Bayh goes to (Electoral) College · Bauer facing Dem heat? Howey Politics Indiana is a nonpartisan news-letter based in Indianapolis and published by NewsLink Inc. It was founded

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By BRIAN A. HOWEY INDIANAPOLIS-IstheSpeakercatchinghell?ArepartisanDemocratsPO’dthatB.PatrickBauerconsortedwithaRepublicangovernorupforre-electiontoachieve“historic”propertytaxreforms?Thatwasthewhispered

wordattheDyngusDaycelebrationsonMondayattheWestsideDemocraticClubfromfriendsoftheSouthBendDemo-crat.ThestorygoesthatsomeelementsofthepartywantedBauertokillthereformssoGov.Danielswouldbeblamedfordoingnothingotherthanofferingadefeatedplanonpropertytaxes.Inthisscenario,theDemocraticnomineeforgovernorcouldthen,asonesourceput

“If I had to pick - and I’m not usually shy about saying who’s going to win - I couldn’t tell you today.’ - U.S. Rep. Joe Donnelly on the Clinton-Obama race in Indiana, to the Washington Post

Thursday, March 27, 2008

Bayh goes to (Electoral) CollegeNew case for Hillarynomination is a curioustwist in the logicBy MARK CURRY WASHINGTON-ItstartedonaSundaytalkshow,withU.S.Sen.EvanBayhandGloriaBorgerofCNNdiscussingHillaryClinton’sprospectsintheIndianaDemocraticprimary.Earlyintheprogram,Indiana’sforemostDemocrattoldLateEditionviewersthathethinkstheNewYorksenatorwillemergethewinnerinaclosecontesttobedecidedMay6.“Ithinkultimatelyherfocusonmiddle-classeconomicissues,thosekitchen-tableissues,thecostofhealthcare,jobsecurity,pensionsecurity,thosekindsofthingscombinedwithherstrengthandexperience,Ithinkwillresonateverywellwithworking-classblue-collarvotersinourstate,”hesaid. “Butultimately,youknow,ifyoulookattheag-gregatepopularvote,andasweallrecallin2000,toour,asDemocrats,greatsorrow,wedoelectpresidentsbased

upontheelectoralcollege,”hetoldBorger.“Sowhocar-riedthestateswiththemostelectoralcollegevotesisanimportantfactortoconsiderbecauseultimately,that’showwechoosethepresidentoftheUnitedStates.” Thisisacuriousstatementfromsomeonewho,like

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Bauer facing Dem heat?

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it,“promisewondersduringthecam-paign.” Speaker Bauer told HPI this afternoon, “No, I don’t catch flak. Itwasn’taperfectbill.Itwouldn’tbethewayitwaswritten.Mostmembersarehappythatsomethinggotdone.Itoldthemtovotetheirdistrict.”BauersaidthatofthoseDemocratswhovotedno,“manywouldhavevotedyesiftheyhadbeenthe51stvote.” Bauersaidthat“someofthecriticismsmaybearout.”But,headded, “They can be fixed. The circuit-breakerswilltakeawholeotherses-sionandavote.Theywillbeaworkinprogress.” NotablyabsentwasanykindofastatementfromIndianaDemo-craticChairmanDanParkerlaudingthereformswhichwerebackednotonlybyBauer,butbymorethanhalfoftheHouseDemocraticcaucus.ParkertoldHPIonWednesday,“Well,look,thepartydoesn’tgetintopolicytoomuch.Therewerealotofpeopleatthelocallevelandlaborwhowerenot happy with the final deal.” Parker saidthe“biggestresistance”wasfromlocalDemocratslikemayorswhoarenowfacingbigbudgetcuts. “That put the partyinadifficult position,” he said. “I ques-tionraisingtaxestosolvetheprob-lem.Kernan-Shepardshouldhave

come first. We could have seen what kindofsavingsyoucouldproduce.Ithinkwe’regoingtolookbackatthisandseeallsortsofproblems.”TheproblemwiththatstatementisthataftertheKernan-ShepardreportwasissuedinDecember,therewerevirtu-allynoDemocratswhostoodupandadvocatedswiftpassage.Parkerwassilent.Notonlyweretherenocompet-ingpropertytaxplans,therewasnomentionofmakingKernan-Shepardapriorityafter,say,Gov.Daniels’Janu-aryStateoftheStateaddress. The time foraDemocraticalternativetaxplanwouldhavebeensometimeearlylastfall,butthatdidn’thappen,meaningtheDanielscap‘ncutplanwastheonlygameintown. BauersaidthatHouseDemo-crats did present a plan - in the final weeksofthesession.“Wetookthebestmechanismwecoulddo.Withthepublicdemonstrationofthelaw,wecan fix it accordingly. It’s really a living item.” ThedilemmaforBauertorejecttheplaninMarchwouldonlymeanaspecialsessioninAprilorMaywhenseveralofhismemberswerefacingprimarychallenges.Tohaveprojectedanalternativewouldbe,asoneobserverputit,“pickedapartandhammeredbyMitch.”Plus,agovernorismorelikelytoprevailinaspecial

HOWEY Politics Indiana Weekly Briefing on Indiana Politics Thursday, March 27, 2008Page 2

House Speaker B. Patrick Bauer sandwiched by Lt. Gov. Skillman and Gov. Daniels as they signed the tax reforms last week. Bauer’s bipartisanship has landed him in hot water with some Democrats. (HPI Photo by Brian A. Howey)

HOWEY Politics Indiana Weekly Briefing on Indiana Politics Thursday, March 27, 2008 Page 3

session(i.e.asFrankO’Bannondidin1997).ASpeakerBauer(likeformerPresidentProTemGarton)feelstheymust watch over the flock and make sure all the sheep are safefrom,asformerSpeakerJohnGreggmightsay,“thewolves”bayingatthedoor.Sometimesthatmeansspend-inglittlepoliticalcapitalandtakinglittlerisk,or,inthiscase,takethedealfromtheslygovernorandtrytodefendthetiniest,weakestdonkeysheepintheHouse. BauerissuedastatementonMarch14thatmadehiscourseprettyclear.“IndianaHouseDemocratsenteredthe2008legislativesessioncommittedtoonegoal:pro-vidingbroad-basedpropertytaxrelief.Ithasbeenagoalwehaveworkedonfortwoyears,andwehaveworkedtogether with Republicans to find abipartisansolution.HoosiersdemandedactionontheGovernor’sprogram,andithasbeendeliv-ered.” Did Parker talk to BaueraboutitthewayRepublicanChairmanAlHubbardrushedovertotheIndianaSenatein1993toconvinceleadershiptheretospikeahospitaltax?“Ididnot,”Parkersaid.“Ididnotgetinthemiddle.” HouseDemocratshadn’tbeentookeenonanyoftheKer-nan-Shepardreforms.Thosecarry-ingthatwaterhadbeentheHouseRepublicansandSens.BrandtHershman,JamesMerrittandMikeDelph.HouseWays&MeansChairmanBillCrawfordhasspikedanumberofreforms,betheyfromformerIndianapolisMayorBartPe-tersonortheRepublicansenators.Atonepoint,CrawfordsaidthatinsteadofdealingwithKernan-Shepardinpiecemealfashionthisyear,theentirepackageshouldbeputoffuntil2009. Parkerlamentedthepre-dicamentofWhitingMayorJoeStahura,whohesayswillsuffer a “massive tax shift.” The BP refinery there was pay-ing$17millionannuallyin2001.“Afterthelastdealwiththecircuit-breakers,BPwentto$9million.Doyouknowwhatthey’regoingtopayonthisdeal?$4.5million.” IexplainedtoParkerwhatGov.Daniels’responsemightbetoWhiting’splight:lookforamergerwithHam-mond, Munster, Highland and Griffith. In fact, former East ChicagoMayorRobertPastrick,amemberoftheDemo-craticNationalCommittee,evensuggestedthesamethingseveralyearsago.Thegovernorcallsitthe“anvil”thatwillforcelocalconsolidationsandpooling.

“That’snotworkingwithpeople,”Parkersaid.“That’swhyheisgoingtobedefeatedinNovember.” Bauerinsistedthathelistenedtothemayors.“Theywouldhavepreferrednothing,”Bauersaid,“butthatwasnottheopinonofthevastmajorityofthepublic.Wediddosomecushioning.Inmycounty,takingoverwelfareisahugething.Itwillbe$4.27millionforSouthBendand$1.7millionforMishawaka.Wetooktheschoolsoffthepropertytaxroles.” Bauersaid“themayorswerereallyverygood”andthatpromptedacompromisethathadthestatetakingoverthe pre-1977 police and fire penions. Bauer said that he andSenateTaxChairmanLukeKenleyhaddiscussedthis

priortoIndianapolisMayorGregBallardcomingbeforeWays&Meansandsuggestingthepeni-onsmovetothestate.“Wehadbeentalkingaboutawaytoalle-viatethepensionburden,”Bauersaid. Throughouttheconversa-tion,Bauerkeptgoingbacktothenotionofcompromise.“Thisisnottheperfectanswer,”hesaidatonepoint.“Youneedthepublicbehindthevotes.” Asked about Kernan-Shepard comingontothe“frontburner”in2009,Bauersaidthatitwasnevertheapproachofthecommissiontohavetheentire27recommendationsacteduponthissession.Hesaideliminatingmostofthetownshipassessorsisaprofoundchange.“In2005and2006,wecouldn’tevengetamotionoutofcommittee.That’saprettyextremereformthere.” HesaidheexpectsmanyoftheKernan-Shepardreformstomovetothetopofthe2009prior-itylist.Oneproposal-creatinga

singlecountyexecutivetoreplacethecurrentthreecom-missionersisalready“cookingonthestove,”Bauersaid. DidBaueraskedthetwoDemocraticgubernatorialcandidatestostayawayfromthepropertytaxissue.No,hesaid. IshesupportingeitherJimSchellingerorJillLongThompson?“No,”Bauerresponded.“One’sanoviceandneedsavictoryandtheotherneedsarecentvictory.I’veencouragedthembothtoweighinontheissues.”v

Indiana Democratic Chairman Dan Parker (HPI Photo by Brian A. Howey)


Thegovernorsaidhe“invitedhimself”toseestepstaken by local officials to consolidate and reorganize local governmentinlinewithtaxreform.“Itisoneofthefewplacesinthestatewherethiskindofopen-mindedconver-sationishappening,”DanielssaidofeffortsbyMcShurleyandothers.Therehasalsobeendiscussionaboutcombin-ingsomecity-countyservices,suchasbuildinginspectionandanimalcontrol,alongwithlookingatjointpurchases.MuncieCityCouncilmemberMarkConatserattendedWednesday’slunchmeeting,andsaidthegovernorwasreceptivetolocalgovernmentneedsandalsotalkedaboutroadandotherstatefunding.“Iwouldsupportinvestigationofconsolidation,”Conatsersaid. Danielswasn’ttheonlyonespreadingthewordofchangetolocals.HouseMinorityLeaderBrianBosmawasappearingwithhisMembersinvarouscommunitiestoex-plaintheplan. InTerreHautewithStateRep.BruceBorders,Bos-maexplained,“Itisthestrongestandmosthistoricpropertytaxreliefpackagethathasbeenadoptedinmy22yearsin

theGeneralAssemblyandsomehavesaidintwogenerations.Itwastrulyahistoriceventwhichwill significantly benefit taxpayers in western Indianatodayandalsocaptheirpropertytaxesinthefuture”(TerreHauteTribune-Star).“ForfolksinVigoCounty,thatpropertytaxcutforhomesteadswillbe36.2percent.InClay[County]itwillbenearly30percentandSul-livan[County]willhitnearly25percent,”Bosmasaid. Borderssaidthepropertytaxrelieflaw“givessomeofthedollar”backtothetaxpayer.“Wedidraisethe[state]salestax,butforeachdollarofnewtaxation[inthesalestax],therewasabout$1.70of[propertytax]savings,sothereisstillanetsavings,”Borderssaid.“Forthe first time in decades, the taxpayer has a righttosay‘thisisallIcanreasonablyaffordtopay’”throughthenewpropertytaxcaps,“and‘youaregoingtohavetolivewithininyour

means,government,andnotkeepcomingaftermymoney’.Iamexcitedaboutthat,”hesaid. StateRep.EdSoliday,R-Valparaiso,spentTuesdayeveningdistillingIndiana’snewpropertytaxplanintoclearinformationforhomeandbusinessowners(Post-Tribune).“Manycommunitieswillhaveshortfalls,butsomeofthesecommunitiesneedashortfall,”Solidaysaid.“LakeCountymuststopitsaddictiontotaxes.”IfLakeCountywantstospendmoremoney,itmustpassacountyincometax,Soli-daysaid.v

By BRIAN A. HOWEY Usuallyagovernorjustachieving“historic”prop-erty tax reforms would do a fly-around and would be met byhappymayorsandcheeringsupporters. Butoverthepastcoupleofdays,Gov.MitchDan-ielshasbeenfeelingthepainofmayorsandcountycom-missionersnowconfrontedwithlifeunderthecaps. HewasinMichiganCity,aplacewhereStateRep.ScottPelathlivesandaplacehecalledthetaxreforms“disastrous”overtheweekend. The Michigan City News-Dispatch(homeofAlSpiers’“AnvilChorus”lettersoftheeditorcolumn)reporteditthisway:Gov.Danielslooksattherecentlysignedprop-ertytaxreformasaneconomicmotivatorwhichcouldputIndianaamongthe10stateswiththenation’slowestprop-ertytaxes(MichiganCityNews-Dispatch).Heunderstands,though,thenewstructurewillforcebothtaxrecipientsandtaxpayerstomakedecisionsonhowtheyspendmoneyandhowtheircommunitiesoperate.“Thesearesomeverytightspendingcontrols,”DanielssaidTuesdayduringameetingwithTheNews-Dispatch’seditorialboard. “LaPorteCountyisatextbookcase.Thereare55taxingentitiesinLaPorteCountyandyouhavemoretownshipsthananyothercountyinIndiana.“Thiswillbea forced change. People will have to find alternatemeans.Peopleshouldinsistonthis.”HesaidschoolsinIndianaaretop-heavywithadministratorsandlackinginenoughwell-paidteachers.“Weneedtoputdollarsintheclassrooms,”Danielssaid.“I’mnottalkingaboutconsolidating.Justtheopposite.Wehave293schooldistrictsinIndianaandalotofadministration.Noteverydistrictneedsasuperintendentandawholearrayofassis-tants. Theneweramanifesteditselfindif-ferentways.InJeffersonville,MayorTomGal-liganwasbeginningtocutbackonemployeecellphoneusage(News&Tribune). At Muncie, he sought outfreshmanMayorSharonMcShurleyonWednesday.“Everythingisonthetable,”saidMcShurley.“Wehavetolookatanewmodelforprovidingservicesascost-effectiveaspossible”(MuncieStarPress) Danielshadaprivatelunchwithahandfulofcityand county elected officials to discuss the impact of the statepropertytaxbillsignedbytheRepublicangovernorafterbeingapprovedbyanoverwhelmingmajorityoflaw-makers.

Daniels invites his ‘anvil’ to Muncie, Michigan City

Gov. Daniels with Muncie Mayor McShurley on Wednesday. (Muncie Star Press Photo)


hisfather-formerU.S.Sen.BirchBayh-hasadvocatedabolishingtheElectoralCollege.Ina2006interviewwithareporterfromtheRaleigh,N.C.,News&Observer,theyoungerBayhsaid“IthinkourpresidentshouldbechosenbythemajorityoftheAmericanpeople.Thatisordinar-ilythecase.Butin2000,asweallrecall,weelectedthispresidentwithfewervotesthantheothercandidategot.Ijustdon’tthinkinthemodernera[theElectoralCollege]isappropriate.”Wikipedianotesthat in his final years in the Senate,Sen.BirchBayhat-tempttoeliminatetheElectoralCollege(themethodofelect-ingthePresidentoftheUnitedStatesandreplaceitwithapopularvoteinthe1960sand70s.OneofBayh’sproposalspassedtheHouseeasilybutwas filibustered in the Senate. In1977heintroducedreformlegislationintotheSenate[1],butitneverachievedtherequired two-thirds vote in eitherhouseofCongress.In2006,hejoinedtheNationalPopularVoteInc.coalition,whichaimstoeffectElec-toralCollegereformthroughaninterstatecompact,andwroteaforewordtothebookEvery Vote Equal. HPI contacted Bayh’s office and asked howthesenatorcouldreconcilethesetwostatements.“It’sjustafactor,”explainedEricKleiman,thesenator’scommunicationsdirector.“It’sjustonefactorthatpeopleconsider.Ithinkitisimportantthatyouseethatincon-text.”KleimanpointedoutthatBayh’scommentslaunchedadebateacrosstheweb,withpointsmadeforbothsidesoftheargument.“Sen.Bayh’sprimaryconcernisforfull,opendemocraticelections,inwhichvotersofIndianaandallstateshaveachancetogooutandvoteandexpressthewilloftheelectorate,”Kleimansaid.“Hisviewiswehaveaprocessandwe’reinthemiddleofthatprocess,somillionsofAmericans,including6.5millionHoosiers,willgettovote.Weneedtoallowthosevotersachancetodothat.” Kevin Griffis, communicationsdirectorforObama’sIndianacampaign,offeredadifferenttakeonSen.Bayh’sstatements.“Thisisjustanotherstrainedbitofrea-soningtotrytomakeableakpicturelookbetter,andifyoulookatthenumbers,itdoesn’tseemtobeconvincingverymany people,” Griffis wrote in an email. “There has been no newspateofsuperdelegatespledgingtheirsupportfortheClintoncampaign....thelogicfromtheircamphasbecome

moretortured,theattacksfurtheroutofbounds.We’djustaskIndianavoterstokeepthatinmindwhentheClintoncampaignlaunchesattacksagainstSenatorObamainthecomingweeks.” The suggestion thatIndianaDemocratswillbetreatedtoanelectionthatturnsonissuesisappealing.It’snotliketherearen’tplentyoftopicstochoosefrom,whatwith the war in Iraq, al Qaeda on the loose, the meltdown of the financial sector, record gas prices, and millions of Americansonthevergeoflosingtheirhomes,tonamejustafew.ButlatelytheDemocraticcampaignshavebeenen-

gaginginapoliticalstrugglethatrevolvesoninnuendoandoutrightnamecalling.IsitpossibletheHoosierprimarywillbedifferent?The answer to that ques-tionreststosomedegreeontheactionsofEvanBayh,ourformergovernorandaco-chaironClinton’snationalcampaign. ThestakesarehighforSen.Bayh.Hehasmadenosecretofhisownpresidentialaspira-tions,toutinghisredstateappeal,andisconsideredaleadingcontenderforthenumbertwospotonaClintonticket.Hehas

alreadyinvestedconsiderablepoliticalcapitalinthiscam-paign.AClintonvictoryherewouldcertainlyboosthiscre-dentials,butaloss-well,thatmightnotgooversowell.And,thestakesarehighforSen.Clinton.Hercampaignisstrugglingtogainmomentum.Reportsthatitwouldbealmostimpossibleforhertowinthenominationhavesparkedtalkthatmaybesheshouldgetoutforthesakeoftheparty,anotionshesoundlyrejects.Shemaybeonherwaytoadouble-digitvictoryinPennsylvaniaApril22,butthathasbeenexpectedallalong.Indiana,ontheotherhand,isabattlegroundstate.Winningherecouldboostherprospectswiththesuperdelegateswhomaywellendupcastingthedecidingvotesatthenominatingconvention. Lately, both she and Sen. Obamahavebeenfighting tooth and nail. As President Bill Clinton told a crowdinWestVirginiayesterday,“Let’sjustsaddleupandhaveanargument.What’sthematerwiththat?That’swhatAmerica’sabout,right?”ButrecentnationalpollssuggesttheconstantbickeringistakingatollonDemocraticvoters,with some suggesting nearly a quarter of either candidate’s supporterswouldrefusetovotefortheothershouldheorshewintherighttoruninNovember.Further,NBC’sChuckToddreportedyesterdaythatanNBC-WallStreetJournal

U.S. Sens. Evan Bayh and Hillary Clinton campaigning together at the Anderson Wigwam last week. (Photo by A. Walker Shaw)

Bayh,from page 1


poll,whichfoundthetwotiedat45percent,alsorevealedthatvotersarelesslikelythantheywereinJanuarytobe-lieveanyofthethreepresidentialcandidatescouldbesuc-cessfulinunitingthecountryiftheywereelectedpresident(Obama,67/60;McCain68/58;Clinton,55/46). IsitreallypossiblethatHoosiervoterswillsome-howescapetheeye-for-an-eyebattleragingelsewhereinthecountry?AreadingofthetranscriptfromBayh’sappearanceonLateEditionisrevealing.Theskilledpoliti-ciangentlynavigatedseveralofthetopicsthathavesetthecampaignstoname-callingandhyperbole.OncallsforClin-tontodropfromtherace,heresponded“Whendoyoucalldemocracyoff?”ConcerningtheDemocraticdilemmaaboutwhattodowiththeunsanctionedprimariesinMichiganandFlorida,Bayh,asexpected,advocatedonbehalfofhiscandidate,callingforarevoteorforthevotetostandasis.HeevenmanagedtodiscountaGalluppollthatreportedClintonisconsideredtrustworthybyonly44percentofvot-ers,comparedto63percentforheropponent.Butalongthe way he floated a curious proposal. Superdelegates, he suggested,shouldconsider“whocarriedthestateswiththemostElectoralCollegevotes”whendeterminingwhotheywillsupport. And so it begins. Butthisdoesn’thavetoendbadly.AsJoeHogsett,statecampaignchairfortheClintoncampaign,toldHPIlateyesterday,bothcampaignshaveremained quite civil at events within the Hoosier state. “I think Indiana Democrats recognize that as a rule this has beenanextremelyissue-oriented,policy-oriented,positive,visionary,forward-thinkingcampaignastohowwe’regoingtochangethecountry’sdirectionfundamentallyandputIndianaandthecountrybackonthepathofeconomicre-vitalization and prosperity, safety at home and abroad, the majorissues,”Hogsettsaid.“MyexperiencehasbeenthatratherthanoverhearDemocratsbeingdiscouragedandconcerned...IthinkmostHoosiersareabsolutelygenuinelyproudthatIndianaisgoingtohaveitsdayinthesunandwearegoingtobeabletosaythatwehelpedchooseapresident.”Hogsettsaidthatthecandidateshavesofaruseda“respectfulandadmirabletone”whendiscussingtheirrivalcampaigns.“Theyhavepolicydifferences,whichIthinkbothofthemareveryappropriateinpointingout,butaslongasthetoneremainscivilandaslongasitre-mainsrespectfulasithasbeenthusfar,IthinkthathavingapresidentialprimaryinIndianawillnotonlybegoodforourpartybutitwillbegoodforthestateofIndiana.Ithinkofitasawin-win.” FewpoliticansradiateoptimismthewayHogsettcan,and,listeningtohiscommentsonthetelephone,itwaseasytobecomeexcitedabouttheprospectofHoosiersparticipatinginarealandconstructivedebate.Hehonestlythinksthecomingattentionwillproveanopportunityforourstatetosetanexamplefortherestofthecountry.IsharehisfaithinIndianavotersbutworrywe’llbepulled

downthesamepaththathasledtodestructivepoliticselsewhere.It’suptoourleaders,especiallySen.EvanBayh,toproveHogsettright.v

Obama endorsed by25 Indiana legislators INDIANAPOLIS-AtapressconferenceinIn-dianapolis,theObamaCampaigntodayannouncedtheendorsementof25IndianaStateLegislators.LeadersfromacrossIndianacametogethertospeakabouttheirsupportforSenatorObama’scampaigntochangepoliticsinWash-ington,D.C.andbringchangewecanbelievein. “ThiselectionisaboutthepastversusthefutureandBarackObamarepresentsthefuture,”Sen.EarlineRogerssaid.“TheAmericanpeoplearereadytoturnthepageonthefailedpoliticsandpoliciesofthepast.ItrustSenatorObamatobringpeopletogethertohelpprovide

affordablehealthcare,reviveoureconomyandbringourtroopshome.” “IsupportBarackObamabecauseheistheonlycandidatewhocantakeonthespecialinterests,putanendtopettypartisanship,andunitethisentirenationaroundacommonpur-pose so we can finally startmakingprogress

forordinaryAmericans,”RepJebBardonsaid.SenatorObama’scampaigndoesnotacceptmoneyfromlobbyistsorspecial

interestsPACs. “BarackObamarepresentsourbesthopeforrealchangeinWashington,D.C.”RepTrentVanHaaftensaid.“WeneedaPresidentwhoisn’tafraidtospeakthetruth,stand by his word and fight for America’s workers. That’s whyI’msupportingBarackObama.” LegislatorsendorsingObamainclude:StateSens.Rogers,TimLanane,LindelHume,JohnBroden,andStateReps.DennisAvery.JebBarden,JohnBartlett,Char-lieBrown,MaraCandelariaReardon,BillCrawford,DaveCrooks,JohnDay,ChetDobis,RyanDvorak,DaleGrubb,PhilHoy,LindaLawson,ScottPelath,MattPierce,GregPorter,ScottReske,VernonSmith,RussStilwell,VanessaSummersandTrentVanHaaften.v

Sen. Obama campaigning in Plain-field on March 15. (HPI Photo by A. Walker Shaw)


It took a year, butSchellinger beginsto talk public policyBy BRIAN A. HOWEY INDIANAPOLIS-Alittleoverayearafterenter-ingtherace,DemocraticgubernatorialcandidateJimSchellinger finally issued his first extensive public policy proposalsWednesdaythatfocusonnextgenerationmanu-facturingtraining,ensuringagreaterpoolofhealthcareworkersandincreasedsupportforstate-administeredadulteducationtraining.Hewould create an Office of Small Business Advancement,doublethehealthcaretaxcreditandcreatesmallbusinesshealthcarepools.AndhewouldcreateaNEETFund(NewandEmergingEnvironmentalTechnologies)modeledafterthe21stCenturyResearchandTechnologyFund.Commercialbuildingsthat“gogreen”wouldreceivean8percenttaxcreditinaprogramsimilartooneinMaryland.Hesaidtherewillbe3milliongreencollarjobscreatedby2015nationally.HenotedthatForbesrankedIndiana49thonitsgreenstatelist. “Inordertobeanationalleader,wemustactnow,”Schellingerdeclared.Hesaidhewouldincreasethegreentaxcreditsfrom$1millionayearto$4mil-lionandaddedthatinMaryland,allavail-ablecreditshadbeenused.Hepromisedtomake“allstatevehiclesgreen”andsaidthatallstatebuildingrenovationswouldberated“silverorhigher.”Hesaidhewouldcommit20percentofthestate’senergyusagetogreensourcesby2015.Hesaidthatstategovern-mentuses75percentofitsenergyfromimportedsourcesandcalledtheDanielsadministrationeffortsinthisarea“mod-est.” Told that Gov. Daniels hadmadealternativefuelsapriority,Schellingersaid,“Idon’tthinkthey’vemadeit a priority. This fund will be specifically geared toward pro-vidingsupportforcompanieswillingtodoenvironmentalresearch.” “Weareblessedwitharemarkablytalentedworkforceofhard-workingHoosierswhoarethebackboneofoureconomy,”SchellingersaidataStatehousepress

conference.“Unfortunately,inrecentyearswehaveseenasteadystreamoflayoffsandclosingsthatareaffectingthe quality of life in this great state.” Schellinger posted a 13-pageplanatwww.PickUpIndiana.com.“Overthelastfouryears,Indiana’seconomyhassufferedasaresultofGov.Daniels’poorstewardship.Indianalost27,700manu-facturingjobs.”HesaidthatHoosierpersonalincomehasdippedfrom91centsforeverydollartheaverageAmericanmakesatthebeginningofGov.Daniels’termto89cents.Heblamedthegovernorfor52,930homeownerswhohavelosttheirhomestoforeclosuresince2005.TheIndianapolisDemocratsaidhewouldputanendto“predatorylendersroamingaroundourstate.”Headdedthat“thiswillnotbe

astaticplan.Itwillbealiving,breath-ingplan.”Schellingerpromisedhewouldissuesimilarwhitepaperproposalsonhealthcare,educationandgovernmentreforminthecomingweeks. Schellinger promised to fill va-cantseatsinuniversities,communitycol-legesandvocationalschoolswithworkerswhohaverecentlybeenlaidoff.Hesaidhehadnotbeenintouchwithanyoftheuniversitiesorschoolsaboutthisplan. Schellinger’splancameonthedaytheDanielsre-electioncam-paignbeganrunningaTVadtoutinghiseconomicdevelopmentprowess.DanielsnotedinanHPIInterviewlastweekthatIndianaisan“islandofgrowth”withmorejobscreatedandthelowestunem-ploymentrateintheMidwest.DanielscampaigncommunicationsdirectorCamSavagereactedtotheSchellingerplanbysaying,“Theseideasaren’tbad;we’reworkingonsomeoftheseourselves.Thisiswhatcandidatesdo,butnooneelsedoubtsthatIndianaisturningitselfaround.”IndianaDemocraticChairmanDanParkersaidthatDanielsis“changingthegoalposts”becauseinhis2004raceagainstGov.JoeKernanDanielsusedper-sonalincomeandjobgrowthnumbers.“Indianaranks45thinthenationinjobgrowth,”Parkersaid.“Wearenotgetting

jobsandwearenotretainingjobs.” Hisprimaryopponent,JillLongThompson,issuedhereconomicplanonMarch3thatcallsforachangeintaxpolicythatwouldofferincentivestobusinessesthatprovideemployee health care and acquire new technology, allow-ing health care pools, an education policy that emphasizes vocationaltraining. “We’recertainlygladhe’scomeoutwithsomekindofpolicystatement,”saidThompsoncampaignspokesman

Thursday, March 27, 2008Page8

JeffHarris.“Butfrankly,alotofideashavebeenpreviouslyproposedoralreadybeingdone.Thishighlightstheeco-nomicdevelopmentapproach.Hisplanspendsmillionsofdollarsonnewbureaucracies.Jill’splanfocusesongettinggovernmentoutoftheway.Sheistalkingaboutjobsthatpay a living wage, have health care and pension benefits.” Schellinger’splancomesjustsixweeksbeforetheprimaryandatatimewhenmanyDemocratswerebecom-ingconcernedoveralackofalternativevisiontoDaniels’“Aiming Higher Roadmap.” Schellinger called it the first in aseriesofannouncementscomingoverthenextseveralweeks.CampaignmanagerTimJefferstoldHPIthatthecampaignwilltakeaninnovativeapproachtotheKernan-ShepardrecommendationsissuedlastDecember. “Since I announced mycandidacyonMarch19,2007,Ihavemadeover175tripsaroundthisstate,”Schellingersaidashewassurroundedbyfriendsandal-lies.“Ihavevisitedeachandeverycounty.LauraandIhavespentthelast12monthsreachingouttoHoosiersallacrossourstate.Listeningtotheirconcerns,theirthoughtsandtheirideas.Wedeservebetterleadershipinourstate.Iamreadytoprovidetheleadershipwedeserve,butitwillnotbewithoutchallenges.” Schellingerpromisedto“surroundmyselfwithHoo-siers”whowillsolvethestate’sproblems“toclosethegapbetweenrealityandmyvision.” Toldthattheplanwouldcost$42million,Schellingersaidthatasabusienssman,“Iknowyouhavetoaddressbothsidesoftheledger.IwouldnotputforthaplanIdidn’tthinkwecouldafford.” SchellingernotedDanielsclaimsofbeinganislandofprosperityintheMidwest,andsaid,“I’mnotinterestedinbeingaleaderintheMidwest.”Hesaidthatweshouldall“celebratenewjobscomingtothestatebutwe’return-ingourbacksonjobsleavingthestate.We’velostover27,000jobsinthisstate.Wecan’tturnourbackonmanu-facturingjobs.We’vegottolooktootherindustriestogrowoureconomy.”Hesaidthatsustainablejobswouldcomeinthegreensector. During a Q&A with reporters, Schellingerdeflected several questions, reminding reporters that he was there to “talk about jobs.” In answer to a question on debates,hedidsay,“Ithinkit’simportanttoputusonthespotandseehowwethinkonourfeetandwhatkindofleaderwewillmake.” Askedaboutwhetherthepresidentialcampaignwillmakeittoughertogethismessageout,Schellingersaid,“We’reouttodaytotalkaboutourjobsplan.Asyouknow,weareonTVandweareexcitedweourgettingourmes-sageout.Ithinkthepresidentialprimaryisonlygoingtohelptheexcitement.Itwillonlyhelpthevoterturnout.” Schellingerwasaskedabouthisstatementofsur-roundinghimselfwith“goodstaff”whenhisowncampaign

hasbeenroiledwithchanges,includingtheexitofhiscommunicationdirectorthisweek.“I’mnotapolitician,”Schellingerresponded.“I’venotdonethisbefore.I’venotspent25yearsinpoliticslikemyopponentshave.ButI’vefoundthesecampaignstobeverydynamic.Peoplereceiveopportunitiestogoonanddootherthings.Thesearetemporarypositions.Ourcampaignteamhasalwaysbeenveryestablished.Weareintact.We’vehadtransitions.Andagain,weareheretodaytotalkaboutaboutajobsplan.” Asked about a statementattributedtohimonGov.Daniels’propertytaxplanandthattheIndianaGen-eralAssemblyshouldhavewaited,Schellingersaid,“That’snot what I said. That was a misquote. We’re here to talk abouttheSchellingerjobsplan.” SchellingersaidinapressreleaseonMarch7thattheGeneralAssemblymustmakeimmediatereliefitstopprioritythissessionbutneverofferedadetailedplanofhisown.“Hoosierfamiliesarehurtingandneedrealrelieffromrisingtaxesandhighfuel,healthcare,andfoodcosts,”Schellingersaidinastatement.“ThoserisingcostsandtheeffectsofaseriousslumpinthehousingandrealestatesectorshavehurtHoosierfamiliesfortoolong.Wemustdoeverythingwecantosupportworkingmenandwomenstrugglingtomakeendsmeet.”SchellingersaidDaniels’proposedsalestaxincrease,coupledwiththeunknownef-fectsofconstitutionaltaxcaps,willbedevastatingtobothlocalgovernmentsandlower-incomeHoosiers.“MitchDan-ielsputthecartbeforethehorsethissession,”Schellingersaid. “He wants to fiddle with our state’s most sacred legal documentwithoutanyideawhateffecthisactionswillhave.Insteadoffocusingonactualreform,he’splayingashellgamewithHoosiertaxpayers.”v

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Rep. Hill voting withGOP, but will still betethered to leadership By MARK SCHOEFF JR. WASHINGTON--In2006,RepublicanMikeSodrellosthis9thCDseattoBaronHillinpartbecausevoterspunishedSodrelforthefoiblesofhisGOPcolleaguesonCapitolHill.FormerReps.MarkFoley,R-Florida,andBobNey,R-Ohio,werebroughtdownbysexualandcampaignfinance scandals, respectively. It’s unlikely many people in Sodrel’ssprawling,mostlyruraldistrictbelievedthathewascorrupthimself,buthedidsufferedfromguiltbyassocia-tion.Ashecampaignsthisyeartowinbackhisseat,inhisfourthconsecutivematchupwithHill,Sodrelhopestogainground by criticizing Hill for the company he keeps. Thistimearound,theargumentisnotthatCapitolHillDemocratsaretaintedbywrong-doing.Instead,thethrustwillbethatHillbacksDemocraticleadershipintheHousethatistooliberalforsouthwestIndiana.ThistackmaybeSodrel’sonlyoptionbecauseHillhasworkedtoensurethathisownvotingrecordhasaconservativetinge.Inthelatestexample,HillvotedagainsttheHousebudgetblueprint on March 13. “I have always championed fiscal conservancy,andthisbilldidnotadherestrictlyenoughto that,” Hill said in a statement. “The sizeable increase in discretionaryspendinginthebillisjusttoomuchformetovoteforit.IpromisedtobeanindependentvoiceforSouthernIndiana,andIamdoingjustthat.” ByopposingtheDemocraticbudget,HillavoidedanattackfromtheNationalRepublicanCongressionalCom-mittee. After the vote, the NRCC fired out a news release withaheadlinethatread“(NameofMemberofCongress)MakesHistory:VotesforLargestTaxIncreaseEver;(Mem-ber)Votesfor$683BillionTaxHikeandIncreasedWastefulSpending,HurtingHardworkingMiddle-ClassAmericans.”TheNRCCessentiallyarguedthatlettingmanyofPresidentBush’staxcutsexpireistantamounttoataxincrease. In addition to Hill,theothertwoDemocraticfreshmenintheHoosierdelegation,Reps.BradEllsworth(8thCD)andJoeDonnelly(2ndCD),alsoescapedNRCCopprobriumwiththeirbudgetvotes.Hill’smoderatecreden-tialswerefurtherbolsteredbyananalysisbytheNationalJournal. The policy magazine rated Hill the third most cen-tristDemocratbasedonvoteshecastlastyear.“Ibelievemy voting record accurately reflects my constituency in southernIndiana,”Hillsaidinastatement.“Ilookcloselyateverypieceoflegislationwehavetovoteon,regardlessofwhointroducesit,anddeterminehowitwillaffectthepeopleofsouthernIndiana.”

But Sodrel says the size of the Democratic margin onCapitolHillgivesindividualmemberswidelatitude.“TheDemocrats have a sufficient majority in the House so that (Hill)isfreetovotehoweverhefeelsheneedstotocreatethedesiredvotingrecord,”SodrelsaidinanHPIinterview.Sothistimearound,itmaynotbeaseasytoportrayHillasaliberal,anattackthathaspermeatedeachRepublicanrace against him since 1998, when he first captured the 9th CDseat.Sodrel,however,saysHillmaypayapricefortheactionsofHouseSpeakerNancyPelosiandotherDemo-craticleaders.“Hemaynotbetooliberal,buthispartymaybetooliberalforthisdistrict,”Sodrelsaid.“Hemaybetakentotaskforwhathispartydidorfailedtodo.” As an example,Sodrelpointstoabillonthesurveillanceofpotentialterrorists.Houseleadershavepre-ventedavoteonaSenatebillfavoredbyRepublicans,andthelegislationhasstalled.HilldoeshavetiestoDemocraticleadership.Evenbeforehewas officially sworninforhiscurrentterm,HillwasworkinghardforRep.StenyHoyer,D-Mary-land,inHoy-er’scampaignformajorityleader.HoyerwondespitebeingopposedbyPelosi.Hillalsohasbeenquick to back leadership positions on Iraq legislation. He andtheotherIndianaDemocratshavesupportedemploy-ment policy advocated by organized labor, like a bill that would facilitate unionization. And although he is aco-sponsorofanimmi-grationbillthatfocusesonenforcementandissupportedmostlybyRepublicans,hehasnotsigneda“dischargepeti-tion” to force floor action on the measure. Ellsworth and Donnellyhavesignedthedocument.Democraticleadershipopposesthebill.Hill’salliancewithleadershipmayhelpensurethathehasalltheresourcesheneedsforhisfourthshowdownagainstSodrel.Healreadyhasnearly$700,000morecashonhandthanSodrel.AndhehasthefreedomtovotewithsomeindependencefromHouseleaders.ItwillbeharderforSodreltousethe“L”wordagainstHillthisyear.v

U.S. Rep. Baron Hill (right) campaigning in his hometown of Seymour in October 2004. (HPI Photo by Brian A. Howey)


2008 Indiana Governor:Daniels TV begins Easter Governor 2008:Republican:Gov.MitchDaniels,.Democrat:JimSchellinger,JillLongThompson.1996 Results: O’Bannon(D)1,075,342,Goldsmith(R)997,505,Dillon(L)35,261.2000 Results:O’Bannon(D)1,230,345,McIntosh(R)906,492,Horning(L)38,686.2004 Results: Daniels(R)1,302,912,Kernan(D)1,113,900,Gividen(L)31,644.2008 Forecast:.Governor2008:Republi-can:Gov.MitchDaniels.Democrat:JillLongThompson,JimSchellinger.1996Results:O’Bannon(D)1,075,342,Goldsmith(R)997,505,Dillon(L)35,261.2000Results:O’Bannon(D)1,230,345,McIntosh(R)906,492,Horning(L)38,686.2004Results:Daniels(R)1,302,912,Kernan(D)1,113,900,Gividen(L)31,644.2008Forecast:Ourforecastthatthepresidentialracewasgoingtoovershadowthe governor’s race was realized on Tuesday when Dyn-gusDaycoveragebarelymentionedeitherThompsonorSchellinger. We could find one reference to both, Kevin Rader’sWTHR-TVreportinIndianapolis,wherethetwoex-plainedwhatDyngusDaywas.IndianapolisStarcolumnistMattTullyfollowedupwithacolumnonWednesday,butitdealtwithperiferralissues,likeThompson’sbloodiedearwhenadrunkenrevelerpullherearringout.ThisisalmostasifDavidLynch(BlueVelvet,TwinPeaks)isscriptingtheDemocratic race. Will there be a bizarre ending? Schellinger finally released a public policy posi-tiononWednesday-morethanayear after he officially announced hiscandidacyand13monthsafterhis first extensive interview with HPI.We’vebarelyseenhimsince.Thiscomesameresixweeksbeforetheprimary.Weseeaboutathree-weekwindowofopportunityforSchellingerandThompsontotakethecenterpoliticalstageinIndiana.AfterthePennsylvaniaprimaryonApril22,ClintonandObamawillreturninforceandthegubernatorialprimarywillreturntotheminorleaguestatusthatithasbecome.SchellingerandThompsonappeartobegettingcloserontownhallforumsanddebates.OneWTHR-TVdebateisscheduledforaSundaymorning.AnotherwilltakeplaceinFortWayneandwillbeairedbyWPTA-TV.AtownhallforumhasbeenagreeduponforTuesday,April15.Thomp-soncalledonSchellingerWednesdaytosharehispositionon campaign finance and ethics reform, or adopt her pro-posal.Lastweek,LongThompsonannouncedanumberofcampaign finance, lobbying and good government reforms designedtoincreasetransparencyandensureintegrityinthe political process. Specifically, Long Thompson proposed tobanstatecontractstocompanieswhichcontribute

campaigncashtocandidatesandtoforcelimitedliabilitycompaniestoabidebythesamecampaigncontributionrestrictions required of all other corporations in Indiana. “Aswegetclosertotheprimary,votershavetherighttoknowwhereeachcandidatestandsontheissuesandhowtheywouldgovern,ifelected,”saidLongThompson.“AfterfouryearsofMitchDaniels’“paytoplay”administration,wecan’ttakeanotherchance.IurgeMr.Schellingertojoinwithmeincommittingtocleaningupthepoliticalprocessandcreatingthemostopen-governmentinthestate’shis-tory.AsDemocrats,weshouldexpectnoless.”ThompsonreleasedasongonherwebsitebyCarl,TroyandAlanThompson(norelationofMontgomeryCounty:“There’stwoontheballotbutnothardtochoose,Avotemakesadifferencecouldmeanwinorlose,ThestateofIndianaisindistress,VoteJillLongThompsontocleanupthemess,VoteJillLongThompsonsoIndianawillmakeit,Weneedachangeshe’stheonetochangeit,EnoughisEnoughandthisishowwe’llsayit,EnoughisEnoughVoteJillLongThompson, Who’s the one to fix our state, Plain and simple thebestcandidate,JillLongThompsonshe’llworkforyou,Allthatknowherknowit’strue,EnoughisEnoughVoteJillLongThompson,EnoughisEnoughVoteJillLongThompson,LetherbeourvoiceGovernorJillLongThompson.”Nicesong.TheThompsontrioap-proachedtheJLTcampaign,whichwillusethesongatevents.BothSchellingerandDanielsareairingtheirsecondTVad.The30-secondDanielsadhasvoiceoverswithnewspaperheadlinesandfootageofDanielsatjobcreationannouncementsandtouringfactories.Ittalksof“recordbreakingjobcreation,”“he’sgoingacrosstheworldseek-ing new jobs.” It quotes the Indianapolis Business Journal ascallingIndiana“anislandofgrowthintheMidwest.”Thegovernor is called a “go-getter.” Key question for JLT: Will shehaveaccesstotheSteelworker’sphonebanks?We’veheardthatHillary’spresidentialcampaignhasco-optedthem. Key question for the week: Who leaked the news to theStarthatSchellingercommunicationsdirectorRobertKellarwasleavingthecampaign?Primary Status:TOS-SUP.General Status:LIKELYDANIELS

2008 Congressional 7TH CD: Democrats: U.S.Rep.AndreCarson,StateRep.DavidOrentlicher,StateRep.CaroleneMays,Dr.WoodrowMyers.Republican:StateRep.JonElrod.2008forecastk:AnyonehearanythingoutoftheMayscam-paign?Wehaven’t.Orentlicherwillunveilaplantopromotejobgrowththroughinvestmentsintechnology,educationandworkforcedevelopment.“Weneedtoreversetheone-waystreetofjobsleavingAmerica.Fortoolong,theglobaleconomyhasallowedothercountriestotakeourjobswhile

HOWEY Politics Indiana Weekly Briefing on Indiana Politics Thursday, March 27, 2008 Page 11

wegethighergasprices,shutteredplantsandafalteringeconomy. I will fight to defend American jobs and create newones.WeneedtodrawupontheAmericaninnovativespirittogeneratethemanufacturingjobsofthefuture,par-ticularly jobs that foster energy efficiency. We can lower unemploymentandgaspricesatthesametime,”Orentli-chersaid.“Wealsomustensurethatworkersaretreatedfairly.Weneedtopromotetradeacrossnationalborders,butwhenwesignfreetradeagreements,theymustbeFAIRtradeagreementswithenvironmental,laborandcivilrightsstandardsthatareonparwithwhatweexpectfromourowncompanies.”AndreCarsonconducteda“CongressinYourCorner”eventatShapiro’sonWednesday.TheCarsonpeoplearetellingsupportersthatthey’veretakencontrolofthecampaignaftertheDCCCranmuchoftheshowinthespecialelection.OurDemocraticsourcesarebeginning to detect a buzz about Myers after two weeks of aheavyTVbuy.Primary Status:LeansCarson

2008 Indiana Statewides ATTORNEY GENERAL: Republican:MarionCounty Prosecutor Carl Brizzi, Secretary of State Todd Rok-ita,IndianaElectionCommissionerChairmanTomWheeler,DeputyAttorneyGeneralGregZoeller. Democrat: LindaPence.2008 Convention Outlook: Brizzi and Wheeler havesignaledtheirintentiontorun.RokitashowedupattheElkhartCountyLincolnDayDin-nerlastnightandhehassurrogatespushinghiscan-didacy(andabout$200,000inhiswarchest).ZoellerwilllikelyhavethebackingofCarter.But we see Brizzi asthemantobeatinthispotentialconvention fight. Hestillhasabigwarchestleftoverfromhisintense2006campaignwhenhewonasecondterm.He’sgothighnameIDintheIndianapolismarketduetothetworaceshe’swonplus frequent TV newsexposure.In

RexEarly’snewbook“It’saMightyThinPancake,”(whichwe’llreviewinournextedition)hehandicapsthe2012governor’s race and mentions Brizzi and Rokita, with his commentaryapplicablehere:OfRokita,hesays,“Probablycan’t depend on former IPL directors for financial support but should have the unqualified support of Bob Grand for raisingmoney.Hewillbeworkinghardforthetopspotandmightout-workalltheothers.”ItisworthnotingthatGov.Daniels is a former IPL director. Of Brizzi, Early writes: “Can raisemoneybutneedstoworkonstatewideexposure.GetsplentyofearnedmediaintheimportantIndianapolisTVmarket.ConventionStatus:LEANSBRIZZI

SUPERINTENDENT OF PUBLIC IN-STRUCTION: Supt. Suellen Reed was quoted this week as saying she is still deciding whether to seek a fifth term. Again,itwouldbesomuchbettertoseeReedgooutwitha banquet and a gold watch as opposed to a convention floor fight with the popular governor lined up against her, asheissupportingClarkSchoolsSupt.TonyBennettandisconspicuouslysignallingthatatLincolnDayDinners.Con-vention status: LIKELYBENNETT

2008 Indiana Legislature SD19 Caucus:Fourcandidatesarevyingforthe open state Senate seat that will be filled at a District 19

caucusSaturday,March29,2008.ThecandidatesarerunningtoreplaceSena-torDavidFord,whodiedMarch5.Thecandi-datesareTamraBoucher,Markle;TravisHoldman,Markle;NanetteNidlinger,De-catur;andMikeScott,GasCity.Thecaucus,whichwilltakeplaceatBlufftonHighSchoolat10a.m.Caucus status: Tossupv

Marion County Prosecutor Carl Brizzi with former New York City mayor Rudy Giuliani in March 2007. Brizzi chaired Giuliani’s Indiana campaign. (HPI Photo by Brian A. Howey)


Parsing the countypopulation figuresBy MORTON J. MARCUS INDIANAPOLIS-Thephonerang.ItwasBellaCoaseoutragedagain.Withoutany“Hello,”shesaid,“TheCensusBureau’scountypopulationestimatesweremis-treated by most Hoosier newspapers. They emphasized theircountiesasifpopulationchangewereasportingeventwhereyoucompetewithneighboringcounties.”

“Newspapertodaythinkoftheirreadersinnarrowterms,”Isaid.“Theydidn’tbothertoexaminethelargerview,”Bellawenton.“Thesewereastoundingnumbers.Yousawthat,didn’tyou?”sheasked.“Ididn’tseeany-thingsurprising,”Iadmitted.“That’sbecauseyoudidn’tdigintothedata,”shesaid.“Thenumbersshowmethatonly56ofIndiana’s92countiesgrewinpopulationbetween2006and2007.

SpencerCountyhadnochangeandtheremaining35lostpopulation.Doesn’tittroubleyouthatnearly40%ofHoo-siercountieshadnopopulationincrease?”“Bella,”Isaid,“you’reprobablymakingtoomuchofdatacoveringjustoneyear.Anddon’tforgetthatmanyofthosechangesareprobablyverysmall.” “Iknewyou’dsaythat,”shesaid.“SoIwentbackto1970togetarunningstartonthenumbersandseethetrend.Andthatisjustasdisturbing.In2007,23Hoosiercountieshadfewerresidentsthanin1970,despitethefactthatIndianaadded1.15milliontoitspopulationinthoseyears.Thatwasa22%increaseforthestatewhileone-quarter of the state’s counties was losing people.” “So?”Isaid.“So?”Bellaechoed.“I’llshowyou‘So?’DeeperintothenumbersIfoundthatinadditiontothepopulationincreaseof1.15million,wealsohadashiftinpopulationof716,000.”“What’sthatmean?”Imur-mured, pulling up a chair as I recognized a long conversa-tionbuilding. “Well,”Bellamusthaveswelledwithimportance.“First,Ilookatwheretheaddedpopulationwouldhavebeenifithadbeendistributedamongthecountiesasitwasin1970.Forexample,HamiltonCountyhad1.1%ofIndiana’s1970population.ThatwouldgiveHamilton12,100ofthat1.15millionaddedHoosiers.ButHamiltonsawanactualincreaseof203,900.Thedifferencebetweentheexpectedincrease(12,900)andtheactualincrease

(203,900)wasashiftintoHamiltonof191,900fromothercounties.By2007Hamiltonhad4.1%ofthestate’stotalpopulation;that’sanincreaseof3.0%inthecounty’sshareofthestate’spopulation. “AttheotherendofthescaleisLakeCounty,”shewenton.“IfLakehadgrownasfastasthestateandtherebyachieveditsproportionalpopulationgrowth,itwould have added 120,900 citizens. Instead there was a shift outward of 174,800, with a realized decline of 53,900. Thecountyin1970had10.5%ofthestate’speople,butwasdownto7.8%in2007.”“So?”Irepeated.“Somecoun-tieswin,somelose.What’sthebigdeal?” “It’snotthatsimple,”Bellainsisted.“Acountycangainpopulationbutdecreaseinitsshareofthestate’spopulation.Forexample,MarionCountygained83,400per-sonsinsteadof175,600andthatmeansithadanoutwardshiftof92,200.Itsshareofthestatewentfrom15.3%to13.8%”. “Fascinating,”Iyawned.“Youcanbetyourpin-sized hat it’s fascinating,” Bella blasted over the phone. “There are important policy questions for the state here. Wherewedobuildschools,wheredoweinvestinmasstransit,wheredoweprovidehousingforourpeople?DoesIndianapassivelyacceptmarket-driven,disproportionatepopulationgrowthorshouldweadoptpoliciestoencour-agemorebalancedgrowth?” “What’swrongwiththingsastheyare?”Iasked.“Manycommunitiesaredisappearing,”Bellasaid.“Theycannotsupportthebusinessandgovernmentinfra-structureneededforcivicviability.Theydecayslowly,denying each succeeding generation a higher quality of life. Atthesametimewehavetobuildnewcommunitieswithallthenecessitiesandamenitiesofmodernlife.” “Thatisacomplicatedissue,”Isaid,tryingtobackoutoftheconversation.“Yes,”Bellasaid,“butwhoistalk-ingaboutit?DoesIndianahaveanyrealpolicyfordeclin-ingorchallengedareas?Orarewelettinggrowthtakeplacewhereveritwill?” “I’msuresomeoneisdoingsomething,”Isaid.“Oops,Ithinkthedogisdininginthecat’sbox.I’llcatchyoulater.”

Mr. Marcus is an independent economist formerly with the IU’s Kelley School of Business.


Jack Colwell,South Bend Tribune: MostHoosiersjoyfullyawaitthatlegislatedslashinpropertytaxes.Alas,formanyofthem,itwillbeaclassiccaseofcuttingoffyournosetospiteyourbase.Thebase--theirhomeareas,theirlocalgovernmentalservices,theirlocalschools--willbecut,slashedrightalongwiththepropertytax.Themainreasonforjoyoverthewaythetaxrestructur-ingplanwillspitetheirbaseistheeffectivewayinwhichGov.MitchDanielsandstatelegislatorsshiftedblamefromthemselvesandsoldtheideathatpropertytaxwoeswereallthefaultoftheofficials back home. As Mishawaka Mayor Jeff Reaobserved:“Theykeepsayinglocalgovern-mentspending,localgovernmentspending,localgovernmentspending.”Theresult,themayorsaid,ismistrustinlocalgovernment.Andadesiretospitelocalgovernmentandlocalschools.Intruth,thefaultfortheveryrealpropertytaxwoesfacedbyHoosiersliesmorewithstategovernmentthanwithlocalspending.Localgovernmentisacreaturecontrolledbystategovernment.Onlystategovernmentcouldhaveprovidedasanewayofassessingpropertyratherthanthemishmashoftownshipassessing that is antiquated. Only state government could haveprovidedcities,towns,countiesandschoolswithmorealternativestopreventover-relianceonpropertytaxes.Onlystategovernmentcouldhaveprovidedmorehomerulerather than more restrictions and mandates. Local officials suchasMishawaka’smayor,aRepublican,andSouthBend’sMayorSteveLuecke,aDemocrat,arecorrectincitingcutsalreadymadeandthefactthatanyfurtherseriousslash-ingwouldhavetobeinthebiggestbudgetareas,policeand fire protection. Now, if the mayors want to find ways to avoidcutsinservicesthatwillangertheirconstituents,theywillhavetostirangerinseekingapprovalofnewoptiontaxes.Theyfacealose-losesituation.Theformulaforthecapsisarbitrary--1percentofassessedvalueforhom-eowners,2percentforrentalandfarmproperties,3percentforbusiness.Whynot2.5or3.2forbusiness?Or1.5or2.4forrentalproperties?Or2.3or1.8forfarms?Itwouldbereallydumbtowritethosearbitrarycapsincementinthe Indiana Constitution. Look first at how they work and whether there are unintended, painful consequences of cut-tingoffnosestospitethebase.v

Lesley Stedman Weidenbener,LouisvilleCourier-Journal:Itwas2002thelasttimetheGeneralAs-semblyincreasedthesalestaxtocutpropertytaxes.Backthen,homeownerswereabouttobehitbyincreasesintheirbillsandlawmakersweretryingtoheadoffwhattheyfearedwouldbearevoltbytheirconstituents.Thesalestaxwentfrom5percentto6percentandthetaxhikesweremitigated.That’sright:Mitigated.It’snotthekindofwordthatgetslawmakersre-elected.Inthelastfewweeks,aslegislatorsworkedoutacompromiseonthereliefandDan-

iels signed it into law, I’ve quoted a few leaders using just thosekindsofwords.ButI’vestruggledabit,too.That’sbecause--probablylikemanyhomeowners--Ifeltalittledupedbythe2002legislationandwasleftabitwary.Myproblemisn’tthatmypropertytaxbillwentup(althoughitdid).Instead,myfrustrationwasmoreprofessional.

Backin2002,gettingsomewhatsweptupinthemomentofthetaxbillpassing,IthinkIwentalittle overboard in the way I wrote about the final legislation.WhenIwentbacktoreadwhatIsaidbackthen,Ilaughedoutloud.BeforeIletyoureadit,too,letmeexplainafewmorethings.Backthen,thetaxplanwasn’tjustabouthelpinghomeowners.Thestatealsowasfacingabudget

crisis,sotheplanincludedanincreaseinthecigarette tax to help make up the deficit. Also, the state’s economyhadstagnatedandthelegislationreworkedthestate’sbusinesstaxsystem(inpartbyeliminatingtheprop-ertytaxoninventory,somethingthatcontributedtothe2007increasesforhomeowners)totrytoluremorejobstoIndiana.Sowiththatbackground,hereisthestartofthe2002storyonthemorningafterthebillpassed:“ThestateHouseandSenatehaveapprovedthemostcomprehensivetax-increaseandrestructuringprograminIndianahistorywithabillmeanttobegindiggingthestateoutofitsworstbudgetcrisisinmorethantwodecades.LastnightGov.FrankO’Bannondescribedthebillas‘monumental’andsaidhewillsignitintolawassoonaspossible.”Alittledra-matic?Ithinkitisinhindsight,anyway.AtleastIdidn’tusewordslike“permanent”todescribethetaxrelief.Still,Ididgo on to quote legislative leaders describing the legislation as“historic.”Soundfamiliar?v

Gary Gerard, Warsaw Times-Union:Amonthago,whenwritingabouttheDemoracebetweenBarackandHillary,Inotedthattheirbattlecouldwinduphelp-ingMcCain.“Inthemeantime,moderateandindependentvoters,disillusionedbythechaosandimplosionoftheDemocrat party, will throw up their hands and flock to John McCain.”Acoupleofweeksbeforethat,IwrotethisaboutMcCain:“He’sconservative,buthe’smoderate.That’swhatvoterswant.Theydon’twantthefringystuffoneithersideoftheaisle.That’swhy,despiteMcCain’sstanceonthe Iraq war and W’s raging unpopularity, McCain is polling deadevenwiththeDemos.AndwaybackinAugust2006,Iwarnedaliberalfriendofmine:“That’swhereIbelievetheDemosarescrewingup.ThepartyleadershipseemstobeoftheopinionthatthewholecountrythinksliketheMoveOn.orgcrowdandalltheliberalbloggersthatkeepeggingthemon.Thewholecountrydoesn’tthinklikethat.Failing to recognize that is a huge political blunder. OK, so foralongtimeI’vebeensayingtheNovemberelectionistheDemos’tolose.Anditseemstometheyareworkinghardtoloseit.v

ofdecreasedpropertytaxcollection.Thetrade-offscouldmakeforsomehardchoices.Twomenwhohadaroleinputtingpropertytaxreformintoplace,StateRep.DanLeonardandStateSen.GaryDillon,explainedwhatthechangeswouldmean.Theaudienceincludednotonlythesevencountycouncilmembers,whoarecharged with managing the finances forHuntingtonCounty’sgovernment,butalsoHuntingtonMayorSteveUp-dikeandatleasttwocommoncouncilmembers,JasonFieldsandKeithEller,plusCountyCommissionersRichardBrubaker,JerryHelvie,andLarryBuzzard, and various county depart-mentheads.Taxpayersshouldseeadeclineintheirpropertytaxbills,andthestatealsohasputintoeffectwhatiscalleda“circuitbreaker”lawwhichwill,in2010,cappropertytaxesatnomorethan1percentofassessedvaluationforahomeowner’shouse(a“homestead”),2percentforarentalresidentialproperty,and3percentforbusinessandindustrialproperty.For2009taxes,Leonardsaid,those“circuitbreakers”arebeingphasedinat1.5percent,2.5percent,and3.5percent. “Huntington County is fifth in thestateforhavingthemostpropertyhitthe1percentcapforhomesteads,”Leonardsaid.“It’sprettydramatic.”Thereasonforthat,hesaid,isthelossofindustrialbase-HayesLem-merz, Dana in Andrews, and so forth. “Whenwelostthatassessedvalua-tion,theburdenshiftstohomeownersandotherbusinesses,”hesaid.

No one happy withIndy reassessment INDIANAPOLIS-MarionCoun-ty’spropertyreassessment,approvedWednesdaybythestateeightmonthsafter flawed 2007 bills unleashed a tax revolt,wasn’tsittingwellwithbusi-nessesorhomeowners(IndianapolisStar).Theredoshiftedmoreofthetaxburdentocommercialandindustrialproperties,achangethatbusinessinterestspredictedcouldmakeIndia-

napolislesscompetitiveinretainingandattractingemployers.Andangryhomeowners expecting significant relieffromlastsummer’sbillsaren’tlikely to be satisfied with the less than 1percentdropinresidentialassess-ments.Itistooearlytotellexactlyhowthenewpropertyvalueswillaf-fect2007taxbills.That’sbecausetheassessments represent only the first stepinrecalculatingbillsGov.MitchDanielsthrewoutlastsummerbe-causeofconcernsaboutthepropertyvaluesusedtocalculatethem.

Income tax won’t solveFort Wayne budget woes FORTWAYNE-Evenanin-creasedlocalincometaxwouldn’tsaveFort Wayne from making significant budgetcuts,accordingtorecentlyreleasedstatedata(FortWayneJour-nal Gazette). Data from the Indiana LegislativeServicesAgencyshowthatifthecityenactedthemaximum1percentincometaxincrease,itwouldstillfacea$3.2millionbudgetshortfallin2010becauseoftherecentlyap-provedtaxcaps.FortWayneControllerPatRollerexpresseddisappointmentatthenews,especiallybecauseitseemslocalgovernmentsarebeingpunisheddespitethecity’srecordinkeepingcostslow.“We’vebeentreatedlikewehaven’tdoneathing,”shesaid.MayorTomHenryannouncedheisaskingforhelpfromresidents.ThemayorwantsresidentstoattendneighborhoodpartnershipmeetingsinMay,whenhewillpresentanoverviewofthestate’slegislationandhowitwillaffectcitycoffers.“Weareallinthistogether,”hesaidinastatement.“Itiscriticalforthecommunitytobeinvolvedinthechoiceswemake.”

EPA accepts BP permit WHITING-TheU.S.Environ-mentalProtectionAgencyhasmadethe first indication it will accept the IDEMairpermitforBPWhiting.

South Bend Schoolsdeny Clinton campaign SOUTHBEND-PresidentialhopefulSen.HillaryClinton’scam-paignannouncedWednesdaynightthatsheplanstovisitSouthBendonFridayaspartofatwo-daytownhalltourofthestate(South Bend Tribune).Wheretheformerfirst lady will make her appearance herehasyettobedetermined.WhilearrangementswerewellunderwayforClintontoholdarallyatWash-ingtonHighSchoolonthecity’swestside,trusteesoftheSouthBendCom-munity School Corp. have confirmed that request was denied Wednesday night.Despitethelast-minutehitch,local Democrats said they’ll find a venuebigenoughtoaccommodateClinton’svisit,evenifit’snotinSouthBend.“Ifit’sgoingtobeinSt.JoeCounty,itonlytakes10to15minutestogetfromoneplacetotheother,ifyou’rereallytrying.SoIdon’tseethisasaproblemasfarasaccessibility,”countyDemocraticPartychairmanButchMorgantoldWSBT-TV.

Tax reforms explainedin Huntington HUNTINGTON-Propertytaxreformisagoodthing.Every-oneagreeswiththatstatement,especiallywhenIndianaresidentswereconfrontedwithskyrocketingincreasesoverthelastcoupleofyears(Huntington Herald Press).Nowthatthelegislaturehasreworkedthepropertytaxformula,takingsomeleviesoffofpropertytaxesandput-tingthemonthestate,whileincreas-ingthesalestaxby1centonthedollar,itisuptolocalgovernmentsto figure out what to do in the face


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