what stimulus could do - in.govfrustrating catch-22: how can they make more loans when creditworthy...

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By DAVE KITCHELL LOGANSPORT-Imaginebeingoneof50winnersofamostunusual,yetprobablenationallottery–afederalstimuluspackageforstates. AsCongresshammersoutthefinaldetailsofa

packagespiralinginthedirectionof$1trillion,theporkbarrelprojectsarebeingshedforthesakeofprogramsandlineitemsguaranteedtoputpeopletowork.Whatcouldbethebeautyofthisbill,andIusethatwordlooselygiventhecosttotaxpayers,istheflexibility.Ifgovernorsand/orlegislaturesreallyhavethefinalsayinhowtospendtheirshareofafederal

“It was the last state we deliberated on and the state we wanted the most was Indiana.” - David Plouffe on the Obama campaign selecting 18 battleground states last summer (See page 7 for full story)

What stimulus could do

Thursday, Feb. 5, 2009

As Washington bickers, Hoosiers freezeObama warns of‘catastrophe’ asstimulus plan stallsBy BRIAN A. HOWEY INDIANAPOLIS-Wanttobuildanewhotelataminorleaguebaseballcomplexindown-townFortWayne?Nocreditavail-able.Buyarecreationalvehicle?Creditfrozen. WhileWashingtondickersoverthestimulusbillPresidentObamasaysisessentialtowardoffafinancial“catastrophe”,thebankingsystemisonlifesupportandcontinuestosaptheIndianaeconomyandjobs,throwingmoreandmoreHoosiersintothecold.JaycoinMiddleburyandKeystoneRVinElkhartlaidoff600moreworkersthispastweek.TheElkhartTruthreportedthatthelayoffsinElkhartandLaGrangecounties,wherethejoblessrateis15percent,“broughtrenewedattentiontothecripplingeffectofthefrozencreditmarkets.” TheFortWayneJournalGazettereportedon

WednesdaythatanewMarriottHotelatitsdowntownHarrisonSquareprojectisstalled.DenoYiankes,WhiteLodgingpresidentandchiefexecutiveofficerforinvest-mentsanddevelop-ment,saidbanksarehoardingcash.“We’renotlookingfortheperfectloan,we’relookingforaloan,”Yiankessaid.AnAssociatedPressanalysisearlierintheweekexplainedthatbankssaytheyarecaughtina

frustratingCatch-22:Howcantheymakemoreloanswhencreditworthyborrowersarescarce,theirbalancesheetsaresaddledwithbaddebtandregulatorsarehoundingthemtohordecash.“Wewanttolend,buttheregulators

See Page 3

Then candidate Barack Obama outside an abandoned Chicago steel mill in a TV ad during the Indiana presidential primary.

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stimuluspackage,itcouldgoalongwaytomovingtheeconomyforward,asinfastforward.Ifit’sjustgoingtobebankrolled,forgetit. Idon’tknowwhatIndiana’sgovernorandlegislaturewoulddoiftheygotthechancetospend,say,abilliondollarsfromthefederalgovern-ment.Butiftheydidask,here’swhatmylaundrylistwouldlooklike: 1.GiverebatesforcompaniespurchasingIndianasteel.It’sabigticketitemforIndiana,andthepayisginormous.Alittlesalestaxonsteelgoesalongwayinastateeconomy. 2.Fundschoolconsolida-tioncosts.It’sonethingtosayitwillhelpIndiana.It’sanotherthingtoputyourmoneywhereyourmouthisandactuallyencouragesmallschoolsandurbanschoolswithdecliningenroll-mentstomerge.Long-termsavingsofoperationalcostswouldbehugetotaxpayers. 3. Buyoutsforstateemploy-ees.OlderemployeescouldfreeupmorejobsinIndianasimplybyquali-fyingforthesameretirementrulesaffectingteachers.Ifyou’re55andhave30yearsofservicetothestate,youcanretire.Thatwouldfreeupthousandsofjobs. 4.OfferonefreenightoflodginginIndiana.Forout-of-stateresidents,thiswouldbeahugetour-ismboost.DaytripstoIndianafromsurroundingstates,eveniftheyarejusttovisitfamilyorfriends,wouldinjectmoneyintolocaleconomiesandthestatewouldreapmoretaxrev-enue. 5.Givescholarshipstotheunemployed.Foreveryonewhohaslostajoborbeenlaidoffinthepast18months,goingtoschoolisagoodoption.Itallowsadultstoretoolthem-selvesforotherjobsuntiltheeconomywarmsupanditgivestheunemployedachancetoaddtotheirskillsets. 6.Developincentivesfore-commerce.Start-upcompanieshavelittleoverheadiftheyareInternetbased.Offeringincentivesforlegiti-mateInternetbusinesseswouldhelp

smallbusinessandruraldevelopmentobjectives. 7. Greenuptheenvironment.Indianahasbeenaleaderinalterna-tivefuelproduction,buttheIndianap-olisStar’srecentcoverageofmercurylevelsinIndianastreamspointstotheneedtoreducepowerplantemissions.Givingutilitieslow-interestorzero-interestloans,orjustplaingranstoinstallscrubbersandotherequipmentthatreducesemissionswouldimproveouroverallhealth. 8.EncouragethepurchaseofIndiana-madevehicles.Givinggovern-mententitiesa$2,000rebateforaSubarumadeinLafayetteoraHondamadeinGreensburgforinstancewouldbeanaddedboosttothoseeconomies,aswellastheChryslerplantinKokomo.Thecreditcouldbe$500foreveryindividual. 9.Findthe10bestlocallyownedIndianabanks.Givingbankersclosesttolenderstheopportunitytoinvestintheircommunitiesinthenextsixmonthsshouldn’tbeaproblemforthem. 10.Flipahouse.ForanyHoo-sierwhobuysanewhomeinthenextsixmonths,a$1,000checkwouldbeinthemail.Foranyonewhoimprovesahousepurchasedinataxsale,a$500checkwouldbeinhand.Foranyoneinthestate’shomeownershipprotectionplanwhowantstoavoidforeclosure,apaymentwouldbemadeontheirmortgage,witha67percentpaymentmadeinasecondmonthanda33percentpaymentmadeinthethirdmonthofparticipationintheprogram. 11. FundHeadStartteach-ingpositions.Eliminatingthebacklogofchildrenonwaitinglistsforthispreschoolprogramwouldallowsomeparentstogotowork,employmanyteacherswhoareoutofwork,andreduceremediationcostsforschools. Thereareprobablyplentyofideaslikethese.Manyofthemshouldbevettedforimpactandpublicscrutiny.Notallofmine–checkthat,maybenoneofmine–wouldmake

HOWEY Politics Indiana Weekly Briefing on Indiana Politics Thursday, Feb. 5, 2009Page 2

HOWEY Politics Indiana Weekly Briefing on Indiana Politics Thursday, Feb. 5, 2009 Page 3

Stimulus,from page 1

incumbentonallofustolookatwaystomakegoodthingshappenforHoosiersassoonaspossible.v Dave Kitchell is a veteran Indiana journalist who teaches journalism at Ball State.

areflat-outtellingus,‘Getyourcapitalup.’Thenthere’sCongresstellingyoutolenditallout,”saidGregMelvin,aboardmemberatFNBCorp.,aHermitage,Pa.-basedbankthatgot$100millioninbailoutmoney.“Twoarmsofthegovernmentaresayingexactlytheoppositething--it’sridiculous.” This comes as the U.S.economycontractedby3.8percent(somehadpredicteditwouldbeinthe5per-centrange)andexpectationsarethatmorejoblossesareontheway.IthasplungedaknifeintoIndianarevenues,whichcameup$142millionshortlastmonthandhasGov.MitchDanielsandlegislatorspreparingfortheworst. However,thestimuluspack-age-whichcouldcreateanestimated79,000jobsinIndiana-isstalledonCapitolHill.LastSunday,SenateMi-norityLeaderMitchMcConnellsaidthecurrentplanmightfail.“Ithinkitmaybetime…forthepresidenttokindofgetaholdoftheseDemocratsintheSenateandtheHouse,whohaverathersignificantmajorities,andshakethemalittlebitandsay,‘Look,let’sdothistherightway,’”McConnellsaid.“Ican’tbelievethatthepresidentisn’tembarrassedabouttheproductsthathavebeenproducedsofar.” ThatcouldhappentonightasObamameetswithCongressionalDemocratsataWestVirginiaretreat. On Wednesday, PresidentObamawarnedofa“catastrophe,”saying,“Noplanisperfect,andweshouldworktomakeitstronger.Let’snotmaketheperfecttheen-emyoftheessential.Let’sshowpeoplealloverourcountrywhoarelookingforleadershipinthisdifficulttimethatweareequaltothetask.Afailuretoact,andactnow,willturncrisisintoacatastropheandguaranteealongerrecession,alessrobustrecovery,andamoreuncertainfuture.”Thisafternoon,hesaid,“Weendupbickeringwhenitistimetosavetheeconomy.” ObamatookissuewithRepublicanslikeU.S.Rep.MikePencewhohavebeenpickingaparttheplanasa“litanyofliberal”spendingprojects.“Thesecriticismsechotheverysamefailedeconomictheoriesthatledusintothiscrisisinthefirstplace--thenotionthattaxcutsalonewill

solveallourproblems,thatwecanignorefundamentalchallengeslikeenergyindependence,”Obamasaid.“Ire-jectthosetheories--andsodidtheAmericanpeoplewhentheywenttothepollsinNovemberandvotedresoundinglyforchange.” The heat is likely to grow.OnWednesday,eightIndianamayors-includingSouthBend’sStephenLueckeandEvansville’sJonathanWeinzapfel-traveledtoWash-ingtontopushforthestimuluspackage.Earlierthismonth,ElkhartMayorDickMoorewenttoWashingtonseekingstimulusfunds.Moorecarriedwithhimalistof18“shovelready”publicworksprojects,totaling$92.4millionandcreatinganestimated2,300jobs(ElkhartTruth).

AlsopressuringCapitolHillwereRepublicangovernors.“Timeisoftheessence...wehavetogetthemoneyoutasquicklyaswecan,”saidRepublicanVermontGov.JimDouglasduringameetingwithPresidentObamaintheOvalOfficeonMonday(CNN).“Ithinkweneedtofindsomecommonground.Weneedtopassabillthatworks.”TheRepublicanMinnesotaGov.TimPawlentysaidTuesdaythatwhilegovernorshavevirtuallynosayinwhatgoesintothestimulusbill,addingthatObama’soutreachtothenation’sgovernorsisapowerplaytospeedthingsalong.“WhatIthinkPresidentObamaistryingto

doisshowthatitisabipartisaneffortortoindirectlypres-suretheCongressinthatregard,”Pawlentysaid. Gov.Danielswouldn’tsaywhetherhesupportsthebailoutinprinciple,buthehasbegunbuildingalistforthe$5billionlikelytolandhere.“Itisone-timemoneyandshouldbeusedthatway,”Danielssaid.“Jobsandspeedmustbethegoal.”Buthealsoleftopenthedoorforataxcut.TowhichHouseSpeakerB.PatrickBauerresponded,“Taxcutsdon’thelpthe266,000peoplewhodon’thaveajob.Weareinacrisis.WehavetousewhatwehavehereinIndianatostimulateIndianajobsandtakewhatwecangetfromWashington,D.C.,andaddmorejobs.” Bauer and Daniels agreeononething:thestim-ulusmustbeusedonone-timeonlyprojects.ButSenateMinorityLeaderViSimpsonnoted,“Everybodyisgrapplingforjusttherightanswer.” EverybodyfromWashingtontoIndianapolis.v

thecut.ButI’vemadeanattempttostartthedialogueofwhatwe’vegottodointhe19thstatetomovetheeconomyforwardwithoutfallingflatonourfaces.WithmorethanaquarterofamillionHoosiersoutofajob,it’s

President Obama and Treasury Secretary Geithner announcing limits on executives whose mismanaged companies receive TARP money. (White House Photo)

HOWEY Politics Indiana Weekly Briefing on Indiana Politics Thursday, Feb. 5, 2009Page 4

Sustainable energy inthe City of FirstsBy BRIAN A. HOWEY KOKOMO-Ifyou’velistenedtoleaderslikeMitchDanielsandBarackObamaoverthepastfiveyears,oneconstantthemehasbeentolookatyourworlddifferentlyandnotacceptthestatusquo.IthoughtaboutthisaftergoingoverthecolumnsI’vewrittensinceDecember-my

doomandgloomperiod.Itwasneces-sarybecauseofthegatheringstormcloudsthatwilltranslateintodoubledigitjoblessstatistics.Nowit’stimetotalkaboutwhatwecandotoliftoutofourcurrentplightandforgeanewAmerica. Therehavebeenairlinersflyingoffoffuelmadees-sentiallyfrompondscum,oralgaeto

beprecise.Thereisenoughfuelinatypicalseptictanktopowerageneratorandthehomeabove.Or,thinkingbigger,thehumanwasteHoosiersspendbil-lionseveryyeartreatingisanabundantenergysourceandinthenextcoupleofdecadesmightactuallypowerourcities.Thegarbageinourlandfillswilldothesamewithsomeinnovativethinkingandtheremovalofgovernmentalinterfer-ence. Soit’sworthcomingtoKokomoandIndianapolis,where100yearsagotheysawtheirbicycleshopsturnthem-selvesintoautomobilefactories.FolkspeeredoutoftheirwindowsandsawElwoodHaynes’strangecontraptionmo-toringdownthestreetsofKokomosanshorses.That’swhatHoosiersneedtobedoinginthecomingmonthsandyears.Thinkoutsidetheboxandcreatenewopportunities,evenoutofthewastesofpastgenerations.AclosedChryslerplantorthehollowGetragfactorynearTiptoncouldbethekeytosustainingourAmericandream. Hereinthecityoffirsts,MayorGregGoodnightunveiledagroundbreakingfuelprogramonWednesday.ItinvolvesturningcookinggreasefromKokomorestau-rantsintodieselfuelthatwillpowerthecityfleet.We’ve

heardthisstorybefore,butmostlyitwaswonksandnerdscollectinggreasefromMcDonald’stopowertheirVWminibuses.Butthiscanbedoneonanindustrialscaleandcreatemany,manyjobs.“Ifweonlyproduced55gallonsofK-Fueladaythecitywouldsave,attoday’sfuelprices,$25,000duringthefirst12monthsofoperation,”saidGoodnightasheunveiledtheK-Fuelcomplex-reallyjustasmallroominacavernouswastewatertreatmentfacilityandamachinethecityboughtforabout$27,000.“Thatisgoodforthecity’sbudgetandthecity’staxpayers.” Ofcourse,thecityisplanningonmakingmorethan55gallonsaday.PaulMunoz,Kokomo’sbio-fuelsmanager,detailedhowwastecookingoilisprocessedintobio-diesel.TheKokomoTribunereporteditthisway:mixacupandahalfofcausticsodaand11gallonsofmetha-nolwith55gallonsofusedcookingoil,putitthroughaprocessor,andtheresultisabigbatchofbiodieselfuel.

Mixthatbatchwithregulardieselfuelatan80percentdiesel/20percentbiodieselratio,andthecostoffuelingthecityofKokomo’struckfleetbeginstodrop. “Thecitywillcollectusedcookingoilfromparticipat-ingrestaurants,businesses,andaresidentialcollectionprogram.Atthistime,wearecollectingabout1,500gallonsofusedcookingoilfrom12participatingbusi-nesseseachmonth;andanticipatethecollectionofabout300gallonsfromourresidentsinthefirstcoupleofmonthsofoperation,”MunozexplainedTheseamountswillincreaseovertime,asbusinessespartnerwiththecity,andasourproductionandcollectionmethodsimprove.”Eventu-ally,itwillsupplyabout20percentofthedieselneedsofthecityfleet. Munozadded,“Thispro-gramwillhelpreducetheamountoffatsandoilsthat

disruptourwastewatersystem,andwillreducetheamountofmoneythecityspendsonsewermaintenance.Nearly50percentofthemaintenanceandrepaircostsonsewerandliftstationsiscausedbythebuildupoffats,oils,andgreasethatenterintooursewerandtreatmentfacility.’’Howmuchthatsavesthecityisnotcurrentlyquantitative.

Kokomo bio-fuels manager Paul Munoz holding vials of K-Fuel made from local restaurant cooking oil. (Kokomo Tribune photo)

HOWEY Politics Indiana Weekly Briefing on Indiana Politics Thursday, Feb. 5, 2009Page 5

Kokomo’ssustainabilitymanager,DavidGalvin,haswatchedsimilarprogramsinCaliforniaandfoundresearch-ersinBowlingGreen,Ky.,who,withrelativelysimpleprocesses,canliterallyde-waterbiomass.Thatmaterialcanthenbetransformedintovariousformsofenergy.“Wecan’twaitforstimulusmoney,”Galvinsaid.“Wehavetoactnow.Kokomo’sRenewableEnergyPartnershipisdesignedtofindwaystoconvertourcity’swasteintoformsofre-newableenergyproducts.Wecansavetaxpayers’money,createalternativestreamsofrevenue,improveourcity’simage,andbemorecompetitiveforthejobsofthe21stCentury.” Kokomo is a citythatwithcompanieslikeChrys-ler,HaynesandDelphiishometohundredsofengineerswhoareliterallywaitingtoseeiftheDetroit3survive.Whethertheautomakersmakeitthroughthenexttwoyearsornot,therearetheseengineers,thousandsofsquarefeetofmanufac-turingandcleanresearchareas.PeoplelikeGoodnightenvisionasustainabilitymanufacturingfutureforKo-komo.“WecalltheinitiativeKokomo’sRenewableEnergyPartnership,andisaboutsus-tainabledevelopment,”saidGoodnight,whopresidesoveracitywith8,500employeesdirectlytiedtotheDetroit3.“Wearetakingourfirststepstowardalocaleconomythatismorediverse,competitive,androotedinsustainablepractices.Wewanttobeahuboftherenewableenergyindustry.” And this is just the beginning.Algae-or“greencrude”-hasdrawntheinvestmentofpeoplelikeMicrosoft’sBillGatesintoSapphireEnergy.Othersarelook-ingatkudzu,theweedthatatetheSouthandisviningintoSouthernIndiana,asanothersourceofbiofuel.Therearegrowingsolarandwindpowersectors,thoughthecurrentcreditcrisisintheAmericanbankingsystemissappingtheneededcapitaltobringmoresolarpanelstohomesataf-fordableprices. CongressandtheIndianaGeneralAssemblyoughttoborrowapagefromPresidentReagan,whoin1981forgedthetaxcutsthatbroughtexistingtechnologytomarketintheformofcellphonesandpersonalcomputersoverthefollowingdecade.Today,legislatorsoughttobecreatingtaxincentivesforrestaurantsinvolvedinprogramslikeK-Fuel,aswellasotherrenewableenergyproducts. ThiswillbeonewaytofindthenextmorninginAmerica.v

Daniels administrationrolling with the punches By BRIAN A. HOWEY INDIANAPOLIS-Callitadaptation.Orrollingwiththepunches. Pickyourcliche,butthat’swhattheDanielsadmin-istrationhashadtodoasadeepeningfinancialcrisishasconsumedthestate.Onnearlyeveryfrontthereisbadnewsorapoliticalassault.ForeachpunchfromWallStreettoMotherNaturetoHouseDemocrats,therehasbeenastutterstepandmostoftenacounter. LonglinesatWorkforceOneofficesinElkhartorLaGrange?TheadministrationrespondedbymovingDepartmentofWorkforceDevelopmentcomputersintoneighborhoodchurchesandcommunitylibraries.Hic-cupsintheFamilySocialServicesAdministration’swelfare“modernization”?Gov.MitchDanielsatfirsttriedtokeepRepublicanRep.SuzanneCrouchandSen.VanetaBeckerfromfilingabilltopreventtherolloutcomingtothemorepopulouscountieswherethesystemmightbeswampedbydouble-digitunemploymentalmostcertaintohitthestateinthecomingmonths. On Monday, FSSA SecretaryAnneMurphy,whotookoverfromMitchRoobinJanuary,defendedthenewsystem,butsheconcededEvansvilleneededmorestafftohandlethecity’sneeds(EvansvilleCourier&Press).“Van-derburghCountyprobablyhasalegitimateconcern,”shesaid. OnMonday,INDOTCommissionerKarlBrowningwasseekingtowardoffStateRep.TeriAustin’sbillthatwoulddivertMajorMovesmoneyawayfromstateprojectsandintocities,countiesintowns.Today,Browningisgone,transitioningtoMichaelReed,executivedirectoroftheIn-dianaUtilityRegulatoryCommission,whowilltryandswatawayAustin’sattempttoraidthe$500millionMajorMovestrustfund.WhiletheAustinbillwillbeDOAintheRepub-lican-dominatedSenate,theDanielsadministrationwillbeforcedtodealwiththediversionsatconferencecommitteetime,unlessWashingtonstimulusmoneysolvestheprob-lem. As one observer told HPI, “TheDanielspeopleareworkingthroughthemetrics,takingthedataandthenmanaging.Butit’scominginacrisisenvironmentandthequestionis,willtheygetablackeyewhenopponentstrytoexploit?” ThemostproblematicforDanielswasrepeatedTVandnewspapercoverageoflonglinesofshiveringHoosierswaitingoutsideWorkOneofficesindeepsnowandsub-freezing(sometimessubzero)temperatures.LastThurs-day,DWDturnedtofaithgroups,communityorganizations

HOWEY Politics Indiana Weekly Briefing on Indiana Politics Thursday, Feb. 5, 2009Page 6

andpubliclibraries.TheElkhartTruthreported:ThestateagencyannouncedapartnershipThursdaywiththeOfficeofFaith-BasedandCommunityInitiativesandthestatelibrarytoprovidetrainingaswellascomputerstolocalgroupsinterestedinhelpingHoosiersfileforunemploy-mentbenefits.TheDWDistoutingtheinitiativeasprovidingmorelocationsforout-of-workstateresidentstofileunemploymentclaims.“We’dbegladto.We’dbegladtohelp,”saidLeonardCook,seniorministerattheRiverofLifeChurchinElkhart.“That’swhatourbuildingisfor.We’reheretohelpthecommunity.”Thisinitiativewouldtrainlibraryworkersacrossthestatesotheycananswerquestionsandhelpthejob-lessmaneuvertheonlinesystem.However,thesingletrainingsessionthestatehasorganizedforinterestedgroupswillbeheldonlyinIndia-napolisandnotuntiltheendofFebruary. OntheFSSAfront,theCrouchlegisla-tionwouldpreventFSSAfromrollingitsmod-ernizationprogramoutto33remainingcountiesuntilastudycommitteereviewstheprocess.“The(new)programisclearlynotworkingwhereIlive,”CrouchtoldtheHousecommit-teeMonday(Corbin,EvansvilleCourier&Press).Amongthecomplaints:theFSSAcallcenterinMarion,Ind.,losesclients’criticaldocumentsandcauseslongdelaysinenroll-ingclientsforbenefits,andthephone-andWeb-basedapplicationsystemsarehardfortheelderlyanddisabledtonavigate. Testifying Monday on thebillwasTimFlesch,presidentandchiefexecutiveofSt.Mary’sHealthSysteminEvansville.HesaidthatwhiletheFSSAhasmadesomestridesinthesystem’seffectiveness,thetimeittakestoenrollpatientsforMedicaidisstillamajorissue.“Amonthafterthebabyisbornisalittlelateforprenatalcare,”Sen.

Beckersaidofthedelays(EvansvilleCourier&Press). At INDOT, there wererumorsthatBrowningwoulddepart,pavingthewayforathirdcommissionerinfiveyears.HehadclashedwithlegislatorsfrombothpartiesashetriedtodeflecttheMajorMovesraids.On

Wednesday,theadministrationsoughttoportrayitasavoluntarytransition.“KarlBrowninghasbeenspectacularinthisjob,”Danielssaid.“IdideverythingIcouldtokeephimaslongasIcould.Hislegacywillliveforgenerationsthroughrecord-break-ingroadbuildingthathehasputinmotionforIndiana.” Browninghadbeendefendingtheraids,tellingaHousecommitteeatonepointontheAustinbill,“I’mheretalkingaboutabillthatIcan’timaginehasanypossibilityofseeingthelightofday.Ifitdoeshaveapossibility,Ifeelsorryfortherestofusinthisstate.”ItpromptedHouseSpeakerB.PatrickBauertocomplainthattheINDOTchiefhada“chiponhisshoul-der.” Reed led state andregional

operationsforGTE/Verizonoverseveraldecades.EarlyinhiscareerhewasthefirstqualitydirectorforGTE’slarg-estsubsidiarycovering13states.Helaterdirectedannualexpenseandcapitalbudgetsofmorethan$500millionasbudgetandfinancedirectorforGTE’sMidwesternopera-tion.Reedwasstaffoperationsdirector,directingtheregionalheadquartersorganizationfrom1985to1989andasstategeneralmanagerforIndiana,KentuckyandTexasforeightyears.AttheIURC,Reedhasresponsibilityforallutilityindustrymattersinelectricity,water,sewer,naturalgas,pipelinesafetyandconsumeraffairs.v

INDOT Commissioner Karl Browning resigned. (Evans-ville Courier & Press Photo)

HOWEY Politics Indiana Weekly Briefing on Indiana Politics Thursday, Feb. 5, 2009Page 7

By BRIAN A. HOWEY GREENCASTLE-IntheweeksthatfollowedJune3-thatimprobabledaywhenBarackObamasecuredtheDemocraticpresidentialnomination-hisbraintrustgath-eredtochoosewhatwouldbecomethe18battlegroundstatesheadingintothefall.Thegoalwastospreadthefield.Thelocomotivesonthistrackwerethetraditionalmust-winpowerhouses:Florida,Ohio,Pennsylvania,Michigan.Therewassomeunfamiliarter-ritory-Colorado,Nevada-andfinallytheheartofBush-CheneyCountry:NorthCarolina,Virginia...Indiana,apoliticalcaboose. “Itwasprobablythehardestdecisionwemade,”PlouffesaidatDePauwUniver-sityMondaynightduringtheUbbenLecture.“ItwasthelaststatewedeliberatedonandthestatewewantedthemostwasIndiana.”ThisdecisionmadebyPlouffe,chiefstrategistDavidAxelrodandObamahimselfpavedthewayfortwoepic

presidentialtheaters.AsimprobableasitwasforObamatoderailtheClintondynastyandthenbecomethefirstblackmantowintheWhiteHouse-Plouffeinitiallygavehima1in10shot-evenmoresowaswinningIndianaonNov.4.Weallknowthephrasesandcliches:ontheboardfortheGOPat6:01p.m.Hadn’tgoneDemocraticsinceLBJin1964.ThatPlouffeandAxelrodhadevencuedIndianaup

forconsiderationbroughtthemridicule. BarackObamahadlostbyabout13,000votestoHillaryClintonintheMay6primary.HehadtwoforcesbeyondhiscontrolthatshapedtheeventsleadingintotheIndianaprima-ry:Rev.JeremiahWrightandRushLimbaugh. Rev.Wright,thecandi-date’sfame-convulsedpastor,wentintomeltdownmodeattheNationalPressClubinApril,forcingObamatoholdapressconferencethenextdaycom-pletelydenouncinghim.WhenHPItalkedwithObama90min-utesafterthemostemotional

Plouffe: How Obama turned Indiana blue

David Plouffe, President Obama’s campaign manager, gave lectures and answered student questions at DePauw University on Monday. Above, Obama played hoops at Riverview Elementary School in Elkhart two days before the Indiana primary. Plouffe would call the Getty photos some of the best of the campaign. (HPI Photo by Brian A. Howey)

HOWEY Politics Indiana Weekly Briefing on Indiana Politics Thursday, Feb. 5, 2009Page 8

pressbriefingofthecampaign,heexplained,“Well,whenyourunforpresident,oneofthethingsyousignontoisthefacttheAmericanpeoplewanttoknowwhoyouareandallaspectsofyou.Someofthemgetblownoutofpro-portion.Someofthemgetmagnified.Youhavetotakeitasitcomes.IthinkIwasveryclearabouttoday.Myformerpastordoesn’tspeakformeanddoesn’treflectmyviews.Itwassadtoseewhathappenedyesterday,yetIdon’twantthattobeadistractionaboutwhatthiscampaignisabout.TheAmericanpeoplearestrugglingandtheyneedhelp.” Rev.WrighthadcomeatObamaintwowaves.“Thatwasachallengingperiod,nodoubt,”Plouffesaid.“ButIthinkthewayPresidentObamadealtwiththatsitua-tion,foralotofpeople,thewayhedealtwithitinPhila-delphia(inMarch)theysawapresident;someonewhohan-dledadifficultsituationwithhonestyandintegrity.ThereisadesireamongtheAmericanpeopleforleadership.Therewasaleaderonthestagethatday.Hedealtwiththatissueveryforthrightly.” Wrightwasadistrac-tion,butconservativeradiocommentatorRushLimbaughwastherogueasheurged“Dittoheads”tovoteagainstObamaintheDemocraticprimaryjusttoconfusethings.PlouffesaidatDePauwthatLimbaughcostObamatheIndi-anaprimary.

Primary loss & silver linings Yettherewereplentyofsilverlinings.“Therewasalotofbeliefthatweweregoingtostruggleonthatday,”PlouffeexplainedofMay6.“WewouldactuallywinNorthCarolinaandmostpeoplepredictedshewouldwinIndianaby8or10pointsintheprimaryandmaybeevenmore.ThefactthatwewonNorthCarolinaby14pointsandlostIndianabyarazormargin,thatstrengthenedourcandidacyandmostpeoplefelttheprimarywaseffectivelyover.” ObamahadalsocalledHillaryClintononhergastaxholidayasgasolinewasnearingits$4.19agallonapex.Actually,forthefinal10dayspriortotheprimary,bothClintonandJohnMcCainwereassailingObamaonthatissue.Obamawoulddismissitasa“gimmick”ataPhillips66pressconferenceonthesouthwestsideofIndianapolis.“Thefactthatweopposedthatrepealofthegastax,that

helpeduswithvotersbecausetheywanthonestleader-ship,”Plouffesaid.“Itresonatedwithvoters.Whatseemedlikeapoliticallyriskymoveatthetimepeoplesawitandsaid,‘That’snotwhatweshouldbedoing.’Itputwindbackinoursailsataveryimportantmoment.ThatperiodinIndianawasreallystrongcampaigning.Itwentreally,re-allywell.IthinktheenergyandgastaxdebatesremindedpeoplewhatwasdifferentaboutObamaandhelpedusregainsteamatachallengingtimeinthecampaign.””

The ‘die was cast’ in Indiana PlouffesaidofMay6,“thediewascastatthatmoment.”Theatmospherewasripeforwhatwouldbea

spread-the-fieldoffense.Plouffeexplained,“OneofthechallengeswhenyoulookedatJohnKerryfouryearsago,hereallyonlyhad(primary)electionsinIowaandNewHampshireandSouthCarolina”priortosecuringthenomination.Andthentogobuildupcampaignsinallthesestatesisreallyreallyhard,”Plouffesaid.“Forus,itwasn’tturnkey,butitwasaprettyaccomplishabletask.WewerethenomineeonJune3andatthebeginningofJulywehadfullyformedcampaignsinall18battlegroundstatesandweweremuchfurtheraheadinorga-nizationthanMcCainwas,whichissurprising.” “AsImentionedwhenBrianandIwerewalkingoverhere,thatIndianaprimaryreallydidsuggesttousthatIndiana

couldbecompetitiveinthegeneralelectionbecausewefeltwecouldbeverycompetitivewithahighpercent-ageoftheindependentvoteandgetdoubledigitsoftheRepublicanvote,”Plouffesaid.“IfyoucouplethatwithreallystrongDemocraticturnout(thestatehadthelow-estturnoutin2004ofanystate),Ibelievedthatwecould,potentially,pulloutanarrowvictory.Itendedupbeingvery,veryclose,obviously.ItwasaveryrewardingvictoryanditspeakstoObama’sappealinallpartsofthecountryandalldemographicgroups.”Theassumptionswerecor-rect.Obamawouldpull13percentoftheRepublicanvoteandwinbigwithHispanics,Catholics,independentsandsuburbanites,reversingsignificantBush-Cheneytrends.

McCain-Palin took Indiana for granted WhatastoundedPlouffe,however,wasthatMc-CainandtheRepublicansneverseemedconcernedabout

Barack Obama’s presser at Joe’s Junction Phillips 66 station in Indianapolis helped change the dynamic in Indiana. (HPI Photo by Brian A. Howey)

HOWEY Politics Indiana Weekly Briefing on Indiana Politics Thursday, Feb. 5, 2009Page 9

defendingIndiana.Theyjustcouldn’tbelieveitwouldgoblue.Butitwasn’tjustIndiana.McCainlivesandheadquar-teredhiscampaigninVirginia,yetdidn’tmakeacampaignappearancethereuntilSeptember.ForIndiana,whichwouldplayhostto49Obamavisits-thefinalcomingonElectionDay-McCainwouldn’tshowupuntilNov.3andhisspeechwasabout16minutesofoneclichestrungafteranotherashissupportersyelled,“Drill,baby,drill.”Plouffecallsit“campaignmalpractice,”explaining,“Thiswasthepresidency.Itwasforallthemarbles.Youcannotleaveanythingtochance.Ifyouthinkyoucouldloseastateyoushouldwin,youneedtocommit.” HowdisorganizedwastheMcCain-Palincampaign?WhenAlaskaGov.SarahPalinmadetheticket’sfirstfallap-pearanceinOctoberatVe-rizonCenter,aKokomosoft-warecompanyowner,DavidMcChesney,hadbeensum-monedbyafriendandMcCaincampaignstaffertohelpwith“security.”McChesney,whowasanundecidedvoter,andhisteenagedaughtershowedupatVerizonandfoundchaos.Hisfriendapproachedhimoncemore:theMasterofCeremonieshadbuggedout.WouldDavethe“SoftwareGuy”bewillingtoemceetheeventwith16,000Palinfans?McChesneywasstunned.Andemceehedid.

Kicking the tires Itwouldbeoneof150Indianapresidentialcam-paigneventsconductedbyBarackandMichelleObama,JoeBiden,Bill,ChelseaandHillaryClinton,JohnandCindyMcCainandGov.Palin,drawingmorethanhalfamillionHoosiers.MorethanadozencampaignappearanceswouldbemadebytheObamasandBidenduringtheautumnalhomestretch(comparedtofourappearancesbyMcCain/Palin).Forthefirsttimeindecades,HoosierscoulddowhattheircounterpartsinIowaandNewHampshiretakeforgranted:gettingcloseandpersonalwithafuturepresident. “Votersget...touseanObamaphrase...tokickthetires,”Plouffesaid.“It’shardtohidewhoyouareinatwo-yearperiod.Idothinktherewillbesomereformoftheprimarycalendarsystem.ThefirstcontestwasrightafterJan.3,rightaftertheholidays.ThereweretoomanycontestsonFeb.5.”

“What’sinterestingabouttheprimaryprocessisthatpeopleinbothIndianaandNorthCarolinastayedinMayandwerereallyrewardedbecausethistimetheygotalotofattention,”Plouffeexplained.“YoulookatthosestatesonFeb.5anditwasjustablur.”MostoftheSuperTuesdaystatesgotonlyoneObamarally.HoosierssawObamaplaybasketballinKokomo,NewCastle,ElkhartandMarion.HedrankararebeerupinSt.JosephCountyandvisitedNick’sEnglishHutinBloomington.Therewere

twohugeIndianapolisralliesattheAmericanLegionMall,anotherattheIndianaStateFairgrounds. Obamawouldmixitup,goingthroughaseriesofbas-ketballgymsinSouthBend,FortWayneandColumbus-andIndianahas19ofthe20biggestpreparenasinthenation-andthenoptingformeetingwithMikeandCherylFisherintheirBeechGrovehomeandacommunitymeetingatGarfieldParkinIn-dianapolis.InElkhart,heroamedtheneighborhoodssouthoftheSt.JosephRiveronthecity’seastside,shakinghandswithfolksdoingyardworkandsinkingtreysatanoutdoorhoopscourtatRiverviewElementary. “Itwasalongcam-paign,”Plouffesaid,seemingtosigh.HespentmuchofthefirstyearinIowa,withfewbigrallies

untiljustpriortothecaucuseswhenhebroughtOprahin.ThencamethemaddashtoNewHampshire,thenSuperTuesdayonFeb.2-orthe“blur”asPloufferemembers.AfterupsettingClintoninIowa,ObamalosttoherinNewHampshirefivedayslater.Plouffesaidthatdespite

thatstingingdefeat,Obamawascalm.“Wow,thiscampaignisgoingtogoonforawhile,”ObamatoldPlouffe.Thefresh-mansenatorponderedfurther,tellinghiscampaignmanager,“Thisisgood.We’llbebetterforit.Wedon’twanttobeacometinthesky.” Inhindsight,oneofthecampaign’sbig-gestmistakeswasnot

Sarah Palin prayed prior to her apperance at Verizon Wire-less Music Center and the photographer ended up emcee-ing the event. (HPI Photo by J. David McChesney)

Obama at Garfield Park in Indianapolis at a small town hall. (HPI Photo by A. Walker Shaw)

HOWEY Politics Indiana Weekly Briefing on Indiana Politics Thursday, Feb. 5, 2009Page 10

makingTexasapriorityoverOhio,whichPlouffesayspro-longedthecampaignanothermonth,whilemakingIndianaandNorthCarolinaextremelyrelevant.

The message never changed WhilePlouffesaidthebasicObamamessageneverchangedfromhiscampaignkickoffinSpringfield,Ill.,onafrigidFeb.10,2007,tohisvictoryspeechatGrantParkinChicagoonNov.4,thecampaignmixeduptheIllinoissen-ator’svenues.“Partofitisthenatureofwantingtotrynewthings,”Plouffesaid.“Andtherewasalittlelessstrategyinvolvedthanyoumightthink.Particu-larlywhenweweregoingtobespend-ingalotoftimeinIndiana.Youcan’thavefourralliesaday.Weweregoingtobehereforacoupleofweeks,sointheprimary,wecameout,anddidsometownhallmeetings.Ithinkwewentintoacoupleofhomesandhaddiscus-sionsaboutissues.Wehadadiversityofevents.Wehadtomakesurethatvotersunderstoodhowconnectedhewastopeoples’lives.HereallyunderstoodwhatpeopleweregoingthroughandthathewouldgototheWhiteHouseandbetheiradvocate.” Asforthemessage,Plouffesaid,“Wedidn’thavemeetingseveryweekwonderingwhatournewmes-sagewas.Heoftensaidthatpeoplewillacceptourmessageandhimortheywouldn’tandhewouldn’twin.Thatwasacorepartofourcampaign.Wejustdidn’thavealotofdebatesaboutwhatourmessagewas.“ Woventhroughoutwasanin-tegratedmessagecomingfromabraintrustthatkeptheadquartersinChi-cago,ratherthanDC.InChicagothereweren’treportersandrumormongersstalkingstaff.TheObamacampaignsharedsensitiveinformationwithvol-unteerstheytrusted,againdrawingtheridiculefromtheconventionalwisdomcrowd.Thecampaignadaptedtoanewsenvironmentthatdepartedfromnewscyclesto“roll-ingcoverage.” WhilethecampaignspentmillionsofdollarsinIndianaontraditionalmedialikeTV,radioandnewspaper(printadsbeingadeparturefromtherecentpast)-theyalsoharnessedtechnologybeyondabasicwebsitetoreachHoosiersandtheentirenation.TheycreatedaniPhoneapplicationandspreadthemessageonYouTube.Theycre-atedprofilesonMySpace,Facebookandothersocialnet-

workingsites.Theiropt-intextdatabasemarketedObamadirectlytountoldmasses.Theyfollowedanestimated130,000onTwitterandcollectedanestimated10millione-mails.TheyusedthewebtodispelObama-inspiredurbanmyths.Mostimportantly,theymobilizedanonlinecommu-nity--fromcollegestudentstograndmas--totakeactionoff-line:volunteer,openyourpocketbook,andgetouttovote. “You’vegotpeoplesharinginformation:didyouseethisonYouTube?Ordidyouseethise-mail?”Plouffesaid.“Thatwasgrowingeveryday,persontoperson.We

triedourbesttonavigatethatandsharealotofoure-mailwiththeircircles.Peoplegettheirinformationinalotofdifferentways.It’snotatasettimeeveryday.It’snotwhenthemorningnewspapercomesorthenightlynewsandthat’sit.It’salldaylong.We’vegotwebsitesandblogs,we’vegotYouTube.Wehavealotofyoungpeo-ple-andnotjustyoungpeople-whowon’treadalistoftalkingpoints,butthey’lllookatvideo.“ “You’vegottobecognizantofthat,”Plouffecontinued.“It’sachal-lengingmediaenviron-mentandyouhavetobeevenmoredisciplinedonwhatyou’retryingtogetacrossbecausepeople’sattentionissofragment-ed.Sosomeoneknockingonadoor,makingacall,sendingane-mail,send-ingSen.Obama’sspeech-esandtelevisionads,all

neededtobeconnected.Becauseotherwiseyou’renotbeingaseffectiveasyoucanbewitheachindividualeffort.Oneofthechallengesinthecampaignwasjusthittingonallcylindersgettingacrossthesamemessage.Ittookalotofworkbutonmoredaysthannot,wedid.” Andinthisoneimprobablepresidentialcampaign,withacandidatewholiterallycameoutofnowhere,upsetdynasties,turnedoutyoungpeopleandgotmorevotesthananyDemocratsinceLBJ,theoddsstoodontheirears.Indianabecameabattlegroundstateanditchangedpresi-dentialpoliticsforever.v

The Obamas during the campaign kickoff in Springfield in February 2007 and in victory on Nov. 4 at Grant Park. The candidate’s message never changed inbetween. (HPI Photos by Brian A. Howey and Ryan Nees)

HOWEY Politics Indiana Weekly Briefing on Indiana Politics Thursday, Feb. 5, 2009Page11

Partisan politics stillgrips WashingtonBy JACK COLWELL SOUTHBEND-AfterallthecontentiouspartisanwranglingduringtheBushadministration,divisivenessthathelpedbringonthepresentwoes,youmightthinktherewouldbemorebipartisanshipnowinWashingtonamidfinancialcrisis. Ifyouthinkthat,theHousevoteonthestimu-luspackagetostaveoffanotherGreatDepressionshows

youarewrong.EveryHouseRepublicanvotedtokillthestimuluspackage,evenafterPresidentObamaacceptedsomeRepublicanchangesandwentpersonallytopleadwiththem,extendingahand.Theydidn’tshakehishand;theybitit. Why? Partisanpolitics.AndnotjustontheRepublicanside. ManyoftheRepublicans,knowingthatastimuluspack-ageisneedednow,votedtokillitonlybecausetheyalsoknewthattheycouldn’t.They

knewtherewasalargeenoughDemocraticmajorityintheHousetopassthebill.Therewas,evenasafewDemo-cratsplayedtheirownbrandofpolitics,voting“no”totrytofoolconservativeconstituentsintothinkingtheyreallyareRepublicans. RepublicanslovetheircountryjustasmuchasDemocratsdo,andquiteafewofthem,probablyamajor-ity,wouldhavevotedforthepackageiftheythoughtitwasreallygoingtobekilled,withnoalternativetocounterrisingjoblessness. But they weren’t abouttostopplayingparti-sanpoliticsatthisstagejustbecausethepresidentwaspreachingbipartisanship.SomestimuluspackagewillpassincompromiseforminboththeHouseandtheSenateandwillbesignedintolawbythepresident. WhileRepublicansintheSenatestillhaveenoughstrengthtofilibusterabilltodeath,theyaren’tgoingtokillafinalhopeforcounteringthissevereeconomicdown-turn.Theydon’twanttoestablishtheGOPasthepartyofHoover.Nordotheywanttohurttheircountry. Partisanwranglingaside,anyoftheproposedstimuluseffortswouldbebetterthannoeffortatall.Noplancanbringaquickendtoarecessionsuretogetworse

beforeitgetsbetter.Thebeststimuluseffortcanonlylessenthedepthsofrecessionandshortenitsduration. Butbeforeanythingispassed,politicswillbeplayed,nastyanddivisive.That’sbeenthenorminWash-ingtonforatleastthelast16years. Nastiness breeds nastiness. ManyRepublicansvotingagainstthestimuluspackageweredoingsomorebecauseofadesiretoswatHouseSpeakerNancyPelosithantocrippleObama.Theythinkshehasbeenunfairtotheminority,notpermittinginputonlegislation.Youknow,thewayNewtGingrichandTom“theHammer”DeLaytreatedtheDemocraticminority.Presumably,inthisnever-endinggameofretaliation,thenexttimeRepublicanshavethemajority,thespeakerwilltreataDemocraticminor-itythewayRepublicansbelievetheyaretreatednowbyPelosi,whostillrecallstreatmentofDemocratsbyGingrichandDeLay. SomeDemocratsnowgrumblethatObamaissell-ingouttotheRepublicans,spendingmoretimetryingtoappeaseandwoothemthanheistopushthroughthetypeofDemocraticlegislationhepromisedinwinningthepresi-dency.RepublicansmaythinktheelectionreturnsshowedthatamajorityofAmericansthinktaxcutscancureevery-thingfromdeficitstothecommoncold,butthat’snottheprevailingfeelingintheaftermathoftheBushtaxcuts. SomeofObama’smostenthusiasticDemocraticbackersfearheshowedweaknessinextendingahandtoRepublicansintheHouse.IfhehadreliedjustonhisownpartyandtreatedRepublicansasoutcasts,withaBush-likesmirkandaRove-likepoliticalattackintheirdistricts,hecouldn’thavedoneworsethangetnotasingleRepublicanvote.ButObamawasn’tgoingtotheHouseRepublicancaucusjusttoletthemmakeafoolofhimwhenitcametimetovote. Obama was speakingmoretotheAmericanpublicthantothepartisanHouseRepublicans.Hewasestablishingawillingnesstotalk,tocooperate,tocompro-mise,toseekbipartisanship.That’swhatavastmajorityofAmericanswant.AlthoughObama,wonnotasingleRepublicanvoteintheHouse,itisdangerousforthoseHouseRepublicanstothinkhehasn’twontheadmirationofawholebunchofRepublicansaswellasDemocratsoutsideWashington. ItappearsthattheonlywayObamacouldwinbi-partisancooperationintheHousewouldbetostartactinglikeRodBlagojevich,whobroughtbipartisanshiptotheIl-linoisHouse.ThevotetheretoimpeachBlagowas117-1.v

Colwell has covered Indiana politics for more than five decades for the South Bend Tribune.

HOWEY Politics Indiana Weekly Briefing on Indiana Politics Thursday, Feb. 5, 2009Page 12

Gary Gerard,Warsaw Times-Union:Comesnowthestimuluspackage.AperfecttimeforOtoputhisfootdownanddemandlotsofspendingoninfrastructure.Butno.ThebillpassedintheHouseWednesdayincludes$30billionforroadsandbridges,$9billionforpublictransitand$1billionforinter-cityrail.That’slessthan5per-centofthe$825billionpackage’stotalspending.(Whilewe’reonthesubjectofhugenumbers,theCongressionalBudgetOfficepointsoutthatafterwepaytheinterestontheloanswe’regettingfromforeigncountriestofundthestimuluspackage,itscostballoonsto$1.2trillion.)SoIguessIwasalittledisappointed.Ipokedaroundinthestimuluspackage.It’squitemassive,like,647pages.It’sat:http://www.docuticker.com/?p=24473WhatInoticedisthattherearen’treallyalotofearmarksinthere.That’swhatwenormallyrefertoasporkbarrelspending.That’swhenacongressman-takeoursforexample,ThirdDistrictU.S.HouseRepresentativeMarkSouder-wouldaddsome-thinglikea$2millionindoorskatingrinkforWarsawontothebill.There’sreallynotmuchofthatasfarIcansee.Butthereareawholebunchofgovernmentprogramsthatprob-ablywouldn’tpassiftheywereputtoastraightupanddownvote.There’s$3billionforpreventionandwellnessprograms,including$335millionforsexuallytransmitteddiseaseeducationandprevention;$400millionforNASAscientiststoconductclimate-changeresearch;$600millionforcarsforgovernmentworkers;$150millionforrenova-tionattheSmithsonian;$10millionforbikeandwalkingtrails;$650millionfor“alternativeenergytechnologies,energyefficiencyenhancementsanddeferredmaintenanceatfederalfacilities”;$600millionforgrantsfordieselemis-sionreduction;$800milliontocleanupSuperfundsites;$200millionforplug-incarstations;$1.5billionfor“greenschools”;$1billiontotheCommunityOrientedPolicingSer-viceshiringprograms;$2.7billioninNationalInstitutesofHealthresearchgrants;$75millionforsmokingcessation;$5billionfor“NeighborhoodStabilizationPrograms”.v

Leslie Stedman Weidenbener, Louisville Courier-Journal:HouseDemocratsthisweekwilltakeasecondstabatcreatingastatestimuluspackagethattheyhopewillcomplementthefederalprogramandputHoo-sierstoworknow.Theirfirsteffort,introducedlastmonth,hadsomerealproblems--includingatleastoneoutrighterror--butthatdidn’tstoptheHouseRoadsandTranspor-tationCommitteefromapprovingitanyway.Thevotewasonpartylines,withRepublicansvotingnoafterDemocratsrebuffedtheirattemptstofixandamendthebill.TheapprovalsentthebillontotheWaysandMeansCom-mittee,whichconsidersalllegislationwithanysignificantfiscalimpact,adescriptionthatcertainlyappliestoHouse

Bill1656.Thatcommittee,alsocontrolledbyDemocrats,isexpectedtoreworkthebill,somethingthatappearssorelyneeded.Aswrittennow,thebillwouldshiftnearly$500millionovertwoyearsfromthestatetransportationdepartment’soperatingbudgettolocalgovernmentsforroadprojects.Itwouldalsoassign$1.5billioninrevenuefromthe2006leaseoftheIndianaTollRoad--calledMajorMoves--forabouttwodozencurrentlyunfundedhighway,bridgeandrailroadprojectslistedinthebill.Theproposal’sauthor,RoadsandTransportationChairwomanTerriAustin,D-Anderson,saidthegoalistoputmoneyinthehandsoflocalgovernments,whichshebelievesarereadytostartbuildingprojects.ButGov.MitchDaniels’administrationcomplainsthebillwilldecimatetheIndianaDepartmentofTransportationandessentiallyeliminatethemoneythe

stateusesasamatchforfederalfunds.Butthat’snotthebill’sonlyhitch.ItalsoearmarksMajorMovesmoneythatisdesignatedforotherprojectsAustinpicked.Shepointsouttheprojectsareontransportationdepartmentlistsbuthaven’tbeenallocateddollars.TransportationSecretaryKarlBrowningsaidtheproblemisthatbecausethoseprojectsareunfunded,theyhavenotbeenpre-

paredforconstruction.Nonecouldbereadytogoforthreetofiveyears,Browningtoldtheroadscommitteeinacontentiousmeeting.Soessentially,thebillgutstheverytransportationprogramthatalreadyisputtingHoo-sierstowork,includesamistakethatwouldstoprepavingandothermaintenanceworkinmostareasofthestate,andprovidesmoneytoprojectsthatmayormaynotbereadyforconstruction.v

Sylvia Smith,FortWayneJournalGazette:ThefirstbillPresidentObamasignedintolawhelpschipawayatworkplaceunfairnessbyexpandingthetimeframeinwhichworkerscansueforpaydiscrimination.ThebillstemsfromalawsuitfiledwhenaGoodyearTire&Rubbermanagerfoundoutthatforyearsshewaspaidlessthanhermalecounterparts.Shewonhercasein2003,butitwaslaterthrownoutbecausethelawsuitwasn’tfiledwithinsixmonthsofwhenthediscriminationbegan.Shewassome-howsupposedtointuitthatheremployerswerecheatingher.SincemoneyistheBigTabooinoursociety,it’snotsurprisingthatLillyLedbetterdidn’tfindoutaboutGood-year’sswindlerightaway.Whenshefigureditout,shesued.ButthelawwasinterpretedasmeaningLedbetterhadtosuewithinsixmonthsofherfirstpaycheck.That’sjustsilly,andCongresssaidso.BravotoCongresspassingthebill,andbravotoObamaforsigningit.ButphttttttttttttoRepublicanswhovotedagainstthelegislation–amongthemallofIndiana’sGOPmembers.Noneofthemwasthoughtful,sensibleorcompassionateinthiscase–exceptintheirregardfordeceitfulemployers.v

that’sprobablygoingtosaveusfrombeingatotaldisaster.”Still,Kenleysaid,“there’snoquestion”thatthesenewnumberswillforcethestatetolookatallalternatives,includingdip-pingintotheRainyDayFund.

Elkhart-Goshen topjobs loser in nation ELKHART-AlthoughotherplacesintheUnitedStatespostedhigherunemployment,nonetoppedtheElkhart-Goshenmetropolitanareaintheratethatjobswerelostdur-ingDecember(ElkhartTruth).OnWednesday,theU.S.BureauofLaborStatisticsreleaseditsmeasurementofunemploymentfiguresfrom168met-ropolitanareas.FromDecember2007toDecember2008,theElkhart-Goshenjoblessrateskyrocketed10.6percent-agepoints(withunemploymentgoingfrom4.7percentto15.3percent)andputtheNorthernIndianacountyintheNo.1spot.

County reforms passSenate committee INDIANAPOLIS-Afteraboutfourhoursoftestimony,theSenateLocalGovernmentCommitteevoted6-5toapproveaheavilyamendedSenateBill506.Theonlyarealawmakeronthepanel–Sen.TravisHoldman,R-Markle–votedyes(Kelly,FortWayneJournalGazette).Thebill,whichnowmovestothefullSenate,wouldmandateachangetooneoftwonewsystemsofcountygovernment:•Asingleelectedcountyexecutiveaccompaniedbyaseven-membercountycouncilwithlegislativeandfiscalpowers.Thissystemissimilartocitystructurewithamayorandcitycouncil.•Aseven-memberboardofsupervisorswithexecutive,legislativeandfiscalpowersthatwouldappointacountymanagertohandledailytasks.Thissystemissimilartotowngovernmentswithatownboardandtownmanager.Underthebill,thethreecurrentcounty

commissionersthisyearwouldeitherchoosebetweenthetwosystemsorallowresidentstodosoina2010referendum.Countieswouldnotbeallowedtokeeptheirexistingstruc-ture.AmajorityofthesenatorsonthecommitteealsoapprovedaspecialexemptionforLakeCountyonly.

Indiana would get$4B in House stimulus INDIANAPOLIS-Indiana’ssuperintendentofpublicinstructionandboardofeducationunleashedaslewofderegulationsWednesdayinanefforttoallowschoolsmoreflexibility(FortWayneJournalGazette).Butatleastonestateteachersunionof-ficialsaidthemoveswon’taffecthowschoolsoperate.Schoolshavehadtheauthoritytodomuchofwhatthestateboardapproved–attherequestofTonyBennett,statesuperintendentofpublicinstruction–since1999,saidDanClark,deputydirectoroftheIn-dianaStateTeachersAssociation.“It’sanicesymbol,butit’sreallyanemptygesture,”Clarksaid.Theboardre-pealedanumberofprovisions,includ-ingarequirementthatmandateshighschoolstudentsspend250minutesinaclasseachweektoreceivecreditforthecourseandarequirementthatstudentsattendhighschoolforsevensemestersbeforegraduating.Butschoolshavebeenabletoapplyforwaiverstocutthroughthoserequire-mentssincePublicLaw221waspassedin1999,Clarksaid.“Ithinkthetruthofthematteris,it’sprettynon-consequential,”Clarksaid.CamSavage,spokesmanfortheIndianaDepartmentofEducation,acknowl-edgedmanyoftheserequirementscouldhavepreviouslybeenliftedwithwaivers.ThepurposeofWednesday’svotewastogetridoftheredtapeschooldistrictshavetogothroughtoachievethosethings,hesaid.

State revenues dive INDIANAPOLIS-Staterev-enuesnose-divedinJanuary,fall-ing$142millionbelowexpectationsandleavingthestatewithadeeperholeinitsprimarycheckingaccountthatcouldapproach$400mil-lionbytheendofthisfiscalyear(Indianapo-lisStar).Indianahas$1.3billioninreserves,including$390millioninitsRainyDayFund.ButGov.MitchDanielsinsistshehasnoplanstotapthatmoney,muchtothechagrinofDemocrats.Instead,DanielshasorderedtheStateBudgetAgencytoassembleoptionsfromstateagenciestosaveadditionalmoney,ontopofthe$763millionincutsheorderedinDecember.StateBudgetDirectorChrisRuhlsaidinastatementthatpos-sibilitiesincluderenegotiatingsomecontractsandleasesandshiftingsomeunspentmoneyintothegeneralfundfromotherdedicatedfunds.“Staterevenuescontinuetogetworseastheeconomyslidesfurtherintorecession,”saidRyanKitchell,directorofthestateOfficeofManagementandBudget.

Kenley, Bauer react INDIANPOLIS-“There’sabso-lutelyacrisisinthisstate,”saidHouseSpeakerB.PatrickBauer,D-SouthBend,whorenewedhiscallforDanielstodipintothestate’sRainyDayFund.“WewanthimtojoinustocreatejobsinIndianaandusetheavailablemoneyinthebanktogetthosegoing”(IndianapolisStar).Sen.LukeKenley,R-Noblesville,chairmanoftheSen-ateAppropriationsCommittee,calledthenewrevenuenumbers“terrible...evenworsethanIexpected.”Ken-leysaidthecutsDanielsalreadyhasmade,includingfreezingthepayofstateemployees,are“theonething

HOWEY Politics Indiana Weekly Briefing on Indiana Politics Thursday, Feb. 5, 2009Page 13