gov. daniels and a future viewgov. mitch daniels meets with university presidents benjamin, gora,...

Inventers, not‘statesmen,’ willbring dramaticchange to stateBy BRIAN A. HOWEY INDIANAPOLIS-ThisinteviewtookanhouroutofthedayofGov.MitchDanielsonDec.11,thedayIndianacelebratedits190than-niversaryofstatehood.Itcameasthesoundsofhundredsof4thgradevoicescouldbeheardbe-yondthemassiveoakendoorsinthegovernor’sStatehouse office. ButHPR’sempha-sisthisdaywasnotthepast-thelongorrecent-butalong-termglimpseofthefuture,cominginabuildingandwithinapoliticalapparatusknownforatinyattentionspan,greatinertiaandlittlevision.Forinstance,theCommerceConnectorouterloopfromPendletontotheIn-dianapolisAirportpromptedustoaskthegovernor,willweevenbedrivingcarsin50years?Or,asDanielssuggested,will we be in “robot flying pods?” As we wrote earlier this month,thechangesbetween1900and1999werestun-ning.Change-byinventorandscientist,notbystates-manandpolitician-willlikelyacceleratethedynamicsmanyHoosierswillwitnessandlivethroughinthecomingdecades. WhileGov.Danielshasalong-termview,healsorevealedtwohugeendeavorsforthepublictoview:fran-chising future profits of the Hoosier Lottery to fund higher education and student “grants,” and a privately construct-edIllianaExpressway. HereisourinterviewwithGov.Daniels: HPR:WhenyoucameoutwiththeCommerce

Connectorproject,itgotmethinkingaboutthechangesinIndi-anabetween1901and1999.Theywereincredible.Howarewegoingtobetravelingin2050?2099?Arewegoingtobebuildingsomethingthatmaybeobsolete? Daniels: Iusedtomakethatpointaboutthetollroads.Oneofmanypositiveargue-mentsforwhatwedid

butbelowthevisionofmostpeoplewasthatalloftheriskhasbeenshifted.Thosefolksaregoingtospend$4-to$5-

Gov. Daniels and a future viewThursday, Dec. 14, 2006V13 N18

How is privatized Indy doing? INDIANAPOLIS-Injustathree-hourperiodonMondaymorn-ing,Ifoundmyselfintheprivatiza-tiontaffypull. OntheNewYorkTimesedito-rialpage,theevilliberalcolumnistPaulKrugman(alsoaneconomist)calledPresidentBushtheoutsourcer-in-chief,sayingthat“outsourcingofthegovernment’sresponsibilities-

Gov. Daniels makes an Indiana 190th anniversary address. (HPR Photo)

HOWEY Political Report Weekly Briefing on Indiana Politics Thursday, Dec. 14, 2006

Reforming state, county govt. p. 7Bayh has lots of NH friends p. 10Columnists: Smith, McCaffrey p. 12

Help choose 2007 HPR Top 50 p. 13Ticker: Bauer, Espich cool on Lottery move p. 14

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INSIDEFeatures

nottopanelsofsupposedwisemen,buttoprivatecompanieswiththeright connections” is “one reason the administrationhasfailedonsomanyfronts.” Hecitesthe$17billionCoastGuard modernization fiasco (Lockheed Martin,whereformerIndianapolismayorStephenGoldsmithservedasamanagementconsultant,andresultingcrackedhulls),DynCorptrainingtheAfghanistanpoliceforce($1.1billionspentandnocops);andLandstarExpress(hiredbyFEMAtotransporthurricanetargets;endeduphiringCareyLimousinetoolatetohelpNewOrleans). And, a few hours later, thereIwaswithGov.MitchDaniels,whowasonthevergeofproposinganew privately financed Illiana Express-way and future profits of the Hoosier Lotterytofundhighereducation. Atthispoint,anyreporter,columnistandeditorialwriteroughttobedialingphonenumbersthatbegin(317-327- ----) and find out what actuallyhappenedbetween1991and1999whenGoldsmithwasmayorandDaniels chaired the Service, Efficiency andLowerTaxesforIndianapolisCommission(SELTIC).About70cityagencieswereprivatizedasGold-smithsuccessfullyaimedatreducingthecityworkforceby25percent.But“contractual consultants” quadrupled to $20 milion in Goldsmith’s first term andcriticssaidtherewasalackofoversight,asproblematicgolfcourseandswimmingpoolprivatizationcasescameintopublicscrutiny. Shortly after Goldsmithwasre-electedin1995,hetoldtheChicagoTribune,“Forthepastthreeyears,I’vebeentheCEOofIndia-napolis.NowI’dliketoprivatizeallof Indiana.” He told the Indianapolis NewsheintendedtomakeIndianathe“first fully privatized state” in America. Asweallknow,Goldsmithsufferedastunningdefeatforgover-norin1996,soitwouldbeeightyearsbeforethetrueCEO/Gov.Danielstookthehelm.Yet,Goldsmith-stylepriva-tizationhardlycameupduringthe

2004showdownbetweenGovs.JoeKernanandDaniels.KernancriticizedtheRepublicanwithregardtonewtollroads,andDanielseagerlyac-knowledgedhisinterest.ButIndianaDemocratsdecidedtoslugawayatDanielsIPALCOstocksaleinthewakeoftheEnron/Adelphiascandals.Thus,Hoosiersdidn’tgetavividphilosophi-caltusselovertheprosandconsofprivatization. That’swhyIndianapolisnowdeservesthoroughscrutiny.It’sbeensix years since Goldsmith left office. Thereshouldbeplentyoftrendingonwhatworked,whatdidn’t. “Indianapolis has beenapretty successful city,” Daniels said. “A prettywell-runcity.Ifyougoask...‘MayorPeterson,you’vegotawaste-waterplant,awatercompanyandanairportallprivatelymanagedunderacontract with European firms. How’s it working?’ “Great,” said Daniels quot-ingMayorPeterson.Danielsaddedof

Peterson,“Hedidn’tchangeathing.Ifit works, you do it.” Indianapolis officials would not commentforthiscolumn. Danielsevencites“BillClin-ton’sbible,DavidOsborn’s‘Reinvent-ing Government’” as a must-read. This conversation andthisreadingcameinthesameweekPennslyvania’sGov.EdRendellpon-deredleasingthePennsylvaniaTurn-pike)andIllinoisGov.RodBlagojeviceyedaprivatizedstatelottery.BothareDemocrats. “It’sallaboutcontractingforserviceandcompetingserviceswhereit fits,” Daniels said, noting that while cutshavebeenmade,thestatehashiredthousandsofnewstatepoliceandchildprotectiveservicecasework-ers. Soperhapstheearliestsub-plotina2008Danielsvs.Petersonshowdownmightbeplayedoutintheneighborhoods and financial tables of Indianapolis.v


billion.They’vealreadystartedupgradingandmodernizingthat road. The good question is,whatifin60yearswe’renot

usingroadssomuchanymore?Whatifweareallinrobotflying pods or something? It won’t be Indiana’s problem, meaningtheriskwillbeonthem.Butit’stherightwaytoask the question. The rule of life is discontinuous change, andmanypeopleeitherdon’tthinkaboutchangeatall,oronlythinkinlinearterms.“We’redrivingcarstoday.Iguesswe’ll be driving more cars tomorrow.” There will be bla-tantdiscontinuity.That’sthewaylifeisandhowprogresscomes.IguesstrainingforthiscameintheyearsIwasatHudsonInstitute.Thatwastheirtrademark,tothinkwhatpeoplesayis‘outsidethebox.’Theylivedoutsideallboxes.Theywerestudentsofhistoryenoughtoknowthatthingsdon’ttravelforeverinstraightlines.You’lljustextrapolatefromtoday.Lookatpopulation.Allthedoomsayersgotittotallywrong.Theylookedatpopulations50,60,70years,extrapolatedfromthat...Ohmygosh...we’llbeoverrunwithpeople;wewon’tbeabletofeedourselves.Complete-lywrong.Firstofall,behaviorchanged,allovertheworld.Gotbettereducated,womentookuplargerrolesinsocietyandbirthratesplummeted.Thebiggestdemographicprob-lemfacingtheworldrightnowiswe’renotgoingtohaveenoughkids. HPR: Rus-sia. Daniels:Hey,evenChina! HPR:OK. Daniels:Europe.Theyarecommitingdemo-graphicsuicide.Andsothegreatexampleofallthedoomsayingwe’dbeoutoffood,outofenergy,com-pletelyoverlookingthefactthathumaningenuitycreatesdepartures.We’regoingtogettheminenergyforsure.We’vehadthemanyway.Energyconsumptionhasdropped.Everybodywasdrawingstraightlinesfromthe‘70sand‘80s;totallywrongbecausewhy?Priceswentup,suddenlyconservationdropped.Suddenlyyoucouldmakeabuckonalternativesources.So,theonethingyouknowiswrongisaprojectionofwhatistoday.That’swhatyoucametotalkabout.Itisthewayyouhavetothink.Also,never,never,neverunderestimatethepower

ofhumaningenuitytosolveproblems. HPR:You,probablyasmuchasanybodyinthestate,getsinsomanydifferentnooksandcrannies.You’veseenwhat’sgoingoninnano-technologyandlogistics.Arewe at any dramatic pivot points in the next five, 10, 20 years?

Daniels: I’msuretheanswerisyes.Ican’tpredictforyouexactlywhichones.It’sthenatureofthesethingsthatiftheywereutterlypredictable,theywouldn’thavetheimpactthattheydo.Youweretalkingabout1900.Justimagineapointinmid-centuryorevenafter;thesefunnylittlethingswe’veallreadabout-thecomputer-andevenafterthey’vebeeninventedandpeoplesaidyoucould

Iraq: From page 1

“The rule of life is discontinuous change and many people either don’t think of change at all, or only think in linear terms.” - Gov. Mitch Daniels

Gov. Mitch Daniels meets with university presidents Benjamin, Gora, Helton, Herbert, Jischke and Fong this morning. “We at Ball State are delighted with the governor’s desire to invest boldly and strategically in higher education,” said Ball State President Jo Ann Gora. “Our state has an amazing range of opportunities,” said Purdue President Martin Jischke. “In this high tech advanced manufacturing economy, the governor’s proposal will position Indiana as a leader nationally by making our universities stronger and by supporting our very best students and encouraging them to remain in Indiana.” IU President Adam Herbert said, “We must act boldly and the governor has done exactly that.” (HPR Photo by Brian A. Howey)

HOWEY Political Report Weekly Briefing on Indiana Politics

serve the whole world’s needs with five big ones. Just astonishing,thedimensionofchangecomparedtowhatsupposedlysmartpeoplesawcoming,but,again,theonethingyouknowforsureisthatifyouprojectfromwhatyouknowtoday,you’llbewayoff. HPR: Youhaveignitedwhatyoucallanagriculturerevolutioninthisstate.Ireadonthebiomassfront,par-ticularly down in Brazil, they are maybe four or five years away from some significant breakthroughs for producing energy.I’vewrittenthenextAmericanpresidentshoulddeclareaManhattanProjecttoweanusoffMiddleEasternoil.Tellmealittlebitaboutwhatyouknowoftheagricl-turerevolutionhereinIndianathatentersintoourwholeenergyneeds? Daniels:Letmestartwithoneofmyfa-vorite little quotes which Ibelieveshouldbehand-edouttonewlyelectedpoliticians.PaulJohnson,theEnglishhistorian,wrote,“Thescientistorinventer,forgoodorforill,impingesonhistoryfarmorethananystates-man or warlord.” The politiciansthinkthey’reinchargeofthings;thattheyaretherealdriv-ers,butit’speoplelike...HenryFord,and(Intelfounder)AndrewGrove,andEinsteinandtoday,peopleworkinginagriculture,thatwillhavethemostinput.I’manappreciatorbutnotanauthorofanyrealinventions. HPR:Butyouareasynthesizeranddistributorofinformation. Daniels:Well,Itrytobe.Ibelievethereisavitalroleforpublicactivitytocreatetheconditionsforingenuityto flourish. That means everything from a best educated populace,whichincreasesyourshotsongoal.Themorebrightpeopleyouhavemeanskeepingtraditionalfreedom,economicfreedom.WhyisbiofueltakingoffinIndianarightnow?Inpartbecausewegotorganized,gotataxcredit,wentoutandstartedmarketingthestate,madesurewebuildtheroadsandthingsandalltherightpre-conditions.Butthemainreasonisthepriceofoilwentup.Andnowsomebodycanmakeabuck.Becausewhateveritcosts,what,40bucks,orsomethingtomakeitagallonofethanolandoilisat$20to$25,nobody’sgoingtothrowtheirmoneyaway.Nobodylikes$3gasand$75abarreloil.Theeconomicconditionsbecameripe.Themarketcallsforthamazingingenuity,especiallyinplacesthatarerecep-tivetoit. Daniels:ThursdayI’vegotalittlesomethingthat

pretty much fits what we’re talking about here. One of the mainthingsthatwilldecidewhereacademiatakesplaceishowstrongthehighereducationsystemis,andhowrigidatechnologicalandintellectualclimateinagivenplace,whichinthiscountrytypicallyhappensaroundgreatuni-versities.Wehaveaprettygoodstartingpointinthisstate;threegreatlargeresearchuniversities,includingNotreDame.SomehowIthoughtweshouldmakeamajorstepforward.Andso,IthinkIknowawaytodoitandhereitis:One,alargenumberofHoosierHopesscholarship,agrant,severalthousanddollarsperyear,justforIndianaschools: keep your grades up, finish in four years, we’ll for-

givetheloanifyoustayforthreeyears.(We)gorightafterthebraindrain.Two,maybemoreinimportance,amajortrustwewouldspenddownover10years,withitsearningstoinvestinworldclassscholarshipandresearchhereinIndiana.Schoolswouldapproachthefundwithamatch.Withthematch(itwouldbe)over$100millionormorefor10years.Theideaistogofromheretothere. HPR: Inonegeneration. Daniels:Withanemphasisonscienceandtechnologicaldisciplinesbutnotlimitedtothose.Wherewillthismoneycomefrom,perhapsabilliondollars?ByfranchisingtheHoosierLottery.Bytheway,I’mnoteventalkingaboutfranchis-ingthewholething.I’mgoingtoproposekeep-ingtherevenuewehavenow.It’sfranchisingthefuturegrowthfor30yearsorsomething. HPR: Franchising...tootherstates? Daniels: No,toaprivatecompany.There

willbesomeonewhowillleapupandsay,“Well,I’lltellyou,ifwehavetoownandoperate,Iguessyouwantmetobuythehorsetracks.Thestatedoesn’townthose.Welicensethemandregulatethem.Or,Iguessyouwantmetobuythecasinoboats.Stategovernmentdoesn’townthose.Wejustlicensethemandregulatethem.There’sonlyonekindofgamblingthestateownsandoperates.Why?Thecompanyrunsitandweregulatethelivingdickensoutofit.Everyuniversityisgoingtobehere;I’vebeenworkingwiththemonthisforacoupleofmonthsnowandeveryoneofthemisexcited. HPR: Howdoesthisimpactanormalfamily? Daniels:It’sprettystraightforward.Ifthatjuniorgetsreallygoodtestscores-itwillbemeritbased...therewillbesomeformulathatincludesgradepointaverage-(and)isoneofthebeststudentsandappliesforit,that’s20grandoffreemoney.We’llgivethemagraceperiodforgradschool.Butbasicallyifyoustayinthestateforthreeyears,we’llforgivethat;convertthatfromaloantoagrant.AndwhenjuniorgoestoanIndianauniversity,he’llbemorelikelytoencounteraNobelPrizewinnerorthekindofjuniorresearchassistantinaworldclasslab,youknow,thekindofpeopleyouaskaboutatIU.


HPR:Andthepoliticalforcesinplay? Daniels:It’sallaboutifyoudon’tcooperate,youdon’tgoforwardnow.Therearetwowaysfortwoyears,wecaneithercooperateorsomehowmusterpartyunity.Onfulldaykindergarten,it’ssomethingwealloughttobeabletogettogetheron.I’vetriedtolisten,integrateandsynthesizedifferentviews.Improveonitifyouwant.Thedetailshavebeenhammeredoutwiththeuniversitypresi-dents.It’snotgoodtolookforalittlemoreofthisandalittlemoreofthisandlittleincrementalchanges,buttolookfor equation-changing steps that might make a big, lasting difference.Thetelecombillwaslikethat.Iseethisinthatway.Frankly,ifwediditwell,itcouldbeasbigasanything...becauseoftheworldwe’removinginto,becauseoftechnologicalinnovationandsoforth.Iwantourstatetobeabigpartofit. HPR:OneofthethingsIwantedtotalkwithyouaboutwasprivatization,whichtheGoldsmithadministrationactuallytriedtochangethesemanticson10yearsago. Daniels:Letmegiveyouonemoreexample.Youknowtheconnectorwhichwekindofthoughtof...I’mgoingtopartnerthattomorrowwiththeIlliana.YouknowwhattheIllianais? HPR:Interstate57to65? Daniels:WhynotrunitaroundI-94.Thereareinter-modalpossibilitieslikeLaPorteorPortercounties.We’vegotadealworkedoutwithIllinoistoexplorethatasaP-3withsomebodyelse’smoney.Someonewillbuildthatroadforus,withafranchise. HPR:Arewetalkingabouta10-to15-yearperiodtobuild? Daniels:Itwouldtakeusthatlong,butitwon’ttaketheprivatesectorthatlong.Oneofthegoodthingsaboutprivatecapitalisthattheycanraiseit.Theyareonlylimitedbyhowfastyoucanbuild. HPR:IreaduponyourrolewiththeSELTICinitia-tiveinIndianapolisduringtheGoldsmithadministration.Wearenowsixyearsremoved.Whatlessonsandachieve-mentsdidwegetoutofthatprocess? Daniels:Indianapolishasbeenaprettysuccess-fulcity;aprettywell-runcity.Ifyougoaskthemayor,andIremembersomebodydiddownhereaboutayearago.Theysaid,“MayorPeterson,you’vegotawastewaterplant,awatercompanyandanairportallprivatelymanagedunder a contract with European firms. How’s it working?” (The governor quotes Peterson as saying) “Great.” He (MayorPeterson)didn’tchangeathing.Ifitworks,youdo

it. When we formed SELTIC, the first thing I did was buy acopiyofBillClinton’sbible,DavidOsborn’s“Reinvent-ing Government.” It’s all about contracting for service and competing services where it fits. HPR: Do you go into each of these “franchising” situationswithhalftheelectoratelinedupagainstyou? Daniels:Idon’tknow.I’mpreparedtohavethisdiscussion. The first thing I’m for is a good deal for taxpay-ersandwho’ssupposedtoreceivetheservices.Pleasenotethatwherewethinkit’stherightway,wegrow;wehaveaddedstateemployment:statepolice,caseworkers,800childprotectioncaseworkers. HPR: Areall800fundedandworking? Daniels:That’sinthebudgetandthat’stheplan.We’vebeenhiringthem.It’scasebycasewhatwillworkandwhatisbestfortaxpayers.Therearetwoexampleswhereweareaddinghundredsifnotoverathousand

peopletostateemployment.Wherethere’sabetterway,I’mformoreHoosiersonprivatetables where wages, benefits andcareerpathscanbebetter.Ifyouareonpublicpayroll,allis equal as long as the job gets done. HPR:Iseeatleastase-manticsshowdown,ifnotaphil-osophicalshowdownbetweenRepublicansandDemocratsoverthis.Howmuchgovernmentdoyouwant?Theabilityofgovern-menttodeliverservices.Thatissomethingthathasn’tevenbeenfullywonwithintheRepublican

Party. Daniels: Iunderstandthereisabiggovernmentlobbyinthestate,likeeverywhere.Thesefolks,andIamnot questioning their sincerity, believe government ought to bebigandtheylikeitthatway.Thereisaself-interestmo-tive.Theylikealotofstateemployees,compulsoryunionduesandthemoneygoesbackintopolitics.Thewelfaresituationisthelastplaystationtolookforanargument.Thefactsareoverwhelming.Thereportthatwasdonethissummer...mosttaxpayersinthisstaterightlysuspecttheirmoneyisnotwell-spentinthewelfaresystem.Theydon’tknowhowrighttheyare.Idon’tthinkit’sthebestwaytohavealegitimatedebate;theywantbiggovernment,I’llargueforlimitedgovernment.Theycanargueontheoldmodelforeverybodyonthepublicpayrollforlife.I’llargueforamorenimble,case-by-case,sometimesonacontractapproach.Icouldbewrong,butIthinktheypickedtheworstfactualgroundtheycouldtotryanddefendtoday’swelfare. HPR: You’vegotapolitical/publicpolicystakeinthis.It’snotgoingtoserveyourinterestsoryouradminis-


tration if in five years ... Daniels: Westillhavetheworstwelfare-to-workrecordinAmerica.Therearemorepeopleonwelfarerollsthanstatestwiceoursize. HPR:Howdidthathappen,particularlyaftertheBayh/Clintonwaiversofthemid-’90s?Thatwassupposedtoweanthestatefromthebigwelfarerolls. Daniels: Therollsdidcomedown,butthenwhiletherestofAmericawentdown58percent,inmanystates80-pluspercent,westoodstill.Attheendof1995weweren’tinbadshape.ButthentimestoodstillinIndianaandyouhadthisunbelieveablesuccessnationally.That’showweendedupatthebottomofthelist.Golookatinstitutionsofallkinds,particularlybusiness.Thereisnoth-ingnewinIndianagovernmentaboutcontractingout;92percentofFSSAwasalreadycontractedout.We’reonlytakingthisfrom92to94percent.Thetotallyverticallyinte-grated business is a dinosaur that died quite sometime ago. HPR: Before you became governor, I questioned thisstate’sabilitytochangeandwhatitmeanstobeaconservative in this century needs to be redefined. What you’resayingisthatfromschooltowork,peopleareseeingthiskindofchangeintheirdailylivesanditisnowabouttranslatingthatintothepoliticalperspective. Daniels: Yes. HPR: WastheoppositiontoMajorMoves a political spasm, the fingers finally unclutchingfromthewaythingshaveal-waysbeen? Daniels: Wehadproblems,obvi-ously,withtheforeignsponsorship.It’snotreallyownership.Bythetimeit’sallsaidanddonethesharewillbemostly...ownedbyAmericanpensionfundsandbanks.Ithinkthefactweweredoingsomethingfamiliarinabrandnewway...itwassomeofthosethings. HPR:Areyoulearningthecom-municationpartofthistakesonagreateremphasis? Daniels:Ineverthoughtitother-wise,butyes. HPR: TheBMVcomputerswitchstartedunder,what,Gov.Kernan? Daniels: That was flat out a mistake. That’s on us. HPR:Takingonesystemofflineastheotherwentonline? Daniels:You’reright,it’sbeengoingonforsixyears.Theyweren’treadyandtheydiditatatimewhentherearelotsoftransactions.I’mnotlayingthatoneoncommunication;fundamentallythatwasamanagementmistake. HPR:HaveyoutakenalookatwhatGov.Mitt

RomneyhasdonewithhealthcareinMassaschussetts? Daniels:Sure,welookedvery,verycarefully.Ithinkagreatcontribution,notoriginal,thatMittmadewasunderscoringthatthisiseverybody’sproblem.We’repayingforthishealthcarenow.Justbecauseyou’reluckyenoughtobehealthyorluckyenoughtohavehealthinsuranceyou’renotpayingforthis.Youarepayingforthecostssmoking inflicts, the costs that obesity inflicts. This is abso-lutelyasubjectonwhichaconservativeshouldbeanactiv-ist.We’repayingforitnow,butwe’redoingitinthemostinefficient, wasteful way. The group brought me a Massa-chussetts-like proposal, the first, second, third, fourth time. I said, “I want something different.” The critical differences are I wanted to cap the financial exposure so ours is limited tostrictlyhowmuchmoneycomesin,notentitlement.Youcan’tpredictthosethings.Idon’twanttobedraggedovertheclifflikeTennesseeandsomeotherplaceswere.Wecouldhelp...ahugenumberofpeoplebutwewouldbelimited.Wewouldalwayshaveenoughmoneyinanygiven

yeartoonlyhelpinsurethepeoplewehadmoneyfor.Ialsowanteditmuchsimpler.TheMassachussettsplan...

iscomplicated.Iwantedsomethingthatwasmuchsimpler

forthenewlyinsuredperson,butalsoforourfellowciti-zensto,understand.AndIwantedmorepersonalrespon-sibilityandeconomyinthisplan.Wehavethat.It’snotanHSA...it’sanHSAplus,becauseIwantedpreventivecare.(Gov. Romney’s) state is significantly different than ours. Those were the differences I identified: more personal re-sponsibility,morecontrolfortheindividual,preventivecare. HPR:Re-electionin2008:Isitsomethingyou’regoingtodo,orthinkabout? Daniels:Iwillhavesomethingtosayaboutitattheappropriatetime.v

HOWEY Political Report Weekly Briefing on Indiana Politics Thursday, Dec. 14 2006

It’s time to reform executivebranches of state and countiesBy BRIAN A. HOWEY INDIANAPOLIS-WhetheritwasbeforethemayorsatIACT,ortheAssociationofIndianaCountyCommission-ersearlierthismonth,Gov.MitchDanielshashadacon-sistentmessageforlocalgovernment:Reformyourselvesbeforethestatedoesitforyou. “Isometimesaskpeople,‘Doyouknowanybusinessesthathaven’tchangedtheirbylawsin160years?” Daniels asked the commissioners.“Nobodyhasnamedoneyet.TheonlyoneIknowofisthegovern-mentofIndiana.Itthinkmaybe it’s time.” Thecommissioners,arguablyoneofthemostconservativeareasofgov-ernment,applauded.Theyhaveathree-optionplanthatcameclosetoavoteattheirDecembermeeting. “Doyouknowthatcountycommissionersgroupis close?” Daniels asked HPR.“Theyhadadraftthatwaspretty(darn)exciting.AsIunderstoodittheyweregoingtosayhere’sourkindofideas.Iwasgoingtoheappraiseonthem.Theypulledbackastep.Thereisatleast some leadership in that organization.” BeforeIACTinSeptember,Danielsencouragedlocalgovernmentstoreformthemselves,insistingthereare “too many layers and too little accountability.” Daniels added,“Ifnoonecomesthroughthedoor,itwillcomefrom the top.” Thiscomesamidcontroversiesintwocounties-MarionandGrant-concerningtheperformanceofelectedcountycoroners,andthe2006elections,whereDemocratsmissedagoldenopportunitytopickupseveralstatewideexecutive branch offices. And it underscores the fact that atthestateandcountylevels,theexecutivebranchofgovernmentisdiffusedinduty,dilutedbymultipleelectedofficials, with the buck ultimately stopping at any number ofplaces. ThegovernorofIndiana-anygovernor-doesnothave complete control or accountability for finance, educa-tion, or security and financial regulation. Indiana citizens

electsuperintendentsofpublicinstruction,auditorsandtreasurers. Atthecountylevel,therearethreecommissionersandelectedclerks,treasurers,auditors,recordersandcoro-ners,allperformingsegmentsofexecutivebranchfunction. Gov.DanielsandtheIndianaGeneralAssemblyshouldaddresstheestablishmentoftrueexecutivegovern-mentatthestateandcountylevels.AsDanielstoldthecommissioners last week, “I would value your suggestions.” Since2002,TheHoweyPoliticalReporthasadvo-

catedtheestablishmentoftrueexecutivebranchesofgovernment.Voterswouldelectpolicy-makingposi-tions,andthepolicymakerswouldappointthosewhorunthebureaucracies.Thereformswouldinclude: State executive: Thegovernorwouldappointatruecabinetthatwouldincludeaneducationsuper-intendent,secretaryofstate,treasurerandauditor.Theconstitutional office of at-torneygeneralwouldremainanelectedposition,actingasanadditionalcheckandbalance. County executive:In91Indianacounties-possibly89ifAllenandVanderburghcountiesconsolidatewithFortWayneandEvansville-countyvoterswouldelectacountyexecutivetoreplace

thethreecommissioners.Theexecutivewouldappointacabinetthatwouldperformfunctionsofclerk,recorder,auditor,sheriff,surveyor,alongwithacountymedicalex-aminer to replace the office of coroner. The county council wouldserveasthelegislativebranch.Voterswouldcon-tinuetoelectacountyprosecutorandjudges. TheIndianaGeneralAssemblyhasalreadymovedinthisdirection,movingtheclerkofthecourtintothejudicialbranchafter156yearsasaconstutionallyelectedoffice. Govs.JoeKernanandDanielshavesupportedagubernatoriallyappointedsuperintendentofpublicinstruc-tion.Butwhataboutsecretaryofstate,treasurerandauditor?TheconductoftheIndianaDemocraticPartyisillustrative of why these offices should become part of a gubernatorialcabinet.Formostofthepastdecade,theDemocrats have treated these offices as virtual after-thoughts. Theloneexceptionwasin2002whenthen-Bloom-

LaGrange County Commissioner George Bachman asked Gov. Daniels a question at the December Association of Indiana County Commissioners convention. (HPR Photo by Brian A. Howey)


ingtonMayorJohnFernandezraisedmorethan$1millionbutwasdefeatedbyRepublicanToddRokita,gettingjust42percentofthevote. Thisyear,DemocratsdidnotunveilacandidateuntiljustbeforethestateconventioninJune.JoePearsonraised$168,000withstateDemocratspledgingtoputanad-ditional$100,000inmediabuys.IndianaDemocratscameinwithonly$50,000(forthethreestatewideraces)andPear-sonwasn’tconsultedbythepartyuntilNov.1.Pearsonhadonlyonefull-timestaffer.Theironyofthe2006experienceisthatPearsoncouldhaveupsetRokita.Heendedupwith746,460votesor46percent,winning33counties.Hehad119,044morevotesthanFernandez.Helost51-46percent. Infact,IndianaDemocratscouldhave won all three offices had they spent morethanthe$50,000.Auditor-electTimBerrydefeatedJudyAndersonbya51-49percentmargin.Treasurer-electRichardMourdockdefeatedHighlandClerk-Trea-surer Michael Griffin 52-48 percent. Thereisadistinctpattern.Inpresidential/gubernatorialyears,Demo-cratsgenerallygetbetween500,000and800,000votes.Inmid-terms,theypollaround500,000to650,000votes.EveninyearswhenDemocratsdowell,suchas2000whenGov.FrankO’Bannonpolled1.23millionvotes,AttorneyGeneralKaren Freeman-Wilson (finishing out thetermoftheonlyDemocrattowinastatewide,JeffModisett,in1996)polledonly978,713votes.Since1988,theonlyDemocratstowinstatewideshavebeenEvanBayhandJoeHogsett(secretaryofstate1988and1990),AttorneyGeneralPamelaCarterin1992andModisettin‘96.Otherwise,theIndianapoliticalland-scapeislitteredwiththelikesofSusanWilliams,DaySmithandDougLeath-erbury,whoatleastgaveamemorablespeechata1998DemocraticEditorialAssociationconventionatFrenchLick.

Parker reacts IndianaDemocraticChairmanDanParkerman-agedthecampaignof1994secretaryofstatenomineeTimJeffers, who ran on the platform of abolishing that office. JefferslosttoSueAnneGilroy.Parkeragrees,forthemostpart,aboutformingatrueexecutivebranchcabinet.Theexception,hesays,wouldbetocombinestateauditorand

treasurerintoanelectedcontroller.“Thecontrollercouldact as a financial check and balance on the governor,” Parkersaid. ParkeragreesmostlywithHPR’scountyexecutive

model,butwouldprefertoelectasheriff. Andheagreesthatwecouldask100peopleattheRCADomeduringthenextColtsgamewhowerethetwo2006secretaryofstatenominees“andgivenRokita’snameID,only13percentwouldknow and 9 percent of them would be lying.” AsfortheHPRproposaltocreateacountyexecutive,whichwasthesubjectofHPRPublisherBrianA.Howey’s2005keynotetotheAssociationofIndianaCountyCommissioners,retiringElkhartCountyCom-missionerPhilStiverwasallforit. “I find it hard to argue against that point,” said Stiver, who served nine years asacommissioner,eightontheElkhartCityCounciland20yearsasapoliceman.“Wehavethreecommissionersandacountyadministrator.Wedon’tneedthecommis-sioners with a good county administrator.”

3 commissioner options BillHaanoftheAssociationofIndianaCountyCommissionerssaidthathisorgani-zationhaddraftedathree-optionplan: 1. Keep the status quo; 2. Streamlinethenumberofelectedof-ficials with three commissioners;3. GototheexecutivemodelHPRhasde-scribedwithoneexecutive,acontrollerandthecountycouncilactingasthelegislativebody. “We’remullingitoverwithinourranks,” said Haan. “What we have now is a horizontal line, as opposed to a pyramid.” Hesaidthatwithtrueexecutiveandlegisla-tive branches “we could get better efficien-cies and better service.” Commissioners are alsoconcernedaboutalackoftechnical

requirements for offices such as auditor, clerk, coroner and surveyor. HaansaidoptionNo.3ispopularwithcountiesabove100,000population.Smallercountiesappeartofavorthe status quo. He said trial baloons floated by Joe Loftus of Barnes & Thornburg “have not gotten a warm reception” intheIndianaGeneralAssembly. “Ifyouhadsomebodyadditallupinagivencountyandyouhadataxadjustmentboard,Ithinkitwould add to the pressure for reform,” Daniels said on Monday.“Evenpeoplerunningsomeofthepiecemeal

Gov. Mitch Daniels sits under the portrait of Gov. Thomas Marshall, who served from 1909 to 1913 and unsuccessfully tried to form a constitutional convention to reform Indiana government. (HPR Photo by Brian A. Howey)


government we have is to take out some of the inefficien-cies.Rightnoweverytaxingdistrictjustsetsitsowntaxandgoesaboutitsbusiness.Ifeveryrealmofgovernmentwas human endeavor, you figure out what your revenue isandconformyourspendingtothat.Onlyinpropertytaxationdoessomebodydecidewhatthespendingwillbeandwritesoutabillandhandsittothepropertyowner.Itmight propel reform forward.” Asked about the government consolidation/unifi-cationsinAllen,MarionandVanderburghcountiesandiftherewasawayforhimtohelptheseinitiativespass,Gov.Danielssaid,“Imayhavetotrytohelpalittlemoreac-tively.Myattitudeisthatthisoughttobeencouraged.Ilikeitfromthebottomup.I’mnotevengoingtotrytoascer-taineachandeveryaspectofagivenproposalisperfect.Ibelieveweoughttoencouragemoreofthisactivityandifthereareimperfections,thatwillbeexposedandthatwillinformthenextgroup.Ifitdoesn’tworkoutwell,therewillbelocalreckoning.“

Three stabs at government reform Inthepastcentury,therehavebeenthreeat-temptstochangegovernment.In1908,Gov.ThomasRileyMarshall(whoseprotraitnowhangsaboveGov.Danielsconferencetable)concludedthatthe1851Constitutionwas“an obstacle to progress” that was extremely difficult to amend.WhenDemocratsgainedcontrolofboththeIndi-anaHouseandSenatein1911,Marshalldecidedthatnotonly did Americans need a really good five-cent cigar, Indi-ananeededanentirelynewconstitution.HisattemptswereshotdownbytheIndianaSupremeCourtona3-2vote.“Iobeyed the judgment of the court,” lamented Marshall, who wentontobeatwo-termU.S.vicepresident.“Ihadnorespect for it, and I now have a supreme contempt for it.” In1970,anIndianaConstitutionCommission,co-chairedbyformerGovs.MatthewE.WelchandHaroldW.Handley,alongwithafuturegovenor,StateSen.RobertOrr,studiedresubmissionoffailedamendments,theareasoftaxationandlocalgovernment,andthe“possibilityofholding a constitutional convention.” TheCommissionconcluded,“Asisthecasewithmostproposalsforconstitutionalchange,thereareanum-berofpracticalproblemssoughttobecorrectedbyamend-ingthepresentcontentsofArticle10,Section1.AmajorproblemisthatwhenevertheGeneralAssemblyseekstoremovesometypeofpropertytaxfromthetaxrolls,suchasmotorvehicles,itisnecessarytoamendtheconstitu-tion. This type of inflexibility is another example of clumsy restrictionsontheGeneralAssemblyinitsdevelopmentofpublic taxation policy.” In2002,theIndianaGeneralAssemblyremovedthe office of clerk of the court as a constitutionally elected office. Atthe2005HoweyPoliticalReportForum,Chief

JusticeRandallShepardsaidthatwithregardstoIndianagovernment,“You’vegottostopthinkingaboutthesethings as if they were engraved in stone.” Shepard said the“TheConstitutionofourstateinitspresentformsaysverylittleaboutthestructureoflocalgovernment.Itsaysthatmunicipaltieiscandoeverythingexceptthethingsthelegislaturetellsthemtheycan’tdoortellsthemtodoonlyin a particular way.” Asfortheexecutivebranch,Shepardsaid,“TheConstitution provides for only five statewide elected of-ficials. All the rest of the executive branch is in the hands of the legislature and governor.” As noted above, the legisla-tureviaaconstitutionalamendmenthasremovedoneofthose offices. AndShepardpointedtoSupremeCourtrulingsinvolvingthetownofBicknellin1923thatlimitedmunicipaldebtto2percentandtheIndianapolisUnigov(Liebervs.Borst)casethatconsolidatedvariousadministrativeactivi-ties as “coming too late in the day” and rejected them. IndianamuncipalitiesrespondedtotheBicknellcasebycreatingseparatetaxingdistrictsforparks,schools,librar-ies, airports. “Each one of these is treated like a little silo,” Shepardsaid. Gov.DanielssuggestedbeforeIACTthecreationof92 “county tax adjustment boards” that would regulate the debt."Ifpeoplethinkthetaxesaretoohighfortheser-vicestheyaregetting,they'llknowexactlywhosephonetocall,"Danielssaid.HesaidthatcountyexecutivereformswouldperformthesamefunctionsasTABs. AttheHPRForum,ChiefJusticeShepardadmon-ishedthosewhothinktheConstitutionkeepsthemfromreforminggovernment.“Formostpurposes,otherthanthefinancial ones which are a disadvange, the real barriers are thingsinstatuteandinourownminds.Itseemstomethereal question for modern reformers is not what the Cosn-stutionwon’tletusdo,butwhatwearereadytodowitheach other for Indiana’s future.” SaidDaniels,“Ifitwouldhelp,Icertainlywouldbehappy to propose changes. The single biggest flaw we have rightnowisbeingoneoftheonlyhandfulofstateswithoutasupermajorityvetooverrde.ThatisoneI’dlovetoseego before the voters, not for me, but for future governors.”

Epilogue Thegovernorhasbeenurginglocalgovernmentstoreformthemselves.Hehascalledforideas.IndianaDemocrats have failed to fully contest statewide offices. WithgovernmentconsolidationeffortsunderwayinMarion,VanderburghandAllencounties,andpastDemocraticsup-portforsuchreformsgoingbackdecades,nowisthetimetocreatetrueexecutivebranchesatthestateandcountylevels.v


Prominent New Hampshire Demsays Bayh ‘has lots of friends’Hoosier confronts ‘Obama Mania’By MARK CURRY WASHINGTON - Can “Bayh Partisanship” compete with “Obama Mania” in the contest to win a spot on the 2008Democraticpresidentialticket?OneprominentNewHampshireDemocratsaysit’swaytooearlytoknow. Morethan150votersfromallcornersoftheGraniteStatepackedtheconferencecenteratthePuritanBackroominManchesterlastSaturdayeveningtohearIndiana’sSen.EvanBayhexplainwhyhethinksheshouldbethenextpresidentoftheUnitedStates.ThenextdaySen.BarackObamaofIllinoisdrewtentimesthatamountattheManchesterRadissonforarallytocelebratethestate’sDemocraticsweepintheNovembermidterms,ahistoricvictoryBayhhelpedtocreate. Bayhsupportersneednot despair quite yet, though theymayberightfullyworriedabouttheprospectsoffacingObamaonthehustings.Forstarters,neitherDemocrathasofficially committed to a run, thoughitseemshighlylikelythejuniorsenatorfromIndianawillcommitsometimeearlynextyear.Obama,ontheotherhand,hasbeenmuchmorecoyaboutrevealinghisintentions.Earlierthisweektheformeredi-toroftheHarvardLawReviewappearedinaclipairedduringtheopeningofMondayNightFootballthatsuggestedhewasabouttoannouncehiscandida-cy, but finished by proclaiming his support for the Chicago Bearsinstead.Yesterday,JamesPindelloftheBostonGlobereportedthatagroupencouragingtheIllinoissenatortorunforpresidentannounceditwillbeginairingtelevisionadsinNewHampshireandWashingtonnextweek. Second,theNewHampshireprimaryismorethan

ayearaway.Anythingcouldhappen.Inthe1972cycle,earlyDemocraticfavoriteEdmundMuskiesufferedtwosetbacksthatprovedfataltohiscampaign.Publicationofadocumentlaterdeterminedtobeaforgery,knownasthe“Canuck Letter,” cost Muskie support among French-Ca-nadians,butmoredamagingwerereportsthatthecandi-datecriedduringaspeechdefendinghiswifeinasnowstorm outside the offices of the Manchester Union Leader. “ThoughMuskielaterstatedthatwhathadappearedtothe

pressastearswereactu-ally melted snowflakes, the pressreportsthatMuskiebrokedownandcriedweretoshatterthecandidate’simageascalmandrea-soned,” a Wikipedia article states. Or,considerthecaseofMichiganGov.GeorgeRomney,thefront-runnerin1968untilheusedtheterm“brainwash-ing” to describe attempts byU.S.generalsinViet-nam to influence Romney’s understandingofthewar.AccordingtoWikipedia,“RepublicanCongressmanRobertStaffordofVer-montsoundedacommonconcern:‘Ifyou’rerunningforthepresidency,’heas-serted,‘youaresupposedtohavetoomuchontheball to be brainwashed.’” Finally,Bayhsup-porters should find most comfortintheperceptionthatheisactuallywellaheadinthegameinNewHampshire,havingtouredthestateatotalof13daysoversevenvisitsduringthecurrentelectioncycle.Obamaisjustgettingstarted.Sunday’svisitwashis first. “That’sgoingtobethechallengeforbothof

thosecampaigns,whetherornotSen.ObamacankeepthemomentumgoingandwhetherornotSen.Bayhcanreachoutandcreateamessagethatattractsenoughsupportfor him to be successful as well,” said Ray Buckley, vice chairfortheNewHampshireDemocraticParty.“EachoneofthemhasamazingadvisorsandI’msuretheyaregoing

U.S. Sen. Barack Obama doffs a Chicago Bears hat prior to ESPN’s Monday Night Football. Obama’s first New Hamp-shire foray came as U.S. Sen. Evan Bayh also stumped the state. (ESPN)

HOWEY Political Report Weekly Briefing on Indiana Politics

totrylikethedickenstoac-complishbothof those feats.” Buck-ley,vicechairinthepasttwoelectioncycles,isschooledinNewHamp-shireandna-tionalpolitics.HeservedinthestatelegislatureforeightyearsandisaformerHouseDemo-craticWhip.HewasinvolvedintheAlGorecampaigndur-ingthe2000electionandtheLieber-mancampaignin2004.TheManchesternativetoldHPRthatBayh“hasalotoffriendshereinNewHampshire. “He’sbeencomingupherehelpingoutcandidatesand local parties for a number of years,” Buckley said dur-ingatelephoneinterviewconductedyesterday.“Hehasalotofstrongrelationshipswithpeoplethatgobacktothedays30yearsagowhenhisdadranforpresident.Healsowasveryinvolvedinassistingusinthisyear’selection.Hewasveryengaged,veryinvolvedinassistingtheelectionofthehousemajorityandthesenatemajority,buthealsoprovidedsupportforcountycandidatesandforthegover-norandforthestatepartyaswell.Ofallthecandidates,hereallywasthemostengagedinreallyassistingcandi-dates directly.” There’s no place quite likeNewHampshirewhenitcomestopresidentialpolitics.Thestatehashostedthenation’s first primary since 1952. In recent years it has be-comeintegraltoelectoralsuccess.AsBuckleypointedout,nocandidatewhohasplacedthirdorbelowinNewHamp-shirehasgoneontobecomethenomineeofeitherparty.GraniteStatevotersbelievetheyhavearesponsibilitytopersonallyandthoroughlyvetanymanorwomanwhowouldbepresident.Tothatendtheyexpecttobeprovidedopportunity to meet with and question prospects. “Insomanyotherplacespeoplegetverystarryeyedwhentheymeetsomebodyrunningforpresidentand

they’rejustexcitedhavingshooktheirhandorevenbe-inginthesameroom,whereweinNewHampshirearen’toverlyimpressedbythefactthatyou’rerunningforpresi-dent,” Buckley said. When HPR pointedoutthatNewHampshirevot-erswereundeniablyexcitedtoseeSen.Obamathispastweekend,Buckleysaid,“Itisveryexcitingandheobviouslyhasgeneratedalotofsupport,butthere’salongtimebetweennowandtheprimary. “What[Obama]needstodonowistoactuallygointopeople’slivingroomsandgofromcoffeeshoptocoffeeshop,anddinertodiner,toreallytalktorealNewHampshirepeopleandgettoknowthem,andhavecon-versationswithpeoplethatmightnotbeoverlyimpressed,people that he’s going to need to win over.” WhichisexactlywhatEvanBayhhasbeendoingsince2004,andthatmayexplainhowhemanagedtopackaroomSaturdaynightatthePuritan. “Allsortsofdifferentpeoplefromacrossthestatecamebytosee[Bayh],includingthestatechairandanumberofstatesenators,housemembersandanumberof county chairs were there as well,” Buckley said. “It was agoodmixture.Therewassomeyoungpeople,somestudents,intheroom.Hedidagreatjobtalkingabouthismessage.”

v

Indiana U.S. Sen. Evan Bayh chats with Democrats in Manchester, N.H. last weekend. (Bayh Flickr Photo)


Sylvia Smith,Fort Wayne Journal Ga-zette -Thoseofuswhohavefrecklesorkidswithdastardlydiseasesorevenrottenneighborsknowthislessonwell:Lifeain’tfair.We’resmackedupsidetheheadbythisonanearlydailybasis,soit’skindofhardtoforget.YetitmustbetoughforaGoldenBoytoswallowarbitraryunfairness.Lately,Sen.EvanBayhhashadtocopewithaprettymajordoseofit.Bayhhasdoneeverythingright–raisedbucketsof money, won five statewide campaigns in a largely Re-publicanstate,workedtohonehisinternationalcredentials,cultivatedopinion-settersinIowaandNewHampshire,trainedon-the-groundoperativesandplacedthemintheearly-primarystates,madeconnectionswithnationalme-dia,schooledhimself(orenhancedhisnaturalinclination)tonotbetabloidfodderthroughrashorimprudentstatementsoractions.It’sthesortofpositionanycandidateforapresidentialnominationwouldenvyoraspiretoonthecuspofwhatwillbeanintensepoliticalyearforcan-didates.Butallthateffortissomuchdandelionfluff if Sen. Barack Obama remains “the Bobby Kennedy of 2008,” as he’s been described by some national politicalpundits.Obamahasbeenonthenationalsceneascanttwoyears,yethismega-wattageisamazing–andundeniable.Forinstance,lastyear,Bayh’sappearanceataNewHampshireDemocraticPartydinnerdrew600people.Obamaisvisitingthesamegrouptoday;1,500boughttick-ets.Obamaissuchapoliticalcelebritythathismere“think-ing about thinking about” an ’08 candidacy forces almost everyoneelseintothebackground.ExceptSen.HillaryClin-ton,ofcourse.Sheisthefront-runnerintheDemocrats’2008nominatingprocessandtendstogetbiggerheadlinesandmoreTVairtimefordoingtheexactsamethingasBayh(orotherpotentialDemocraticcandidates).YetunlikeObama’s presence in the field, Clinton’s real or perceived candidacy has the potential to benefit Bayh. Someone has tobetheun-Hillary,andnowthatMarkWarnerhasbowedout, Bayh is as close to that definition as anyone. v

Gen. Barry McCaffrey, Washington Post -A collapse of the Iraqi state would be catastrophic -- for the people of Iraq, for the Middle East and for America’s strategicinterests.Weneedanewpoliticalandmilitaryapproachtoheadoffthisimpendingdisaster--onecraftedwithbipartisancongressionalsupport.ButBaker-Hamiltonisn’tit.Ourobjectiveshouldbealarge-scaleU.S.militarywithdrawalwithinthenext36months,leavinginplaceanIraqi government in a stable and mostly peaceful country thatdoesnotthreatenitssixneighboringstatesanddoesnotintendtopossessweaponsofmassdestruction.ThecourageandskilloftheU.S.armedforceshavebeenawe-inspiring.Oursoldiers,MarinesandSpecialOperationsforceshavesuffered25,000woundedandkilled,withmanythousands permanently maimed, while fighting this $400

billion war. But the situation in Iraq is perilous and growing worse.Wecouldimmediatelyandtotallywithdraw.Inlessthan six months, our 150,000 troops could fight their way alongstrategicwithdrawalcorridorsbacktotheseaandthe safety provided by the Navy. Several million terrified refugeeswouldfollow,therouteofourcolumnsmarkedbytheburningpyresofabandonedmilitarysuppliesdemol-ishedbyourrearguard.Theresultingcivilwarfarewouldprobably turn Iraq into a humanitarian disaster and might welldrawintheIraniansandSyrians.Itwouldalsodeeplythreatenthesafetyandstabilityofouralliesinneighboringcountries.Thereisabetteroption.First,wemustcommitpubliclytoprovide$10billionayearineconomicsupportto

the Iraqis over the next five years. In the military arena, it would be feasible to equip and increase the Iraqi armed forces on a crash basis over the next24months.Thegoalwouldbe250,000troops,providedwiththematerialandtrainingnecessarytomaintaininternalorder.Americanshadfoughtanddied.Weowethemandourownnationalinterestthisonelasteffort.Ifwecan-

notgeneratethepoliticalwilltotakethisaction,itistimetopulloutandsearchforthosewewillholdresponsibleinCongressandtheadministration.v

Thomas Edsall, International Tri-bune -HillaryClintonistheDemocraticestablishment’santi-establishmentcandidate.Sheissimultaneouslyaninsurgent,seekingtoenda220-yearreignofmen,andtheheirapparent—dominantincash($14.4millioninthebank),inthepollsandinthecolossalreachofherma-chine.Clinton’smostvisiblechallenger,BarackObama,issimilarly an insurgent, but without the former first lady’s resources.Heisseekingtocapitalizeonhisrankingasanunderdog,enteringthefrayasDavidbattlingtheClintonGoliath.TheheadofthepackisadangerousplaceforaDemocrattobe.Democratsexcelincannibalizingtheirfront-runners.Justaskthosewhowereknockedoutintheprimaryseason(LyndonJohnson,EdMuskieandHowardDean)orthosewholimpedfromtheringafter15rounds(WalterMondaleandAlGore).TheClintonleviathanprovidesaperfectfoilforObama.“IthinktosomedegreeI’vebecomeashort-handorsymbolorstand-inforaspiritthat the last election in New Hampshire represented,” he saidlastweekendonhismaidentriptothestate.“It’saspiritthatsayswearelookingforsomethingdifferent— we want something new.” The candidates not yet in the limelight—EvanBayh,JohnEdwards,JohnKerry,AlGore,TomVilsak,BillRichardson,WesClark,ChrisDodd,andJoeBiden—wouldlikenothingbetterthantoseeClintonandObamasplittheirsharedconstituency,leavingeachother lifeless on the slaughterhouse floor. That would make Richardson, who is Hispanic, the sole exception in a field composedentirelyofwhitemen. v


Help formulate the2007 Influence List INDIANAPOLIS-Obviously,therewillbemajorchanges in the 2007 HPR 50 Most Influential List. SenatePresidentProTemporeRobertGarton,U.S.Reps.MikeSodrel,JohnHostettlerandChrisChocolawerealldefeated.DepartingtheDanielsad-ministrationisChiefofStaffHarryGonso. The 2006 list reflected the wave that devel-oped around the Iraq War and congressional corrup-tion,aswellastheDanielsadministration’sMajorMovesprogram. In2007,therewillbetheEvanBayhpresi-dentialcam-paign,thebi-ennialbudgetintheIndianaGeneralAssem-bly,mayor-alelec-tions,andahugedecisionforIndianaDemocrats:whowillbechalleng-ingGov.MitchDaniels? HPR has been compiling the 50 Most Influen-tialListsince1999.Weaskourreaderstosuggestadditons(orsubtractions).Someofyoucompileyourown50list.HPRencouragesthisexerciseinpower,cloutandaccountability.SendthoughtstoHPRPub-lisherBrianA.Howeyat:brianhowey@howeypoli-tics.com.The2007listwillbepublishedintheJan.11editionofTheHoweyPoliticalReportaswellasBrianHowey’sstatewidenewspapercolumnrunningin24papersandreachingmorethan200,000readerseachweek.

2006 HPR 50 Most Influential1. Gov. Mitch Daniels2. U.S. Sen. Richard Lugar3. U.S. Sen. Evan Bayh4. Commerce Secretary/IEDC Chairman Mickey

Mauer5. House Speaker Brian Bosma6. Marion County Prosecutor Carl Brizzi7. Indianapolis Mayor Bart Peterson8. U.S. Rep. Pete Visclosky9. U.S. Rep. Mike Pence10. U.S. Rep. Mike Sodrel11. U.S. Rep. John Hostettler12. State Rep. Rep. B. Patrick Bauer13. Senate President Pro Tempore Robert D. Garton14. Ways & Means Chairman Jeff Espich15. FSSA Director Mitch Roob16. Lt. Gov. Becky Skillman17. Marion County Sheriff Frank Anderson18. U.S. Rep. Chris Chocola19. State Sen. Luke Kenley20. John R. Hammond III21. Bob Grand22. State Rep. Randy Borror23. Secretary of State Todd Rokita24. Lee Hamilton25. Fort Wayne Mayor Graham Richard26. Alan B. Hubbard27. Marty Morris28. Tom Sugar29. U.S. Rep. Steve Buyer30. GOP Executive Director Jennifer Hallowell31. Indiana Democratic Chairman Dan Parker32. Indiana Republican Chairman Jim Kittle Jr.33. State Sen. Vi Simpson34. Farm Bureau President Don Villwock35. Chamber President Kevin Brinegar36. IMA President Pat Kiely37. UAW President Terry Thurman38. Mike O’Connor39. Mike Gentry40. Hamilton County Republican Chairman Charlie White41. U.S. Rep. Mark Souder42. U.S. Rep. Julia Carson43. Baron Hill44. Vanderburgh County Sheriff Brad Ellsworth45. OMB Director Chuck Schalliol46. Stadium Authority Chairman David Frick47. State Sen. Mike Young and State Rep. Phil Hinkle48. Tim Roemer49. Dan Coats50. IACT Executive Director Matt Greller v

House Minority Leader Brian Bosma (left) with U.S. Sen. Evan Bayh. (HPR Photo)


thingsIthinktheprivatesectorcandobetter,butI’mnotsureaboutthisone.Becauseofthepotentialforgraftitmightbebettertokeepitingovern-ment hands.”

Bauer calls it a ‘bad idea’and says it will unite parties INDIANAPOLIS-IndianaHouseSpeakerB.PatrickBauerre-actedtoGov.Daniels’HoosierLotteryproposalbysaying,“ThegovernorhasmadeasubstantialstepforwardinimprovingbipartisanshipintheIndianaGeneralAssembly,becauseRepubli-cansandDemocratsalikesaythathisplantoprivatizetheHoosierLotteryisaverybadidea.Findingadditionalfundingforhighereducationshouldbeagoalforalllawmakers,particu-larlysincethecurrentstatebudget–craftedbythisgovernorandhisfel-lowRepublicans–shortedfundingforourcollegesanduniversities.Today’sannouncementfollowstheapproachusedsooftenbytheadministrationwhenitproposesitsgrandschemes.Theythinkwewillbeblindedbythehuge dollar figures attached to these deals–eventhoughthenumbersneverseemtobeconcrete–andforgetaboutthelong-termimpactoftheirproposals.Butthisdecisiondoeshave significant long-term implications forHoosiers.Atpresent,thelotteryreducesthecostofourlicenseplatesandhelpstopayforretirementforour teachers, police and firefighters. Eachyear,$30millioninnetincomefromthelotterygoestotheTeach-ersRetirementFundandanother$30milliontowardtheLocalPoliceandFirePensionReliefFund.Whateverisleftgoestoreducingexcisetaxesonourmotorvehicles.Forinstance,inFiscalYear2005,morethan$125millionwasdedicatedtoexcisetaxrelief.Whatimpactwillthegovernor’sproposalhaveonthesedistributions?Iwouldliketothinkthatanyproposalwouldensurethatexcisetaxreliefandpensionprogramsgetthesamelevelsofsupportasinthepast,butthedevilisinthedetailsandthisadministration

doesnothaveagoodtrackrecordinbacking up its claims.”

Parker’s first commenton Hoosier Lottery INDIANAPOLIS-ThisisastatementfromIndianaDemo-craticChairmanDanParkeronthegovernor’sproposalforHoosierHopeScholarships:“HoosiershavelearnedthatwhenevertheGovernorissuesaproposal,theDevilisalwaysinthedetails.Wedon’tknowforhowlonghewantstoleasetheLotteryorwhetherhe’dallowaprivatecompanytoexpandgamblinginourstatetomake a higher profit. All we know is thathe’sdecidedhewantstoselloffa profit-generating agency to a private company.Atthispoint,it’sclearthatthe Governor’s idea of creative financ-ingistobuyasecondpricinggun,sohecanslapdoublethenumberofpricetagsonourstateassets,agen-ciesandservices.Obviously,theGovernordidn’tgetthemessagefromvotersinNovemberthathisagendaiswrongforIndiana.Infact,weshouldprobablyjuststartreferringtohimasOutsourcerDaniels,sincehedoesn’tseemtowantorbeabletogovernat

all.”

Chief Justice Shepardto serve fifth term INDIANAPOLIS-RandallT.ShepardwasappointedWednesdaytohis fifth five-year term as chief justice ofIndianabyaunanimousvoteoftheIndianaJudicialNominatingCommis-sion.

Hill on Energy Committee WASHINGTON-Congress-man-ElectBaronHillwaschosenbyDemocraticleadersintheHouseofRepresentativestoserveonthepow-erfulEnergyandCommerceCommit-tee.v

Espich luke warmon lottery franchise FORTWAYNE-Asdetailscon-tinuedtoleakoutWednesdayaboutGov.MitchDaniels’plantoprivatizetheHoosierLottery,reactionfromarealawmakerswaslessthanencourag-ing(Kelly,Fort Wayne Journal Gazette).Danielsisexpectedtounveiltheproposal–whichwouldlikelyraisemoneyforhighereducation–at11 a.m.today.WellsCountyRepub-licanRep.JeffEspichwasbriefedontheideaafewweeksagoalongwithotherkeylawmakers.“Thegovernorisamanofbigideas,andIdon’tthinkhe’safraidtosuggestthem.Igivehim great credit for that,” Espich said. “Ontheotherhand,boththelegisla-tureandthepublicwillonlyacceptsomany big ideas.” He said he is afraid thatsomanycontroversialprograms–fromimplementingfull-daykinder-garten,gettingapprovaltobuildatollroadaroundpartofcentralIndianaandincreasingthecigarettetaxtofinance a low-income health insur-anceprogram–mightdiluteDaniels’abilitytogetanyofthemdone.AndEspichisn’tsokeenonwherethemoneywouldgo–tosupportcollegescholarships.“Thestatealreadyrankssixthinscholarshipassistance,soI’mnotsurethat’sagoodreasontomakesuch a bold move,” he said. Rep. Phil GiaQuinta,D-FortWayne,isconcernedthat Daniels is sacrificing the future to gainsomecashtoday.“Theproblemishe is trying to find ways to do things nowthatwillhelphiminhistenure,butitleavesthenextgenerationshorton some revenue,” he said. “Where are we then?” Others questioned the possibilityofcorruptioninaprivatelyrun lottery. “Oh my,” was Monroe RepublicanRep.MikeRipley’sreac-tiontotheidea.“Therearealotof

gov. daniels and a future viewgov. mitch daniels meets with university presidents benjamin, gora,...

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