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Kelty’s campaign finance meltdownThursday, June 7, 2007V13 N39
By CAM CARTER INDIANAPOLIS-Apparently,TheIndianapolisStareditorsthinkthatGov.Daniels’effortstosavetaxpayersmoney by contracting with a private firm for the printing, mailingandcopyingneedsofstategovernmentis,well,newsworthyinalessthanwholesomeway.TheStarseekstocreatecontroversywherenoneshouldbe.
First,somefactsfromthestoryinMonday’sStar(“Tothese66,smallprivatizationishuge,”TheIndianapolisStar,6/4/07).Currently,taxpayers–that’syouandme–paythe salaries and benefits
“There are some sectors we are not covering as well as we’d like to. Accountability reporting, city and county government.” - Indianapolis Star Editor Dennis Ry-erson, Editor & Publisher
Is it kinks (or Kinkos)?
See Page 3
Election board to meet June 19,as nominee’s political fate twistsBy BRIAN A. HOWEY inIndianapolisand MARK SCHOEFF JR. inWashington Republicannominee’sMattKelty’smayoralcampaignmustwaitatleast12daysbeforeitscrucialfatecouldbede-terminedbytheAllenCountyElectionBoardwhenitmeetsat3:30p.m.June19.Willhegetacleanbillofhealth?Willtherebecharges?Areprimand?Censure? ThefactthatKeltytook$158,000inloansfromthreesupport-ers and stated on his campaign finance reportthatitwasaloanfromhimselfhasputhiscampaignonprecariousfooting. BloggershaveaccusedsomeintheGOPestablishmentoftryingtounderminetheKeltycandidacy,whichupsetestablishment-supportedAllenCountyCommissionerNelsonPetersintheMayprimary.“Matthassupportersineverycircleandtheyarereportingopen discussions by party officials and ‘fixers’ about how they pulled a fast one on Matt and how
theycan’twaittogetPetersontheballot,”wrotetheAngryWhiteBoyblog. OneFortWaynepoliticalveterantoldHPR,“Heisprobablydoomed.Theexamination,theinvestiga-tion,thepossiblechargingallwilleatupthecampaignseason.Hecannotraisemoney.HecannottalkaboutissuesandthereisgreatquestionwhethertheRepubli-cansevenwanthimontheticket.Hispositionsarevery
offensivetomanypro-growthRepublicans.” Keltydidnotviolatecampaign finance law by failing toreportasadonationloansmadetohimbyhisstaffthathethenturnedaroundandloanedtothecampaign,accord-ingJamesBoppJr.,anationallyknown campaign finance lawyer whorecentlyarguedacasebeforetheSupremeCourt.BoppassertedinanHPRinterviewinWashingtononTuesdaythatthe$158,000inloansweremadetoKeltypersonally,nottothecampaign. “Aslongashehaslaw-
Republican Fort Wayne mayoral nominee Matt Kelty speaks to the press. (WANE-TV Photo)
Page 2 Thursday, June 7, 2007
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of66employeesinthestate’smultipleprintshops.TheDanielsadministra-tionbelievesthisworkcanbedonemore efficiently by contracting with the global mail firm, Pitney Bowes, andplanstodosoafterafour-waycompetitionfortheworkthatincludeda(presumablywell-informed)bidbytheprintshopemployees.Theexpectedsavingsofthisoutsourcingis$8-10millionannually,ornearly$50million over the life of the five-year contract.Notmuchinthecontextofa$26billionbiennialbudget,butstilladecentPowerballjackpot.And,shouldn’tourgovernmentbelookingtosavetaxpayersmoneythroughanyefficiencies it can find? Apparentlynot,judgingbythemelodramaticStarstory.No,moreimportantthanthetaxpayerandprinciplesofgoodgovernmentarethesinecuresoftheprintshopemployeesthemselvesandthe“humancost”ofoutsourcing.Wearetoldthatthe66employeeswillbeguaranteedjobsforonlysixmonthsunderthenewcon-tractandthatmany,ifnotmost,have“disabilitiesfromwork-relatedhearingandbackproblems.”Furtherpersonal-izingthetragedy,theStarinformsusthatoneemployeehasa“mentally-handicapped”son(aged27)andfearsforhislivelihood. Whileoneempathizeswiththisworkerandhiscolleagues,leader-ship requires difficult decision-making. DespitetheStar’smanipulativetugatourheartstrings,anycompetentmanagerwouldseekthischange.Thepublictrustrequiresnoless. Theprintshopemployeeshadtheopportunitytocompetefortheworkandlost.Duetodirectivesfromthegovernortohissubordinatesinthebiddingprocessandsubsequentcontractnegotiations,allweregivenachancetokeeptheirjobsandallareguaranteedatleasttemporaryposi-tionswithPitneyBowes;manywillbeabletoretireafterlongstatetenures(onehasbeenemployedsince1957)whilesecuringpermanentpositionswithasolidcompany.Atworst,theseworkersarebeinggivensixmonths’
severance and lead time to find new jobs–prettyhumanetreatment,bet-terthanmostofuswillreceiveduringourworkingcareers. Indianawillbeinverybadshapeifweplacetheinterestsofstateemployeesaheadoftheinterestsofstatetaxpayers.Theyworkforusandservethepublic’sneeds,nottheotherwayaround.Thegovernorandhisteamshouldbelookingformorecostsavingslikethis,notless.Onlybymanaginggovernmentbettercanwehopetohead-offeverincreasingcostsofgovernmentandattendanttaxincreases–aformofhumanetreat-mentforusall.
Journalism in atrophyBy BRIAN A. HOWEY INDIANAPOLIS-IndianapolisStar Editor Dennis Ryerson finally said
whatevery-bodyknew:bottomlinejournal-ismrules!RyersontoldEditor & Publisher,"Thereare
somesectorswearenotcoveringaswellaswe'dliketo.Accountabilityreporting,cityandcountygovern-ment.Rightnow,oureditorsaresobusyfeedingthedailyelephant,theydonothavethetimetothinkofthose
deeperstoriesthatwewouldlike." Well,hey,thanksforreadingtheStar. TheareaswhereIndiana’slargestnewsenterprisecouldhavemadeadifferencewithahead-of-the-curveinvestigativereportingaremany:thecentrallibraryconstructionfiasco,theprimaryelectionmeltdown,acrimewaveand177missingcops,crimetrends(i.e.whenarewemostlikelytogetcarjacked?),thedeathsofsevenFortWayneDevelopmentalCenterresidents,schoolconstructioncosts,CAFOsandwaterquality.Welearnaboutthesethingstoolate. Theultimatemessagedeliv-eredhereisthatgovernmentinIndianawillmostlikelygetapass,nomatterhowitconductsitself.WithdwindlingnewsresourcesandalackofcompetitioninthemediameansthattheFourthEstate’swatchdogissnoozinginitshousewhileinvestorsmaketheirprofits. Butatwhatpointdoesthislackofaccountabilitycomebackandbiteallofuswhenofficialsnolongerfearpublicscrutiny? We’regettinglotsofstoriesaboutwhalesandsharks,ParisHiltonandAnnaNicoleSmith.WebuildTajMahalbasketballgymsand$19millionnatatoriums(withaYMCAacrossthestreet)and818outof1,800schoolsgoonacademicwatch.Johnnycan’tread,buthey,forthefewofyouwhodo,thanksforreadingtheskinny,sur-face-surfingStar.v
Thursday, June 7, 2007 Page 3
Kelty: From page 1
fulpossessionofthefunds,hecanmakeloanstothecam-paign,”saidBopp,apartneratBopp,Coleson&BostrominTerreHaute.“Candidatesdothatallthetime.” Infact,BopparguedthatKeltyshouldbelaudedforsteppingforwardhimselftorevealthesourceofhisloanstotheAllenCountyElectionBoard.“Hevoluntarilydisclosedthisinformation,whichisunprecedented,”Boppsaid.“Nocandidatedoesthat.” Thecaseisuniqueinthataquestionisbeingraisedaboutacandidateloaninghimselfmoney,accordingtoBopp.WhatKeltydidwassimilartotakingoutalineofcreditonhisownorchargingmoneytohiscreditcardandthenusingthosefundsinthecampaign. “It’snovelbecausenoonehasevermadethisclaim,”Boppsaid.“Ican’tseehowhecanbeheldatfault.Itshouldn’tgoanywhere.” AllenCountyRepublicanChairmanSteveShinetoldHPRonWednes-daythathewas“hopefulthiswillberesolvedinhisfavor.Despitealltheaccusa-tions,rumorsandinnuendo,itwillbetheelectionboardtoparsethiscorrectly.I’mhopefulhisaccuserswillbegenerousandapologize.” ShinesaidthatKeltycontinuestoraisemoney“fromhisardentsupporters.” ThesituationhasreceivedstatewideattentionbecauseitstandstosetanIndianaprecedent.Themostreportedmoneycomingintoacampaignunderradaroc-curredin2002whenHD46RepublicanBrooksLaPlantefunneled$35,000ofhisownmoneyintothatcampaigninthe final 25 days. Election law required LaPlante to re-portthemoneywithin48hours.HedefeatedStateRep.VernTincher.Hewoulddecideagainstare-electionbidin2004, absorb a $10,000 fine from a bitterly divided Indiana ElectionBoard,re-enteredtheraceinlatesummerbeforelosinghisre-electtoTincherby700votes. WhilefewobserversarewillingtodisputeBopp’stakeontheletterofthelaw,thebiggestdangerforKeltyliesmoreinthespirit. ThecasehasfascinatedFortWayne,acitywitharoughandtumblecampaignhistory.InarecentNews-Sentinelweeklypoll,anunprecedented3,500respondentsparticipated in the non-scientific survey, with 2,514 sup-portingKeltyasthenomineeand1,050against.Thestorythereisthesheervolumeofopinion. It’stooearlytogaugethepoliticalfallout.LaPlantelosthiscontortedre-electionbid.In1987,then-FortWayne
Mayor Winfield Moses, Jr., who had resigned for 10 days in 1985 in a campaign finance case before returning to office inaDemocraticcaucusvote,wasleadingRepublicanPaulHelmkeinpollsuntiltheRepublicanAllenCountypros-ecutorannouncedhewasinvestigatingafamilymember.Moses’numberssubsequentlycollapsedandHelmkewon. IndianaWeekinReviewpanelistJonSchwantesnotedthatapatternofconductsurroundingKeltycouldcompromisehiscandidacy.Hecitedabsenteeballotsthathadtoberecalled,campaignassertionsonthepollthathadtoberecanted,andaresumeproblemsurroundingKelty’sclaimthathewasawalk-onwiththeNotreDamefootballteam. IWIRPanelistJohnKetzenbergernotedtheRepub-lican “circular firing squad.” LeoMorrisoftheFortWayneNews-Sentinelwrote:TheIndianablogospherehasalottosayonthematterofMatt Kelty’s campaign-finance-disclosure problem. Some, suchasFortWayneLibertarianMikeSylvester,thinkthe
KeltyforMayorcampaignjustmadeamistakeinreport-ing, and it’s too bad the filing laws are so complex that a lawyerisneededtounderstandthem.JeffPruittatFortWayneLeftthinksit’sprettyclearKeltybrokecampaignfinance law. The liberal blog Taking Down Words seems gleefulthata“FortWayneright-winger”wouldbeinsuchapickle,whiletheconservativeAngryWhiteBoythinksthewholethingwillblowoverbutisdistressedatthebadadviceKeltymusthavegottenfromlawyers.LeftofCentristdoesn’twantto“comerightoutandcallKeltyaliar”--but,afterall,whatelsewouldyouexpectfromaRepublican?AdvanceIndianaseemsconvincedofKelty’sguilt,andFortWayneObservedlinkstotheactualamend-ed campaign finance report filed by Kelty. “TheElectionBoardwilldecidewhatlaws,ifany,itthinkswerebroken,andthecourtswillbeinvolvedifneedbe,soperhapsweoughttoreservejudgmentonthatpart,”Morriswrote.“ButtheburdenofproofisclearlyonKeltytoconvinceushewasn’ttryingtomakehiscampaignlessthantransparent.Contributionshereportedasper-sonalloanstohimselfwereactuallyloanstohimbypeopleclosetohiscampaign,thebulkofthemoneycomingfromFrederickRost,aKeltycampaignadviserandpresidentofAllenCountyRighttoLife.RostalsofundedtheZogbypoll -- anonymously at first -- that had results favorable to Kelty,andKeltyhasinsistedallalonghedidnotknowwho
Thursday, June 7, 2007 Page 4
paidforthepoll.HowisareasonablepersonnotsupposedtothinkthatKeltywantstokeepthepublicfromknowingwho is financing his mayoralcandidacy?” FortWayneJournalGazetteeditorialpageeditorTracyWarnerwrote,“The next five monthsaregoingtobeexcruciatinglylongforAllenCountyGOPChairmanSteveShine.ShinehastheunenviablejobofdoingeverythingwithinhispowertowintheNovembermayoralelectionwithacandidatewhommanyoftheparty’smostprominentofficeholders and campaign contributors don’t like. Behind thescenes,somekeyRepublicansarealreadygivingupthe2007raceaslost.” Warnercontinued,“Aweekaftertheelection,afewdozentopGOPinsidersmettodiscusswhethertheywouldgetbehindKelty,andtheloanwasatopicofdis-cussion.WhileanumberofShine’skeyconstituentswerespeculatingoutloudaboutthetruesourceofthemoney,the party chairman also realized an official complaint would most likely be filed eventually. The sooner the questions wereanswered,hebelieved,thelesslikelytheywouldbeanissueintheNovembervote.Afterthenewsconference,itwasclearthatsomeKeltysupportersremainedbitterthatShineevenraisedtheissue..” Meanwhile,DemocraticnomineeTomHenryhasbeenquiet.“Tomethisisanissuebetweentheelectionboard,theRepublicanPartyandMattKelty,”HenrytoldtheJournal GazetteonFriday.TheHenrycampaignhaspur-poselyavoidedtalkingabouttheissue,sayingitwouldn’tbefairtoKeltytogetinvolvedatthistime,especiallyuntilallthefactsareknown.“Weallthinkweknow,butonly(Kelty)reallyknowswhathisintentionwas,”Henrysaid. AllenCountyDemocraticChairmanKevinKnuthtoldtheJournalGazette,“What’shappeninghereisthey’retrying to find a legal way to circumvent the law.” IftheAllenCountyElectionBoardweretoruleagainstKelty,thatwouldsetinmotionfurtherconsterna-tionwithinRepublicanrankstoreplaceKeltyontheticketbytheJuly15deadline. EveniftheKeltycandidacysurvivesthat,thepoliti-calfalloutmayextendwellintothefall,endangeringwhathadbeenseenastheIndianaRepublicansbestchanceatabigcitypickupinthe2007cycle. In2003underthen-RepublicanChairmanJimKittle
Jr.,theGOPmadeanefforttowinbigandmedium-sizedmayoral races. But this year, the party could not find a crediblecandidatestochallengeIndianapolisMayorBartPetersonandEvansvilleMayorJonathanWeinzapfel.Evans-villeGOPnomineeDavidNixonhasturnedouttobeanut-terembarrassmentafteritwasrevealedheowed$13,000inchildsupportandhassoughtloansandjobsfrompartyofficials. Down ballot candidates there are concerned. WiththepartynowpoliticallycompromisedinFortWayne,dividedinKokomoandfacingtoughchallengesinElkhart,CrownPointandAnderson,thislookstobeatryingpoliticalsequenceforIndianaRepublicans.v
Supreme Court ruling couldchange campaign finance laws
Hoosier lawyer Bopp argues in favorof lifting “blackout” on issue advertisingBy MARK SCHOEFF JR.TheHoweyPoliticalReport WASHINGTON--BytheendofJune,theSupremeCourt will issue a decision that could significantly alter cam-paign finance law and change the political television adver-tisinglineuppriortoanelection. Thecourtissettoruleonacasethatrevolvesaroundthetypeofadsaninterestgroupcanairduringthe“blackout”period60daysbeforeageneralelectionand30daysbeforeaprimary.Thedecisionmaynotcomedownuntilthelastdayofthecourtsession,June29. IntheFederalElectionCommissionv.WisconsinRighttoLife,thepro-lifegrouprantelevisionspotsin2004urgingWisconsinvoterstotellDemocraticSen.RussellFeingoldnottoblockPresidentBush’sjudicialnominationsthrough a filibuster. Theproblemisthattheadswentupinthefallduringthe60-dayblackoutperiodthatwasestablishedbythe 2002 campaign finance reform law -- a violation of the banonelectioncommunicationsduringthattimeframe,ac-cordingtotheFEC.ThelawyerforWisconsinRighttoLife,JamesBoppJr.,assertsthattheadsconstitutedgrassrootslobbyingandshouldbeprotectedasfreespeech. “There’snodiscussionabouttheelection,”Bopp,apartneratBopp,Coleson,BostrominTerreHaute,saidinanexclusiveHPRinterview.“ItwasaboutanupcomingvoteinCongress.Thisadwasallaboutlobbyingandnotaboutan election, so it can’t be prohibited by campaign finance laws.”Duringanintense,livelyoralargumentbeforetheSupreme
Thursday, June 7, 2007Page 5
CourtonApril25,Boppwaspressedbyjusticeswhoques-tionedwhetherthetimingandcontentoftheadwerede-signed to influence the election -- in violation of campaign finance reforms codified through the McCain-Feingold bill thatCongresspassedin2002.ThemeasurewasauthoredbyFeingoldandSen.JohnMcCain(R-Arizona). “Ifweagreewithyouinthiscase,good-byeMc-Cain-Feingold,”JusticeStephenBreyertoldBopp.“Maybeweshoulddoitupfront.That’swhatyouadvocate.” Eventhoughtheaddoesn’tencourageWisconsinresidentstovoteagainstFeingold,JusticeDavidSoutersaidthattheywouldbeabletoconnectthedotsandun-derstand that the spot was ultimately intended to influence theirdecisionattheballotbox. “Butdoesn’tanycommunicationdependupontheunderstandingofthelistener?”SouteraskedBopp.“Canweevensensiblytalkaboutwhatastatementmeansoranadvertise-mentmeanswithoutunderstandingthecontextintermsofthelistener’sunder-standing?” Boppresponded,“Thetestis,whatdothewordssay?Whatdoestheadsay?Whatdoesthespeechsay?” Souteranswered:“No.Thequestioniswhatdothewordsmean.” Later,Soutersaid:“Soyourpositionisthatweignorecontextbecausenoone--becausethevotersaren’tsmartenoughtohaveacontext?” Boppanswered,“No,thatwebeallowedtospeaksowecangivethatinformationtothevoters.” InanexchangewithJusticeAntoninScalia,Boppoutlinedwhytheanti-abortiongroup’sspotscouldnotbedefined as electioneering. “The ads do not mention an election, candidacy, political party, challenger or the official
character, qualifications or fitness for office,” Bopp said. Notonlyaretheadslegitimatelobbyingtools,BoppassertsthatmembersofCongressusetheadvertis-ingmoratoriumtotheiradvantage. “Incumbentpoliticiansschedulethesevotesintheblackoutperiodbeforeanelection,”BoppsaidintheHPRinterview.“Weignorethatrealityandthinkevery-thing(beforethefallgeneralandspringprimary)isaboutanelection.” Ashe,andthepoliticalworld,awaittheSupremeCourt’sruling,Boppishopefulabouttheoutcome.Hehaswonthreeofthepreviousfourcaseshearguedbe-forethehighcourt.
“Iamcautiouslyoptimisticthattherewillbeacarve-outforgrassrootslobbyingorthecourtmightstrikethewholeblackoutperioddown,”Boppsaid.“Eitheronewillbeamajorchange”incampaign finance law. BeingattheheartofadebateovercampaignfundingrulesisparforthecourseforBopp.“Itisthena-tureofmypracticethatIgetinvolvedinissueslikethisalloverthecoun-try,”hesaid. ButthecutandthrustofaSupremeCourtoralargumentisaspecialexperiencethatlawyersrelish.Theyjusthavetobepreparedfor
the justices not to let them finish sentences. “You’retheretoanswertheirquestions.They’reentitledtointerruptyouiftheychoose,”Boppsaid.“Youcontinuespeakingatgreatperil.That’sthereality.Youhavetoabidebythat.”v
James Bopp Jr. discusses the McCain-Feingold case he aruged in April outside the U.S. Supreme Court.
Thursday, June 7, 2007Page 6
Indiana will have four CDsin play in ‘08; 2 others to watch By BRIAN A. HOWEY INDIANAPOLIS-AtleastfourIndianacongres-sionalseatsarelikelytobeinplayin2008,accordingtoanHPRanalysis,beginningwiththe5thCDshowdownbetweenU.S.Rep.DanBurtonandDr.JohnMcGoffintheMayprimary. The three seats that flipped from Republicans to Democratswillalsolikelybeinplay,whileobserverswillkeepaclosewatchonprospectsofU.S.Reps.MarkSouderandJuliaCarson.
2nd CD FreshmanU.S.Rep.JoeDonnellywillalmostcertainlybetestedinthis50/50swingdistrictthathasswitchedpartiestwiceinthelastsixyears.ThetwomostlikelycandidatesareGoshenrealestatedeveloperLukePuckettandKokomoControllerPhilWilliams.Formercon-gressmanChrisChocolaisnotexpectedtorunandissaidtobefavoringPuckett.StateSen.TomWeatherwaxandStateRep.JackieWalorskihavebeenmentioned,butbothareupforre-electionin2008andwouldhavetogiveuptheirseatstorun.StateSen.JoeZakasjustwonre-elec-tionandissaidtobeconsideringasecondrunforCon-gress,afterhavingbeendefeatedby58-41percentin1996bythenU.S.Rep.TimRoemer.
3rd CD U.S.Rep.MarkSouderisuncharacteristicallyrais-ingearlymoney,eventhoughthereisnoobviousDemo-craticchallenger.HedefeatedFortWayneCouncilmanTomHayhurstwith54percentofthevotein2006,hisclosestre-elect.Hayhurstwillnotseekarematch.Souderisreact-ingto2008wheretheIraqWarcouldbeproblematicforHouseRepublicans.HealsohastobenervousabouttheimplodingFortWayneGOP.HebackedAllenCountyCom-missionerNelsonPetersintheMaymayoralprimary.PeterswasdefeatedbyMattKelty,whoismorephilosophicallyalignedwithSouder.WiththeKeltycampaignnowchal-lenged on campaign finance issues, there is much finger pointingbetweenthesocialandeconomicconservatives,which means Souder could find himself with a divided party goinginto2008.TheDCCCismonitoringthissituationandwillberecruitingacandidate.
5th CD ThisRepublicanprimaryraceisalreadyunderway
withDr.JohnMcGoffexpectingtoreportaround$200,000bytheJune30FECdeadline,and$500,000bytheendoftheyear,saidcampaignaideTrevorFoughty.McGoffrecentlyreceivedthesupportforformerstateandnationalcommitteewomanJeanAnnHarcourt. U.S.Rep.DanBurtonwillbefacinghismostpressingracesincehewontheseatin1982.Burton,whohasspurnednewspaperinterviewsandsomeGOPorga-nizationsovertheyears,isnowavailinghimselftothosespeakingopportunities.Hisinternalstaffhasfounditselfatoddswiththecongressmanearlierthisyearwhenhecame under fire for missing hearings on the war and vet-erans. MultipleIndianaSenatesourcestellHPRthat
StateSen.JeffDrozdaispassingonthisrace.Heandhiswifeareexpectingachild.ADrozdaentrywouldlikelyhavedividedthechallengervote.SourcestellHPRthatDrozdawillbeupforre-electionin2010andsees2012asabetteropportunityshouldBurtonsurvivein‘08. McGoff,whohasjustbegunthesummerparadeandfaircircuit,isexpectingapromotionintheIndianaAirNationalGuard,whereheservesasacolonelinthe181stMedicalGroup.HewillserveoneweekendaquarteratRamsteinAFBinGermany. Burton’srecentLincolnDayDinnerstumpspeechcentersalmostentirelyonadefenseoftheIraqWar.ButCol.McGoffmaybeoneoftheonlyRepublicansintheUnited States who could benefit from discussing the war. “Johnisinthemilitary.HeworkswithwoundedsoldiersfromIraqandhe’lltalkaboutthat,”Foughtysaid.“That’s
U.S. Rep. Dan Burton (center) with Mike Sodrel (right) and State Sen. Mike Delph at an Indiana Statehouse presser. (HPR Photo by Brian A. Howey)
Thursday, June 7, 2007Page 7
anissuethathelpsus.” Foughtysaidthat“90percent”ofMcGoff’stimewillbespenttalkingabouthowBurtonperformsinhisjob,hisvotingattendanceandrecord,and“howtobeacongress-man.”
7th CD LocalDemocraticleadersexpectU.S.Rep.JuliaCarsontoseekaseventhtermin2008,thoughtheycan-not definitively say this will happen. If Carson runs, the Democraticorganizationwillbackher.WashingtonsourcestellHPRthatHouseSpeakerNancyPelosiandtheDCCChavehintedthatCarsonshouldconsiderretiring.Roll Call reportedthisweekthatsuchspeculationonaCarsonretire-ment“runsrampant”onCapitolHill. IfCarsonisn’tonthe2008ballot,speculationcentersonStateReps.CaroleneMaysandGregPorter,thecongressman’sgrandsonAndreCarson,CenterTown-shipTrusteeCarlDrummerandformerIndianaDemocraticChairmanRobinWinston. EricDickersonislikelytoseekarematch.Iftheseatisopen,lookfor2002nomineeBroseMcVeytotakeanotherlook.
8th CD IndianaStateUniversitylobbyistGregGoodeap-pearstobetheconsensusRepublicancandidatetotakeonU.S.Rep.BradEllsworth.Goode,34,servedonCapitolHillaschiefofstafftothen-Rep.BrianKernsandasalegis-lativeaidetoKerns’predecessor,formerRep.EdPease.EllsworthhasalreadyissuedstatementscriticalofGoode.
9th CD AlleyesareonformercongressmanMikeSodrel."Ihaven'tdismissedthepossibility,"hetoldLouisville Cou-rier-Journal."NeitheramIreadytomakeanannounce-ment." SeveralGOPsourcestellHPRthatSodrel’swifeisn’tsureshewantstogothroughafourthbruisingbattlewithHill.ThereissomespeculationthatSodrelmaywaituntiltheFeb.5presidentialprimaries,likelytodeterminethetwomajor party presidential nominees, before making a final decision. That would be two weeks before Indiana’s filing deadline. ToddYoung,anassociateatthesouthernIndianalaw firm of Tucker and Tucker, P.C., has indicated he will seek the office if Sodrel passes. The Carmel native is a graduateoftheU.S.NavalAcademy,holdsanMBAfromtheUniversityofChicagoandworkedonthestaffofU.S.Sen.DickLugarasalegislativeassistantonenergypolicyandrenewablefuels.v
2008 Indiana Governor Governor 2008:Republican:Gov.MitchDaniels.Democrat:SenateMinorityLeaderRichardYoung,JimSchellinger,JillLongThompson.1996 Results: O’Bannon(D)1,075,342,Goldsmith(R)997,505,Dillon(L)35,261.2000 Results:O’Bannon(D)1,230,345,McIntosh(R)906,492,Horning(L)38,686.2004 Results: Daniels(R)1,302,912,Kernan(D)1,113,900,Gividen(L)31,644.2008 Forecast:Danielsisexpectedtoreportcloseto
$4millionattheJune18financial reporting dead-line.Thatcomestwodaysafterhekicksoffhisre-electioncampaignatHinkleFieldhouse.WatchforDanielstolayoutacomprehensivevisionforasecondterm.CampaignsourcestellHPRthat
internalpollingshowsthegovernor’sfavsintheupper50thpercentile.TheysaythatindependentpollssuchasSurveyUSA(presumablywithoutanIndianasponsor)havebeenconsistently10percentoff.ThecampaignpointstotheJanuaryRealtorspollwhichshowedDaniels’approvalaround57%asmoreinsinctwiththeirnumbers.Otheraspectstokeepaneyeon:thecomingrevenuereport,whichisexpectedtoshowsalesrevenuedown,butcorporateandpersonalincomerising.Ofalltheeconomicrelatedissues,personalincomecouldbethemostimportantasrelatedtothe2008election.Andthiscomeswellbeforeanplethoraofeconomicengines:Honda,Toyota,JeffBoat,Medventure,BPandothersfullytakerootandcreatethejobspromisedattheirannounce-ment.ThenationalpunditscontinuetoexpresssurprisewhenHPRforecaststhatDanielswillbefavoredforre-elec-tion.Havingsaidthat,twonationaltrends-adisastrousturnofeventsinIraqortheU.S.economy-couldhaveasignificant bearing on the governor’s re-election. Thus, the Daniels-Skillmancampaignwillrunasiftheyarebehind.SchellingerhasafullscheduleoffundraisersforJune.Thecampaignisexpectedtopostan“impressive”numberattheJune18reportingdeadline.BothRepublicanandDem-ocraticsourcestellHPRSchellingerhasaround$250,000andhavenotbeenpostingdailytotals.Whatwouldbean“impressive”amount?Inthe$1.5millionrange,butatleastseven figures. Young campaign sources tell HPR that they aredetectingnosupportforSchellingerinthe8thand9thCDs.LongThompsongetsapassontheJune18fundrais-ingsupportduetoher“contractualobligations”inWash-ington. Democratic Primary Status: LeansSchellinger.General Status:LeansDaniels.v
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2008 Presidential Polls Republican Date Giuliani McCain Thompson Romney Comp. SpreadZogby 05/17-05/20 26% 13% 10% 10% Giuliani+13%Gallup 06/01 - 06/03 32% 19% 11% 12% Giuliani+13% Rasmussen 05/29 - 05/31 23% 14% 17% 15% Giuliani +9% Time 04/05-04/09 35% 20% 10% 10% Giuliani+15%CNN 05/04-05/06 25% 23% 13% 10% Giuliani+2%Cook/RT 05/11-05/13 26% 24% 9% 9% Giuliani+2%FOXNews 05/15-05/16 24% 17% 8% 9% Giuliani+7%PewResearch03/21-03/2533%23%--%8% Giuliani+10LATimes/Bloombg04/5-04/09 29%12%15%8%Giuliani+22NBC/WSJ 04/20-04/23 33% 22% 17% 12% Giuliani+11%
Democrat Clinton Obama Edwards Gore Comp. SpreadZogby 05/17-05/20 39% 24% 11% -- Clinton+15%Gallup 06/01 - 06/03 29% 30% 11% 17% Obama +1% Rasmussen 05/29 - 05/31 34% 26% 15% -- Clinton +8% Time 04/05-04/09 33% 26% 25% --% Clinton+7%CNN 05/04-05/06 38% 24% 12% 12% Clinton+14%Cook/RT 05/11-05/13 32% 24% 13% 10% Clinton+8% PewResearch03/21-03/2535%26%16%12%Clinton+9%FOXNews 05/15-05/16 35% 20% 13% 13% Clinton+15%LATimes/Bloomb04/05-04/0933%23%14%13%Clinton+10NBC/WSJ 04/20-04/23 36% 31% 20% -- Clinton+5% Hoosier Support:Giuliani ($172,450 raised in Indiana):MarionCountyProsecutorCarlBrizzi,StephenGold-smith,TimDurham,BeurtSerVaas,SteveHilbert.McCain:Gov.MitchDaniels.Romney ($83,750):AttorneyGeneralSteveCarter;SecretaryofStateToddRokita,JamesBoppJr.,DanDumezich,BobGrand,ChrisChocola.Thompson:U.S.Rep.SteveBuyer,U.S.Rep.DanBurton,DavidMcIntosh.Clinton ($71,000):MelSimon,BrenSimon.Edwards:RobinWinston,Ann&EdDeLaney,9thCDChaiirMikeJones,StateReps.RussStilwell,DennieOxley,TerriAustin,TerryGoodin,SheilaKlinker,RobertKuzman,LindaLawsonandScottPelath;GreencastleMayorNancyMichael;BillMoreauJr.,ShawFriedman,Van-derburghCo.ChairmanMarkOwen,8thCDViceChairMaryLouTerrell,GregHahn,BruceKehoe.v
McIntosh joins Thompson WASHINGTON-FormerIndianaCongressmanDa-vidMcIntosh(pictured)willjointheFredThompsonpresidentialcam-paignasheadofdomesticpolicy.McIntoshservedinCongressfrom1997to2001.HewastheRepubli-cannomineeforIndianagovernorin2000,losingtoincumbentGov.FrankO’Bannon.McIntoshmovedfromMuncietoWashingtonwherehepracticeslaw.Heworkedinboththe Reagan and first Bush admin-istration.McIntoshisshownherehelping a young man fill out a job applicationataStarbucksonMonu-mentCircleinIndianapolisin2006. ***RepublicanpresidentialcandidatesRudyGiulianiandJohnMcCainplantoskiptheAmesstrawpollinAugust,but
competetowintheleadoffIowacaucuses,agamblebytheformerNewYorkMayorona“non-traditional”caucuscampaign and a first for Iowa.
Thedecision,announcedinDes Moines RegistertelephoneinterviewswithGiuliani’stopnationalandIowaad-visers,movesclosertosettingthetablefor the high-profile early Iowa test, albeit withouttheparty’snationalfront-runnertakingpart. “We’vemadeadecisionasacam-paignnottoplayinanystrawpollsthisyear,mostnotably,obviously,theAmesstrawpoll,”Giuliani’snationalcampaignmanagerMikeDuHaimesaidinaDesMoinesRegisterinterview.“Weare100percentcommittedtowinningtheIowacaucuses.We’regoingtotakethe
resourcesthatwouldhavebeenspentinthestrawpollandwe’regoingtodedicateallofthemtowardorganizingfortheJanuarycaucuses.”v
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Jennifer Wagner, Taking Down Words - If the purpose of the campaign finance laws is to know who's trying to influence the process, then there's no way the election board can find in favor of Kelty's sleight of hand.However,iftheelectionboard,persuadedbyBopp'slegalinterpretationoftheexistingcode,ispersuadedtoletKeltyoffthehook,thereoughttobeatleastadozenlawmakersgettingready to introduce legislation next session to fix thisloophole.Eitherway,thedamagetoKeltyis already done unless he flicks on the light bulb overhisheadandrealizesthatthebestthinghecoulddotorestorecredibilitywithvoterswouldbetogivethemoneyback--repaytheloans,sotospeak--andapologizeforanyimpressionofimproprietyhisactionsmayhavecaused.v
Sylvia Smith,Fort Wayne Journal Ga-zette -Atthebeginningofthecentury,Rep.MarkSoudervotedfortax-cutlegislationthathada10-yearlifespan.Hewashappyenoughatthetimewiththepackage,thedeepesttaxcutintwodecades.Notecstatic,perhaps–hewouldhavemadethecutsevendeeperandmoreexten-sive.Butinpressreleasesandpublicstatementsheissuedatthetime,Souderdidn’tutterapeepabouttheexpira-tiondateoftheRepublican-writtentaxpackage.Likewise,PresidentBushwasdelightedashesignedthebillintolawtocutincomeandestatetaxes,increasethechildtaxcreditandreducethe“marriagepenalty.”Hecalledthetax-cutpackage“therightthingtodo”and“straightforwardandfair.”Bushevenhelditupasamodelofhowgovernmentoughttowork:“Itshowswhatcanhappenwhengoodpeoplecometogetherwiththeinten-tionofdoingwhat’srightfortheAmericanpeople.AndwehavedonerightbytheAmeri-canpeopletoday.”Theprovi-siontoletthewholeshebangdiein10yearswasaddedtocomplywiththebudgetresolu-tiontheCongresshadpassedafewweeksearlier.Itlimitedthecostofthetaxpackageto$1.35 trillionoverthedecade.(Soudervotedforthat.)Atthetime,theBushadministrationdismissedtheideathatthelawmightreallydowhatitsaiditwoulddo–expireattheendof2010.Theideaofthetaxcutsbeingtemporary,asCongressvotedandthepresidentapproved,wasoutofthequestion.Ofcoursethey’dbeextendedeventually,theWhiteHousesaid.“Todoanythingotherthanthat,”presidentialspokesmanAriFleischersaidthen,“istoraise
taxesontheAmericanpeople.”Fastforwardtotoday,andwatch the spittle fly as Republicans gripe and grouse about thebudgetresolutionCongressadoptedlastmonth.WithalmostnoGOPsupport(noneintheHouse;justtwo“yes”
votesintheSenate),Congresspassedabudgetblueprintthatcallsforbalancingthebudgetinfive years. To do that, the resolution assumes thatsomeofthetaxcutswillexpireontheirduedatesunlessmoneyisfoundtopayforthem.Withthatresolution,Soudersaid,“Dem-ocratsintheHouseandSenatehaveshownthattheywillraisetaxesbyatleast$217 bil-lion,whichamountstothesecond-largesttaxincreaseinU.S.history.”ManyRepublicansand
conservativecommentatorsexpressedavariationofthe“thewickedDemocratsareraisingtaxes”theme.It’sadis-ingenuousaccusation,consideringthatRepublicansvotedenmasseforthebillthatestablishedthecut-offforthetaxreductions in the first place. v
Rich James, Post-Tribune-Theinvita-tionreads,“YouarecordiallyinvitedtojoinCongressmanPeteViscloskyforaluncheoninhonorofSenatorRichardLugar.”Itseemedratherodd.Butinmynextthought,Iknewitwastotallyright.Thetwoarespecialpeopleintheirownrights.Eachisexceptionallybright.IfthenationalRepublicanPartyhadanysense--andithaslesseachdayitstaysinlockstepwithGeorgeBush--Lugarwouldbepresident.Lugarprobablyknowsforeignpolicybetterthananyoneinthecountry.Healsohasbeenaleaderintalkingaboutrevolutionarytaxreform.When
ColinPowellgotfedupwithBushandsteppeddownassecretaryofstate, Lugar was the first name to bementioned.Althoughhewouldhavebeengoodforthecountry,itwouldhavebeenanimpos-siblejobwithBushstillpresident.Visclosky,ontheotherhand,ismilesapartfromLugarwhenitcomestosocialissues.Yet,thatdoesn’tbothereitheroneofthem.ViscloskyishighonthesenioritylistontheHouseAppropriationsCommitteeandchairstheSub-committeeonEnergyandWater.That’spower.HecouldbeAp-propriationsCommitteechairman
onedaysoon.That’sincrediblepower.Lugar,ofcourse,nowsitsontheminoritysideoftheaisle.Butbecausehemaybethemostrespectedmemberofthechamber,hehasn’tlostanyclout.Despitethepartylabels,ViscloskyandLugarareextremelyclose.IbettheyevenexchangeChristmascards.v
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lastweek,ameremonthafterhir-inghim(Lanka,Fort Wayne Jour-nal Gazette).KevinKnuth,AllenCountyDemocraticchairman,saidWednesdaythattheHenrycampaignreleasedJasonAscher,whowashiredascampaignmanagerMay 1.Knuthsaidalthoughhewouldstillrecom-mendAscherforajob,themanagerdidn’t fit with the campaign’s strategy. OneexamplewasAscherdidn’thaveexperienceworkingwiththemediatothelevelnecessaryforthisyear’smayoralrace,hesaid.SteveShine,Al-lenCountyRepublicanPartychairman,said the firing shows that the Demo-craticmayoralcandidate’scampisin“disarray”andlacksfocus.
Souder slamsborder security WASHINGTON-AborderguardwhoignoredinstructionstodetainaTB-infectedtravelerataU.S.-Canadiancheckpoint“underminesthe American confidence that you havecontroloftheborder,”Rep.MarkSouder,R-3rd,toldHomelandSecu-rity officials Wednesday (Smith, Fort Wayne Journal Gazette).
Legislative Council won’t study toll road lease INDIANAPOLIS-LegislativeleadersWednesdaydeterminedwhichissueslawmakerswilltackleinvarioussummerstudycommitteesbutheldoffonexaminingvariousproblemssurroundingtheIndianaTollRoadlease(Kelly,Fort Wayne Journal Gazette).TheIndianaLegislativeCouncil–headedbySenatePresidentProTemDavidLong,R-FortWayne–approvedtheothertopicsunani-mously.Theyinclude:Impositionofthedeathpenaltyonthementallyill;Vehiclecrashesinvolvingcommercialmotorvehicles;Variousannexationissues;Theuseofjudicialmandates;Evaluationofeconomicdevelopmentincentivesenactedin2001;WhethertheIndianaGamingCommissionhas
theauthoritytograntpermissionforriverboatstooperateonbarges;andconfined feeding operations.
Smith resignationmight be delayed EASTCHICAGO-ReportsofstateSen.SamSmith’sresignationwereprematurebyaboutamonth,atopstateDemocratsaidWednesday(Guinane,TimesofNorthwestIndi-ana).Smith’sboss,SenateMinorityLeaderRichardYoung,D-Milltown,toldacommitteehearingpackedwithlegislatorsandlobbyiststhatatleastthreedifferentmediaoutletsmisre-portedthetimingofSmith’sresig-nation.YoungmadethestatementWednesdaydespiteanearliernewsreleasefromYoung’sstaffannouncingSmith“willresignfromhispositionasSenatorfromSenateDistrict2effec-tiveJune6.”ThedelaygivesSmith,D-EastChicago,anextramonthtoconvinceLakeCountyDemocratsthathiswifeisthebestchoicetoreplacehim.DianeSmith’scandidacysofarhasreceivedalukewarmreceptionfromregionpowerbrokers.
Hoosier airmankilled in Iraq MISHAWAKA-A33-year-oldAirForcememberfromnorthernIn-dianadiedalongwithanotherairmanduring a bombing in Iraq, military offi-cialssaidWednesday.Tech.Sgt.RyanA.BalmerofMishawaka,Ind.,waskilledTuesdayinKirkuk,theDepart-mentofDefensesaid.
Immigration bill ‘fragile’ INDIANAPOLIS-Afragilecompromisethatwouldlegalizemil-lionsofunlawfulimmigrantsriskscom-ingunraveledaftertheSenatevotedearly today to place a five-year limit onaprogrammeanttoprovideU.S.employerswith200,000temporaryforeignworkersannually.The49-48votecametwoweeksaftertheSen-ate,alsobyaone-votemargin.v
Schalliol joinsBaker & Daniels INDIANAPOLIS-CharlesE.SchalliolwilljoinBaker&DanielsLLPnextmonthwhenheleaveshispostas director of the Indiana Office of ManagementandBudget.Schalliolrecentlyan-nouncedhisintentiontoleavestategovernmentaftertwo-and-a-halfyearsandreturntotheprivatesec-tor.SchalliolwasIndianaGov.MitchDaniels’ first appointment following theNovember2004election.SaidSchalliol.“Ilookforwardtoworkingin those focus areas with the firm’s attorneysandtheirclientstoadvancethestate’seconomicandlifesciencesbase.”SchalliolwillstartJune11.
Young asks Carterto investigate gas prices INDIANAPOLIS-SenateMinorityLeaderRichardYoung(D-Milltown)deliveredaletterearlierthisweektoIndianaAttorneyGeneralSteveCarterrequestingthatCarterinitiateactionthroughthenation’sAttorneysGeneraltoinvestigatetheconditionsthathavebroughtaboutskyrocketingfuelprices.Similarmes-sagesweresenttoIndiana’sCongres-sional Delegation. “As public officials, wehavearesponsibilitytoinsurethatnooneistakingadvantageof,ormanipulatingthevariousfactorsthatimpactthepriceofgasoline,”YoungappealedinthelettertoCarterandIndiana’s elected officials in Washing-ton,D.C.
Henry firescampaign manager FORTWAYNE-FortWayneDemocraticmayoralnomineeTomHenryremovedhiscampaignmanager
