Thursday, March 12, 2009 McDermott’s Lake County gambleHOWEY Politics Indiana Page 3 Weekly Briefing on Indiana Politics Thursday, March 12, 2009 DeLaney said. “We need to reform

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By BRIAN A. HOWEY INDIANAPOLIS-Duringthesummerof2007,Gov.MitchDanielsinvitedIndianaSupremeCourtChiefJusticeRandallT.Shepard,formerDemocraticGov.JoeKernan,businessleadersandpeoplefrombothpartiestostudy

Indianagovernment. Thatfall,thousandsofHoosierstookpartinstudygroupsacrossthestateandinonlineforums.IattendedoneoftheseatFranklinCollegethatincluded local government officials fromlegislatorstotownships,andmanycitizens.Itwasagrassrootsdisplayofcivicearnestnessandpar-ticipation.WhatresultedinDecember

“You are entitled to all the lousy, crummy, graft-ridden government you want and are willing to pay for.” - Gov. Mitch Daniels, speaking of Lake County at Griffith

House amateur hour

Thursday, March 12, 2009

McDermott’s Lake County gambleHammond mayor takes overLake Democratic Party, backsKernan-Shepard reformsBy BRIAN A. HOWEY INDIANAPOLIS-GovernorsofIndianahavebeenAmericanLegioncommanders,lieutenantgover-nors,congressmen,speakersoftheHouse,Senatepresi-dentprotempores,sheriffs,judges,prosecutors,medi-

caldoctors,farmersandranchers,mayors,publishers,majorgenerals,graindealers,statesenators,WhiteHousebudgetdirectorsandsecretar-iesofstate.ButneverhastherebeenachairmanofLakeCountyDemo-craticPartywhohasascendedtothesecond floor of the Statehouse. On

Saturday,48-year-oldHammondMayorThomasMcDermottJr.,aformerNavydiverandNotreDameUniversitylawschoolgrad,upsetGaryMayorRudyClaytotakethehelmofthepartyinacountyknownmoreforitssteelandcorruptionthanstatesmanship. BythetimeHPItalkedoverthephonewithMc-DermottonTuesday,thenewchairmanmadeitclearthatitwouldnotbebusinessasusual.Heplanstosharepower

withDemocraticleadersacrossthecounty.HeadmiresGov.MitchDaniels,thoughheoftendisagreeswithhim.AndhefavorsmanyoftheKernan-Shepardreformsthat,astheinterviewtookplace,werebeingdealtwithinamateurishfashion on the floor of the Indiana House. ManypoliticalprosfeltthatMcDermott’sdecisiontorunforcountychairwasafool’serrand.Theybelievehe

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2007werethe27Kernan-Shepardrec-ommendationstoreformlocalgovern-ment.Thefollowingyear-2008-thegovernorencourageddiscoursewhilerefrainingfromwhathecalled“politi-cizing”thesubject.Therecommenda-tionshadlittlebearingontheelectionsthatfeaturedclarioncallsfromDanielsandPresidentObamatochallengethestatusquoandbring“changewecanbelievein.” Overthepasttwomonths,five key Kernan-Shepard bills were debatedintheIndianaSenate.Theycoveredeverythingfromeliminat-ingtownships,tochangingschoolandmunicipalelectiondates,tostreamliningcountygovern-ment.Therewerehoursoftesti-monybythosebothproandcon.Onebillthatwouldcreateacity-styledadmin-istrationincoun-tiesfailedaftermuchdebate.Thetownshipbillwaswatereddown.Thetrusteewouldsurvive,buttheadvisoryboardwouldgivewaytothecountycouncilapprovingbudgetsandmakingsurethatreportingrequirementsweremet.Nepotism,whichhasbeenrampantinthetownshipsystem,wouldbeabol-ished. After the Senate debate,noone was completely satisfied. Town-shipAssociationPresidentMaryHartcalledthosereformsa“hollowvictory”becauseofthecountycouncilover-sight.Proponentsweredisappointedthatthecountyreformsfailed.ButthatishowtheprocessworksInthelegislature;progressisoftenincre-mental. Thispastweek,allthese

proposalsthatincludedthousandsofhoursofconversation,debateandpar-ticipationlandedintheIndianaHouse. Anditwastherethatanysemblanceofdignity,logicandcivicdiscourseended. House Speaker B.PatrickBaueressentiallythumbedhisnoseatthechiefjustice,thelasttwogover-nors,theirlieutenantgovernors,andallthecitizenswhotookpartintheprocess. Bauer assigned the five Kernan-ShepardbillspassedbytheSenatetotheHouseGovernment&

RegulatoryReformCommittee.Itischairedbyafreshman,StateRep.JohnBartlett,whosedistrictincludesIndianapolis’CenterTownship.ItisinBartlett’sverytownshipwhereittakes$1.69toadministeradollarofpoorrelief.CenterTownshiphoardsmil-lionsofdollarsoftaxmoneyandownsbuildingsoflittlepublicuse. To put this inperspective,itisextremelyrarethatafresh-manchairsanylegislativecommit-tee.Around3p.m.Monday,Bartlettannouncedthecommitteehearingfor8:30a.m.thefollowingmorning.ThereweresomeSteelworkersfrom

HOWEY Politics Indiana Weekly Briefing on Indiana Politics Thursday, March 12, 2009 Page 2

Government & Regulatory Reform Committee Chairman John Bartlett. (General Asembly Photo)


DeLaneysaid.“Weneedtoreformthesystemsoitcanperform.” Bartlettquicklydeclaredthelegislationdead.“Wetookavoteontheentireagenda,anditdidn’tpass,somyunderstandingisthat’sit,”thechairmansaid. Butthatisn’t“it.”ThesebillspassedtheSenateandwillcomebackattheendofAprilduringconferencecommittee. What is fascinating is thatone-timerivalslikeDanielsandKernan,Lt.Govs.BeckySkillmanandKathyDavis,IndianapolisMayorsGregBallardandBartPeterson,anddozensofmayors,commissionersandcouncilmenhadcometogethertopushallorpartofthesereforms.

EventhenewLakeCountyDemo-craticChairman-HammondMayorThomasMcDermottJr.-backedmanyoftheKernan-Shepardcon-cepts.“Thegovernorispushing,particularlyattownships,andyouhavetotipyourhatatthat,”saidMcDermott,whoupsetGaryMayorRudyClaythepreviousSaturday.“It’snotpoliticallypopular.That’swhatIrespect;he(Gov.Daniels)doeswhathethinksistherightthingtodo.” BauerrationalizedhisHousesuckerpunchlikeamobboss.“Nothingpassedthatresem-blestheoriginalKernan-Shepard,sowhatcanyoudo?”Bauerasked.“Thebillsareallamishmash,orwatereddown.Sowhatconfer-ence?Whatareyougoingtodo?There’snothingthere.IthinktheywereemasculatedintheSenateandthere’snothinghere,sowhatcanIsay?” TheKernan-Shepardreformsaretheproductofthou-sandsofHoosierswhohadfaith

intheirgovernmentanditsprocesses.ThestarsforreformhavealignedinawaywehaverarelyseensinceDemocrat-icGov.ThomasR.Marshallbegantheprocessacenturyago.ToallowthisopportunitytopasswouldbeatravestythatwouldbesmirchtheDanielsadministrationifthestatusquoisallowedtopersistandthepeoplebrushedoff. Here’s what I hope Gov. Daniels says:Wewillrestorethesereforms,attachthemtothebiennialbudget,orresurrectthemontheirown,andwe’llstayhereattheStatehousethroughMay,June,JulyandAugust,‘tilhellfreezesover,untilthepeoplegetthedignityandresponsetheydeserve.v

NorthwestIndianawhogottheheadsuptotestify,alongwithanumberoftrustees.Manyproponentsdidn’t.UnderBartlett’s“leadership,”alltheKernan-Shepardbillswererolledintoone.HethrewoutallthedecisionsmadeintheSenate,andreturnedtoalltheoriginallanguage. Bartlettcalledforavoteona244-pageamend-mentfewhadread,andthisiswherechaosovertookcivics.ReformersandsomeRepublicansobjected,believingthismaneuverwasdesignedtokillallthelegislation. State Rep. Steve Stemler,D-Jeffersonville,balkedatBartlett’strategypriortoatievoteontheamendment.“Ididn’tlikewhatweweredoingprocedur-ally,”StemlerlatertoldtheLouisvilleCourier-Journal.“Andsomeoftheindividualbillshadmeritontheirown.” Bartlettcalledfora10-minutere-cess and made a beeline to Bauer’s office wherehereceivedneworders.Whenhereturned,hecalledforacoupleofhoursoftestimonywitheachspeakergivenatwo-minutelimit,andthenaskedforavoteontheamendment.Itpassed. Bartlettthenadjournedthecom-mittee. Butpeoplebeganyelling,“Wait!Wait!Therewasnovoteonthebill.” Oops.TherookiechairmanBartlettforgot.Hetriedtoreassemblethecommittee,butRepublicansbeggedoff,sayingtheyneededtocaucusafteralltheconfusion.Bartlettcalledforthevoteanywayanditpassed7to1,withElkhartRepublicanTimNeesevotingwiththeDemocrats(includingStemler).Democrat-icStateRep.JohnBarnes,whoteachessocialstudiesatWarrenCentralHighSchool,votednay.“Thereare27differentitems.SomeofthemIagreewith,someIdon’t.”Barnessaid.“Iwouldvoteyestomovethebilldowntheroad.”Hehadtobethankfulthathissocialstudiesstudentsweren’tinthegallery. With that vote, alltheKernan-ShepardreformsdiedintheHouse. WhileGov.DanielsmadenewsacoupleofweeksagowhenhesaidthatBauer’scommandintheHouseis“total”andhisrule“unchallenged,”therewereDemo-cratsinhiscaucuswhowereappalled.“Idon’tknowwhatwashappeninghere,andIdon’tlikeit,allright?It’sthatsimple.Idon’tlikeit,”Rep.EdDeLaney,D-Indianapolis,saidtotheIndianapolisStarafterthevote.Duringthehearing,DeLaneyspokepassionatelyaboutpeoplelosingfaithintheirgovernmentandthatthisprocesswoulddoevenmoredamage.“Thisisallaboutreformandperform,”

Former Indianapolis mayor Bart Peterson made a plea for the Kernan-Shepard reforms in Evansville on Tuesday at the very time the reforms were being dismantled in an Indiana House committee. (Evansville Courier & Press photo)


willbetiedtothecounty’scorruptlegacyofRobertPastrickorthegoodol’boyslegacyofStephenStiglitzandClay.Or,itcouldbeoneoftheshrewdestpoliticalmaneuversinmodernIndianapolitics.JustadayafterGov.Danielssaidat a town hall in Griffith that Lake County people could haveallthecorruptgovernmentitwanted,McDermottemergedwitha408-288upsetofClay.McDermottsparredwithClaywithonCNNasthenationawaitedresultsoftheHillaryClinton-BarackObamaIndianapresidentialprimaryracelastMay. WhilefamiliarnameslikeRep.BaronHill,Evans-villeMayorJonathanWeinzapfel,LakeCountySheriffRoyDominguezandformerIndianapolismayorBartPetersonmaketheshortlistfortheparty’sgubernatorialmantlethreeyearshence,McDermotthasemergedasaleaderwillingtothrowthedice,de-liver,andassumethemantleofareformerwithatrackrecordtoproveit. HPI:HowdidyoudefeatMayorClaytowintheLakeCountyDemocraticchair? McDermott:Wedidittheun-conventionalway.TypicallyinLakeCountythewaythingsworkisthebossestelltheprecinctorganizationwhattodo.Theywalkinanddoexactlywhatthey’retold.Wedecidedweweregoingtogoaroundthebossesandgorighttothevotersandmakethecase.IneverycityandtowninLakeCountywehadamixerandIpaidalotofmoneytodothat.Wemeteveryprecinctcommittee-man,eventheonesthatwereopenlyhostile.Weinvitedthemout,boughtthemdrinks,campaignedtheoldfash-ionedwayandtheydidtherightthing. HPI:Notonlywasitavictory,itwasabigvictory.Didyouexpectthat408to288margin? McDermott:Itwasatoughrace.I’llbehonest,itwasanemotionalroller-coasterthewholetime.Whenwestartedout,nobodytookmeseriously.Iwasareferredtoassomeonetryingtogetsomething;Iwasgoingtocutadealatthelastminute.Alotofpeoplejustdidn’ttakeitseriously.Astimewentonandwegotmoreandmoremomentum,IwasconvincedabouttwoweeksbeforetheelectionthatIwasgoingtowin.Wewerenevercocky,we were confident that things were going to go our way. Ournumberswerealwaysgood.Myconservativeestimatewas355andweendedupwith408.Wewerealittletooconservativewithournumbersbutwegotaroundwhatwethought. HPI:WhatimpactdidGeorgeVanTil’swithdrawal

have? McDermott: IwouldhaveratherhadGeorgeVanTildropoutandendorseme.Wetriedtomakethathappenanditdidn’t.TheperceptionwasthatGeorgeandIweregoingtocuteachotherup.SowhenGeorgedroppedouttheperceptionshiftedandthatwastwodaysbeforetheelection.Theperceptionshiftedinmyfavoratthatpoint.Iactuallygotburiedinphonecallsduringthoselasttwodays. HPI: HadyouhadconversationswithGeorgepriortohiswithdrawal? McDermott:Yeah. HPI: Acomparisonmightbelikeadogchasingacar;whatdoyoudowhenyoucatchit?Whatareyougo-ingtodowiththechairmanship? McDermott:It’sahardjobbecauseinLakeCountytherearesomanydifferentagendasbecausewe’resoslicedupintosomanypoliticalboundaries.It’shardto

unifybecausetherearesomanypersonali-ties.MyagendaistopulleverybodytogetherandputtogetheranideacalledtheGovern-ingBoard.ItwillbebasedonpopulationandeverybodygetsaseatatthetableandIwillbechairmanofthatboardandtogetherwe’lldecidewhatthepartyisgoingtodo.Icam-paignedonthatissueanditreallyseemedtohithomeinthesmallercommunitieswhowereusedtobeingoverlookedbythemayorofGary.ItalkedtopeopleinLowellorCedarLakeandtheyweresaying,“Wedon’tevenseetheguyandhedoesn’tcareaboutus.”Isaid,“Well,Ihaveanidea.You’llhaveaseatatthetable.”MayorStahuraofWhiting,

they’vegot5,200peopleandhe’llgetaseatatthe table just like Gary, who will have five people. HPI:HasHammondeverhadaDemocraticcountychairman? McDermott:No.AndIthinkI’mtheyoungestbyalongshot. HPI: Howoldareyou? McDermott:Forty-eight. HPI:Putthisincontextofheadinginto2012.You’reonmylistasapotentialgubernatorialcandidate.Isthatsomethingyouaspireto?Ifso,howdoesbeingLakeCounty chairman fit in? McDermott: OfcourseI’mgoingtolookintoit.ObviouslyI’mgoingtohavetokeepdoingagoodjobasmayor.I’mgoingtohavetodoagoodjobaschairmanaswell.Mylife’sgoalisnottobechairmanofLakeCountyorthemayorofHammond.I’meithergoingtomoveupinpoliticsorI’mgoingtobecomealawyer.I’mstillalawyer.Atacertainpoint,afteracoupleoftermsofbeingmayoryou’vegottodecideisthiswhatyouwanttodo?Ordoyoutryandmoveon?IfItrytomoveonandI’mnotsuccess-

McDermott,from page 1

405votestoClay’s280


ful,I’lljustgobacktothelawbusiness. HPI:YouhaveareputationasareformerinHam-mond.WillyoubringthatmentalityandattitudetotheLakeCountyDemocraticorganization? McDermott: Yeah,IneedtoifI’mgoingtohaveafutureinstatewidepolitics.Ineedtobeareformeraschairman.Infact,theGoverningBoardinandofitselfisahugereform.That’soneofthemainissuesIcampaignedon.TheGoverningBoardisbasicallytakingpowerawayfromme.I’msharingpower.Itrusttheboard.Iknowthepeopleontheboardandthey’regoingtodotherightthing.Ithinkdifferently.I’mnotcorruptandIhatepeopletalkingaboutLakeCountybeingcorrupt.IwasintheaudiencetheotherdaywhenGov.Danielssaidthatanditmademecringe.I’veneverbeenaccusedofwrongdoingandIdon’tthinkit’sfairforthegover-nortopaintuswithabroadbrushlike that. There are other officials inLakeCountywhoarehorriblyoffendedwhentheyhearthegov-ernorsaysomethinglikethat.WedohavebadapplesandIunder-standthat.PeoplewhoarefromLakeCountyhavebeenthrowninjailandIcan’thelpthat.I’mgoingtodoeverythinginmypowertochangethatimage.That’soneofmymainjobsaschairman. HPI:YouacknowledgedthecorruptionlegacyintheTimesandIagree,you’vebeenuntaintedbythat.Howdoesthatfit into the context of a gubernatorial run when you’re cam-paigningdowninScottCountyorEvansville? McDermott: That’s a huge issue. When I first de-cidedtorunforchairmaneverybodysaid,“You’recrazy.”Isaid,“Why?”Andtheysaid,“Ifyoudoendupcampaigningstatewideonedaypeoplearegoingtosayyou’retheLakeCountychairmanandthey’lldescribeyouascorrupt.”Well,youknow,I’mthemayorofHammondrightnow.IfI’mnottheLakeCountychairman,they’llsayI’mthemayorofHammondandthey’llviewmeascorrupt.ThefactisbecauseofwhereI’mfromthatmeansI’mcorrupt.That’sgottochange,Brian.That’safactoflifeI’mgoingtohavetodealwith.IfI’mevergoingtomoveuptostatewidepoliticsthat’sanattitudeI’mgoingtohavetochange.Butwithregardstohowpeopleviewme,IthinkI’vedonealotofthingsasmayortogivethemammunitiontothinkdiffer-entlyaboutthis.That’sanissueTomMcDemottisgoingtohavetodealwith. HPI:You’vegotyourscholarshipprogram,your

housing program, the fire merger with Whiting. Tell me whatyouthinkyourlegacyasmayorisgoingtobe? McDermott: Oneofthemainissuesishomeownershipwithmeandthescholarshipprogram.That’swhatI’mgoingtobeknownfor.I’llalsobeknownasatoughmayor;notcompromisingwhenIthinkI’mdoingtherightthing.I’mbrave,almosttothepointofbeingtooidealistic.I’mgoingtopointoutmylastelection,Brian.Itwasahardfoughtelection.YouknowhowhardIfoughttoeliminatetheHammondHealthDepartment.Itwasathree-year battle and I finally eliminated it a month and a half

beforemyelection.OnFridaybeforemyTuesdayelectiontherewere300peopleoutsidemycityhalldemand-ingmyresignation.Iwasthinkingtomyself,“Uh-oh.”ButI’madifferenttype of elected official. I’m focused onthingsthatwillimprovethearea.We’vegottosellhomesintheareathatpeoplehavebeenmovingoutforalongtime.OverallIthinkpeopleinHammondaregoingtoremembermeinapositiveway. HPI:Doyouhaveanystatisticsyoucanshareonthehomeprogram,orthescholarships? McDermott:I’dlovetogiveyoutherealestatedatabutthemarkethasbeendowneverywhere.Youcan’treallysaytheprogramisnotsuccessfulbecauseofwhatishappen-ingtotherealestatemarketallacrossIndianaandtheUnitedStates.ButI

cantellyouthereare310studentsintheCollegeBoundprogram.TheyaregoingtogotocollegeinIndiana.Everyyeareachkidgivesbacktothecommunitywithcommunityservice.Theyallgive40hourstotheCityofHammondeachsummer.Wehavecollegestudentsallovercityhall,workingforthemayor,collegestudentsatthegolfcourse,themarina.Theyseeadifferentkindofgovernment.GoingtocollegeissoimportantandunfortunatelyforHammond,wehavestatistically10percentfewercollegeeducatedadultsthanmostcommunities.That’ssomethingwehavetoworkon.Thesecollegescholarshipsaregoingtomakeabigdifferenceintime.Thisisthethirdyearforit.Nextyearwe’llhave450kids. HPI: Thisiscasinomoney? McDermott: Yesitis.HorseshoeisveryhappyIbeganthatprogram.Alotofanti-gamblingpeoplewhowerevehementlyagainsttheriverboatscomingtoIndiana,they’resaying,“Wow,atleastthey’redoingsomethingpositivewiththemoney.”IwasgivenanawardbytheU.S.ConferenceofMayorsforthis.It’samilestone.Usuallyour

HOWEY Politics Indiana Weekly Briefing on Indiana Politics Thursday, March 12, 2009Page 6

public officials are acknowledged in a negative light. HPI:TellmeaboutyournegotiationswithMayorStahura and the Hammond/Whiting fire merger. McDermott: MayorStahuraandIwereelectedatthesametime.Wehaveaveryclosebond.Obviouslywe’resistercities.Ourcommunitiesaresoclose.It’stwocities,twoseparategovernments.We’vebeenpartneringovertheyearsonotherissues.Werecentlydidajointwaterproject.Wepurchasetogether.ManypeopleseeWhitingandHam-mondasonecity.It’snotgoingtohappenanytimesoon.Idothinkinthelongtermtheywillbeonecitysomeday. HPI:Whatwouldhavetohappenotherthantimetobringthatkindofmerger? McDermott:IwanttopointoutthatMayorSta-huraisoneofthebestmayorsinIndiana.Irespectthatmanvery,verymuch.Thisisnotaplan.IjustknowthatonedayHammondandWhitingwillbepartofthesamecommunity.ItmakessenseforHammond.Theydidap-proach me about the fire department issue and I thought it made a lot of sense. He talked to his fire department about it; I talked to mine. We’re definitely in a more advanced stagethanweweretwoweeksago.Ithinkattheendofthedayit’sgoingtohappen. HPI:IknowGov.DanielswaspleasedwithwhatyoudidwiththeHammondHealthDepartment.YetIunderstandyoucalledforhisimpeachmentovertheCalle-vee.Wheredoyouagreewiththegovernoranddisagree? McDermott:Firstofftheimpeachmentcom-mentwaslight-heartedonalight-heartedradioshow.ItgotalotofattentionbecauseitwasonthesamedaytheIllinoisHouseimpeachedGov.Blagojevich.IfIhadsaid“crucified” that day nobody would have paid attention. I recognizethatwasadumbthingtosayandIapologizedtothe governor’s office. As far as Gov. Daniels, I agree with a lotofthingshedoes.Kernan-SheparddoesalotofthingsIagreewith.TherearesomethingsIdisagreewithKer-nan-Shepardaswell.ItellyouIdon’thaveaproblemwithGov.Danielsasaleader.There’sonethingaboutbeinganexecutiveandyourespectbravery.WithGov.Daniels,there’s a lot of things I don’t agree with but he’s definitely not taking the easy course; he’s fighting the good fight. I respectthatandIadmirethatabouthim.PhilosophicallyIdon’tagreewithalothedoes,butthefactishe’stryingtodotherightthings. HPI: WhatpartoftheKernan-Shepardreformsdoyousupport? McDermott:Ilikealotofthesynergiestheyaretryingtocreatetoconsolidatepower.Ihavethreecommis-sionersinLakeCountyandIdon’twanttotalkinanega-tivelightaboutthesecountycommissioners.ButIlookatcountygovernmentandIlookatcitygovernmentandtomeitdoesn’tmakesense.Inacity,youhaveamayorwhoappointsdepartmentheads.Mypolicechiefisanexcellentcop.Hedoesagreatjobbecauseheisacop.Atthecoun-

ty,Iseepeoplewhoarerunningforsheriffandthey’renotcops.Theyarepoliticians.That’snotjustinLakeCounty,that’sacrossthestate.Iwonderwhywedon’thaveanexecutiveofthecountyinsteadofthreedifferentpeoplewiththreedifferentagendas.Ijustbelieveinconsolidatingpower.Ibelievethereshouldbeanexecutivewhoshouldappointthesheriffandotherthings.IwanttomakeitclearI have that right as an American and as an elected official. Icantellyoutherearealotofpeoplewhodon’tfeelthatway.Thegovernorispushing,particularlyattownshipsandyouhavetotipyourhatatthat.It’snotpoliticallypopular.That’swhatIrespect;hedoeswhathethinksistherightthingtodo.Iconsidermyselflikethat. HPI: Ifyouweretobeelectedgovernor,isthatthekindofthingyouwoulddo? McDermott: That’swhoIam,soIwouldn’tchange.IthinkI’mdoingtherightthingandI’llhavemypoliticalfriendscomeuptomeandsay,“You’rebeingstu-pid;you’rehurtingyourselfpolitically.”Butifyouthinkwhatyou’redoingisright,it’shardtolistentothepoliticians.WhenIgotelectedmayorIwantedtodotherightthingtomakeHammondabetterplace.Idon’tplanonbeinginCityHallfor20years.ButwhenI’mthereIwanttomakethecityabetterplace.WhenIwalkout,IwantpeopletosaythatImadeHammondabettercity.Theonlywaytodothatistoshakeitup,topushtheenvelope.That’swhatIdoasmayorandthat’swhatGov.Danielsisdoing,push-ingtheenvelopeforsure.NowonthingsliketheTollRoadlease,Itotallydisagree.Ifundamentallydisagree.ButIknowIcouldreachacrosstheaisleandworkwithRepub-licansifIhadto.Idon’thavetothatmuchnowbecauseIliveinLakeCounty. HPI: Survey the 2012 gubernatorial field. McDermott:I’mtheunderdogforsure.I’mgoingtohavetoworkharderthananybodyforthereasonsyoubroughtupfromLakeCounty.That’sgoingtobeastrikeagainstmebeforeIevenstepafootonthecampaigntrial.I’vegottodealwiththatimage.That’sgoingtobeastrikeagainstme. HPI:Maybe,butmaybenot. McDermott:IgrewupinCalifornia.IspentsixyearsintheNavyandwhenIleftIcametoHammond,Indiana.Iwas25yearsold.ButifIcampaignedaroundIn-diana,peoplewouldsaythatI’maLakeCountypolitician.Buteverybody’sgotmountainstoclimbifthey’regoingtomoveuptheladder. HPI: ArewegoingtoseeyouontheJefferson-JacksonDaycircuitsoon? McDermott:I’malotmoreactivenow.Becauseofthechairman,Ihavealotmorecredibilitytogoaroundtodifferentpartsofthestate.BeingthemayorofHam-mondisgreatbutbeingLakeCountychairmanisastepupforme.v


Leader Psychology:Goodnight stays steadyas Kokomo braces By BRIAN A. HOWEY KOKOMO-WhenthenewshitKokomoCityHallFridaythatthecity’sjoblessrateskyrocketedto17.4per-cent,therewasalmostdisbelief.Everyoneintheadminis-trationofMayorGregGoodnightknewthenumberswouldbetroubling. ButwithChryslerandGeneralMotorscontinuingtoteeteronthebrinkofbankruptcy,thethoughtthatKokomowouldbehoninginona20per-centjoblessratebeforetheMarch31deadlinewassobering. Goodnightandothermayorsonthefrontlinesofthisongoingeconomicdisaster,likeElkhart’sDickMooreandGos-hen’sAllanKauffman,must walk a fine line betweenpreparingtheiradministrationsandpeopleforthebadnewswithoutinducingpanicorsocietalbreak-owns. “We’retiedtotheautoindustry,whichisstruggling,”Good-nightreactedinSatur-day’sKokomoTribune.“Itmakesitmoreofachallenge.” On Monday, when HPIsatdownwithGoodnightforachat,Goodnightwascalm.“ItwasalittlehigherthanIthought.Ifithadcomeinat14or15,Iwouldhavesaid,‘Yeah.’ButnotmuchmorethanIexpected.We’refacingitandit’stheexactsamethingtherestofthecountryisfac-ing.It’satalittlebithigherlevelwiththeautomotiveties.Ihaven’theardgoodnewsfromanyplace.Oursisthat,plusalittlemorerightnow.Everyone’sgettinghit.We’rejustgettinghitalittleharder.” PartofGoodnight’sdemeanorcomeswiththepsy-chologyofleadership.Goodleadersdon’tgettoohighortoolow.Thepeoplelookforsteadiness.ButtheotherpartisthatGoodnighthasbeenthere/donethat.

Asmayor,he’swatchedDelphiAutomotiveworkthroughbankruptcyduringtheearlyyearsofhisadminis-tration.NowhefacestheprospectofChryslerandits5,000workersinandaroundthecitylosingtheirjobs.“We’reinthatprocessnowforafewyearswithDelphi,”Goodnightsaid.“ThereweresomeimmediateimpactswithDelphi.Thereweresomecompaniestheyowedsomemoneyto-suppliersandcontractors-whowerehit.Sometimesforacompany,bankruptcyisnotallbad.IworkedatHaynesInternationalwhenwewentthroughourbankruptcy.It’sthosecreditorsandretireesandactiveemployeeswhocarryalotoftheburden.” The Detroit News reported earlierthisweekthatautosuppliersexpecttosee$2.4billioninrevenuein

March,downfrom$8.4billioninDe-cember,accord-ingtotheOriginalEquipmentSuppliersAssociation,aTroy,Michigan-basedtradegroup.Theattritionrateinthesupplychainhasbeen5percentto10per-centwithabout40majorbankruptciesin2008,manyofthemprogressingrapidlyfromChapter11toliquidation,saidDaveAndrea,OESA’svicepresidentofindustryanalysisandeco-nomics. That figure couldeasilydoublein2009. GoodnightwasunionpresidentwhenHaynes

International filed for bankruptcy back in 2004. “We went throughafamiliarprocess,”Goodnightsaid.“Theyputinahiringfreeze,reducedalotofsalariedpeople,revampedsomeoftheoperationsanddepartments,wenttoafour-dayworkweek.Theyneededtorestructurethecompany.Therewerebondholdersthatwerestillreceivingveryhighinterestratesontherepaymentandcouldnolongergetthecredittheyneeded.Iftheydidn’thavetomakethesehugebondpaymentstwiceayeartheywouldhavebeenaprofitable business.” Goodnight said the union “satdownwiththecompanyandworkedoutthewhatifs:whatcouldwelivewithifbankruptcycametobe.Wewereinandoutof

Kokomo Mayor Greg Goodnight (right) introduces Gov. Mitch Daniels and former Gov. Joe Kernan at a town hall last month in Kokomo. (HPI Photo by Brian A. Howey)


bankruptcyfasterthananyplaceI’veeverseen.”Ittookseven months. “We reached an agreement that if they filed forbankruptcy,thesewouldbethetermsandconditions,”Goodnightexplained.“Thatenabledthemtogotothejudgeandsaywe’veworkedthisoutwithlabor.We’renowworking with financing; here’s our new business plan. They actuallyrepaideveryonetheydidbusinesswith.Butitwasatoughyearortwo.” The Obama administrationhasalreadydecidedthatifGMandChryslerfacebankruptcy,itwillbemuchlikeHaynes.Thephraseis“pre-packaged.”TheWhiteHouseteamwasinDetroitearlierthisweeksurveyingbothGMandChryslerandconceptcarsliketheChevyVolt. As for the psychology on the Haynes plant floor, Goodnight explained of the rank and file, “The people that werepayingattentionunderstood.Theysawthechanges.Thepeoplewhoweren’tpayingattentionstillcouldn’tgraspwhy they were filing for bankruptcy, why we couldn’t keep thingsastheywere.” AsforthepeopleofKokomo,lastDecemberGood-nightfearedthattheyweren’tprepared;thattheyhadn’tsaved.“Thattoneisweneedtohaveaplanandknowwhatwe’regoingtodo,”themayorsaid.“Anychangesneedtobesharedbyasmanypeopleaspossible.”

Thecityhascutitsworkforceby35people,or7or8percent,thoughGood-nightsaid,“Ifeelwe’reprovidingthe

exactsameservices.” Goodnightsaidthatmostpeoplehavebeenthroughthisbefore.“Peoplerecognizeit,”hesaidofthecurrentrecessionthatsomefearcouldbecomeadepres-sion.“Alotofthemhavebeenthroughthesecycles.We’veseenindustryleavebefore.Peopleunderstandit.We’renotacitythat’sgoingtopoutaboutit.Peoplearekindofpac-ingthemselvesandtheyunderstand.” A Chrysler bankruptcy doesn’tmeanthecom-panywillleave.“There’sbeenalotofbuyouts,reducedhours,”Goodnightsaid.“Itdidn’thappenthatwaywithDelphi.It’sforcedthemtostreamline.Theyarelookingtodiversifytheirproductline.” GoodnightnotedthatanumberofDelphiengineersareseeingentrepreneurialopportunities.Asolarinstallationcompanyrecentlysetupshopinthecity. Kokomowearsitshistoryofeconomiccycleslikeabadgeofhonor.AplaqueofphotosattheentranceoftheHalfMoonBreweryjustoffU.S.31notesthatDelco-thecompanythatbecameDelphi-wascreatedduringthelastdepression,in1936.v

The case stacks upagainst the status quo By MARK MILLER BLUFFTON-Istownshipgovernment“archaicandwasteful”asitscriticssay,orisit“themostgroundedformof‘governmentforthepeople,bythepeople’”asoneofourlocaltrusteesmaintains? Whilethereisagoodargumentforeitherpointofview,this“mostgrounded”formofgovernmenthassome

flaws. Becausethereare1,008townships,therearenearly1,008waysofdoingthings.Thereareguidelinesforadministeringpoorrelief,aswellasfortheformstobeusedandaccountingproce-dures.Buttherearealso1,008interpretations. The inconsistencyofrecordkeepingisn’tnearlyasbothersomeastheinconsistencyofservice.TheexampleiscitedoftwoIndianapolisneighborswhohappenedtoliveindifferenttownships;thehouseholdwiththe

lowerincomedidnotqualifyforaidintheirtownship,butthehigherincomehouseholddidintheirs. ItseemsfairlycertainthatinequitiesexistinWellsCounty,thattherearepeoplewhoreceiveaidinthetown-shipwheretheylivebutwouldnotiftheylivedinanother—andviceversa. AnotherexamplewasrelatedinarecentBrianHoweycolumnaboutthecityofGoshenandElkhartTown-ship,whichispartofGoshen.Thecitywantedtobuyalad-dertruck,sodidthetownship.Theyagreedtocooperateandjustbuyonebutcouldn’tagreeonwhereitwouldbehoused.Sonowtherearetwobrandnew$750,000laddertruckswithinamileofeachother. The trustees of Wells County shouldbecom-mendedformakinganefforttohaveconsistencyintheirpoorreliefefforts.Itisunfortunatethatthetrusteewiththebiggestbudgetforassistancehasnotfounditworth-whiletoattend. Thereisanissueofaccountabilityandoversight. Wouldweallowamayortosethisownsalaryanddetermine what he might charge the city to rent his office? When there is not enough interest in the offices to haveopponentsforyearsonend,howmuchaccountabilityisthere?Howmuchoversightcananadvisoryboardpro-videwhentheyhavetwoorfourmeetingsayear?Andhow


muchoversightcanweexpectfora$200ayearsalary? Perhapsmoretothepoint:howmuchpowerdotheadvisoryboardmembershave?WhenGeraldineClaghorn,advisoryboardchairmanforHarrisonTownship,receivedtheauditexamreportinthemailinJanuary,shewasquiteconcerned.WhenshecalledtheStateBoardofAccountsforadvice,shewasn’tencouraged.AccordingtoMrs.Claghorn,theytoldhertherewasn’tmuchshecoulddo.“Idon’tunderstandwhythatis,”shetoldus. Neitherdowe. One lesson we havetakenfromthisprocessisthatwe,asthelocalnewspaper,shouldmakeapracticeofobtainingandpublishingtheauditreportsaftereachauditcycle.Itissomethingthatisnowonourcalendar. Theproposedlegislationtoeliminatetownshiptrusteeswas“watereddown”(quotingtheAssociatedPress)toonlyeliminatetheadvisoryboards(trusteeswouldreporttoandhavetheirbudgetsapprovedbythecountycouncil)andwouldeliminatenepotism(butonlyfornewhires). Ironically,thetownshipsystemisagreatjobforacouple.Logistically,duetothenatureofthepart-timeyetalways“oncall”toadegreeposition,havingyourspouseasanassistanthasworkedwellwhentherightpeopleareinthosepositionsallacrossthestate.Overall,WellsCountyisblessedinthisregard. Butwhatwouldwethinkifthemayor,uponelec-tion,installedhiswifeasthecityclerk-treasurer?HowwouldpeoplereactifGov.MitchDanielsappointedhiswifeasthestatetreasurer? WegobacktotheaforementionedcolumnbystatepoliticalobserverBrianHoweythatwaspublishedonthispageonFeb.23.Gov.DanielsandformerGov.JoeKernanhadconvenedatown-halltypemeetinginKokomoandwereconfrontedbylocaltrusteeLindaGrover,makinghercaseforthejobthatsheand1,007othersdo. Daniels replied that he hasbeeninmanytrustee offices. “I generally find people who are really workinghard.That’sneverbeentheissue.It’sthesystemthatdoesn’tserveHoosierswell,”hesaid. Danielscontinued:“Acrossthisstatetherearelegionsofcaseswheremoremoneyisbeingspentonsalariesandadministration,quiteoftenonfamilymembers.Nepotismisincrediblycommon.Threefourthsofthetown-shiptrusteesneverhaveanopponent.ThereareverygoodpeopleinitandLinda,clearlyyouareoneofthem,butthatcannotbeanexcusetomaintainaveryoldsystem.” Ourstudyfoundanumberof“verygoodpeople”whoareworkinghardfortheirneighborsintheirtown-ships.Theymakeagoodcaseforbeingclosetothepeople.(Howcanyounotlikeaguywhohandsoutanemploymentapplicationalongwithanaidapplication?) Butwehavetoagreewiththegovernorthatover-all“it’sthesystem”thatdoesn’tserveHoosiertaxpayers

well. Perhaps the answerisnottotalabolitionoftrustees.Perhapstheanswerisinconsolidationoftown-ships,reducingtheratioofsalariesversusaidprovided,improvingtheaccountabilityandoversightandstandard-izinghowaidisprovidedandmakingsureitis“emergency”basedandnotturnedintoongoingwelfare.ButperhapstheanswerisindeedintheKernan-Shepherdreport,drawnupbyabipartisangroupworriedmoreaboutpracticalitiesthanpolitics. OurStateSenatorTravisHoldmanservesontheLocalGovernmentCommitteeinthesenateandhasbeeninthemiddleofthesedebatesinIndianapolis.Hehasmaintainedthatoptionsneedtobedrawnupandofferedtothevotersinareferendum. “Ifthevoterswanttokeeptownshipgovernment,thensobeit,”hehastoldus.“Butiftheydon’t,weneedtochangeit.” Amen.v

Miller is editor of the Bluffton News-Banner.

We’ll all pay for gov consolidationBy CURT KOVENER CROTHERSVILLE-Despiteastinkingeconomy,ahostageholdingstockmarket,unemploymentidlingnearly1inevery10Hoosiers,andthemajorityofthepopulation

scaredabouttheirfuturebuttryingtoputonabraveface,itseemsallsomeelectedleadersandtheirhiredgunswanttotalkaboutishowmuchgovernmentconsolidationwillbethestate’ssavior. The Governor touts the findings of his ap-pointedKernan-ShepardCommitteeonhow

toimproveHoosiergovernment.Kernan-Shepardwasaflawed committee providing a jaundiced view of Hoosier life.NotasinglememberofKernan-Shepardhadanyexperienceintown,countyortownshipgovernment.Theywere mayors, former state legislative officials and represen-tativesofbigbusiness.EverymemberofKernan-Shepardresidesinanurbanbigcity. So I ask: What the helldoanyofthemknowaboutlifeasweliveitouthereinthecounty?VisitingtheirweekendcabininBrownCountyoronLakeWawaseedoesn’tqualifythemtospeakonlivinglifeouthereinthesticks. Youseeinthebigcities,theyareusedtomass


transitsothatfolkslivingontheedgesofthecitywhoareinneedofservicescanboardabusandbedroppedoffwhereevertheyneedtogo.Alas,nobusesservetheresidentsofJackson,ScottorWashingtonCounties. Andthegovernmentconsolidationpunditsclaimthatmuchofthegovernmentservicesbusinesscannowbehandledonline.Butunlikethemetropolitanareaswhereresidentscanhaveachoiceofhighspeedinter-net(anecessitytodobusinesswithgovernmentonline)onlyportionsofruralIndianahavetheneededhighspeedInternetconnection.Somefolkslivinglessthan3milesfromCrothersvilleandAustinareunabletogetDSLandarestillforcedtousedial-upservice,ifthatcanbecalledtechnologybytoday’sstandards.IfyouliveinthebucolichillsofJackson(seemapatright)orWashingtonCountyyoucanforgetaboutwirelessbroadbandbecauseoftheterrainorlackofcellphonesignal. And the big city proponents(theyre-allygetbentoutofshapewhentheyarecalledthatbecausetheyknowit’strueandhavenoresponseotherthantocallus“backward”,“statusquo”and“resistanttochange”)wouldhaveusbelievethatsomeoneinthecountyseatknowsbetterhowtoprovidefire protection than on the local level. A county wide fire protection service would be re-quiredtoprovideequalfunding&services.Jackson,Wash-ingtonandReddingTownshipsinJacksonCountycurrentlyhave their fire protection provided by residents paying dues to their respective departments. The more “efficient” county-wide fire protection method would mean a property taxincreaseinthosethreetownships…eventhoughlowerpropertytaxesisthemainmotivationbehindgovernmentconsolidation. TheneedsofCrothersvilleandVernonTownshipalongthemuchtraveledI-65corridorarevastlydifferentthanthewesterncountywherehilly,curvyroadswouldprevent some large fire apparatus used in the eastern part of the county from navigating to a fire scene or medical emergency. And remember that all countyresidentswillnot pay equally into the fire protection system. The City of Seymour—whereabouthalfoftheentirecounty’sassessedwealthislocated—thoseresidents,businessesandindus-tries would not pay anything to fund county fire protection because the city has their own paid fire department. Doyouthinkthatacountyseatbureaucratusing

onlythecurrentlyavailabledollarswillhaveyourbestin-terestsatheartandbeabletoimprovefundingforallruralfire departments? Should fire protection be determined by the county will some current fire stations be closed (a synonym for consolidation) for financial reasons? And should that hap-pen,whilewemaysavesomeintaxdollars,somewillbegreetedwithincreasedinsurancepremiumsforruralhomeand farm coverage since proximity to a fire department is a factorintheinsurancepremiumequation. ItraveltothecourthousesofJacksonandScottCountyeachweektogatherthenews.Shouldthecon-

solidationeffortsucceed,Iamnotsurewheretherespectivecountieswill place the needed offices to deal withresidents’concerns.Wouldn’titbe“pennywise&poundfoolish”iftosavemoneybyaconsolidatinggovernment,thatmoregovernmentoffices must be built, leased or pur-chased?Recently the Indianapolis Star reportedontheamountofsurplusdollarstownshipgovern-menthadsquirreledaway.Whatwasn’tincludedinthereportisthe

amountofmoneybeingsavedincumulative(thatmeanssave it until you need to make a purchase) fire equipment accounts.Itismuchmoredamningifyoucanreporthowgovernmenttaxesitsresidentswhilehavingpilesofmoneyinreserve. Besides,hereinthecountryaren’tweraisedtosaveforarainyday?Orwouldtheywantyoutobelieveitisbettertogetaloanfromthebankforoperatingfundsandthenpaythebankinterestusingtaxdollars?AndspeakingoftheIndianapolisStar,ifallofIndianaistooperatethesame,doyoureallybelievethatthestate’slargestnewspaperandtheCrothersvilleTimeshavethesamebusinessmodel?Therearedifferences;onesizedoesnot fit all. If the state’s leader doesn’t believe that I will be happyforour5-foot-somethinggovernortoexchangesuitcoatswithme(I’m6-foot-5)fortheday. The government model thebigcityfolkshavedevelopedmayworkquitewellforurban,metropolitanar-eas.Idon’tlivethereanddon’thavemuchinklingoftheirneedsandissuessoitwouldbeimproperformetooffersuggestions.Thatisdiametricallyopposedtotheurbanbasedgovernmentconsolidationproponentswhohaven’tdonetheirhomeworkforwhatworksinnon-urbanareas. Itseemsthebigcityadvocatesjustwanttoforceitdownourthroatsandtellusit’sgoodforus.v

Kovener is publisher of the Crothersville Times.

HOWEY Politics Indiana Weekly Briefing on Indiana Politics Thursday, March 12, 2009Page11

Local governmentvilification: R.I.P.By SHAW FRIEDMAN LaPORTE-Talkaboutsomethingbeing“deadonarrival.”Thisweek’svotebytheHouseLocalGovernmentandRegulatoryReformCommitteeessentiallyputsthis“dogofaplan”outofitsmisery. WhattheGovernorandkeyproponentsofso-calledlocalgovernment“reform”don’tseemtounderstandisthatthisissolowonthepublicprioritylistrightnowandthat’s

whylegislatorsurveysoftheirdistrictsarecomingbackthewaytheydid.Tomany,theGovernor’sunbridledenthu-siasmforwhackingatlocalgovernmentsmackedofdiversionanddistractionfromsomeofthereal,compellingissuesfacingourstate.TheGovernor’sneverbeenafanoflocalgovernmentandhisfellowideologicaltravelerGroverNorquistoncesummedupconservativeviewsthisway:“Ourgoalistoshrink

thegovernmenttothesizewhereyoucandrownitinabathtub.” Hoosiersknowthatit’snottheirlocalSheriffortheirlittlelibrarydistrictthathascutthevalueoftheir401(k)toa201(k).Theyknowit’snottheirlocalauditororclerkorschoolboardmemberwhoisthreateningtomovejobsoverseasorginningupthiscountry’stradeimbalanceorrunningupthenumberofhomeforeclosuresintheircommunity. Therearehuge,unrestrainedandforthebetterpartofthelasttwodecades–unregulatedmarketforces–thatthisGovernorhaslongtrumpetedastheanswertoallourproblems.He’susedlocalgovernmentasthebogeymanformonthsandlegislatorsofbothpartiesthisweeksaid“enough.” While the Governor wasted the first half of the legislativesessionfocusedonthisobsessionwithlocalgov-ernment,howaboutaquicklistofsomeissuesheneedstofocusoninthesecondhalfofthesessionthatreallyDOMATTERtoHoosiers. 1. Fix the unemployment compensation problem. Make sure there sufficient local offices and staff todealwithourburgeoningunemploymentrolls.Beefupre-trainingandre-education.Focusonhowwe’regoingtorepaythefederalgovernmentthehundredsofmillionsborrowedtohelpcoverIndiana’sshortfallinunemploymentcompfunding. 2. Focus some gubernatorial ire on predatory investment schemes,mortgagebrokersandothersthat

aretrulyhurtingHoosierconsumers.WhenistheGovernorgoingafterriskystockinvestmentschemesorshiftybro-kers who have shaken investor confidence in our system? 3. Getting our fair share from Washington –forachange.Fordecades,Indiana’sshareoffederaltaxdollarshasbeenanemicandwerecentlyreceivednewsthatHoosierswon’tgetourfairshareofstimulusdollars,duetosomeoutmodedformulasthatexist.It’sashamethatwhenthisGovernorwasOMBDirectorin2002,hedidn’t see fit to change the formulas to help favor his home state.Instead,we’releftwithhimscratchinghisheadseven years later trying to figure out why we’re 18th on a listthatweshouldbehigheronbasedonneed. 4. Want to recoup badly needed revenue?Close loopholes that are benefitting out of state and multi-nationalcorporationsthatareskatingontheirIndianataxobligations.TheIndianaDepartmentofRevenuehasbeenasking for help for years with staffing and resources to go after corporate tax scofflaws who are skating to the tune of $346millioneachyearaccordingtotheWashington,D.C.basedMultiStateTaxCommission. 5. Stop privatizing state functions such as welfare intakeandeligibilityandmakesurethatwerestoreface-to-facecontactforMedicaidandfoodstamprecipients.MakesureproperoversightexistsforalreadyprivatizedcontractssuchastheTollRoadandDepartmentof Corrections. Want to look for government efficiencies –startinstategovernment,Governor. Thisweek’sbi-partisanvotesendsamessagetotheGovernorthathisyearlongcampaigntovilifyandblamelocalgovernmentforthestate’sillsjustisn’tcutting.Thatdogwon’thuntGovernor–infact,whathappenedthisweekwasamercykilling.v

Shaw Friedman is a LaPorte attorney who formerly served as Legal Counsel for the Indiana Democratic Party. He is a regular contributor to HPI.

Owen returns as Vanderburgh Dem Chair EVANSVILLE-VanderburghCountyDemocratsunanimouslyreturnedMarkOwenaschairlastSaturday.OwenisacloseallyofEvansvilleMayorJonathanWeinza-pfelandisexpectedtoplayamajorroleinthemayor’spotential2012gubernatorialrun. “Thelocalpartyhashadahistoricallysuccessfulpastthreeelections,wehavewon37of41recentraces,”Owensaid.“DuringthattimeIammostproudthatwehave elected a dozen new officeholders that bring fresh perspectivesandideastoourLocal,State,andFederalGovernments.OverthenextfouryearsIseeourPartycon-tinuingtogrowandhelpingourcommunitymoveforward.”v


An open letter toRep. John Boehner By DAVE KITCHELL LOGANSPORT-WhenJohnBoehnershowedupinMonticello,Ind.,foranappearancewithRep.SteveBuyerbackinthe1990s,theywerethefacesofthenewRepubli-canheyday. ThatwaswhentheRepublicanshadengineeredanewmajorityinCongressandNewtGingrichwascelebrat-

edasachangeagentwhowouldmakeCongressworkdifferentlythanbefore.BoehnerandBuyerwerepositionedattherightplaceandtherighttimeforpolitical power, and they both benefited fromit.BuyerwentontoprosecuteapresidentinanimpeachmenthearinginCongress.Boehner,whohailsfromneighboringOhio,wentontoaleader-shippositionintheHouse. Butwhatgoesaroundcomes

around.ChangehascometotheHouseagain.NewtislonggoneandsoisthemajorityhecarefullycraftedovernumerouselectioncyclesastheGOPchippedawayatalongstandingDemocraticmajority. IfIweresendingamemotoJohnBoehnertoday,itwouldreadsomethinglikethis: Rep.Boehner: It can’t be easybeingyouasaminorityleaderintheHouseofRepresentatives.You’vewithstoodachallengetoyourposition,thoughcolleaguessuchasDickArmeyhaveoptedtoleavethebodyentirely.You’veseenyourpartyloseitsgriponahistoricmajoritythattookdecadestobuildandonlyafewshortyearstolose.You’veseenthemajorityoftheSenateandthepartyincontroloftheWhiteHousebothswitchovertotheotherside,andthere’slittletohangyourhatonasaparty. Thenanotherglancingblowcomesintheformofinfighting between the chairman of the Republican Na-tionalCommitteeandradiotalkshowhostRushLimbaugh.Whoheadstheparty?That’sanargumentthat’sopenfordebate,althoughthechairisclearlythetitularheadifnotarecognizablename. Asyouareacareerpoliticianwhostillhasmanyyearstoserve,Iofferthisadvice.Bendthisonetime.LeadapartythatwillmeetDemocratshalfwayonissuesanddo

yourparttomakesurethecarpetbetweentheaislesinCongressisthemostworn-outpieceofcarpetinAmerica.Forgetthestalltactics.Giveupthehopeoftaxcutsbeingtheonlyanswertobringingthiscountryoutofitsdeepestrecessionsinceatleastthe1970s.Ifthatwasthesolution,wewouldhavebeenoutofthisrecessionbeforeitstarted. TryhostingtownhallmeetingswithDemocratswheremembersofyourpartyandtheothersidecanex-changeideaswithoutventingarguments.Trygoingtothestatesthatwereonceredandtalkingtovoters.Pretendyou’reinthetelevisioncommercialUnitedAirlinesairedafewyearsago.Youremembertheonewiththebosswhodecidedtosendhisentirestaffouttomeetwithclientsandformerclientsface-to-face? That’s what has to be donewithyourparty,andunlessyoudoit,fewwithinyourpartyexpectanyoneelsewill.ItsentapositivemessagewhenRepublicanselectedanAfrican-Americanastheirnationalchair,butitsentasimilarmessagewhenanotherAfrican-AmericanmemberoftheRNCcalledforhimtostepasideandletsomeoneelseleadtheparty. You’reinapositionwhereyoucanleadbyexam-ple,andyourpartysorelyneedsthat.Butevenmorethanthat,thecountryneedstoseeRepublicans,Democratsandindependentsworkingtogetheratatimewhenthisnationistrulyhurting.Youcan’tfeelgoodaboutanunemploy-

mentrateinOhiothatisabovethenationalaverage,especiallywhenvot-ersinyourownstateelectedsomeonefromtheotherpartypresident.Thatdoesn’tbodewellforyourfutureinthenextelection. AsmuchasyouleanedoverandembracedRep.NancyPelosionthathistoric day when she became the first femaleHousespeaker,youhavetoembracethechangeconfrontingyourpartyandthecountry.Playittheirwayforawhile,oratleastplaynicelywith

them. Ifyoudon’t,you’lljointheranksofGingrich,Livingston,ArmeyandHastert,whichasyouknowisnotalaw firm. It’s the former leadership of your party which has retiredtothesidelines. Like you, there are millions ofRepublicanswhodoubtSarahPalinwillbeyourparty’snomineeinthreeyears,butthereareevenmoreRepublicansandmaybeindependentsandDemocratswhowillbelookingforfreshideasyourpartycanprovide. Unlessyoucan,thepartyknownastheGOPwillstandfortheGuttedOldPartyandnotagrandone.v

Kitchell teaches journalism at Ball State University.


If newspapers die,who will report?By JACK COLWELL SOUTHBEND-Rockynomore.ThatdescribestheAmericannewspaperscene.Inanothersense,itdoesn’tdescribeitatall.NomoreisthereaRockyMountainNews.Itfolded.TheonceproudandprosperousDenvernewspa-perdiedafter150yearsofpublication. WhilethenewspaperscenehasaRockynomore,itremainsrocky.Veryrockyformanyotherpapersthat

arelosingmoney,evenwithseverecutbacksinstaffandcontent. Morewilldie. So,whocares? Moredothanwouldseemtobeindicatedbythegrimfore-castsfornewspapers.Therestillaremillionsofnewspaperreaderswhowouldbelostwithoutapapertoprovideinformationwithmorn-ingcoffee,toreadwhilecommut-ing,tosettledownwithafterworkandtotearoutarticles,adsandphotosofspecialinterest.It’smore

theeconomicsofthesituationthanjustdeclineinreader-shipthatcauseswoe. Othersdon’tmuchcareifnews-papersdie.Theydon’treadthem,orif they do sometimes, they find “main-stream”reportingratherdull.SomeofthemsaytheyprefertogetnewsfromtheInternet.Heck,theycangetnewsrightfromthenewspaperWebsites,sitesthatdon’tcomecloseyettopro-vidingrevenuetomakeupforthelossofprintadvertising. Blogscanprovidenewstheywanttobelieve,whetherwithleft-wingorright-wingslant.SocancablenewsortalkradioorSaturdayNightLive. But Gary Kamiya,afounderandeditoroftheonlinemagazineSalon.com,saidsomethingrecentlythatmaysoundsurprisingforanonlineentrepre-neur.SaidKamiya: “Ifnewspapersdie,sodoesreporting.That’sbe-causethemajorityofreportingoriginatesatnewspapers.Onlinejournalismisessentiallyparasitic.LikemostTVnews, it derives or follows up on stories that first appeared inprint. There’stherub.

Blogsdon’thavereporters.Theyusuallyarerunbyonepersonwhocitesaviewandgetsresponses. Cablenewsoperationsdon’thaveallthereport-ersthatthemajornetworksandthemajornewspaperstraditionallyhavesenttocovertheimportantnewsthatismore significant for the nation than the latest sensational-izeddisappearanceofablondechildsomewhere.Cablecommentators,leftandrightpolitically,haven’tgoneouttoreport the news. They sit there and pontificate about what othershavefound. Talkradiohostsdon’thavereporterscoveringthenews.Theirpompousspielsofteninvolvereportsfromnewspapers,reportsthattheysometimesridicule.Whatiftherewerenoreports? If newspapers - and major TV networks,alsofacingdecliningrevenueasviewershipdiminishes-closetheirforeignbureaus,asmanyalreadyhave,wherewillwegetobjectivenewsabouttherestoftheworld? AsKamiyaputit:“IfReuters,the(NewYork)Timesandalltheothernewspaperswithforeign;bureaushavediedandonlytheAP(AssociatedPress)reporteristellinguswhathappenedinChina,readerswillbeforcedtoac-cepthisorherversionwithoutbeingabletocompareit.” So-calledcitizenjournalistsaren’t’theanswer.Occasionallyacitizenwithnorealtrainingfororunder-standingofjournalismcandoawonderfuljobinturningupinformationthatthenewsmediamissed. Dangerlooms,however,ifnewscomesexclusivelyfromfolkswhoneverhadacityeditordemandinganother

checkofthefacts,anothersourcetocon-firm an allegation or another viewpoint to balanceastory.Thesefolksmaybewellmeaning,ornot. Notallnewspaperswilldisap-pear.theSouthBendTribunewillcontinuetoexist.Butwedon’tknowinexactlywhatform.TheChicagoTribune,althoughforcedtoseekbankruptcyprotection,willsurviveinsomeform. Manyothernewspaperswillfold,especiallyinanycitywheremorethanonepaperispublished. The reason newspaperswillexistinsomeformisbecause,asKamiyasaid:“Ifnewspapersdie,sodoesreporting.”Andwherewillnewscomefromatatimeofunprecedenteddemandforinformation?

TherewillbeaRockynomore.Buttherewillbenewspapers,eveniftheirfutureincludeslesspaperandmoredeliveryoncomputerscreens,becausethenationneedsandwilldemandit.Evenonlineeditorsdemandit.v

Colwell has covered Indiana politics over five de-cades for the South Bend Tribune.


Indiana keeps losingground on wagesBy MORTON J. MARCUS INDIANAPOLIS-Today,withournationaleconomiccrisis,itiseasytofocusongettingjobs.Undersuchdireconditionsasthosefacingsomeworkers,homeownersand

retirees,wecanforgetthatgettingbacktowherewewerebeforeallthiseconomicdistressmaynotbeanappropriategoal. ImaginewithmethatHer-shelHoosierwasbornin1942andretiredin2007atage65.Hershelisnotanaverageguy.Infact,by1969,whenhewasjust27,hewasalreadyearningtheaveragewageforsomeoneworkinginIn-diana.Attainingthataveragepaylevelisnoteverinreachformany

workersandrarelyforonesoyoung. Throughtheyears,HershelcontinuedtoearntheIndiana average wage (including employer-paid benefits) as reportedbytheU.S.BureauofEconomicAnalysis.In1969,heearned$6,574,whichintermsof2007buyingpowerwasequalto$30,627.By2007,hewasearning$36,908or$6,281moreinbuyingpowerthanin1969.That’sanaver-ageannualrealpayraiseof0.5percent,justhalfofthenation’s1.0percentyearlyincrease. Out of the 50 states,Indianahadthefourthlow-estincreaseinrealaveragewages,bothindollarsandinpercentages.Massachusettsenjoyeda1.5percentannualgrowthinaveragewages,threetimesasgreatasIndiana.Whereourgainwasbelow$6,300inrealgrowth,Con-necticut,Massachusetts,NewYork,andNewJerseysawincreasesgreaterthan$20,000each. Yes,bybeingaverageinIndiana,Hershelwaslos-ingoutbigtimetotheaveragecitizensof46otherstates.Backin1969,theaverageHoosierwagewasthe13thhighestinthenation.By2007,itwasdown19placestothe32ndrank.Thiswasthesecond

worstfallinthenation,trailingonlyWestVirginia,whichhadfallen20placesfrom24thto44th. In1969,Hershelearned$312oronepercentmorethantheaverageAmericanworker. Itwouldnotbeuntil1977thattheaveragewageinIndianaagainexceededthatofthenation.Hershelthenhadthreeconsecutivegoodyears.After1979,however,henevermatchedorexceededtheaveragenationalwagelevelagain. From 1969 to 2007, Hershelearnedatotalof$1,280,000.Hisnationalcounterpartearned$1,370,000.ThatleftHershelsevenpercentshortcomparedtothenationalaverage.Is$90,000thepremiumonemustpayoverfourdecadestoliveasanaverageworkerinIndiana?Does$2,300ayearmakethatmuchdifferenceinafamily’squalityoflife? Rememberthatthisaverageof$2,300canbemultipliedbythreemillionworkerstoequal$6.9billioninwages.Thentoo,thedifferencesbetweenaveragewagesinIndianaandinthenationhavebeendivergingfasterastheyearspass. In1977,Hershelhada$340(1.1%)advantageoverhisnationalcounterpart.By1987,Hershelwas$2,370(7.0%)behind.In1997,hewasdownby$3,420(9.3%).Andinhislastyearatwork,in2007,HershelHoosiertrailedthenationalaveragewageby$6,980(15.9%).A$7,000averagedifferentialbecomes$21billionwhenex-tendedtothefullworkforce. This increasing gap between theaveragewageinIndianaandinthenationneedstobeourfocus.Thisgap is not due to inflation, which has been taken out of thesenumbers.RatheritrepresentsthedecliningrelativevalueoftheproductsandservicesproducedbyHoosierbusinesses.Whatwedoisbecomingoflessandlessvaluecomparedtowhatisdonebylabor,management,andtechnologyinotherstates. TherealchallengeforIndianaisnottheshort-termrecoveryfromrecession.Ourtaskistoreversethelong-termdeteriorationofourcompetitivestatuswithintheUnitedStates.v

Mr. Marcus is an inde-pendent economist, speaker, and writer formerly with IU’s Kelley School of Business.


Sylvia Smith,Fort Wayne Journal Gazette:RushLimbaughwantsPresidentObamatofail.Democratsareallfrothyabouthiswish.AndtheRepublicanPartyisfallingallover itself to figure out how to distance itself from Lim-baughwithoutalienatinghislisteners.AndLimbaugh,whoisbelovedbyhisregularlistenersbuthadfadedfromthementallandscapeofmostAmericans,couldn’tbehappierabouthisJan.16radioshow.Itjustkeepsongiving.Whencontroversyoverthepre-inaugural“Ihopehefails”showdimmedabit,Limbaughbroughtitupamonthlaterataconventionofconservatives.He’snotabouttoletthatcashcowdie.PeoplelikeRep.MikePencehavetriedtorecastLimbaugh’spreference.Folkswhobelieveinlessgovern-mentandlessgovernmentspending,PencetoldCNN,“wantthosepoliciestofail.”But,actu-ally,that’snotwhatLimbaughsaid.TheFridaybeforeObama’sinaugural,Limbaughtoldhisradiolistenersthathewasaskedbyamajorpublicationtooffer400wordsonhishopesfortheObamapresidency.“SoI’mthinkingofreplyingtotheguy,‘OK,I’llsendyouaresponse,butIdon’tneed400words,Ineedfour:Ihopehe fails.’ ” Were Limbaugh an elected official or even the chairmanoftheRepublicanParty,itmightbeworthasking–assomehave–whyanyonewouldwantthepresidentofacountryontheedgeofcalamitytofail.Afterall,wishingfailureonPresidentBushafterSept.11wouldhavebeenconsideredtraitorous.v

Tom Friedman,New York Times:TheRepubli-canPartybehavesasifitwouldratherseethecountryfailthanBarackObamasucceed.RushLimbaugh,thedefactoG.O.P.boss,saidsoexplicitly,promptingJohnMcCaintodeclareaboutPresidentObamatoPolitico:“Idon’twanthimtofailinhismissionofrestoringoureconomy.”TheG.O.P.isactuallydebatingwhetheritwantsourpresidenttofail.Ratherthanhelpthepresidentmakethehardcalls,theG.O.P.hasoptedforcatcalls.Itwouldbeasifonthemorningafter9/11,DemocratssaidtheywantednopartofanywaragainstAlQaeda—“GeorgeBush,you’reonyourown.”Thepresidenthastomakeusrealizehowdanger-ousamomentwe’rein,withoutcreatingapanicthatwillpromptAmericanstoputeverydimeintheirmattressesandunderminetheeconomyevenmore.Allthiswillrequireleadershipofthehighestorder—bolddecisions,persis-tenceandpersuasion.ThereisahugeamountofmoneyonthesidelineseagertobetagainonAmerica.Butrightnow,thereistoomuchuncertainty;nooneknowswhatwillbethenewrulesgoverninginvestmentsinourbiggestfinancial institutions. If President Obama can produce and sellthatplan,privateinvestors,bigandsmall,willgiveusastimuluslikeyou’veneverseen.WhichiswhyIwakeupeverymorninghopingtoreadthisstory:“President

Obamaannouncedtodaythathehadinvitedthecountry’s20leadingbankers,20leadingindustrialists,20topmarketeconomistsandtheDemocraticandRepublicanleadersintheHouseandSenatetojoinhimandhisteamatCampDavid.‘Wewillnotcomedownfromthemountainuntilwehaveforgedacommon,transparentstrategyforgettingusoutofthisbankingcrisis,’thepresidentsaid,asheboardedhishelicopter.”v

Doug Ross, Times of Northwest Indi-ana:What’sthecureforGary?That’stheques-tioneveryonewantstoaskbutnooneseemsabletoanswer.I’veheardpeoplesuggesttheansweristodropabombonthecityandstartfromscratch.Honest.Isthatracist,orisitjustheartless?I’llletyoudecide.IdoliketheideaofbringingintheNationalGuardtorazeaban-donedbuildingsandgetridofthesemagnets

forcrimeandvermin,two-leggedaswellasfour-legged.Whowantstobuildanewstoreoranewcondocomplexnexttoaburned-outhulk?Successbreedssuccess,andfailuredoesn’thelp.I’veheardsuggestionsthattheObamaadministrationshouldcreateanurbanhomesteadprogramtobringsettlerstotheinnercity,thesamewayPresi-dentLincoln’sHomesteadActof1862promisedpioneers160acresiftheycouldsettlethefrontier.Andhowaboutbringing in additional state and federal resources to fight thecrimerateinthecity?Ortocleanupenvironmentallytaintedproperties?Buthowcanthecitybeturnedaroundsoitisself-sustaining?Don’tletGaryremainsodependentofaidfromelsewherethatitcannotsupportitself.v

Lesley Stedman Weidenbener, Louisville Courier-Journal:SenatePresidentProTemDavidLong,R-FortWayne,surprisedalmosteveryonelastweekwhenhepredictedthataspecialsessionmightbeneededforlawmakers to figure out how to fix the state’s unemploy-mentinsuranceprogram.It’snotthatmanylawmakersandStatehouseobservershadn’tcontemplatedthatpossibility.There’salwaysathreatthatlawmakers--particularlywiththeSenatecontrolledbyRepublicansandHousebyDemo-crats--willneedextratimetoworkthroughtheirdiffer-ences.Butwithtwomonthslefttogo,itwasunusualforoneofthelegislature’sleaderstomentionitaloud.Long,though,wasirked.DemocratsintheHousedidn’tsendtheSenateabilldealingwiththeunemploymentinsurancesituation, leaving Republicans to take on the difficult issue. Thatmaynotseemlikeabigdeal.Afterall,theSenatedidn’t send the House a bill, either. But fixing the fund -- which is now broke and able to pay benefits thanks only toloansfromthefederalgovernment--willundoubtedlyinvolvetaxincreasesonemployers.BillswithtaxincreasescanonlystartintheHouse.v

Press).McShurley,aRepublican,saidClevenger,aDemocrat,hasalong,distinguishedcareerinemergencyservices.“IamextremelypleasedbyJames’willingnesstoassumeleader-shipresponsibilitiesaswebeginthesearch for a new fire chief,” McShurley wroteinapressrelease.ThechangeinleadershipcomesafterWilsonandMcShurleybuttedheadsthisweekon whether to fill a vacant fire inves-tigatorposition.Thepair,however,hadlongbeenatoddsonseveralissues,includingMcShurley’sdesireto restructure the fire department andutilizevolunteers.McShurleyonMondayaskedWilsontoresign.Wilsonrespondedinaletter,sayingthathewouldnotresignandshewouldhavetodemotehim.

Palin may addressVanderburgh Life EVANSVILLE-AlaskaGov.SarahPalin,theRepublicanParty’s2008vicepresidentialnominee,willappearatVanderburghCountyRighttoLife’sannualbanquetApril16atTheCentre,theAnchorageDailyNewsreportedWednesdaynightonitsWebsite(Evansville Courier & Press).

Foreclosure legislationmoves in Senate INDIANAPOLIS-Hoosiersfighting to keep their homes could have a final shot at working out a dealwiththeirbankersunderlegisla-tionstatelawmakersareadvancingthisyear(EvansvilleCourier&Press).Indianaconsistentlyranksamongthenation’shighestforeclosurerates,andstingingjoblossesareleavingevenmorepeopleunabletomaketheirmortgagepayments.Lawmakerssaytheycandoatleastalittletostemtheswellingtideofforeclosuresbybring-ingboththelenderandtheborrowertothenegotiatingtable.“We’retalkingabout saving a home from grass five feettall,boardedupwindowsandall

theneighborslosingvalueontheirhomes,”saidRep.GailRiecken,anEvansvilleDemocratwhoauthoredoneofthisyear’santi-foreclosurebills.“Whatwe’retalkingaboutissavinganeighborhood.”HouseBill1633andSenateBill492bothwouldforcelend-erstositdownwithborrowersbeforeforeclosing.BankruptciesinNorthernIndianarose25percentoverayearago,to2,158.

State lost 12k jobs INDIANAPOLIS-Indiana’sdeepeningrecessionfailedtohaltgovernmenthiringandgrowthintheeducationandhealthservicesectorsinJanuaryevenasthestate’sfactoriescontinuedjettisoningjobs,newfederalstatisticsshow(Associated Press).Astate-by-stateunemploymentreportreleasedWednesdaybytheU.S.LaborDepartmentshowsthatIndianalostabout12,400jobsinJanuary,whenitsunemploymentrateroseto9.2per-cent--thehighestlevelinaquarter-century.

Noel chairs Clark GOP JEFFERSONVILLE-JameyNoelhasbeenelectedchairmanoftheClarkCountyRepublicanParty,suc-ceedingDavidBuskill,whoiswork-ingfortheIndianaDepartmentofEducationinIndianapolis(LouisvilleCourier-Journal).Atapartycaucuslastweekend,JoellenDohertywaselectedvicechairwoman,WayneCartersecre-taryandCharlieBryanttreasurer.Noel,37,isanIndianaStatePolicesergeantbasedattheSellersburgPost.Hewasunopposed.

O’Brien elected chair AVON-HendricksCountyRepublicanleadershaveelectedalobbyistandpoliticalconsultantasthenewchairmanoftheparty(Indianapo-lisStar).MichaelR.O’Brien,Avon,ranunopposedforafour-yeartermastheHendricksRepublicanPartychairman.

Obama tells Indianato diversify economy WASHINGTON-Indianaandotherstatesthatarehemorrhagingmanufacturingjobsmustputmoreemphasisonresearch,biomedi-cine,energytechnologyandotherinnovationsectors,PresidentObamarec-ommendedWednesday(Smith,Fort Wayne Journal Gazette).“We’regoingtodoeverythingwecantopreserveourmanufacturingbase,”hesaid.“Wehavetorecognizethatsomeofthoseworkerswhousedtomanu-facturesteelarenowaregoingtobemanufacturingsolarpanels.Wehavetomakesurethey’reequippedtodothat.”Statesthatinvestintechnology,educationandresearchwillbeinabetterposition,Obamasaid.OnadaythegovernmentannouncedthatIn-dianalost59,400manufacturingjobslastyear,ObamaheldupIndianapolisandChicagoasexamplesofregionsthathaveusedeconomicdiversitytotheiradvantage.“Whatstartedoffashard-core,traditionalmanufacturingtownsmadethetransitionstootherareas,buildingontheuniversities,set-tingupresearchparks,thinkingaboutinnovativesectorsinbiomedicineorenergytechnologies,”hesaid.LinkingmajorhubssuchasIndianapolisandChicagowithhigh-speedrail–bothforpassengersandfreight–would“provideusacompetitiveadvantageintheworldeconomy,”Obamasaid.

McShurley firesMuncie FD Chief MUNCIE-MayorSharonMc-ShurleyonWednesdaydemotedFireChiefEricWilsonandreplacedhimwithBattalionChiefJamesClevengerJr.onaninterimbasis(MuncieStar


Documents

Thursday, March 12, 2009 McDermott’s Lake County gambleHOWEY Politics Indiana Page 3 Weekly Briefing on Indiana Politics Thursday, March 12, 2009 DeLaney said. “We need to reform