By BRIAN A. HOWEY INDIANAPOLIS-Itseemssolongagothatwewatchedwithrealan-ticipationEvanBayh’sHoosiergovernorshipasitcommencedin1989.Itbeganinanerabeforee-mailandtheInternet.ItwasanerawheretheColdWarendedandwetalkedofthe“peacedivi-dend.”CrackcocainehadyettospreaditsawfultidebeyondFortWayne.Wewerestillexecutingourworstcriminalsintheelectricchair.Itwasadifferentadministrationinthatinsteadofbeingthecapstoneofapoliticalca-reeraswehadseenwithmostofourgovenors,itwasjusttheambitiousbeginning.

TheBayhgovernorship,whichendedwithan80percentapprovalratingandavirtualcoronationintohis

father’soldU.S.Sen-ateseattwoyearslater,willbecomeoneofthebasicplanksonthenowunfoldingpresidentialaspira-tions.EvanBayhwasanexecutiveforeightyears,makinglifeanddeath decisions, fight-ingcrime,educatingtheyoungandforg-ingjobs.Hecreatedthemoderncampaignmode,matchingarelentlessmessageintoacommunicationnetworkthatwentovertheheadsoflegislators

Gov. Bayh, 10 years later

Watching Bayh’s first steps ...

Thursday, Aug. 17, 2006V13 N2

By DR. LAWRENCE M. BORST INDIANAPOLIS-DuringalloftheyearsthatEvanBayh served as an elected official for the State of Indiana,

IalwayshadthefeelingthateachprogressionwasjustonemoresteptobecomethePresidentoftheUnitedStates. Evenassecretaryofstate,EvanBayhandEdLewishadchartedouthispoliticalfuture.ThispoliticalfutureoutlinedhowaConservativeDemocratGovernorfromtheMidwestcouldobtainthe

Seepage3

“I’m not anti-business. Wal-Mart has become emblematic of the anxiety around the country and the middle-class squeeze.” - Sen. Evan Bayh in Iowa at a Wake-Up Wal-Mart rally

HPR Special 2008 Presidential Report

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HOWEY Political Report Weekly Briefing on Indiana Politics Page 2 Thursday, Aug. 17, 2006

Gov. Bayh’s accomplishments p. 4Bayh’s election scorecard p. 5Making a fiscal conservative p. 8

100 Days until Bayh declares p. 10 Ticker: Merritt reportedly drops out p. 11 HPR: Beginning our 13th Year of Analysis

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DemocratnominationforPresidentoftheUnitedStates. Asthe“newkidintown”,hewasnotdeterredbythefactthatothers,suchasFrankO’Bannon,hadbeenaroundlongerandhad“paidtheirdues.”EvanfeltthathewasonamissionandthattheGovernorshipofIndianawastobehis. Once elected asgovernorheformedaTaskForcetoascertainhowtotrimthecostsofstategovernmentandhowtoreduceitssize.Thesav-ingsclaimedweredubiousbutseemedtoresonatewiththepublic.Heimmediatelymadeitforbiddenforstateemployeestoacceptsomuchasacupofcoffee.Thisedictwasneverreallyenforced,butagain,waspopularwiththepublic.Heallowedfortheunionizationofstateemployeesandgavethemtheabilitytobargaincollectively.Thiswaspopularwithhis campaign financial supporters, but thenneverenteredintoanymeaning-fulbargainingwiththenewlyformedunions. Gov.Bayhtreatedhissupport-erswiththephilosophy:“theyneedmealotmorethanIneedthem.”Hewasabsolutelyright. Publically, Gov. Evanannouncedmanyinnovationsandchanges,newoversightboardsandcommissions,wheninfactmostwerejustare-namingprocessorthecom-biningoftwoexistingboardsintoonewithanewname.HewasmostintentinrepealingeverythingthatGovernorOrrhadaccom-plishedinK-12.TheA-PlusPro-gramwastakenapartbitbybit.Sincelegal-izationofriverboatcasinos,pari-mutualhorsebet-ting,andthestatelotteryalloccurredunderhisstewardship,hispersonalfear

ofbeingrememberedinthehistorybooks,asthe“GamblingGovernor”,hasnothappened,hecancampaignnationallyasaninnovative

ex-governor. Gov.BayhhadverylittlecontactwiththeSenateFinanceCom-mittee.IdoubtthatImetwithhimeighttimesineightyears.Whatevercameoutofthelegislature,heseemedtoac-cept.Gov.Bayh

alwaysmadethe final decisions. I would never take thewordofanunderlingthat“theGovernorwantsthis”untilIhadputinacalltotheGovernorhimself.There

werenomorethanfourpeopleinorouttheBayhadministrationthatcouldspeakfortheGovernor IthinkthatGov.Bayhthor-oughlyenjoyedmovingthe“Capitol”aroundthestatefromtimetotime.Hewasverygoodatlistening.Hisguidingpolicyof“don’trocktheboat”wasgoodforIndianaatthatparticulartimeinhistory. By borrowingthefriendsandassociatesofEdLewis,Bayhstaffedhisadministrationwithable,competent,andhonestindividuals Ipersonallywishhimgoodluckinhispresentefforts.EvanBayhwouldcertainlymakeabetterPresi-dentthansomeinhispoliticalpartythat are seeking the same office. Personally,onceagaininIndi-anahistory,theothersittingIndianaUnitedStatesSenatorwouldbethebetternominee.v

HOWEY Political Report Weekly Briefing on Indiana Politics Thursday, Aug. 17, 2006Page 3

andintothemindsofthepeople.Hetotallyunderstoodthemessageandunderscoredhisthemestimeandagain. It’sbeen10yearssinceBayhwalkedoutofhissec-ond floor Statehouse office. That’s more thanenoughtimeforanassessment.Ithasbeenreduceddowntoashort,tidyparagraphonWikipediaandhistorybooks:MoreconservativethanhisliberalSenatorfather,Gov.Bayhusheredinbillion-dollarsurpluses,steadilyincreasededucationfunding,cre-atedthe21stCenturyScholarsprogram,theAccessIndianawebsiteandabout390,000jobs.Heneverraisedtaxesand,infact,signedthebiggesttaxcutinstatehistory.TheWall Street Journalsummeditupsuccinct-lyin1992,saying,“Mr.Bayh’srecordisoneofagenuinelyfiscally conservative Democrat.” Political observers in both parties-partiallyoutofadmirationandsomewithdisdain-wouldcallEvanBayha“Republicrat.” ThelatecolumnistHarrisonJ.Ullmann-whowastheinitialcontactbetweenBayhandFrankO’Bannonthatforgedthemold-shattering1988Democraticticket-lumpedhiminwithanotherambitiousman,StephenGoldsmith,andtheybecamethe“Bayhsmiths.” “WehavegiventheBayhsmithsourgovernmentsso they may use Indiana’s public offices to demonstrate to therestofAmericathattheyarecompetentforAmerica’shighest offices. The Bayhsmith named Evan, returns from conferencesofgovernorstotellusweareenviedforourcheapandtinystategovernment,”notedUllmann. Six months before Bayh left the governor’s office, hedeliveredthekeynoteaddressbeforethe1996Demo-craticNationalConventioninChicago.HeexplainedwhyhebelievedhewaschosenforthekeynoteinaninterviewwithMargaretWarner: “Ibelieveithassomethingtodowithhavingarecord in Indiana of balancing budgets but still being fis-callyorsociallycompassionate,ofcuttingtaxesforworkingpeople but still finding the means to provide more for edu-cationandhealthcareandtheotherneedsofoursociety,

reformingwelfareinaresponsibleway,andthosekindsofthings,”Bayhsaid.“ItprobablyhastodowiththefactthatIcanspeakwithsomeauthorityaboutthePresident’sef-fortsandwhathehopestodoforourcountry.”

Fiscal conservatism from the bully pulpit Bayh talked about fiscal conservatism,amoderatesocialagendaanduseofthegubernatorialbullypul-pitasacommandingandinfluential view of Hoosier society.Bayhstrayedinfre-quentlyfromthethemeshetalkedaboutattheearliestpartofhispoliticalcareer.Hismantrawas“nonewtaxes,”andwhileRepub-licansliketoremindfolksofhiscigaretteandhospi-taltaxincreaseproposalsin1993,theBayhyearsproduced the kind of fiscal conservatismthatbackin1984wouldhavebeenmoreakintoDocBowen.FormerRepublicanHouseSpeakerPaulMannweiler,

explains,“Hewasn’taveryhandsonguy.Hedidalotofcontrollingthemessage.Hewasverygoodatsayingwhatwaspopular.” BothMannweilerandlong-timeSenateFinanceChairmanLarryBorstsaytheyhadfewface-to-facemeet-ingswithBayhduringhiseightyears.“Youdealtwithhisstaffmorethananything,”Mannweilersaid.

A talent magnet The Bayh staffing has become one of his biggest legacies.HispoliticalmachinenotonlyrevivedtheoncemoribundDemocraticParty,butforgedupsetsbySecre-taryofStateJoeHogsett(overBillHudnut),AttorneysGeneralPamelaCarterandJeffModisett,theextensionoftheDemocraticgubernatorialdynsastyto16yearswithLt.Gov.FrankO’Bannon’supsetwinin1996overStephenGoldsmith,andBartPeterson’sepicderailingoftheMarionCountyGOPmachineinthe1999Indianapolismayor’srace.Thegovernorhadcoattails,bringingalongadditionalDemocraticHouseseatseachtimeheran.Heisinthor-oughcommandoftheIndianaDemocraticPartytothisday,havingselectedthelastseveralpartychairs.ItisapartythatistacitlygearingupfortheBayhpresidentialruneveryoneknewwouldcomesomeday.

From page 1

U.S. Sen. Evan Bayh on a recent trip to Iowa to campaign for president. Former House Speaker Paul Mannweiler calls him “well seasoned” after his two terms as Indiana governor. (Bayh Flickr Photo)

HOWEY Political Report Weekly Briefing on Indiana Politics Page 4 Thursday, Aug. 17, 2006

“Thisgroupofsuperbpublicservants--underhisleadership--laidtheground-workforhisoverwhelming1992re-election,anditcanfairlybesaid,FrankO’Bannon’ssuccessin1996,”saysWilliamMoreauJr.,oneofBayh’schief-of-staffs. Mannweilermen-tionscurrentIndianaSupremeCourtJusticeFrankSullivan,who helped craft Bayh’s fiscal conservatism into the fitful budgetsthatpassedduringthetroubledrecessionoftheearly1990s.AnotherwasJamesVerdier,whohelpedreininmonstrousMedicaidcoststhathadthepotentialofdevouringstateinitiatives. “EvanBayhcalledtoservicesomeofthemostremarkablehumanbeingswhohaveeverheldpositionsofresponsibilityinIndianastategovernment,”Moreauadded.“Iwouldhappilyinviteanyob-jectiveanalysttomatchthosefolks’credentials--andrecords--withanygroupofIndianapublicservantseverassembled.Thesewerehonest,ethicalpeoplewhogotupeverydaytrying to figure out how to do theirjobsbetterand,yes,theyweremotivatedbyagovernorwhodemandedexcellence.” Moreaucontinued,“EvanBayhwasthekindofgovernoryouwantedtopleaseandthekindofgovernoryouneverwantedtodisappoint.Therewereconsequencesfordisappointment,andIwould

Key Bayh/O’Bannon Accomplishments Taxes Bayh’s two terms as governor marked the first eight-year period in 40 years withoutataxincrease.ItwasfollowedbyeightmoreyearsduringtheO’Bannon-Kernangovernorshipswithoutageneraltaxincrease.Bayhslashedthestate’sannualautoexcisetaxinhalf,savingtaxpayers$1.6billionoversixyears.

Budgets Bayhreducedfull-timeemployeeby1,600or4percent,outsideoftheDepartmentofCorrections.There,headded4,000newprisonbeds.In1996,Bayhinvested $250 million in pensions. Bayh left office with a $1.6 billion budget surplus. ReducedMedicaidexpendituresfrom14percentoftotalspendingto9percent.Pro-vided$146millionintheBuildIndianaFundfromHoosierLotteryproceeds.

Welfare Bayhimplemented50waiversoffederalwelfareregulations.Heclaimedtohavehelpedtransition1,000familespermonth,saving$140million.Added31,000childcareslots.Bayhclaimsthatchildsupportpaymentsdoubledduringhiseightyears.HisFSSAreorgnizationresultedinthethetransferofdecision-makingauthor-ityto92county-basedstepaheadcouncils.ItcombinedtheDepartmentsofHumanServices,MentalHealthandPublicWelfare.ClosedCentralStateHospitalonJune30,1994,claimingtoredirect$19.5millionintocommunitybasedcare,sending400residentselsewhere.Criticssaidmanyofthemendeduponthestreets.

Education Increasededucationspendinginhisfourbiennialbudgetsthatincluded$3.1billion in new dollars for K-12 education above rate of inflatoin. Boosted $1.5 billion innewhighereducationdollars.33,000studentsbecame21stCenturyScolarsbykeepingaCaverageandstayingoffdrugs.Linked295schoolcorporationstotheinternetby1997.

Crime Sent50IndianaStatetrooperstoGaryfortwomonthsin1995.Proposedandsignedtoughersentencingguidelines.40percentreductionindrunkdriving.Execut-ed two death row inmates, the last in the electric chair and first by lethal injection.

Roads CompletedI-469atFortWayne,theU.S.20bypassaroundSouthBend,MishawakaandElkhart.CompletedI-164toEvansvillefromI-64Extendedfour-laneIndiana37tojustnorthofMitchell.

Jobs Added390,000newjobs,butthatincluded7,500jobsattheUnitedAirlinesMaintenanceFacilitythatwerenotrealized.MajorcompanyexpansionsincludedToyotaatPrinceton,AKSteelatRockport,ChryslertransmissionatKokomo.7per-centmanufacturingjobexpansion. Environment Largestexpansionofthestateparksystemsincethe1930sbyaddingFortBenjaminHarrison,Prophetstown,SummitLakes,CharlestownandFallsoftheOhiostateparks.Toxicchemicalemissionsdeclinedby82percent.Haltedalmostallofout-of-state waste being dumped into Indiana landfills. v

HOWEY Political Report Weekly Briefing on Indiana Politics Thursday, Aug. 17, 2006Page 5

addtothelistofaccomplishmentsEvanBayh’sabilitytodi-rectpeopletoreturntotheprivatesector,whennecessary.This recruitment of excellent people, tight ethical and fiscal controls, and management decisiveness -- amplified by EB’s extraordinarycommunicationskills--convincedHoosiersthatDemocratscould,infact,govern.Thiswasnomeanfeatafter20yearsofrulebytheotherparty.IndianaDemocratshadliterallylostagenerationtostategovern-mentservice,andHoosierswereunderstandablyskepticalaboutourabilitytobegoodstewardsoftheirmoneyandtheirambitions.

“Herecruitedpeopleofallcolors,religions,back-grounds,sexualorientations,etc.Thereweresomany‘firsts’ among his appointees to the executive branch, the judiciaryandboardsandcommissionsweliterallylostcount,”Moreausaid.

Learning curve While Gov. Bayh left office with the huge $1.6 bil-lion surplus and lofty approval rating, the first years were troubled. The new governor came into office with scant time to present his first biennial budget (and for this rea-son,HPRarguesthattheIndianaGeneralAssemblyshouldconvene at the first of February in long-sessions after a gubenaotrialelection).Hissecondbudget-in1991-ex-posedhisenigmaticleadershipskillsintheIndianaGen-eralAssemblythateventuallysawtwocontentiousspecialsessionsthatlasteduntilmid-June.HehadfewStatehouserelationships and that was exacerbated by the first 50/50 splitHouseinIndianahistoryin1988.Hedidn’tsubmithisfirst spending plan until fewer than 15 sessions days were

leftin1989. IndianaChamberPresidentKevinBrinegar,workingontheFi-nancestaff,recalls,“It was the first timeinalongtimetherehadbeenaDemocraticgover-norandyouhadthe 50/50 house. We’dgonethroughthisperiodoftimewhereRepubli-cansputbudgetstogetherintheHouse,andtheDemocratswould

putinallthesepetprojects,getitoverto

theSenateanditwouldusuallybetheSenatewhichwouldcleanitupfurther.” BrinegarsaidthatWays&Meansco-chairB.PatrickBauerputthebudgettogether“perse.”TheRepublicanco-chair,currentIndianaManufac-turersAssociationPresidentPatrickKiely,wenttohiscaucuswithcop-iesofDemocraticamendmentsfromrecentyears,passedthemoutandsaid,“Whowantstoofferthisone?Thisone?” TheDemocratsdidn’tshootthemdownonthefloor; the Senate didn’t clean it up and Gov. Bayh’s first budgetwas“hundredsofmillionsofdollarsoverbalance,”Brinegarsaid.Bayhvetoedthatbill.Thebudgetthatpassedinthe1989specialsessionwasevenbigger. ByDecember1990,thebudgetforecastwasfora$966 million deficit by June 1993. Bayh imposed a hiring freeze,and3percentagencyreductions.Stateagenciesreturned$233millioninunspentfunds;with$67millionmore reversions in 1992 that finally balanced the budget. Hissecondbiennialbudgetin1991wassubmitted

1986 Indiana Secretary of StateEvanBayh828,494RobBowen(R)704,952

1988 GovernorEvanBayh1,138,57453%JohnMutz(R)1,002,20747%

1992 Indiana GovernorEvanBayh1,382,15162%LinleyPearson(R)822,53337%

1998 U.S. SenateEvanBayh1,012,24464%PaulHelmke(R)522,73235%Other23,6411%

2004 U.S. SenateEvanBayh1,496,97662%MarvinScott(R)903,91337%Barger(L)27,3441%

Govs. Edgar Whitcomb and Evan Bayh at the 2003 funeral of Gov. Frank O’Bannon. (HPR Photo by Brian A. Howey)

HOWEY Political Report Weekly Briefing on Indiana Politics Thursday, Aug. 17, 2006Page 6

early-inJanuary-butdidn’tconcludeuntilaftertwospe-cialsessions.Thatproducedoneofthehallmarkphrasesofhisgovernorship.Frustratedbylegislativeleaders,Bayhturnedtowhathecalledthe“whitehotheatofpublicopinion.”Hedidn’tdistinguishbetweenparties,notedJohnKet-zenbergerina1992analysisfortheFortWayneJournal-Gazette. UnlikeGovs.RobertOrr,DocBowenandMattWelshwhowerecreaturesofthelegislatureandworkedfromwithin,Bayhtookhismessagerightovertheirheadsanddrugthemalong.Orhejustclaimedvictorynomatterwhatactuallyhappened.Thinkofthebudgethevetoedwithgaming.Thelegislaturecalledhisbluffondanglinggamingasawaytogethisbudgetpassed.Instead,HouseSpeakerMichaelK.PhillipsandotherstookthegamingandtheRepublicanbud-get. “AsIrecallhejustclaimedvictoryastimewenton,”saysKarlBerronoftheIndianaRealtors.“Samewiththehospitaltaxincrease.Afteritwaskilledbythelegislaturehetookcreditforkeepingtaxesdown with a fly-around. Our polling through that period alwaysshowedthatthepublictrustedGov.BayhmorethanRepublicansontaxes.Itdrovethemnuts.”

A record re-elect Despitetherecessionandbudgettroubles,BayhhadsuccessesthatincludedlandinginNovember1991abillion-dollarUnitedAirlinesmaintenancefacilityinIndia-napolis.InMarch1992,herevealedplanstobalancethebudget. TherewereotherstepsthatBayhtookthatim-pressed upon Hoosiers a decisive leadership style. He fired HoosierLotteryDirectorJackCrawfordafteramessyaffairbecamepublic.Heendedtheprisonfurloughprogramfol-lowingthemurderofaMishawakawomanbyherex-hus-band,AlanMetheny. InNovember1992,Bayhwasre-electedwith62percentofthevote,anIndianarecordthatstillstands.Hisnational rising star was officially cast.

But one more messy budget Hissecondtermcommencedwithoneofthemostcontroversialbudgetsessionsinstatehistoryin1993.Thestatewastillunderconsiderableeconomicduress.

DemocratscontrolledtheHouse;RepublicansintheSen-ate.Theonlywayoutofthesedisparatespendingpriori-tiesturnedouttoberiverboatcasinos.DemocraticHouse

SpeakerMichaelK.Phillipspushedthecasinos,butBayhvetoedthebudgetjusthoursbeforethestate’sfiscal year was to end. “Everybody hadwantedtogohome,”Brinegarrecalls.“Somefolkswerereallybe-ing hindered financially not getting backtotheirjobs.Intheend,Gov.Bayhvetoedthebudgetbecauseofthegaming,andlegislaturealmostimmediatelyoverrode. Through Bayh’s first three, tortur-ousbudgets,therewasoneconsis-tency:nonewtaxes,thoughatonepointBayhdidproposecigaretteandhospitaltaxincreases. Whilethegovernorandlegislatorscouldpointtonogeneraltaxin-creases,theburdenshiftedtoprop-ertytaxes,leadingLt.Gov.FrankO’Bannontocampaignin1996onaplatformoftaxreform(thoughthatdidn’toccuruntil2002). EarlRyanoftheIndianaFiscalPolicyInstituteandDavidBennettof

theTaxpayerResearchAssociationacknowledgedthatthefirst three Bayh budgets were creative in what was widely called“smokeandmirrors.” “Theyhadtodosomecreativeaccountingdur-ingthecourseoftherecessiontoavoidtaxincreases,”explainedRyanina1994HPRinterview.“Nowthattherevenuesystemisbeginningtoproduce,they’vegottenoverthehardpart.” Therearemoreexplosivestododgeoverthenexttwoyears.TheBayhadministrationtargetedmorethanhalfabillion-dollarsinMedicaidcutsthathadthepotentialof swamping state finances. Intheir1994interview,bothRyanandBennettwereinchorusthatBayh,MedicaidchiefJamesVerdierandhisBudgetDirectorJeanBlackwellsteppedonalotoffeet.“Theymadealotofclientgroupsmadatthem,”Ryansaid.“Atthesametime,theymanagedthingssothatnostateprogramwasdecimated.Educationcom-plained,butnonethelessitwasaslowdowningrowthandnotahugecutback.” AddedBennett,“Theymadeeverybodymad,whichmeanstheydidaprettygoodjob.Alotofpeoplecantakecredit,butEvanBayhwasthegovernor.Thiscameonhiswatch,andhedidn’traisetaxes.Wegothroughtherecessionwithoutanytaxincreasesmanyotherstateshadtogothrough.”

Gov. Evan Bayh with some of his 21st Century Schol-ards.

HOWEY Political Report Weekly Briefing on Indiana Politics Thursday, Aug. 17, 2006Page 7

Welfare and wages ThelatterpartoftheBayhgovernorshipwasmarkedbytwoissuesthatdemonstratedhiscentristpath.Hewasanearlypioneerinwelfarereform,coaxingoutoftheClintonadministration50federalwaivers. Gov.Bayhwouldclaimtohavehelpedtransition1,000familespermonthfromwelfaretowork,saving$140million.Thiswasoneofthehotissuesthatledtothe1994RepublicanrevolutioninCongressthatBayhmissedduetofortunateelectioncycling.Infact,hewasinfrontoftheissuebeforemostinhisparty.Welfarecaseloadshadrisen34percentbetween1989and1994. He explained this facet of his fiscal conservatism toMargaretWarnerontheeveofhis1996DemocraticNationlConventionkeynote:“Iviewbalancingthebudgetand fiscal responsibility as a necessary precondition to socialcompassionandprogress.Thepeoplewhogethurtfirst in our country, the poor, the sick, the young, are those whodependuponthegovernment.Soifwegobankruptas a state or a country, they’re the ones who get hurt first. Ifwe’regoingtodomoreforeducation,moreforhealthcare,morefortheenviron-ment,weonlycandothatifwehavethemoney.Andthatmeansbalancingourbudgetandgrowingoureconomy.SoIthinkthattheprioritieswouldbealittlebitdifferent.” “Manyfearedasocialcalamityafterthesewaivers,”notesUniversityofMarylandProf.DouglasJ.BesharovoftheAmeri-canEnterpriseInstitute.“Butintheyearssince,althoughresearchershavestrivedmightily,they’vefoundonlysmallpocketsofadditionalhardship.Evenbetter,theearningsofmostsinglemothersactuallyrose.” Besharov,writingthisweekintheNew York Times,givessomeofthecredittoBayh-stylewelfarereform,whichhesaysaccountsfora25to35percentre-ductioninwelfarecaseloads,butalsocreditsanimprovedeconomy.“Yes,welfarereformreducedwelfaredepen-dency,”Besharovobserves,“butnotasmuchassuggestedbythepoliticalrhetoric,andagreatdealofdependencyisnowdiffusedandhiddenwithinlargersocialwelfarepro-grams.” Thesecondwastheprevailingwageshowdownin1995.Republicans,sweptbackintocontroloftheIndianaHouseduringthe1994tsunami,hadbeenapproachedbylocalgovernmentsandcontractorstohelpcutschooland

municipalconstructioncosts.Thatresultedintheprevailingwagelegislationthatproducedanout-ragedlabormove-ment.Some25,000workersgatheredforoneofthebig-gestStatehouseralliesever. Bothsidesdugin.Mannweilerremembersappear-ingonaWFYI-TVshowtapingasthesessionwasendingwithHouseMinorityLeaderJohnGregg.“HenoticedthatSen.(Robert)Gartonandmyselfweren’tveryanimatedaboutprevailingwageandhesensedsomethingwasup.”GreggrushedbacktotheStatehousewherehelearnedthatBayhwasn’tgoingtoholdupthesessionwithapre-vailingwageveto. Thatbroughtagreatdealofgrumblingfromorga-nizedlaborabout“carryingthewaterforEvan.”BrinegarsaidthatGov.Bayhhadtheattitudeof,“Theymaybeup-set,butwhereelsearetheygoingtogo?”Afteritbecamelaw,therewerenostudiesavailabletoverifythatprevailingwagesavedlocalgovernentsanything.

The auto excise cut Throughouthistwo-yeartenureasRepublican

Chairman,AlHubbardconstantlycomplainedabouthow“EvanBayhisstealingourideas.” Theclassicexampleofthiscamein1994-95.LegislativeRe-publicanshadbeenproposinganauto license plate tax cut. At first, Gov.Bayhwasnotenthused.Butastheeconomyheatedupandthesurplusesgrew,Bayhbecameaconvert. “Borsthadconcerns,”Man-nweilerrecalled.“Hedidn’tthinkwecouldaffordtodoit;maybephaseitin.Butwithsomuchmoneycomingin,BorstagreedandGov.Bayhjumpedoutfrontandtookcreditforit.Butitreally

wasaRepublicanplan.Wespeditup.”Yettheindelibleim-agethatemergedwasBayhwiththehugeIndianalicenseplatethatread“TaxCut”beingslicedinhalf.

Bookends on the ‘Education Governor’ Gov.Bayhcalledhimselfthe“EducationGovernor”andhepresidedovera7percentincreasein1989,another7percentinthe1991biennialbudgetduringtherecession.Bayhwouldboast$3.1billioninnewmoniesforeducationduringhistwoterms,andanother$1.5billionforhighereducation.Hehasreceivednationalattentionforhis21stCenturyScholarsprogramthatgavecollegescholarshipstosome34,000lowerincomeHoosierstudents. ButtheBayhgovernorshipwassandwichedinbetweentwobolderinitiatives-Gov.RobertOrr’s1987A-

HOWEY Political Report Weekly Briefing on Indiana Politics Thursday, Aug. 17, 2006Page 8

Plusprogramthatraisedtaxes,andGov.FrankO’Bannon’sestablishmentoftheEducationRoundtableandincreasedcourse and accountability standards. There were significant educationinitiativesoneithersideofGov.Bayhthatwerefargreaterinreachandcontroversy.

A prudent governorship Hiscrackdownondeadbeatparentsforchildsup-port,a40percentreductionofdrunkdriving,anexpansionofin-homecareforseniors,a4percentreductionofthestateworkforce(outsideofcorrections),andtheelimina-tionorreductionof650feesallpointtowhatcouldbetermedprudentBayhleadership. TheBayhgovernorshippresidedoverthecrackco-cainecrisisthatengulfedFortWayneinthelate1980sandthenspreadtoAnderson,Muncie,BloomingtonandIndia-napolis,whichwasrecording160homicidesayearinthemid-1990s.Bayhrespondedbyadding4,000newprisonbeds. Itwasonthecrimeissuethatproducedoneofthemorememorablesequencesandphotosofhisgovernor-ship.GaryhadbecomeMurderCapitalUSAagain.OnOct.3,1995,BayhparadedintotheSteelCitywith50IndianaStateTroopersand25squadcars.“Ourcityhasenduredeconomicandsocialdislocationofimmenseproportionsforseveraldecades.Thissupporthelpsustograpplewithanimportantfalloutofthatdislocation--toomanyguns,toomuch drug abuse and trafficking, too much violence,” said GaryMayorThomasBarnesinthePost-Tribune.

Achievements, disappointments Asforthedisappointments,Moreauexplains,“Ihaveafew.IthinkfolksgrosslyunderappreciatedthetoughdecisionsEvanBayhmadeeverydaytokeepthestatebudgetintheblack.Ithink(FirstLady)Susan’sincrediblecontributionswereundervalued.Herliteracyeffortschangedmany,manylives.Certainly,thereweresomeknuckleheadswhosnuckthroughthevettingpro-cessandscreweduproyally,butIdobelievehistorymustrecordthatEvanBayhledascandal-freeadministration.Idon’tthinkfolksappreciatedthewayEBbrokethebackofthe2percentclearancecardsystemandmentality.Onthepoliticalfront,JoeHogsett’sdefeatsweresopainful,aswasStanJones’andthe1994landslidethatburiedKatie(Humprheys),Tim(Jeffers),Elmo(Gonzalez)andAllison(Wharry)andcostustheHouse.Awful.” FormerIndianaRepublicanChairmanRexEarlyrecallsBayhassomewhatofamicromanager.“Heknewwhatwasgoingonineachofhisdepartments.Hedidafairlydecentjob,”saidEarly,whoservedwithSecretaryofStateBayhonthe1986legislativeandcongressionalrecountsinElkhartandSt.Josephcounties.EarlysaidBayhwaseverconscienceofthepolls,includingtheerawhen

The Makings of a Fiscal Conservative

Earlierthisweek,theNew York Times recountedhowseveralsons-JackCarterandEvanBayh-werefol-lowingtheirfathers’footstepsintonationalprominence. HereisanexcerptofBayh’sexperienceascam-paignmanagerforhisfather’sunsuccessful1980re-elec-tioncampaignagainstU.S.Rep.DanQuayle: Bayh was 24 whenhisfatherranforre-electionin1980;hetookabreakfromlawschooltobechairmanofhiscampaign.Itwasclear,earlyon,thatitwouldbeatough election: double-digit inflation, a hostage crisis, an embattledDemocraticpresidentatthetopoftheticket,andtheemergenceofatoughnewconservativeorganiza-tionknownastheNationalConservativePoliticalActionCommittee,orNcpac.Ncpacwantednotonlytodefeatagenerationofliberals—Mr.Bayh,Mr.Culver,SenatorGeorgeMcGovernofSouthDakota,SenatorFrankChurchofIdahoandahandfulofothers—butalsoto“sendashiverdownthespineofeveryotherliberalsenatorandcongressman,” as one official put it. They succeeded at both. Afterward, “I came closetobeingturnedofftopolitics,”EvanBayhsaid.“IlovemyfatherandIbelieveinhim.AndhelosttoDanQuayle.Ihadahardtimeunder-standinghowthatcouldhappen.”ButMr.Bayhsaidheul-timatelycametoseethelossas“anoccupationalhazard.”Headded:“Everyonceinawhile,anelectioncomesalongandwhoyouareandwhatyoubelievegetssubsumedinalargertide.Itjusthappens.”Peoplewantedchangein1980,hesaid.“AndIthinkpeoplewantachangenow,”headded.v

HOWEY Political Report Weekly Briefing on Indiana Politics Thursday, Aug. 17, 2006Page 9

ToyotawantedtolocateaplantatPrinceton.IttookBayhsometimetosignon,Earlysaid,particularlyafterBayhhadcriticizedhis1988opponent,Lt.Gov.JohnMutz,overtheJapaneseSuburup-IsuzuplantatLafayette.

A ‘caretaker governor’ In1997,HPR’sanalyzedthedepartingGov.Bayh:Manyobservershavebeenquicktoconsigntheterm“caretaker”toBayh’stwotermsin office. The political advantages thatcomewiththatreputationhavepropelledBayhintothenationalconsciousnessasatrue“NewDemocrat”atatimewhenPresidentClintonstrayedbothrightandleftinthespectrum. Theterm“caretaker”canbeseenasnegative.ButBayhwasacautiousgovernorwhoworkedthefringesandmarginsofwhatstategovernmentcando.ThefactthathedidnotoffertheboldstepsofDocBowenonanissuelikepropertytaxreformorGov.BobOrr’s“A-Plus”educationreformsallowedthecaretakertagtopersist. Whatyouhavetoremem-beristhatIndiana’sgovernorshipisconstitutionallyweak.Thegov-ernor’svetocanbeoverriddenbyasimplemajorityanditwassuchameaneuverthatopenedIndianalakesandriverstocasinosin1993.Bayh came to the governor’s office with an Indiana House split 50/50 andhadfewworkingrelationshipswithRepublicanandDemocraticleadership.Itwasn’tuntilthesixthyearofhistenure,forinstance,thatBayhandSenatePresidentProTemRobertGartonwereabletosettleintoaproductiveworkingrelationshipthathelpedproducethestate’slargesttaxcutinhistorylastyear. Thestorminessofhisrelationshipswiththelegis-lature were not confined to Republicans. Many Democrats chafedunderhiselusivestewardshipandthenumberofunfundedprogramsanddecliningservicesthatwouldhavefedtheirpoliticalconstituencies. WhileIndianahasa$1.6billionsurplus,italsohasadecrepitroadsystemandunbuilthighwayarteriesfromIndianapolistoEvansvilleandfromLafayettetoFortWayne.

The Daniels contrast TheadventoftheadministrationofGov.MitchDanielsdrawsasharpcontrasttothatofGov.Bayh.Itis

safetoarguethatGov.Danielshasexposedmorepoliti-calcapitalin18monthsthanGov.Bayhdidineightyears.BayhadvancedtotheU.S.Senatewithmuchofhisguber-natorialcapital.Aclassicexampleofthiscontrastcamein2005whenDanielswenttohissuburbanconservativebaseandsoldataxincreaseforanNFLstadiumtobelocatedin downtown Indianapolis that will benefit a Democratic mayorandCity-CountyCouncil.Thatwouldn’thavehap-penedduringtheBayh-O’Bannonera.Abigconstrast

betweenBayhandDanielsisthatthereislittlebitternessexpressedbyRepublicanstowardsBayhasheprepareshispresidentialcam-paign. Moreaucounters,say-ing,“OK,itmaynothavebeen‘CamelotontheWhiteRiver,’but the eight years of the Bayh/O’BannonadministrationwereamongthebestinIndiana’shisto-rybyanyobjectivemeasurementof job creation, fiscal stewardship, environmentalprotection,supportforeducationanddiversityoffolkscalledtopublicservice.Thoseofuswhowereluckyenoughtoserveareallstillveryproudofthatserviceandremainveryclosetotoday.”

ThedifferenceisthatlikemostIndianagovernors,theirten-ure at the Statehouse is their final politicalchapter.ForEvanBayh,itwasthesecondactinwhatwaswidelyperceivedasacareerthatwouldtakeaimattheWhiteHouse.

“Thisistheguywhoknewwherehewantedtogo,” the Chamber’s Kevin Brinegar. reflected this past week. “Thatwaswidelyestablishedprettyearlyandheworkedwellwithintheboundariesofthat.Heworkedpoliticallyasgovernortogettowherehewantedtobe.” TheoverallnotionwhenitcomestoEvanBayhisthathisyearsasgovernorhadbeengoodforIndiana.There were flashes of greatness and drama, as well as an overallsteadiness,alongwithsomemissedopportunitiesthatwouldhavebeenpoliticallyperilous.Hecertainlypro-jectedatruetwo-partydynamicintothestateoncedomi-natedbyRepublicans. Perhaps,givenhispresidentialaspirations,heisbettersuitedasaU.S.senatorthanagovernor.Asgover-nor,hispoliticalambitionsfetteredhimtopolicystandardsthathadtobekeptincheck. v

The HPR website - www.howeypolitics.com - now features the Bayh Resource Center with articles and columns about Evan Bayh dating back to 1984, covering his career as Indiana secretary of state, governor, U.S. Senator and an emerging presidential candidate. Today’s special report will be added to this resource center.

HOWEY Political Report Weekly Briefing on Indiana Politics Thursday, Aug. 17, 2006Page 10

Where’s the buzz?100 days until Bayh’s big announcement

By MARK CURRY ForthepastyearorsoEvanBayhhasbouncednon-stoparoundthecountrylikeasenatorialversionoftheEnergizerBunny. He’svisited24statesatleastonceandsome,likeNewHampshire,severaltimes.EarlierthisweekIndiana’sformer governor made his fifth appearance in Iowa for 2006,thistimetotouthisrenewableenergyplanamongstatefairgoers,attendaseriesoffundraisersandappearata“WakeUpWal-Mart”pressconferenceinCedarRapids. Afterwardhewasslatedtobeginamuchover-duetwo-weekvacationwithSusanandthetwins.Hewillneedthetimetorestandrecharge:Onlyabout100daysremainbeforeThanksgivingwhenthesenatorisexpectedtoannouncehewillindeedmakearunfortheWhiteHousein2008. SofarBayhandhissupport-ershavespentmillionsofdollarsanddedicatedthousandsofhourstode-velopapresidential-gradecampaignorganization.Aspreviouslynotedonthesepages,severalrespectedana-lystshavebeenimpressedwiththeresultinginfrastructure.Butsome,likeChuckToddofNational Jour-nal,hedgetheirpraisewithques-tionsabouttheBayhpersona.“Bayhhas to find a base-rousing issue that hecancallhisown,”Toddwroteinanarticlerankingthe2008Demo-craticcontenders.Bayhwaslistedasfourth,behindHillaryClinton,JohnEdwardsandMarkWarner.“Maybeit’llcomefromhisunionfriends,orshowupasaradical(butpractical)healthinsuranceproposal.Willitbeenoughtodifferentiatehimfromthetopthree?” ChrisCillizzaoftheWashingtonPostpoliticalblog,The Fix, is among Bayh’s most influential supporters in the media. He repeatedly ranks the senator among the five Democratsmostlikelytowintheparty’spresidentialnomi-nation.Inarecentarticlethepunditnotedthevalueofthesenator’sorganizationalstrengthinIowa,butconcludedwiththisparagraph:“Bayh’sbiggesthurdleishisperceivedcharisma deficit. In his speech yesterday Bayh was compe-tentandengagingbutnotinspiringoroverwhelming.Hisadviserssay-andweagree-thathehasmadeprogressinhisspeakingandstumpskills,butmuchworkremainstobedone.ThequestioniswhetherBayh’slow-keycharismawillhurthisabilitytogenerateasparkinIowa.”

Well-paidreportersaren’ttheonlyonestowonderifandwhenaBayhcampaignwillbeabletocreatethatspark,abuzz,somesortofsizzlethatwillpositivelysearhisnameinthevoterconsciousness.Naysayersateitherfringeeagerlycitelackofsuchasevidencewhenproclaim-ingBayh’scentristbrandwillfail.Evensomefriendsareworried-justtwoweeksagothiswritersatdownwithanoutrightBayhfanaticatanicecreamshopsouthofIndywhoaskedmuchthesamequestion. But these things must behandleddelicately.It’sallamatteroftiming:ThenextIowapresidentialcaucusesare15monthsout.Peaktoosoonintoday’sbroadbandworldandyou’reahas-beenbytheendoftheweek.Toolateandyou’reanever-was.Bayh’scompetitorsareasmartbunchwithavarietyofassets.Hillaryispopular,Edwardsportrayscharm,JohnKerryhasnamerecogni-

tion,evenWarneremitsaneophyteappeal.Bayhfacestheseeminglyindomitabletaskofpiercingthroughthemediaclutterinspiredbycurrentevents and the rest of the field. His campaignmusteffectivelydeliveranincisivemessagetoconvinceagoodnumberofpersuadablemoderatesthatthisHoosieristherealdeal. Supporters may find comfort in theinnovativeorganizationalplanimplementedlastweekwithBayh’ssend-offof50paidandtrainedstaff-erstothekeystatesofIowa,NewHampshire,Nevada,SouthCarolinaandIndiana.And,thesenatorhasdemonstratedheknowshowtostayonmessage.Herepeatedlytoutsthesubstanceofasuccessfulpubliccareer-aformerred-stategovernor,authorofaviableenergyproposal,smartandtoughonsecurity,pos-

sesseslaborandeducationcredentials,andsoon.Anyoneorcombinationofevents,aidedbydumbluckorabettedbyextensiveforesightandhardwork,couldcreatetherightsettingforBayh’sgrandentranceinto-orexitfrom-thecountry’spoliticalpsyche. Evan Bayh was born to politics.Hehasasig-nificant record as governor and senator. He demonstrates awinningworkethic.He’sassembledastaffconsideredbymanytobeamongthebest.He’sinthetoptierinfund-raising.Hehasafollowing,andit’sgrowing.Everythingisinplaceforahardchargeatthetape,butsoonerorlaterBayhmustseizeourattention,ifonlyforamomenttodemonstratehepossessestheabilitytoinspireandmoti-vateandleadthenationthroughthegoodandbadthatlayahead.Ifhedoesn’tanothercandidatecertainlywillandBayh’smomentwillbegone,possiblyforever.v

This photo adorns Evan Bayh’s page on myspace.com, where the senator writes that he would like to meet “People who think we ought to be investing more in The United States, it’s people and education system. HOPE in the future of our country!”

HOWEY Political Report Weekly Briefing on Indiana Politics Thursday, Aug. 17, 2006Page 11

VirginiaDillMcCartyandformerCon-gressmanAndyJacobs.TheSaturdaydinnerwillfeature9thCDchallengerBaronHilland8thCDchallengerBradEllsworth.

AG Carter targetsmore union funds HOBART-AttorneyGeneralSteve Carter and the Indiana/Ken-tuckyRegionalCarpenter’sUnionareseekingtorecovernearly$150,000intraininggrantfundstakenbyaformerofficer of the Carpenter’s Union Local 1005basedinHobart,Indiana.TheAttorneyGeneralandtheUnionhavejointly filed a lawsuit in United States DistrictCourtfortheSouthernDis-trictofIndianaagainstPaulHernan-dezwhohadbeenentrustedwitha$203,000traininggrant(HPR).“Theunionistobecommendedforitsef-fortsinseekingwaystoassistintherecoveryofstategrantfunds,”Attor-neyGeneralSteveCartersaid.“Thestateandtheunionwerebothvictimsofthisschemetodivertfundsforper-sonaluseandwehaverecognizedthevalueinworkingtogethertorecoverlosses.”

Cops lend supportto troubled BMV INDIANAPOLIS-Apairofhigh-profile law enforcement groups cametotheaidofembattledstateBu-reauofMotorVehiclesCommissionerJoelSilvermanonWednesday(Times of Northwest Indiana).Aftermeet-ingwithSilvermanlastweek,theIndianaAssociationofChiefsofPoliceandtheIndianaSheriff’sAssociationsay they are confident that the BMV is fixing computer glitches that, in some cases, made it difficult for officers to accesselectronicdrivingrecords.“AsaresultofthismeetingtheIACPandtheISAarepleasedtoinformthelawenforcement community of significant progressmadetoresolvecommunica-tionandinterfaceissues”thataroseaftertheBMVinstalledanewcomput-ersysteminearlyJuly,IACPPresident

GeorgeKehlsaidinastatement.“Wewerehavingproblemsgainingac-cessonlineforawhile...themostproblems we had was when officers weretryingtoaccessthesystemontheirin-carterminals,”saidSgt.TimEmmons, public information officer forthePorterCountySheriff’sDepart-ment.“It’sstillnottotallycorrected,butapparentlytheserviceisalotbet-terthanithadbeenforawhile.”LakeCountydeputieshavenotexperiencedanyproblemswiththenewsystem,asheriff’sspokesmansaidWednesday.

Donnelly talkingoil in Porter County CHESTERTON-JoeDonnelly,theDemocraticcandidaterunningagainstRepublicanincumbentChrisChocolaforthe2ndDistrictseat,addressedagroupofmorethan25peopleatameetingoftheDemocraticAlliance(Post-Tribune).Donnelly’smessagewasoneoftakingbacktheHouseforpeople,notconglomer-ates,targetingdrugcompaniesandoil companies specifically. “The futureofourcountryisontheline.Ourcountryshouldn’tbecontrolledbythelobbyistswhogiveoutsteakdinners,”hesaid.PolicyintheMiddleEastisdrivenbyoil,hesaid,andtheUnitedStatesisfundingbothsidesof the conflict through oil. He favors alternativeenergysources,suchasethanolandbio-dieselfuel,insteadofgivingtaxbreakstooilcompaniesmaking record profits. “I’d rather be puttingthatmoneyintothepocketsofMiddlewesternfarmersthanMiddleEasternshieks.”

Daniels to announcemore jobs next Monday RICHMOND-Amajoreco-nomicdevelopmentannouncementforWayneCountyisexpectedMonday.Gov.MitchDanielswillbeattheIn-dianaGatewayIndustrialParkforthepublicannouncement.

Merritt leaving pro temrace, says Parker INDIANAPOLIS-IndianaDemocraticChairDanParkerissuedthisstatementonStateSen.JimMerritt’swithdrawalfromthePresidentProTemporerace:“It’snicetoseethatafter16years,JimMerritthasdecidedtostopfocus-ingonwhat’snextforJimMerrittandstartfocusinghisattentiononthedistrictandthevotersherepresents.TheSenateleadershipstrugglehasturnedintoacircusasalmost every Republican tries to fight formorepower.It’sobviouslytimeweelectaDemocrattoDistrict31whowantstoservethepeopleandcarrytheirideastotheStatehouse.”

IDEA to honorJacobs, McCarty ELIZABETH,Ind.-TheannualIndianaDemocraticEditorialAssocia-tionConventionwilltakeplacethisweekendatCaesarsIndianaCasinoResort.TheeventbringstogetherDemocratic elected officials, activists andsupportersfromacrossIndiana.TheconventiontraditionallyhasbeenheldinFrenchLick,butthehotelthereisclosedforrenovationsthisyear.“We’reexcitedthatwewereabletokeeptheeventinSouthernIndiana,andwe’relookingforwardtoasuc-cessfulweekendinElizabeth,”saidIndianaDemocraticPartyChairDanParker.“ThisissomethingIndianaDemocratslookforwardtoallyear.It’satimeforustogettogetherandpoolourenergyandideasaswecomedownthehomestretchtoNovember.”Theevent,whichissponsoredbytheUAW,beginsFridaymorningwithagolftournament,whichisfollowedbyareceptionandhospitalitysuites.Gov.FrankO’BannonPublicServiceAwardsBreakfastSaturdaywillhonorthelate