something great happens to our state – state’s economy.” like being ranked No. 1 by a national magazine – they tear it down. This rank- A marketing tool? ing should be celebrated. It represents the In the dog-eat-dog economic hard work of Indiana’s companies and development warfare between the their workers. And it’s an honor that can American states and various regions, it’s be used to actually sell the state to poten- NADER WON’T BE ON INDI- hardly surprising that entities such as the tial companies, and yet the Daniels cam- ANA BALLOT: Hoosiers looking for another choice Indiana Chamber and the Department of paign insists on trying to poke holes in it and belittle what’s been accomplished.” in this fall’s presidential Commerce would seek to change the per- election won’t see Ralph ception of Indiana as an economic rustbelt Nader’s name in the voting backwater. Two ways to see things booth, says the independent Monger candidly acknowledges, Oesterle also complained that the candidate’s state coordina- “Others have classified this award as a two gubernatorial campaigns are being tor (Post-Tribune).