Ruckelshaus Urges Unity After Senate District 30 Race

John Ruckelshaus penned a very gracious letter to Republican precinct committeepersons in Senate District 30 following his unsuccessful bid to become the district's state senator to replace Teresa Lubbers. Scott Schneider defeated Ruckelshaus and Ryan Vaughn at the GOP caucus election. Ruckelshaus urged unity within the party after learning of the actions of some in the party following that election:

I take this opportunity to again thank you for meeting with me and considering my candidacy for the state senate. While the results were less than what I had hoped for, I knew the race would be very competitive. All four candidates were strong, and represent the best of what we as a party can offer the voters. I have said from the beginning of this process that I would be comfortable with the results and would support the winner. The precinct committeemen have spoken, and though I have learned a lesson in life that what is meant to be will be, I take solace that things always happen for a reason.

Scott Schneider is a good friend, an excellent father and a good businessman. He will make an excellent state senator. I will do all in my power to help Scott in his new role as our state senator and will help as many Hoosiers as I can along the way. The challenges before us as a state, a community and as a family are simply too grave for us to spend time and energy elsewhere.

Please join me in congratulating Scott and wishing him and his family well. I also want to congratulate Ryan Vaughn and Chris Douglas. Both are excellent men and true public servants. As I have said before, there were no losers on election night.

I am deeply troubled, however, about the recent actions and comments made by some in our party. The Marion County Republican Party has an obligation to lead and conduct itself in the fashion of great leaders from Lincoln to Hudnut to Reagan. It is my hope that all who were associated with last week’s caucus can put aside any personal motives and come together behind Senator Schneider. We will not be successful if we are a party divided; rather we need to come together, be as inclusionary as possible and see the best in all.

As always, I will be working to improve the lives of Hoosiers. Should you wish to meet again for any reason, I am always up for a cup of coffee and willing to help. You may contact me at johnruckelshausr@aol.com. Again, I congratulate Scott and wish him the best.

Ivy Tech Political Cronyism Lives On

If anyone thought Ivy Tech President Tom Schneider was going to end the long-time practice of the credibility-challenged community college hiring political cronies for high-paid positions at the school, they were sadly mistaken. An Advance Indiana reader brings to my attention two recent hires by Schneider, one Democrat and one Republican. These two new hires join a staff that includes former Senate President Pro Tempore Robert Garton (R), Speaker of the House Pat Bauer (D), State Rep. Bill Crawford (D), State Rep. Craig Fry (D) and Susan Brooks, wife of Marion Co. GOP enforcer David Brooks.

Brian McGrath, former finance director for the Indiana Republican Party and Finance Director for Gov. Mitch Daniels' campaign committee, has been hired for the position of Vice President of Workforce and Economic Development Partnerships where he reports to fellow big-shot Republican Susan Brooks. McGrath has a Bachelor of Arts degree from Indiana University.

Ivy Tech also hired J.D. Lux late last year for a newly-created position of Executive Director of Government Affairs. Lux is an unsuccessful Democratic candidate for state representative and former Caucus Campaign Director for the Indiana House Democratic Caucus where he reported to another fellow Ivy Tech employee, House Speaker Pat Bauer. Lux earned a law degree from Ohio Northern University's Petit College of Law and a bachelor's degree from Franklin College.

Yes, we still hold Ivy Tech in low regard. Yes, nothing has changed under Schneider. And yes, there needs to be a comprehensive investigation undertaken of the college. The quid pro quos taking place there without any consequences are well over the top by this point. They know there are no prosecutors willing to take them on in this state at either the federal or state level so they do as they please. It would be nice, though, if the Indianapolis Star or some other mainstream news organization would at least take a stab at disclosing the political chicanery taking place at this pretend college at taxpayers' expense. Oh, that's right, they hire them too. Doesn't radio talk show host Abdul Hakim-Shabazz have a part-time teaching gig there as well?

Matt Tully Misinforms His Readers, Again

I don't seek to advance the re-election of U.S. Rep. Dan Burton, but when people in the media like the Star's Matt Tully are framing the political debate in his race, he might just manage to pull off another term in the House of Representatives. Commenting on Burton's co-sponsorship of congressional legislation that would require candidates for president to file proof of their constitutional eligibility to hold that office, Tully writes in his column today, "How else can we explain Burton's decision to jump into the ridiculous and mean-spirited debate over whether President Barack Obama is a U.S. citizen?" Tully's assertion is categorically false. Instead of engaging in drive-by political attacks on persons with whom he disagrees, Tully instead should be focused on the real issue at the heart of Burton's legislation: Should a candidate for the highest office of these United States be required to produce evidence that he meets the constitutional requirement of being at least 35 years of age and is a natural born citizen. Oddly, Tully apparently thinks you should be required to produce more evidence when you go down to the BMV branch to get a driver's license than a person should be required to produce when they run for president of the United States.

Like most of the mainstream reporters and others who have offered opinions on this subject, Tully has not bothered to read the U.S. Constitution's eligibility requirement for president of the United States or conduct any research on what the requirement that a candidate be a "natural born citizen" means, let alone pick up the phone and speak to someone who has researched the issue. Repeatedly, pundits like Tully assume that "natural born citizen" means the same as "citizen". I have explained in many previous posts on this blog that the two terms are far from being synonymous to one another, but the drive-by political attackers like Tully would rather trivialize and marginalize persons who have done their homework rather than engage in a serious constitutional debate.

My research of the natural born citizenship requirement leads me to conclude that a person must be born to U.S. citizen parents in order to be considered a natural born citizen. Some argue that children born abroad to U.S. citizens are also natural born citizens. And still others argue that children born on U.S. soil are natural born citizens regardless of one or more of their parents' foreign citizenship. The second category presented a problem for Sen. John McCain, who faced at least two lawsuits last year challenging his natural born status because he was born in Panama. The U.S. Senate approved a non-binding resolution that declared McCain a natural born citizen based on the fact that he was the son of U.S. citizen parents (note the plural). The third category poses a problem for Barack Obama. By his own admission, he was a dual citizen at birth because his father was a citizen of Kenya, which at the time was a part of the British Commonwealth. As the left-leaning Factcheck.org wrote during last year's presidential campaign:

"When Barack Obama, Jr. was born on August 4, 1961, in Honolulu, Kenya was a British colony, still part of the United Kingdom's dwindling empire. As a Kenyan native, Barack Obama, Sr. was a British subject whose citizenship status was governed by the British Nationality Act of 1948. The same act governed the status of Obama, Sr.'s children."

Factcheck.org assumed that based on Obama's birth in Hawaii, he was a natural born citizen regardless of his parents' citizenship status. The fact is that nobody can state absolutely that Obama would be deemed a natural born citizenship if this were allowed to be decided by the U.S. Supreme Court, which has never decided this issue directly. Many proponents of Obama's natural born status cite a more than one-hundred year-old case of Wong Kim Ark, a case involving the citizenship status of a person born within the U.S. to permanent resident parents who were citizens of China. Contrary to their assertions, the U.S. Supreme Court did not deem Ark a natural born citizen; rather, it decided he was a U.S. citizen. Justice Horace Gray, writing for the majority, wrote in part, "If born in the country, is as much a citizen as the natural-born child of a citizen…" Justice Gray distinguishes Ark's citizenship status from that of a natural born child of U.S. citizens. The focus in Ark's time pre-dated women obtaining the constitutional right to vote in this country, along with many other important legal rights. Quite clearly the focus at that time of Ark was on the father's citizenship and not the mother's. The Law of Nations, a legal treatise sometimes cited by Justice Antonin Scalia which was written a short time after the adoption of the U.S. Constitution, offered this definition of the "natural born citizen" requirement, carefully distinguishing between a citizen and a natural born citizen:

The citizens are the members of the civil society; bound to this society by certain duties, and subject to its authority, they equally participate in its advantages. The natives, or natural-born citizens, are those born in the country, of parents who are citizens. As the society cannot exist and perpetuate itself otherwise than by the children of the citizens, those children naturally follow the condition of their fathers, and succeed to all their rights. The society is supposed to desire this, in consequence of what it owes to its own preservation; and it is presumed, as matter of course, that each citizen, on entering into society, reserves to his children the right of becoming members of it. The country of the fathers is therefore that of the children; and these become true citizens merely by their tacit consent. We shall soon see whether, on their coming to the years of discretion, they may renounce their right, and what they owe to the society in which they were born. I say, that, in order to be of the country, it is necessary that a person be born of a father who is a citizen; for, if he is born there of a foreigner, it will be only the place of his birth, and not his country.

The U.S. Supreme Court stated in dicta that there is doubt that someone like Obama would ever be considered a natural born citizen. In the case of Minor v. Happersett, decided after the adoption of the 14th Amendment, the Supreme Court said:

The Constitution does not, in words, say who shall be natural-born citizens. Resort must be had elsewhere to ascertain that. At common-law, with the nomenclature of which the framers of the Constitution were familiar, it was never doubted that all children born in a country of parents who were its citizens became themselves, upon their birth, citizens also. These were natives, or natural-born citizens, as distinguished from aliens or foreigners. Some authorities go further and include as citizens children born within the jurisdiction without reference to the citizenship of their [88 U.S. 162, 168] parents. As to this class there have been doubts, but never as to the first. For the purposes of this case it is not necessary to solve these doubts.

Contrary to the view asserted by many that the 14th Amendment made all persons born within the U.S. natural born citizens regardless of their parents' citizenship status, this opinion suggests the 14th Amendment's application is limited to a person's status as a citizen. Why else would the Court say that "resort must be had elsewhere to ascertain that" if the 14th Amendment had any applicability to a person's status as a natural born citizen?

Fellow blogger and retired attorney Leo Donofrio has worked diligently to inform the public as much as he possibly can at his blog, Natural Born Citizen. He filed a suit challenging Obama's natural born status with the U.S. Supreme Court prior to his taking office. Like dozens of other legal challenge, Donofrio's suit was never decided on its merits. Donofrio has gone to great lengths to distinguish his legal arguments from the birth certificate crowd that suggests Obama was not born in Hawaii. Unfortunately, a former Democratic Deputy Attorney General of the State of Pennsylvania, Phillip Berg, did great harm when he got out front with a federal lawsuit in the Eastern District of Pennsylvania making unsubstantiated claims that Obama was born in Kenya and not Hawaii. Reporters and pundits who have discussed the issue lump everyone else in with Berg. Donofrio notes yesterday how the Wall Street Journal recklessly published a patently false analysis of the issue written by James Taranto suggesting that President Ronald Reagan signed a law that would have permitted even a person born overseas to a single U.S. citizen to be considered a natural born citizen. Reagan, as Donofrio points out did no such thing. As Donofrio explains:

Yesterday, American journalism reached a new low when James Taranto of the Wall Street Journal published legal propaganda that appears to blatantly lie to readers. In discussing the issues surrounding Obama’s birth to an alien father, Taranto added text to a US statute which does not contain such text. Here is the offensive passage:

“Someone born overseas and after 1986, but otherwise in identical circumstances to Obama, would be a natural-born citizen thanks to a law signed by President Reagan.”
No such law exists.

The words “natural born citizen” do not appear in the statute discussed by Mr. Taranto. In fact, the words “natural born citizen” do not exist in any US statute. Those words only appear in the Constitution - Article 2 Section 1 – and only as a requirement to be President . . .

The statute does not use the words “natural born citizen”.

Mr. Taranto needs to get back to Hogwarts fast and try a new spell. His magic wand didn’t add new text to the US Code overnight.

Had Mr. Taranto made the focus of his article the issue of whether persons who obtain citizenship at birth by statute are also natural born citizens for purposes of meeting the Presidential requirements of Article 2 Section 1 Clause 5, such a discussion would have been proper. His legal analysis as stated in the article would be wrong, but stating such a question presented and taking a position thereto is a correct form of editorial.

But that’s not what Taranto has done.

Taranto and The Wall Street Journal have done something far more damaging and nefarious than simply mis-analyzing the law. He’s written – and they’ve published – a piece of propaganda here which makes it appear as if the text of the law contains words which are not there.

Let’s call that what it is – propaganda. They weren’t content to ask a legal question and honestly deal with both sides of the argument from a non-partisan and pure journalistic intent. No. This article is an attempt to trick readers into believing laws exist which do not exist.

The statute does not include the words “natural born citizen”. Regardless, those who read Taranto’s article are left with the impression that the statute includes those words.

And that is journalistic evildoing personified.

"Journalist evildoing personified" also aptly describes what Matt Tully did in his column today with this issue. We have reached a sad state of affairs in this country. Our public has been so dumbed down about what so much of our Constitution means that we are in danger of losing the very rights it sought to secure for us. I grew up secure in the belief that the Second Amendment secured Americans the fundamental right to bear arms, notwithstanding the arguments I heard from teachers throughout my public education upbringing. While I was pleased to see our U.S. Supreme Court secure that right for the first time after more than two centuries of this greatest ever experiment in representative democracy, I was shocked that a shift of a single vote on the Court could have altered that outcome and that right. On that note, I leave you with the wise observation of a young Abraham Lincoln:

"Shall we expect some transatlantic military giant, to step the Ocean, and crush us at a blow? Never!" declared Abraham Lincoln in an 1838 address, given when the United States was much smaller, much weaker -- and much freer -- than we are today. "All the armies of Europe, Asia and Africa combined, with all the treasure of the earth (our own excepted) in their military chest; with a Buonaparte for a commander, could not by force, take a drink from the Ohio, or make a track on the Blue Ridge, in a trial of a thousand years. At what point, then, is the approach of danger to be expected? I answer, if it ever reach us it must spring up amongst us. It cannot come from abroad. If destruction be our lot, we must ourselves be its author and finisher. As a nation of freemen, we must live through all time, or die by suicide."

[Editor's Note: My blog posting from earlier today simply disappeared. I'll chalk that up to a Blogger hiccup because there are more than a few of those from time to time. And rest assured that the campaign to silence people like myself on this issue will not succeed. You can seek to trivialize, marginalize and otherwise engage in ad hominem attacks against me. One local Democratic blogger has repeatedly attempted to post comments claiming that my attacks on Obama are racist and anti-Muslim. That's precisely the reason someone like Matt Tully doesn't have the stomach to stick his neck out on an issue like this. I've researced this issue unlike my detractors and the fair weather, go-along-to-get along pols and pundits, and I stand behind my well-reasoned analysis.]

Brizzi Justice: No Jail Time Time For Cemetery Owner Accused Of Stealing $27 Million

Robert Nelms stood accused of draining off $27 million in cemetery trust funds from Indiana cemeteries after purchasing Memory Gardens Management Corp. five years ago. Today, the Marion Co. Prosecutor's office entered into a plea agreement with him that allows him to avoid any jail time for his crime. "As part of his deal, Nelms would avoid prison, instead receiving an eight-year sentence to community corrections programs and two years on probation," the Star's Jon Murray writes. "If convicted of all of his half-dozen charges at trial, he would have faced a maximum 10 years in prison," he adds. Nelms and his wife, Debora Johnson, originally faced five felony counts of theft and securities fraud charges. The prosecutor's office earlier dismissed all charges against Johnson in consideration for her agreeing to testify against her husband according to Murray. Also, David Bechens, a Nobleville bank officer who served as the trust officer for these cemetery funds, reached a similar deal for agreeing to cooperate with prosecutors. Who was Nelms' attorney? Why, of course, it was Jim Voyles. I don't know how our public defenders in this county can stand to do their jobs when they see the way the criminal justice system treats their clients in this county compared to criminal defendants who happen to be politically-connected, or who have the money to pay for services of a highly-compensated attorney like Jim Voyles. The disparity in sentencing is staggering. So much for all that stuff they teach us in law school about equal treatment under the law.

Hoorah For Connersville!

Carbon Motors will build the first purpose-built law enforcement patrol car, and it has chosen Connersville, Indiana as the site to invest $350 million in a manufacturing plant that will employ 1,550 workers. It looks like there are many details to be worked out to make the new plant at the former site of bankrupt Visteon a reality, but the announcement today by Gov. Daniels and Carbon Motors CEO William Li before a crowd of more than a 1,000 local residents gave the town something to cheer about for the first time after a long string of economic setbacks. Photo credit of Gov. Daniels and Li to the Richmond Palladium-Item.

Council Committee Advances $25 Million CIB Tax, Spend & Borrow Bailout Scheme

I'm glad I didn't waste the time to go over to the City-County Council meeting tonight to listen to more than three hours of BS from high-paid downtown elites who've been doing the same song and dance for the past couple of decades that got the CIB in the financial mess it's in today, and each of whom has a personal financial stake in the outcome. There was absolutely no opposing, substantive testimony allowed at tonight's council meeting by the Rules & Public Policy Committee Chairman Robert Lutz, and I'm not talking about the handful of citizens who were allowed to provide rushed statements near the end of what turned into a more than 4-hour meeting or the excellent presentation Sean Shepard made on behalf of the Libertarian Party, although he drifted away from the central issue later in his discussion.

Despite the yeoman's work blogs like this one have done to try to inform the City-County Councilors on this topic tonight, I didn't hear a single good question from a single member of the committee tonight. These people are hopeless. On a voice vote motion, the Committee voted to advance a proposal that everyone concedes is at best a band-aid solution to the CIB's financial woes. Councilor Angela Mansfield (D) cast the only dissenting vote. Contrary to Chairman Lutz' comments tonight, this proposal is not about a single increase in the hotel tax. It sets in place the wheels to borrow and spend another $27 million the CIB has neither justified nor has any way of repaying short of more tax increases by 2013.

I can only conclude that CCC President Robert Cockrum is totally shameless. His son is an executive at White Lodging and his hotel under construction, the J.W. Marriott, is a direct beneficiary of tonight's council action. He participated in the debate and supported the resolution. I've long since given up on members of the City-County Council adhering to any sense of ethical propriety so I can't say I'm surprised by his actions tonight.

I heard councilors falsely claim that they are given no other choice than to pass this lousy proposal or let the CIB reach a point that it is no longer able to operate the facilities and begin cancelling conventions. The CIB doesn't own Lucas Oil Stadium. It doesn't own the expanded convention center facility. The state of Indiana owns both. If the CIB cannot afford to operate these state-owned facilities, it seems pretty simple that the CIB needs to turn back over one or both of these leased facilities to the state. That doesn't require closing facilities. That doesn't require cancelling conventions. That doesn't require raising taxes. That doesn't require borrowing more money. And it doesn't jeopardize the City's bond rating. It does require having common sense and, unfortunately, nobody on the council seems to have any common sense. Bankrupty is an absurd suggestion, and I wish Ed Coleman and others would stop making a complete fool of themselves by beating that dead horse. And for those of you who doubt the viability of my idea from day one to turn LOS over to the state, you may be interested to know that some of Mayor Ballard's closest advisers urged him to do just that. The only reason he didn't go forward with it was because certain attorneys with a vested interest in protecting their legal work represented that the CIB could not legally do that. To them I say, baloney. If Mayor Ballard had followed my wise counsel, he would have put this monkey back on Gov. Daniels' back where it belongs and bolstered his own standing with the good citizens of this county.

One final comment on tonight's hearing. I heard one councilor after another beating the drum that somehow or another Marion County residents are getting a raw deal and have to give more to the State of Indiana than it gets back. That claim could not be more inaccurate. The reality is that Marion County makes off like a bandit when it comes to enjoying the largess of the State of Indiana. Taxpayers across the State have pumped billions into this county over the years. Thousands of state employees are amassed in the county. Thousands more are based here to lobby and represent interests of hundreds of trade associations based here by virtue of our capitol city status. Large amounts of privately-owned real estate is leased from Marion Co. property owners to house the activities of these employees. State taxpayers have helped finance our sports palaces and our Circle Centre Mall. They've helped build expansive highways, bridges, streets, sidewalks, canal and sewer improvements. No other county in this state does as well as Marion County when it comes to state funding and support. I hear about all of these employees from the suburbs coming to the City and taking their tax dollars back to their suburban counties. Has anyone noticed how many people are now commuting out to the suburban communities from Marion County for employment who bring their tax dollars back to this county? Give me a break. Enough of beating this dead horse already.

State Must Pay $42 Million To Underpaid Workers

It has taken nearly 16 years for current and former state employees to recover wages they claim they were owed by the State of Indiana. At issue in the lengthy litigation were state workers who were required to work 40-hour weeks for the same wages as other state employees who worked 37.5-hour weeks. The state ended that practice in 1993, making all state employees subject to the shorter work week. After a 4-day trial, Marion Superior Court Judge John Hanley ruled in favor of the class action plaintiffs, awarding them over $42 million, the largest class action award ever against the State of Indiana. The award affects as many as 15,000 current and former state employees during the pay period of 1973 to 1993.

I know one one of those retired state workers who is looking forward to recovering his lost pay, and I'm very happy for him. Hopefully, he and the others won't have to wait years more to recover their back wages. The State of Indiana could use that additional $8 million more it has pledged to hand over to Indianapolis' CIB to pay this obligation, assuming the City-County Council approves the tax, borrow and spend scheme before it now. This is a case where administration after administration just kept kicking the can down the road instead of addressing this legitimate issue years ago. The chickens have now come home to roost. The Indiana Law Blog has more on today's ruling here, along with a copy of Judge Hanley's Order here.

Star Editorial Blasts Bayh On Wife's Corporate Board Payola

It's taken years for them to come alive on this issue, but finally we have some actors in the mainstream media willing to hold Sen. Evan Bayh responsible for using his wife in a corporate board payola scheme to make millions for the Bayh household, a scheme no different than good ole fashioned bribes, except for the fact that our current legal system seems to say the former is permissible while the latter is still punishable as a crime. A Star editorial today hits the nail on the head:

Susan Bayh may be valued by WellPoint for her "experience, perspective and the many contributions she has made," as a spokesman for the nation's largest health insurance company tells us. But she wasn't valued enough by WellPoint or a string of other health-care companies to be invited onto their boards until her husband had a U.S. Senate election in hand.

Now that Sen. Evan Bayh approaches a heavily-solicited vote on historic health-care reform, the public is asked to believe that the more than $2 million his wife has earned from these special interests is irrelevant to his thinking.

To say we find that hard to believe is not to impugn the senator's integrity or commitment to the interests of his constituents. Granted, he can point to votes he has cast that have disappointed the health-care industry, which gave him more than $500,000 in campaign money in 2008.

But at the same time, lobbies do not hire the relatives of lawmakers in order to buy neutrality. For WellPoint and Sen. Bayh to make a point of not having had contact on legislation that could alter the company's future is at best disingenuous. Access is a given, and so is conflict of interest.

This particular form of conflict is not confined to the Bayhs. Nor is the posture of cluelessness about its effect on voter confidence. As The Star's Daniel Lee detailed Sunday in his story about the Bayh connection, some of the Senate's most prominent members and former members have played key roles in legislation affecting their families' business interests.

The way of the world? To some extent, yes. Elected officials cannot be expected to break all ties with their previous lives -- or to spurn the call of the lobbying industry when they return to private life.

Yet, they could burst the limits of Beltway imagination and reject plum positions for spouses that clearly come with strings attached. Or their spouses could do so on their own. Annette Shelby accomplished that very thing a few years ago, resigning from an aerospace company board because she felt it would look bad inasmuch as her husband, Sen. Richard Shelby, R-Ala., sat on a defense subcommittee.

In this troubled economy, there's even more reason to question political board appointments, especially multiple ones such as Susan Bayh's. Critics say such members lack the competence or at least the time to do the challenging work of overseeing their companies, raising the risk of misdirection and even ruin.
Bad business, in short, all the way around.

Political Reporting On The Bayh Senate Race

There were two examples today of the difficulty any challengers to Sen. Evan Bayh are facing--at least from the people who make a living covering politics. Brian Howey of Howey Politics reported this morning that former State Rep. Dan Dumezich (R) would not run for the U.S. Senate:

DUMEZICH WON’T RUN: Former state representative Dan Dumezich confirmed that he will not run for the U,S. Senate (Howey Politics Indiana). Asked if he was running today, Dumezich e-mailed a one-word answer: “Nope.” That leaves Don Bates Jr. and State Sen. Marlin Stutzman in the Republican field to take on the two-term senator with a $12 million warchest.

Within hours of making that post, Howey updated his report to say Dumezich had contacted him to say he is still mulling a bid to run for the U.S. Senate:

Dan Dumezich told Howey Politics Indiana early this afternoon that he is indeed considering a Senate challenge to U.S. Sen. Evan Bayh and said the incumbent has a “fundamental misunderstanding ours a week to about 80 hours a month, visiting Republicans around the state. “I want to make sure we have people willing to invest $6 million to $7 million needed to get there,” he said. He added that he would make a final decision “in the next month.”

He initially told Howey Politics that he would make up his mind by last February. A one-word e-mail from Dumezich this morning was misinterpred by HPI that he would not run.

Howey didn't include the direct text of the question he posed to Dumezich so it's hard to ascertain whether his misinterpretation of his original answer was understandable.

Another Republican candidate, Richmond's Don Bates, Jr., announced his candidacy over the weekend in his hometown to a crowd of about 500 people at the Wayne County Fair. That brought this snarky response from WISH-TV political reporter Jim Shella in a post entitled, "Don Who?":

Somebody named Don Bates, Jr. announced a run for U.S. Senate this weekend. According to his hometown newspaper in Richmond, Bates is a banker, a Republican, and he didn’t get an endorsement from the local Wayne County GOP Chairwoman.

The Bates announcement at the Wayne County Fair is no surprise to political insiders. Bates campaigned recently at the state GOP Dinner.

But his approach is hardly conventional. A Saturday announcement with just one appearance on the border of another state and no statewide news release is not a recipe for success, especially for a guy with no name recognition to speak of outside Richmond.

By the way, Evan Bayh (the Democrat Bates hopes to unseat) gets the headline on the Richmond Palladium-Item website this morning.

While Shella jumps on a headline Bayh got in Bates' hometown newspaper today, his reporting completely ignored the damning front-page story in the state's largest newspaper discussing the serious conflicts of interest posed by Sen. Bayh's wife's presence on so many publicly-traded corporate boards, including four with an interest in the current health care debate. True to form, Shella mocks and berates ordinary citizens' exercise of their right to run for public office. Shella is such an insider's political reporter. Does he get joy in tearing down people on behalf of the well-heeled insiders? Does he see it as his job to winnow the field of candidates to only those who meet with the approbation of his insider friends? I don't know Don Bates, Jr, but I sure as heck don't think political reporters should come out attacking the guy on day one just for saying he's going to be a candidate.

Tony George Bitter Over Ouster At IMS

The tensions between Tony George and other family members manifests itself in a statement the former IMS Chief posted on his racing team's website. This is part of George's statement at Vision Racing's website:

That being said, I continue to be perplexed by the board’s recent decision to relieve me from my responsibility as CEO of the enterprise. To date, I have not received a reasonable explanation as to why; the statement they released to the press not withstanding, I feel as though after 20 years I am entitled to one. I understand that maybe they don’t feel that they owe me an explanation.

One thing I can tell you is that I stood resolute in my conviction on the direction we needed to go and that the measures we have taken since January are only a beginning. A complete review of how we are structured and operate is necessary. Beyond my being dismissed, I am unaware of any changes that are being contemplated that will have a meaningful impact on the organization.

I have been replaced in my role as manager by two individuals who have been with the company for many years. In that time they have also been members of the executive management team and have participated in all of the strategic decisions that have been made over the last 15 years, so they are well aware of the challenges ahead. My question for the board has been not one of who is going to manage the company, but rather, who is going to lead it? There is a distinction.

George still sits on the Board of Directors with other family members, including his mother, Mari Hulman-George, who chairs the board, and his sisters. Attendance at today's Brickyard 400 apparently weren't so hot. Now that has a major economic impact on the Indianapolis hospitality industry, but don't expect to hear any concerns expressed by the downtown elites, who are totally consumed with the payola scams for the Simon's Pacers and Irsay's Colts, which don't even come close to matching the economic impact of the Indianapolis Motor Speedway. The IMS receives no public subsidies.

Stonewall Democrats Backing David Orentlicher For Prosecutor

Indiana's Stonewall Democrats are hosting a fundraising reception for former State Rep. David Orentlicher on August 16, 2009 at a private home to support his bid for Marion Co. Prosecutor. The invitation from Zach Adamson describes Orentlicher as a "tireless social justice advocate and consummate public servant." Are any other Democrats planning to enter the Democratic primary? Some observers speculate that the Carson crowd might not be really excited about an Orentlicher candidacy given that he challenged Andre Carson in last year's special election caucus and the May primary election. Still no word on the Republican side as to whether Carl Brizzi plans to seek re-election to a third term.

Buying Bayh

The Star's Dan Lee has a feature story in the Sunday edition of the paper detailing the conflicts for Sen. Evan Bayh (D-IN) posed by his wife, Susan Bayh, sitting on the boards of four health care-related companies, including the nation's largest health insurer, Wellpoint. Susan Bayh earned more than $2 million in a recent three-year period for her part-time gig as a board member for these companies. This paragraph states the obvious reason she has been chosen by so many public companies to serve on their boards:

Susan Bayh, who was a midlevel lawyer for the politically active Eli Lilly and Co. while her husband was governor of Indiana, did not serve on the board of a single public health-care company until it was clear her husband was about to ascend to the U.S. Senate. Only one month before Evan Bayh was elected to the Senate in a landslide vote, his wife was appointed to serve on the board of what would become the nation's largest health insurance company -- and arguably the company with the most at stake in the health-care reform debate.

Within a few years, numerous companies recruited her, and she eventually served on the boards of eight companies. At least one of them asked her to reduce the number of boards she served on, apparently because she was spread too thin to be effective.

Adding to speculation about a connection between her board memberships and her husband's office is Susan Bayh's unwillingness to discuss the matter, including for this story. She has declined several requests for comment on her corporate interests, making it difficult to tell where those interests end.

A competent Republican opponent to Bayh in next year's Senate race could send Bayh packing if he or she only used issues like this to demonstrate that Bayh has been more interested in using his position in government to parlay millions for his family than representing the people of Indiana in the Senate. Anyone who knows Susan Bayh will tell you that it is a complete joke to think of her as being a competent choice for these public companies to choose to sit on their boards. If she's not taken seriously as a businessperson by the Bayhs' closest friends, why should these public companies be putting her in such an important role? The answer is influence and everybody knows that. Sen Bayh is essentially prostituting his wife for personal financial gain. Lee's story indicates that a board member is expected to devote 20 to 30 hours of time a month. "That means Susan Bayh's current six current board seats could consume up to 180 hours a month," Lee writes. I'll give you a hint. She doesn't spend anything close to that amount of time on the work for these boards, unless you include the time she spends shopping for new clothes, getting her hair styled and primping in front of the mirror.

She's Not A Libertarian, But She Could Be

Marion County GOP Chairman David Brooks tagged Elizabeth Karlson as a "Libertarian", among other things, in an e-mail he sent her yesterday (copied to about 20 people) sacking her as a ward chair in Washington Township. Indiana Libertarian Party Executive Director Chris Spangle sent out this response today to Brooks' erroneous claim:

As the E.D. of the LPIN, I want to make it clear that Liz Karlson has not, and is not, a member of the Libertarian Party, it's Indiana affiliate, or of Marion County. She never offered to join, and we did not ask, because she is committed to growing the Republican Party, and the Republican Liberty Caucus. Liz has worked diligently in organizing the Republican Liberty Caucus, and has been picking at our membership to recruit for the Republican Party. We allowed this for two reasons: A. No one wanted to go back. And C. We are good friends with Liz. We are comfortable enough with ourselves to hang out with members of another party. To anyone who asks why Libertarian Party members don't work from within the two old parties for reform, here are your answers.

I have said for years that Libertarians pose a significant threat to the future viability of the Republican Party in Marion County. I've offered a number of examples in the past where close races were lost by Republicans in which a Libertarian candidate drew more support than the losing margin of the Republican candidate in the race. Marion County has been trending Democratic for years, and there is simply no margin for error. Spangle's comments are dead-on with respect to Karlson's efforts to attract Libertarian-leaning persons into the party. Brooks' move against Karlson is a setback in attracting those people that the Republican Party desperately needs to bring into the party.

It is my suspicion that the party's decision to dump Karlson and another ward chair, Eric Smith, has more to do with their support of Scott Schneider over Ryan Vaughn, the party's candidate, in this week's Senate District 30 race to replace Sen. Teresa Lubbers. Fellow bloggers Scott Fluhr and Paul Ogden have more on that here and here. I would add that Brooks' e-mail specifically denied this as a reason for his decision, and he copied now-Sen. Scott Schneider on the e-mail he sent to Karlson. People like Karlson had become very disillusioned with Lubbers, who had become aloof and non-responsive to many of her constituents. Not surprisingly, Karlson and other like-minded Republicans found Libertarian candidate Steve Keltner an attractive alternative in the last election. Keltner has since joined the Republican Party thanks, in part, to Karlson's efforts.

[Update: The Star's Josh Duke has posted an online story here. He quotes Brooks as saying the decision to fire Karlson and Smith was made prior to Tuesday's caucus: "Liz has openly supported Libertarian candidates, and Eric's firing was just a management decision," Brooks told Duke. "I had made the decision to fire them before the caucus, and I actually wanted to do it so there wouldn't be any fuss about the caucus voting." Duke's quoted response from Karlson: "It didn't surprise me because it is well known in the Republican Party that these strong-arm tactics have been used before when you go against the party leadership," Karlson said. "I'm disappointed in the county leadership, but there are a lot of good grassroots Republican people out there so I will continue to remain active as a Republican precinct committeeman and in the Washington Township GOP Club."]

What I find perplexing is the differing treatment of persons within the party on the so-called issue of loyalty. The Marion Co. GOP leadership itself refused to aid the election of three of the at-large candidates for City-County Council in the 2007 municipal election despite the fact that two of them were slated by the party. Party leaders reasoned that by supporting only Kent Smith, an African-American, it could lure a sufficient number of African-American voters to scratch their straight- ticket ballots in the at-large council races and, by doing so, cancel out their votes for the four at-large Democratic candidates. While party leaders may think that racist strategy secured the wins of two other at-large council candidates, Ed Coleman and Barbara Malone, also an at-large African-American candidate, the truth is that it only succeeded in costing the Republicans a seat on the council, a seat that could have been held by the fourth at-large candidate, Michael Hegg. Since the election, Ed Coleman left the party and became a Libertarian. There has also been concerns expressed that Democrat-turned Republican Malone could return to the Democratic Party fold, leaving the council evenly split between Republicans and Democrats and giving a tie-breaking vote to Coleman.

There are countless examples of high-ranking members of the party who openly dissed Greg Ballard's candidacy and even supported the re-election of Bart Peterson. The county chairman, Tom John, was among those dismissing Ballard's chances right up to end of the race. One City-County Councilor, Scott Keller, endorsed Peterson's re-election, attended his fundraisers and voted for his tax increases in an election year. Immediately after the election, the Republicans appointed Keller to the coveted Metropolitan Development Commission. Keller had also served as a precinct committeeperson for many years. He neglected to file for a spot last year, but the party appointed him to a vacant position anyway despite his support of Peterson in the prior election. Keller was on hand at Tuesday night's caucus to boost Ryan Vaughn's candidacy. If the party's decision to fire Karlson and Smith had anything to do with party loyalty, their definition of loyalty is a rather strained one I must add. Have some of us been highly critical of Mayor Greg Ballard? Absolutely, but our views are based on his failure to carry through on key pledges he made as a candidate. Those failures have weakened his support significantly among the core constituency that put him in office.

The message in these firings could not be more clear. The party is not interested in people who participate in the political process to further a public policy agenda that they believe is most compatible with the guiding principles of the Republican Party. They only want people who are job-seekers or government contract-seekers who they can control. Participation in politics should be reserved for their professional political class only and everyone else should just go away. It's that attitude within both political parties that has contributed to the eroding trust people have in their government and their elected officials. God forbid anyone within the party be capable of thinking for him or herself.

City Looking For New Partners To Operate Water And Wastewater Systems

The City of Indianapolis this past week issued a Request for Expression of Interest to "solicit the broadest array of approaches and ideas that will allow the City to produce finished drinking water, process wastewater and provide related infrastructure services in the most efficient and cost effective manner and to help the City satisfy the USEPA and Court mandated capital improvements in a manner that mitigates the affect on ratepayers." This comes on the heels of a blistering IURC order approving an emergency water rate hike that gave a scathing assessment of the City's current privatization agreement with the French-owned Veolia.

According to the RFEI, the City expects to incur over $4 billion over the next 15 years to upgrade its waterworks and wastewater systems. In order to cover these costs, rates for water and wastewater services are projected to rise 112% and 427%, respectively, over the next 15 years. The RFEI contemplates creating a combined waterworks and wastewater system through a governmental or non-profit structure to realize significant savings in the growing capital and operating budgets of the two separately-run systems. A 5% savings, for example, could yield $175 million in savings. United Water currently operates the wastewater system, while Veolia is paid more than $40 million a year to operate the water company. The wastewater system currently has outstanding long-term bond debt of $461 million; the water company is carrying $843 million in long-term bond debt.

The City has identified three goals it expects to achieve with any strategic partner:

• A long-term role in the operation of the City's wastewater and waterworks systems;
• An integral role in the management of the wastewater and waterworks capital improvements, including an opportunity to share in gains made on scheduling and targeted construction costs for specific project components; and
• An acknowledged role for the broad array of local talent including those that are minority, women and veteran-owned companies.

When the City contemplated the purchase of the water company in 2002, many wise observers suggested that the water company should be owned by a public benefit trust like Citizens Coke & Gas instead of the City of Indianapolis, if the community desired to prevent an outside foreign interest from acquiring the utility. That option would not have permitted all of the skimming and kickbacks that attended the more than half-billion dollar purchase orchestrated by the corrupt administration of Bart Peterson so it was ditched in favor of a city purchase at approximately double the purchase price of the water company's actual value. Although Peterson promised the purchase would ensure low water rates for the City's residents and job protection at the same benefit levels for the water company's employees, both commitments were broken. The City, instead, turned over the management of the water company to Veolia, which was represented by high-powered lobbyists with close ties to Peterson. Water rates are skyrocketing to pay for bungled borrowing schemes and Veolia's overly-generous operating agreement, and the water company employees saw a significant change in their pay and benefits to their detriment.

Hopefully, the City can salvage the financial morass with which the Peterson administration saddled the Ballard administration to limit the long-term damage as much as possible. Doing what the City should have done from day one could be the best solution to this problem.

Burton Supports Birth Certificate Requirement For Presidential Candidates

There are only two requirements to be eligible to serve as president of the United States under Article II, Section 5 of the U.S. Constitution: you must be at least 35 years of age; and you must be a natural born citizen. There is no federal law, however, that requires a presidential candidate to prove he or she meets those two constitutional requirements. Presidential candidates who file statements of candidates with the FEC and respective state election authorities need only file an attestation requirement that he or she satisfies the constitutional requirements. In practice, state election authorities have bounced from state election ballots in the past third party candidates who failed to meet one of the requirements, but no major party candidate has been similarly denied access to the ballot despite issues raised about their eligibility. To remedy this gap in enforcement of the constitutional requirements, U.S. Rep. Bill Posey (FL) earlier this year filed HR 1503, which would require presidential candidates to file with the FEC a copy of the candidate's birth certificate, together with any other evidence as may be necessary to establish the qualifications for eligibility under the Constitution. U.S. Rep. Dan Burton (D-IN) has signed on as a co-sponsor of the legislation.

Radio talk show host Abdul Hakim-Shabazz, who is doing the bidding of Burton primary opponent and Ice Miller lobbyist Luke Messer, instinctively seized on Burton's co-sponsorship of HR 1503 as something to be mocked. "In other words, Burton has joined the Obama 'not really a citizen and why won’t he show us his birth certificate even though if we saw it we would call it a fake' crowd," Shabazz opined. You and I already know what a hypocrite he has become. Contrast his latest comments with his view on Indiana's Voter ID law. Shabazz thinks citizens casting votes in elections should be subjected to greater evidentiary requirements than presidential candidates' evidentiary requirements. "There's always some incidental costs to voting — you can't come to the polls naked," an Indianapolis law professor, Abdul Hakim-Shabazz, who served on the task force that wrote the rules, says. "The remarkable thing is that for all the talk of disenfranchisement, Indiana has had seven elections since, and those challenging the law have yet to turn up a plaintiff who credibly can say the law stymied him," Mr. Hakim-Shabazz says. No, he is not an Indianapolis law professor, but you get the point.

If you want to get a license to drive in Indiana, the requirements imposed by the Bureau of Motor Vehicles are even greater. The BMV requires you to produce the following: one document proving your identity; one document proving your social security number; one document proving your lawful status in the U.S. (e.g., birth certificate, U.S. passport, consular report of birth abroad or green card); and two documents proving your Indiana residence. Yes, we impose tougher document requirements on driver's license applicants than we do presidential candidates.

The irony is that those same BMV workers who issue driver's licenses also register new voters. During a meeting of the Indiana chapter of the American Immigration Lawyers Association with BMV officials this week, local immigration attorneys, including me, discussed with BMV officials the problem with workers registering non-citizens to vote, which proves quite problematic when an immigration attorney later petitions to make the permanent resident a naturalized citizen. The problem is that BMV workers are not properly trained to ask only U.S. citizens to register to vote. The documentary evidence the license applicant furnishes to them establishes whether they are a U.S. citizen. Nonetheless, BMV workers frequently ask and register non-citizens to register to vote. The Secretary of State's office has no procedures in place to detect these problems, allowing non-citizens to vote in Indiana elections. The BMV thinks the applicant should know whether they are qualified to register, but you have to remember that there are sometimes language barriers and BMV workers do not show the applicants the list of requirements before registering them to vote (i.e. U.S. citizen, resident of Indiana and at least 18 years of age).

So when you really think about it, the legislation Dan Burton is co-sponsoring is quite sensible. It's amazing that such a requirement has not been imposed before. Shabazz can go ahead and make fun of Burton all he wants on this one, but I suspect he won't be scoring points for Burton's opponents. They would all be better off if Shabazz just kept his mouth shut and didn't meddle in this election like he did the recent Senate District 30 GOP caucus race.

Pacers Pay Tinsley $10.7 Million To Go Away; Simons Send Bill To CIB

The Indiana Pacers made a horrible business decision in signing a multi-million dollar contract with bad boy Jamaal Tinsley. Now they're paying him $10.7 million of the remaining $14.7 million payments due under his contract. Tinsley has been banned from the team since last season for being a bad boy but has still been getting paid by the Pacers. You can see more about Tinsley's off-court antics as a Pacer player here, here and here.

The Indianapolis City-County Council is now considering an ordinance to raise hotel taxes, to siphon off more state tax revenues and to borrow money from the State of Indiana as part of a $25 million a year bailout plan for the financially-troubled Capital Improvement Board. The Board has already announced it plans to give an additional $15 million a year subsidy to the Simon-owned Pacers because the billionaire Simon brothers claim they are losing money on the franchise. The CIB bailout resolution will be heard by the Rules & Public Policy Committee on July 28 beginning at 5:30 p.m. in room 260 of the City-County Building.

Chew on that, Indianapolis City-County Councilors, as you consider this latest tax, spend and borrow scheme. Look your constituents in the eyes and convince them this is something you must do to save 65,000 hospitality jobs. Good luck.

Health & Hospital Corporation Makes $43 Million A Year From Nursing Home Chain

It's supposed to be the Health & Hospital Corporation of Marion County, but it has acquired more than two dozen nursing homes up and down the State of Indiana, which throw off $43 million a year to the local agency charged with providing indigent care in Indianapolis, money the taxpayer-supported nonprofit plans to put towards the construction of a new $750 million hospital. The IBJ uploaded a story to its website earlier today from its most recent addition after I reported earlier this week on the nursing home chain empire the HHC is building with taxpayers' money. J.K. Wall writes:

To pay for a shiny new downtown hospital, the parent corporation of Wishard Health Services will commit itself to yearly debt payments 10 times as high as they are now.

But Wishard officials have no doubt they can bear the extra load because of places like Rosewalk Village, a nursing home that sits on the eastern side of Indianapolis . . .

Health & Hospital’s nursing homes last year threw off $43 million in cash.

Now the organization can apply that money to the new $754 million hospital, which will re- quire annual debt payments of $38 million to $42 million.

“We have bought some of the worst nursing homes in the state of Indiana and turned them around,” said Health & Hospital CEO Matt Gutwein, noting that his own grandmother lives in one of the group’s nursing homes.

Health & Hospital announced July 12 that it would borrow up to $703 million to build a new Wishard hospital on the IUPUI campus, replacing its aging complex of 17 buildings at 10th Street and University Boulevard.

Gutwein is taking great pains to demonstrate Health & Hospital’s financial strength because he needs voter approval to borrow the money to build the hospital.

And he’s promising that Health & Hospital, which is partly supported by Marion County property tax revenue, will have no need for a tax increase.

Wall's story makes Gutwein out to be a financial wizard for supposedly turning around the deficits at Wishard because of his wise investments in a nursing home chain empire. He completely ignores the hundreds of millions the federal and state governments have contributed to Wishard Hospital over the past several years in Medicaid disproportionate share payments to help offset uninsured cases not otherwise covered by Medicare/Medicaid or private insurance, not to mention the tens of millions dollars in property taxes sent to him annually. Efforts at the State House to share some of those payments with Community East Hospital, which is experiencing an increasing number of indigent patients, were thwarted by lobbyists for HHC and Clarian, which also grabbed hundreds of millions of dollars of these payments for Methodist Hospital in recent years.

At a recent council hearing, Gutwein raised questions about Community East's financial viability, omitting the fact that Wishard and Methodist hog all of the disproportionate share payments to Marion County. Hall's story references "enhanced payments" HHC receives, without describing their purpose. One source complained to me that Clarian relied on those indigent care funds, in part, to help pay for the costly monorail it constructed to connect Methodist Hospital with the IU/Wishard medical campus at IUPUI.

Wall discusses the HHC's Rosewalk Village as a shining example of how the HHC is committed to "quality above net profits." Nowhere in his story does he mention the recent closing of Lockefield Villages, a nursing home adjacent to Wishard which the HHC only built in the mid-1990s. That facility only had a one star rating out of a possible five star rating from Medicare at the time of its closing.

Wall also boasts of the fact that HHC is earning profits of 17% of revenue before depreciation, amortization and interest are taken into account. Missing from that boast is the fact that HHC is removing hundreds of millions of dollars in assessed value from the property tax rolls at a loss to local units of government across Indiana and is not paying any income or sales taxes. I think I could make healthy profits on just about any business if I didn't have to worry about paying taxes to the government. Matt Gutwein is no business genius. He's just very effective at using our tax dollars as leverage to bilk more money out of the government. The question that should be asked is why we are allowing him and the HHC to diverge away from their mission of providing indigent care to Marion County residents and towards the building of a statewide health care empire?

NBC News Still Shilling For Obama

For the first time, NBC Nightly News took a look at the so-called "birth certificate" controversy surrounding President Barack Obama. Instead of researching and investigating the various claims, NBC News' Pete Williams cast everyone raising the issue of whether Obama is a "natural born citizen" as a kook with no legal basis for their claims. The report began by showing an angry woman standing up at a Delaware town hall meeting conducted recently by U.S. Rep. Mike Castle (R-DE) and questioning whether Obama is a U.S. citizen and demanding an investigation to get to the bottom of it. (See video above). The crowd erupted with anger when Rep. Castle dismissed the woman's question. Williams then went on to say there is no legal basis to conclude Obama is not a "natural born citizen" according to unnamed legal scholars he says, though he conceded the courts have never determined what a "natural born citizen" means under the constitutional eligibility requirements for being president.

Williams' reporting completely ignored the two lines of argument questioning Obama's natural born status. There are those who say he really wasn't born in Hawaii, and Obama has never produced the original birth certificate proving his birth there, only a "Certificate of Live Birth." Proponents of this argument note that Hawaii law at the time of Obama's birth permitted the parents to register a child's birth by affidavit regardless of the child's place of birth and without the signature of the doctor or attending nurse during the child's birth. They cite relatives of Obama in Kenya, including his step-grandmother, who claim he was born in Kenya. The relatives' claims seem suspect to me, particularly the grandmother who charges money for interviews with reporters. It is inexplicable, however, that Obama has refused to make public the original birth certificate he described holding in his hand in his book, Dreams From My Father. Instead, he furnished what he claims is a Certificate of Live Birth that was issued by the State of Hawaii in 2007. Obama and his staff have further clouded the issue by providing reporters with differing accounts over time as to which hospital in Hawaii he was born.

A second line of argument that Obama is not a natural born citizen is the camp in which I rest. Credible legal authority exists for the argument that a natural born citizen is a person born to American citizens. It is undisputed that Obama's father was a Kenyan citizen at the time of his birth and remained so until his death at a young age in Kenya. It is undisputed that Obama's father's Kenyan citizenship made his child a dual citizen of both the U.S. and the British Commonwealth of which Kenya was a part at the time of Obama's birth. His father's British citizenship and his dual citizenship is wholly incompatible with respected American legal authority's view of a natural born citizen. Some legal scholars say mere birth on U.S. soil alone makes you a natural born citizen regardless of your parents' citizenship. Some of these same scholars will tell you that John McCain is not a natural born citizen because he was born in Panama to U.S. citizen parents while his father was serving in the U.S. Navy. I disagree with both views, but I respect the the fact that these legal arguments exist. Williams' NBC report tonight did not even acknowledge the existence of other respected legal views.

Obama's situation is further complicated by his mother's marriage to an Indonesian citizen, Lolo Soetoro, and his and his mother's subsequent immigration to this foreign land. It is undisputed that school records obtained by an AP reporter showed that the legal name under which Obama was registered at a Jakarta school was "Barry Soetoro." Those school records identified Barry Soetoro as an Indonesian citizen whose father was Lolo Soetoro. Obama's campaign claim he was never an Indonesian citizen. Unlike the "certificate of live birth" produced by his campaign, we aren't supposed to believe the plain words stated on the school document, which provides a strong inference that Lolo adopted his step-son and Indonesian law, at the time, according to other researchers, would have made it nearly impossible for a foreign student to be enrolled in an Indonesian school. It is quite possible, if not likely, that Obama held citizenship to as many as three countries at one time. Whether an Indonesian citizenship acquired after his birth had any impact on his U.S. citizenship is a whole other debate. Regardless, I think it is highly unlikely that the founding fathers intended that such an individual, "a citizen of the world" as he's called himself, would satisfy the natural born citizenship requirement.

Williams' report tonight acknowledged that dozens of lawsuits have been filed across the country and that all of them have been dismissed; however, he omits the fact that all of those lawsuits were dismissed on standing grounds and were not based on the merits of the claims stated therein. Williams further ignored the fact that some of those lawsuits don't question his place of birth as he suggested all of them do; rather, the claims are based on the argument that he cannot be a natural born citizen because his father was not a U.S. citizen. Citizens have been frustrated in attempt after attempt to get to the bottom of a question which should have been resolved by state election authorities who certified his candidacy in the presidential election. While state election authorities have regularly denied access to the ballot to third-party presidential candidates on the basis that they didn't meet the 35 years of age requirement or the natural born citizen requirement, the only two constitutional qualifications to be president, they have never exercised that authority to deny a major party presidential candidate access to the ballot. Some suggested Sen. Barry Goldwater was ineligible in 1964 because he was born in Arizona before it became a state. Others challenged Gov. George Romney because he was born in Mexico where his Mormon parents fled to avoid prosecution under California's laws against polygamy. In the case of Sen. John McCain, the U.S. Senate conducted hearings and passed a resolution declaring him a natural born citizen based on the fact that he was born to U.S. citizen parents, albeit in a foreign land.

The double standard in the reporting of Obama's biography versus other presidents and vice presidents is conspicuous. CBS News' Dan Rather poured over document after document to prove that George W. Bush didn't fulfill his National Guard duties, even relying on what turned out to be forged documents to prove his case. Dan Quayle had to defend claims by the infamous Speedway Bomber that Quayle purchased pot from him. Both George W. Bush's and John Kerry's grade transcripts from college were made available, vetted and compared by reporters. We learned that Bush was a very mediocre student and that Kerry was a slightly less-mediocre student. John McCain's U.S. Naval Academy records revealed that he finished at the bottom of his class. He produced his original birth certificate showing his birth in Panama.

In contrast to erring on the side of disclosure by past presidents about their personal biographical information, Obama has taken the complete opposite tact. Obama has a team of lawyers devoted to making sure that nobody has access to any of his college records at Occidental, Columbia University or Harvard Law School. He will not allow Hawaii officials to release his original birth certificate, and he won't allow the hospital at which he claims he was born to release any information about his birth there. He won't release his bar admission records in Illinois. What is available online suggests that he may have failed to disclose that he once went by a different name, Barry Soetoro. And fellow blogger Debbie Schlussel uncovered evidence of tampering with U.S. Selective Service records to make it appear that Obama had registered for selective service when he turned 18. Still, none of the mainstream media is interested in looking into any of these matters. How the hell can a presidential historian write about this man's earlier life with any accuracy? They sure can't rely on either of the auto biographies he wrote before he even became a U.S. senator. As the Sun-Times' Lynn Sweet said of one of those books, it was impossible to ascertain where the fiction ended and the truth began. I just want to know the basics about the guy we elected to the most powerful political office in the world. Is that asking too much? What does NBC's Williams tell us tonight in his report? Some congressmen are opting not to hold town hall meetings during this summer's congressional recess for fear of facing questions similar to what Rep. Castle's constituent asked of him about Obama's natural born status.

Wining & Dining

The Star does its annual, after-session wrap-up today on how much lobbyists spent wining and dining our state lawmakers. The total reported to date tops $24 million and will likely rise by another $5 million reports Mary Beth Schneider. Hoosier Park spent more than any other lobbying entity, spending more than $570,000. Schneider adds that most of the money was spent on lobbyist payments and not entertainment, although there was a plenty of that this session. Here's a sample of how much some key legislators got wined and dined:

• Among Indiana's 150 legislators, House Speaker B. Patrick Bauer, D-South Bend, led the list, receiving more than $5,200 in trips and dinners . . . The gifts to Bauer included a $2,900 trip to San Juan, Puerto Rico, to speak to the Indiana Motor Truck Association, and two nights at a Washington, D.C., hotel costing about $1,100, to attend President Barack Obama's inauguration, courtesy of Roche Diagnostics.
• AT&T -- which had not courted Van Haaften in any prior session -- flew him to San Antonio for a Pro-Am golf tournament, gave him a $350 gift card for the pro shop, and hosted him and his wife at an inaugural ball in Washington, D.C. Altogether, AT&T lavished more than $4,200 on Van Haaften. Combined with another $100 in golf from Evansville-based utility company Vectren, VanHaaften received the second-most in lobbying largesse. The bill easily passed.
• One lawmaker, Sen. Greg Taylor, D-Indianapolis, found all of his smaller meals itemized in the reports -- 29 meals ranging from $4.25 to $83.23 -- totaled $713.67. All were paid for by a single lobbyist -- Joseph Smith of Baker & Daniels. Smith did not return phone calls, but Taylor said the meals were about friendship, not lobbying. Smith is a neighbor and college friend. Taylor said he's picked up plenty of Smith's checks, too. Still, he admitted some surprise at the total.

It didn't take Sen. Taylor long to get on the lobbyist gravy train. He's in his first elected term to the state senate and he accepted 29 meals from the same Baker & Daniels lobbyist? Pat Bauer's thousands of dollars in freebies is no surprise. He's used his legislative leadership position as a cash cow for years. And Van Haaften? What can you say. The guy has been bought and paid for by AT&T, pure and simple. Also, Senate Democratic Leader Vi Simpson tagged along with Bauer to the Motor Truck Association's trip to Puerto Rico according to the newspaper's database. Schneider just didn't single her out at least in the online version of her story.

Schneider's story notes efforts by Sen. Mike Delph to provide greater transparency in reporting of lobbyist expenditures on behalf of legislators. He wants everything with a value of $25 or more reported. Some states ban entertainment spending by lobbyists on behalf of legislators altogether, which is the preferred route. Delph has put his money where is mouth is by self-reporting such expenditures on his website.

As a former lobbyist, I'm very familiar with how the game is played. I've studied closely the reports filed by lobbyists that I have personally observed wining and dining certain legislators at expensive restaurants and handing out free tickets to them and their family members to Colts and Pacers games. I believe some of these high-roller lobbyists are flat out lying on their lobbyist disclosure statements. I distinctly remember giving Colts tickets to a legislator who gladly accepted them and then threw a fit when I reported them as a gift exceeding $100. I got the distinct impression from his reaction that other lobbyists didn't follow the rules and he didn't expect me to do follow them. There are some gaming lobbyists, in particular, who hang out at the Columbia Club who break all the rules on a regular basis and have no fear of getting caught.

Lobbyists are regulated by the Indiana Lobby Registration Commission, or as I like to call it, The Lobbyist Protection Commission. The commission members are appointed by lawmakers with a wink and a nod, who make sure the commission staff lacks the resources to do any real investigation of potential wrongdoing. I wasted my time filing a complaint once against a lobbyist who was obviously violating the law. The Commission refused to accept the complaint unless I filed it with enough copies for each commission member and the staff, even though there were no formal complaint procedures provided to the public to explain this requirement. After a behind-closed-door meeting with the lobbyist, the Commission dismissed the complaint without conducting any investigation to determine if the alleged violations had occurred.

Indiana legislators are bought and paid for daily by lobbyists through free sporting event and concert tickets, free trips, free golfing opportunities and free meals and drinks at the finest restaurants in town. The legislative leadership scorns lawmakers like Sen. Delph who want to air out the stench that fills the hallways at the State House. Until there is some meaningful ethics and lobbying reforms at the State House, the public has every reason to suspect that their lawmakers are up to no good on their dime.

R.I.P. Richard Givan

The state's former Chief Justice, Richard Givan, who served on the Indiana Supreme Court for 26 years, died yesterday at the age of 88. The Star's Diana Penner has a nice reflection on his career here. The obituary in the Star can be accessed here. I had the pleasure of sitting on several initiation panels with Givan at the Indiana Supreme Court chambers for my legal fraternity, Phi Delta Phi. Givan always had some great insights on the Court to share with laws students at Indiana University School of Law-Indianapolis, as well as plenty of funny stories he experienced from nearly a half-century of work in and around the Court. Perhaps nobody in Indiana had more institutional knowledge of the Court than Givan. One of my favorite Givan lines was this: "Chief Justice Shepard likes to talk about the first minorities to serve on this Court. Well, I'm about as much of minority as you can find in Indiana. I'm a Quaker."

Schneider Triumps Over Vaughn In Senate District 30 Caucus

Riding a wave of anti-establishment sentiment, former City-County Councilor Scott Schneider reignited his political career tonight with a convincing second-ballot win of 61-38 over City-County Councilor Ryan Vaughn at the Senate District 30 caucus to replace Sen. Teresa Lubbers. Schneider fell just one vote short of winning on the first ballot, receiving 49 votes to Vaughn's 37 votes and former State Rep. John Ruckelshaus' 12 votes. Schneider captured all of Ruckelshaus' votes on the second ballot, discounting one spoiled ballot on the first round of voting.

Schneider delivered the most soft-spoken speech tonight among the three candidates, emphasizing his commitment to less taxes, fiscal restraint and individual responsibility. Schneider told committepersons he was the one candidate who they could count on to return their calls and represent their interests above special interests. State Rep. Cindy Noe delivered a ringing nominating speech for Schneider. Many had thought Noe would seek the seat which has been held by a Republican woman for decades now; however, she deferred to Schneider because of the support he and his family extended to her in her run for state representative.

City-County Councilor Mike McQuillen delivered a strong nominating speech for Vaughn. Several of his fellow Republican councilors were on hand tonight to support his candidacy. Mayor Greg Ballard, who endorsed Vaughn in a letter to committeepersons last week, did not appear at tonight's caucus. Vaughn emphasized his prosecutorial experience, council experience and State House lobbying experience.

Ruckelshaus delivered the most rousing speech of the three after he was nominated by Rick Hurst. He emphasized his past state legislative experience and state government experience, as well as his private business experience. He told committeepersons he was the best candidate to pick up the ball left behind by Lubbers and lead on key issues like charter schools.

In the end, committeepersons appeared determined to pick the outsider, anti-establishment candidate and Schneider best fit that bill tonight. State GOP Chairman Murray Clark and the GOP staff did an excellent job conducting what everyone viewed as a very fair election tonight. An Internet report by radio talk show host Abdul Hakim-Shabazz, a Vaughn cheerleader, that Schneider was challenging the certification of several committeepersons proved to be overstated. The issue was whether two vice committeepersons could vote in place of precinct committeepersons who had moved out-of-state recently or were otherwise unavailable. the party certified them to vote, although it wasn't clear that the two persons in question even showed up to vote. There were 99 votes certified out of a potential 107 eligible votes. The losing candidates, although deflated, congratulated Schneider on his victory. Chris Douglas, who dropped out before the voting started tonight, also did himself well with the few remarks he delivered, conceding that the votes were simply not there to make the run.

Star reporter Vic Ryckaert questioned me about any concerns I might have with Schneider's win given his opposition to the Human Rights Ordinance as a councilor. I disagreed fervently with the position Schneider took on that vote at a time when the Marion Co. GOP Chairman was urging Republican councilors to vote in a bloc against the HRO. In the end, only two GOP councilors supported it. In defense of Schneider, I pointed to his independence on the council and his steadfast opposition to some of Peterson's most-costly blunders, including the purchase of the Indianapolis Water Company. Few would doubt that everything he said at the time for opposing that purchase has proven true today. Schneider also opposed consolidating the police and sheriff's department under the sheriff. Council Republicans agreed with his view and reversed that action, moving control of IMPD back to the Mayor's office. Schneider also consistently voted against the Peterson tax increases.

One final comment I will make is that this race tonight had nothing to do with social issues. To the extent any issues drove the debate it was the desire of committeepersons to return to the bread and butter economic issues that has driven Republican successes in the past. The anti-establishment sentiment hurt Vaughn and Ruckelshaus because they are both registered lobbyists. Schneider's greatest asset may have been his ability to connect one-on-one with committeepersons. Several committeepersons, who met with each of the candidates, have made this point to me over the past several weeks. And all is not lost for Vaughn. He probably stands a good chance of succeeding Bob Cockrum as CCC President next year, assuming Barb Malone doesn't jump ship and return to the Democratic Party, which is not out of the realm of speculation at this point. If that would happen, Republican-turned Libertarian Ed Coleman could hold the deciding vote.

For the political junkies interested in the breakdown of how the committeepersons voted geographically, here's what I learned. Schneider won in Hamilton County, the northeast region and even the southern region of the district home to Vaughn's council district. Schneider collected 14 votes from Hamilton County, while Vaughn and Ruckelshaus split five votes each on the first ballot. Schneider collected 18 votes in his home area compared to 7 votes for Vaughn and 5 votes for Ruckelhaus. In Vaughn's home area, Schneider collected 25 votes to Vaughn's 17 votes and Ruckelshaus' 2 votes.

One final aside, I see Jim Shallow has declared Schneider's election tonight a win for the "far right." For the record, the reporter in question was a no-show at tonight's caucus. You know, he didn't want to work past 5:00 p.m., and that's how his insider, elititist pals at the State House told him to report on the outcome. Great job, Jim. So much for the claim of being the best State House reporter.

Scott Fluhr has a good analysis of tonight's race at Hoosier Access here.

Finally, Star Covers Senate District 30 Race

Tonight, Republican precinct committeepersons in Senate District 30 will convene at a caucus to select a state senator to fill the vacancy created by Teresa Lubbers' departure last month to become Higher Ed commissioner. Today, the Star ran its first story on the race between four Republican men to succeed her. Mary Beth Schneider observes that Mayor Greg Ballard is backing City-County Councilor and Barnes & Thornburg lobbyist Ryan Vaughn, but she adds that "it's unclear, though, whether that endorsement will have much impact in a race in which the candidates and party leaders in both counties (Hamilton and Marion) say there is no clear favorite."

Both party chairmen, Marion County's Tom John and Hamilton County's Charlie White, told Schneider there is no clear favorite in the race. White will cast a vote as one of the precinct committeepersons in the district. Although he has not publicly-endorsed a candidate, it is widely believed he will back Vaughn, who has the support of the leadership of the Marion County GOP. Party leaders have been prodding committeepersons to back Vaughn for weeks now. White is a statewide candidate for Secretary of State in 2010, and he'll be looking to Marion County for money and support in his Secretary of State bid. White told Schneider, "Everyone wants to get this thing over with."

Here are some of Schneider's comments on the candidates:

Chris Douglas
Douglas would be the first openly gay legislator if elected. He has stressed his business experience as a managing partner of the wealth management firm Hendrickson, C.H. Douglas & Gray LLC, saying that in this recession the state needs more officeholders who understand the economy and fiscal issues.

Scott Schneider
Schneider, who is vice president of sales and marketing for Mister Ice of Indianapolis, emphasized his conservative credentials for supporting limited government and warned the nation was being pulled toward "statism, socialism, whatever you want to call it."

And, he said, this isn't the time "to put yet another lobbyist in the Statehouse."

John Ruckelshaus
Ruckelshaus, who has been executive director of the Indiana Cable Telecommunications Association since January, and Vaughn, an attorney at Barnes & Thornburg, are registered lobbyists.

Ruckelshaus, however, said the issue is experience and stressed his track record as a former legislator and his job under Gov. Mitch Daniels from 2006 until January as deputy commissioner of the state Department of Workforce Development.

Ryan Vaughn
Vaughn said he would resign from Barnes & Thornburg if elected and cited his council track record of pushing for public safety improvements and lower taxes.

Update: Frugal Hoosiers says Chris Douglas has dropped out before tonight's caucus has even begun.

Scott Newman Leaving Ballard Administration

Public Safety Director Scott Newman is departing the Ballard administration less than half way through the Mayor's first term. Newman focused on reorganizing the police department after control of IMPD was transferred from Sheriff Frank Anderson's office to Mayor Ballard. A police scandal involving more than 50 police officers who were employed off duty by a scrap metal dealer blemished his record. His office has come under criticism recently by the Star for failing to implement policy changes to avoid conflict of interest issues associated with police officers off-duty work. A successor to Newman has not been chosen. Newman has suffered from Parkinson's disease for several years.

Marion County GOP Troubles?

Fellow blogger Scott Fluhr has an item at Hoosier Pundit about the payroll checks of employees of the Marion Co. GOP allegedly bouncing recently. "I've heard from sources in Indy that the Marion County GOP's payroll checks bounced," Fluhr writes. "Rumor also has it that there's been a problem with embezzlement, not unlike that seen at the State Democratic Party some years ago," he adds.

Last week, I was contacted by a highly-reliable Marion County Republican source about this rumor. As an elected GOP committeeperson and donor of the Marion Co. GOP, I e-mailed Robb Greene, the party's executive director, seeking information about the rumor. He never replied to my e-mail seeking confirmation or denial of the rumor concerning another party employee. I hope this isn't the same problem other campaign committees have suffered in recent years, if there is indeed a problem.

A couple of years ago, the Indiana Democratic Party turned over evidence to the Marion Co. Prosecutor's office that an employee of the state party, Kim Bostic, had embezzled more than $70,000 from state party funds. Bostic was later sentenced to six months of home detention for the theft. A former Senate Republican Committee campaign worker and Bose McKinney lobbyist, Brad Hiller, pleaded guilty to stealing more than a $100,000 from the Senate GOP committee. He was later sentenced to at least six months in prison for his crime.

Indiana Equality Stabs Its Own In The Back Again

City-County Councilor Jackie Nytes (D) co-chairs Indiana Equality's Political Action Committee with former City-County Councilor Scott Keller (R). Indiana Equality's mission is to promote equal rights for Indiana's gay, lesbian and transgender citizens. Tonight, the City-County Council had before it four resolutions appointing new members to Indianapolis' Equal Opportunity Advisory Board. This board assists the City in the enforcement of the Human Rights Ordinance, which Nytes co-sponsored with Keller, and which prohibits discrimination on the basis of sexual orientation or gender identity.

Councilor Marilyn Pfisterer (R), the sponsor of the resolutions, asked for their consideration in a single vote. Nytes objected and asked that each resolution be voted on separately. Nytes and several other Democratic councilors proceeded to vote "no" on the approval of Douglas Huntsinger, an openly-gay adviser to Gov. Mitch Daniels. Nytes had no problem supporting the other three appointees to the Board tonight, and she had no problem supporting the reappointment of the controversial former City-County Council counsel, Aaron Haith, to the Indianapolis Housing Authority. Even Republican councilors supported his reappointment despite the ethics complaint it filed against him. On what basis did Nytes decide to discriminate against Huntsinger's appointment. The fact that he's a Republican? Or the fact that he's gay?

Huntsinger becomes the only gay member of the Board after two lesbians Nytes supported during the Peterson administration were not reappointed by the Republicans. The other two new appointees tonight included Michael Whitmore, Charles Garcia and A.J. Feeney-Ruiz.

Who Knew HHC Owned A Chain Of Nursing Homes

It's called the Health & Hospital Corporation of Marion County, but it operates nursing homes throughout the State of Indiana. Huh? That's right. I discovered that HHC owns and operates dozens of nursing homes in places like Anderson, Brownsburg, Evansville, Lafayette, Mooresville, Wesfield, Noblesville, Ft. Wayne, South Bend, Valparaiso, Bedford and Franklin. At the same time HHC went on buying spree of at least 23 nursing homes, it recently closed Lockefield Villages, a nursing home it built in the 1990s adjacent to Wishard Hospital, one of about ten it operates within the county. The Star's Dan Lee explained the closing just months ago:

Wishard Health Services is closing Lockefield Village Health and Rehabilitation Center, a restructuring and cost-cutting move that will displace the 178 residents of the Downtown long-term care facility.

Dr. Lisa Harris, chief executive of Wishard Health, said the move will allow Wishard Health to focus on the growing need for acute and primary care services. Wishard, operated by Marion County Health and Hospital Corp., is a nonprofit hospital and health system that cares for many of the region's poor and indigent.

"Closing Lockefield Village, while a difficult decision, will allow us to focus resources on our core mission," Harris said this week in a Wishard memo.

Lockefield Village, which opened in 1996 at 980 Indiana Ave., has stopped admitting new patients and plans to cease operations by May 13. The facility's residents include stroke and Alzheimer's patients and others who require skilled nursing care.

Wishard said it is working with American Senior Communities, an Indianapolis-based nursing home provider, to help place Lockefield Village residents in other locations.

Dr. Harris' claim that it was closed to focus on the growing need for "acute and primary care services" rings hollow when it has extended its nursing home acquisition to every corner of the state. Lee's story indicated that HHC had no plans for the vacated Lockefield Village, even though we now know just months later that HHC planned all along to swap property with IU to build its new Wishard Hospital facility at a cost of at least a quarter of a billion dollars. Although HHC's CEO Matt Gutwein has boasted about the productivity and quality of care at Wishard, Lee's report notes that Lockefield Village scored just 1 out 5 possible star on its Medicare rating. Virtually all of the residents at Lockefield Village were Medicaid/Medicare patients. [Go to the State of Indiana's interactive map to locate the various nursing homes owned by HHC]

In a short period of time, HHC has been converted from a Marion County-only provider of indigent care and enforcer of the county's health and building codes into a statewide provider of health care services. Did I miss some public discussion where it was decided that HHC should broaden its services statewide? It is hard for me to appreciate how its mission is furthered by owning a nursing home in Bedford or Ft. Wayne. It's difficult to gather any real information about how these decisions were made by the HHC's Board of Trustees because the Board's minutes have such abbreviated statements about issues it discusses. An October, 2002 minute entry exemplifies the brevity of these discussions:

Mr. Elwell began the meeting by discussing the possibility of HHC purchasing certain assets and acquiring certain leases for nursing homes in the State of Indiana. Leah Mannweiler, from Krieg DeVault, outlined for the Board the reimbursement issues involved in such a transaction. Discussion followed.

Mr. Elwell outlined the plan for the first acquisition and explained HHC hoped to acquire more nursing facilities through December 2003. The Board asked about potential liabilities associated with these transactions and asked about an exit strategy. Discussion followed. Mr. Elwell noted that this meeting was to explain the general idea behind the transactions and informed the Board that they would receive more detailed information at the next Board meeting on October 15, 2002.

The Board gave approval for Mr. Elwell and staff to further pursue the purchase and acquisition of certain nursing facilities and asked him to report back to the Board, with more detailed plans, at the October 15th Board meeting. Discussed followed.

At the following meeting in November, 2002, there is this brief enty concerning approval of nursing home purchase agreements:

Ms. Hebenstreit next presented, "Resolution No. 11-2002, "Purchase of Assets and Acquisition of Leases." Mr. Gutwein asked if there was a motion to approve the Resolution. Mrs. O'Laughlin made the motion to approve. Dr. Bock seconded the motion. Mr. Gutwein asked if there was any discussion on the motion. There was none, therefore Resolution No. 11-2002 was unanimously approved.

If you hadn't read the minutes from the meeting the month before, you would have no idea that the "Purchase of Assets and Acquisitions of Leases" involved nursing homes. I see nothing in the record that discussions were held with the City's Mayor, City Councilors or County Commissioners to seek their input before going on a buying spree of nursing homes outside Marion County. Where were the public hearings? There is simply no transparency in the actions of HHC's Board of Trustees. Hidden from public view, it has been converted into a statewide corporate health care giant. Why does it need these nursing homes? Is it bilking Medicare/Medicaid dollars from these nursing homes to finance its big corporate hospital center in Indianapolis? Who knows.

This is just one of the many issues I plan to raise in the coming months as voters of Marion County are asked to approve construction of this new hospital to replace Wishard Hospital. Something doesn't add up when HHC officials tell the public it can borrow all of this money and not raise a dime in taxes to pay for it. A big hat tip to the Advance Indiana reader who brought this matter to my attention. Keep the tips rolling in, and I'll be happy to share with everyone else.

Legislature Endangers Solvency And Manageability Of Homeowners Associations

The Indiana Law Blog caught a story by the Fort Wayne Journal-Gazette's Benjamin Lanka about a new law governing homeowners associations that has serious implications. Rep. Phil Hinkle (R-Indianapolis) and the Indiana General Assembly, in their infinite wisdom, turned an already bad situation for homeowners associations into a much worse situation. As usual, the lawmakers simply don't grasp the basic issues at hand to make an informed decision. Hinkle's HB 1021 creates a new statute prospectively governing homeowners associations established after July 1, 2009; however, it has an opt-in for existing associations. Any association in their right mind would never sign on to it because of the way it ties the hands of association boards grappling with budgets in the toughest of economic times.

Lanka's story points out that a key provision in Hinkle's legislation applies to all homeowners associations. "Now an association must file its lien within a year, but a lawsuit can’t be filed until 12 months have passed," Lanka writes. "The suit must be filed within five years." He adds, "That section went into effect July 1." What that means is that a homeowners association cannot record a lien for an outstanding assessment. Prior to July 1, homeowners association could file a complaint to foreclose on a lien no sooner than thirty (30) days after notice had been given to the homeowner. The new law makes homeowners associations wait at least one year before it can file a foreclosure action. That means other homeowners are stuck shouldering the burden for utilities, insurance, maintenance, etc. that the association incurs annually to benefit all homeowners within the association until a court forces the homeowner to pay up or the property is sold.

Homeowners associations are already at a big disadvantage in Indiana because the mortgage holder always has a superior lien, regardless of when it is recorded. With the current mortgage industry meltdown, many lenders are simply not forcing homes into foreclosure and taking possession of the property. Instead, the mortgage holders free load off the homeowners association, leaving it to the association to collect the money it needs to operate and maintain the community, including the delinquent homeowner's property, from other homeowners. When the property is eventually sold and there are no sales proceeds left over after the mortgage balance, interest and late penalty fees and collection costs are tallied, which frequently happens in today's market, the homeowners association never collects those unpaid assessments, making them a permanent burden on the other homeowners. Hinke's new law means homeowners associations will lose even more from delinquent homeowners to the extent the law delays foreclosure actions on the property.

The provisions of Hinkle's bill covering newly-established homeowners associations is equally harsh on associations. Homeowners associations' bylaws typically vests the board of directors elected by the homeowners with responsibility for adopting an annual budget and levying assessments on homeowners. Under Hinkle's legislation, a majority of the homeowners in attendance at the annual meeting will be required to approve the budget and assessments. Hinkle obviously isn't familiar with homeowners association meetings. As a member and elected board member of one, I can tell you that it is a struggle to get homeowners to attend the annual meeting. Without the proxy votes obtained in advance of the meeting, it would not be possible in many cases to convene a quorum required for conducting the annual meeting. In the event a quorum isn't present for the annual meeting, under Hinkle's new law the association is limited to the same budget it adopted the previous year, unless its bylaws allow the board to adopt a budget not greater than 110% of the previous year's budget.

As to contracts entered into by the homeowners association, Hinke's new law requires homeowner approval for any contract that would produce an assessment increase of at least $500 a year for a homeowner. To adopt such a contract, the association would be required to conduct two consecutive meetings with the homeowners and obtain the approval of at least two-thirds of the affected homeowners. If the homeownes association wants to borrow more than $5,000, it will have to obtain the approval of a majority of the homeowners. Paper ballots have to be prepared and mailed to all homeowners at least 30 days before a vote is taken.

Isn't that just like the legislature? It imposes all sorts of extra hoops for homeowners association boards to jump through to approve budgets and assessments for a governing body that is closest to the people it represents when the General Assembly budgets, taxes, spends and borrows tens of billions every year without requiring similar restrictions on itself. There is a complete lack of understanding and appreciation of the challenges facing homeowners associations, particularly in this horrible economy. Dealing with sudden mechanical and other building maintenance issues that can arise costing in the hundreds of thousands of dollars range and the unexpected, double-digit rate hikes for water and sewer, are just some of the examples homeowner association boards face regularly. My own association had to increase assessments this year simply to make up for a growing number of delinquent accounts.

What is particularly disturbing to me is the fact that I took the time to call Rep. Hinkle and explain the serious problems his legislation would pose to homeowners associations. I got the impression during my conversation with him that the impetus of this legislation was a single, rogue homeowners association from which he had heard complaints. I thought I had an assurance from him that he understood the concerns I raised and would address them as the legislation proceeded. Obviously, that was not the case. He attacked an isolated problem with a hatchet. The many will suffer because of the desire to aid and abet a few deadbeat homeowners, who delight in riding the backs of their fellow neighbors.

More On Daniels' Welfare Privatization

If Gov. Mitch Daniels hopes to someday be a candidate for president, his welfare privatization may prove to be his biggest Achilles heel. The Star's Will Higgins has a blistering assessment of the results so far from the privatizing of the welfare services administered by the Family & Social Services Administration. His heart-wrenching story about the experience of cancer victim Omega Young of Evansville says it all:

Omega Young lay in her hospital bed, her body wracked with disease. The cancer that started in her ovaries had spread to her kidneys, breast and liver.

She'd lost her appetite to the chemotherapy; she weighed 98 pounds.

Then came more bad news: After a botched round of telephone tag with welfare officials, the state of Indiana pulled the plug on her Medicaid benefits and food stamps.

The 50-year-old Young, who lived alone in a tiny apartment, was frantic.
"She'd call me, crying," says Cecilia Brennan, a staffer with Evansville-based Southwestern Indiana Regional Council on Aging. "She'd say, 'What am I going to do?' "

Brennan, whose agency advocates for older and disabled adults, blames privatization for putting Young through needless stress during what turned out to be her final days . . .

As for Young, the cancer patient, Brennan interceded on her behalf and represented her at a Medicaid appeals hearing in February. A few weeks later, an administrative judge ruled in Young's favor.

Her benefits were reinstated March 2.

Young had died March 1.

It was never a matter of life and death, but rather, quality of life. "She was just so sick, so weak," said her sister Christal Bell. "She knew she was going, but she had strong (Christian) faith."

Higgins' story notes that error rates have shot up since the privatization plan has been partially implemented and are well above the national error rate. Daniels is quoted as saying the performance of IBM and the other private contractors is "unacceptable" and fixing the welfare system remains "the number-one priority of our administration. The Daniels' administration is contemplating cancelling the contract if the situation doesn't improve by September. The privatization plan was initiated by former FSSA Secretary Mitch Roob. His former employer, ACS, is a leading member of IBM's privatization team.

A Different Take On The Burr Oak Cemetery Controversy

An ABC 7 News report out of Chicago suggests there may be another explanation for cemetery workers digging up grave sites and selling new plots on the site of the old ones. Reporter Charles Thomas says many African-Americans traditionally purchased non-perpetual plots. Under such agreements, a deceased person's family may rent a burial spot for a period of twenty years as a cost-saving measure if they couldn't afford a perpetual plot. When the term expires, the body is dug up and buried at a mass burial site. Illinois law apparently does not regulate how cemeteries dig up and dispose of those human remains in such cases. His report does not confirm that was what happened at Burr Oak, but it could make Cook Co. Sheriff Tom Dart, who spearheaded the investigation, look pretty silly if that proves to be the case. He has jailed four of those workers on felony charges. It could also bar many lawsuits filed already against the cemetery for the emotional distress family members said they suffered as a result of learning the news.

Tully On Politicians' Arrested Development

The Star has apparently fixed the bug on their indystar.com website that earlier today required all visitors to log in using a user name and password. Political columnist Matt Tully hits the nail on the head with his ruminations on politicians making news in the police blotter section of the newspaper. He suggests that Indiana politicians are turning into an episode of "Cops" and that perhaps this is "a sign of the caliber of person modern-day politics attracts too often." So true.

Star editor Dennis Ryerson reassures readers today that the newspaper is working hard to "better serve our readers" despite all the recent cutbacks and layoffs in the newsroom. Ryerson's paper gets an "F" for its coverage of the Senate District 30 Republican caucus election. Precinct committeepersons will meet this Tuesday to pick a replacement for Sen. Teresa Lubbers for the remaining three years of her term. The Star has had zero coverage to date about the four candidates seeking election to that office.

If you want a good perspective on the Senate District 30 race, check out Glenn Hatmaker's post at his new blog. Glenn is a Washington Township precinct committeeman in the district.

Waterworks Board's Answer To IURC Order: Hire More Consultants

Late last month, the IURC scaled back an emergency rate hike request by the Indianapolis Water Company. Advance Indiana told you how the IURC's order included scathing comments about the water company's one-sided agreement with Veolia, a French-owned company. The IURC knocked increased payments to the private contractor at a time the water company was facing mounting debt and declining revenues. It also questioned incentive payments that were being paid to the company totalling in the millions with little or no quantifying evidence that Veolia should be paid the incentive payments. Despite the damning evidence contained in the IURC's order, there has been a complete news black out on the issue by the mainstream media. True to form, the Indianapolis Waterworks Board had nothing to say about the IURC's blistering comments. Without debate, the board members voted for a resolution to hire more consultants to study and review the IURC's findings. Nobody on the board gives a damn about the public's interests. They were put there to make sure the lobbyists, lawyers, consultants and contractors are all taken care of well. The criminal rape of the ratepayers and the taxpaying public will continue on unchecked. And who's to stop them?

HHC: Show Us Your Audited Financial Reports

It looks like the Health & Hospital Corporation of Marion County has operated with all of the transparency of the Capital Improvement Board. Good luck trying to find any financial statements for the mammoth nonprofit, publicly-financed corporation. Consider Matt Gutwein and the HHC put on notice that we expect this information, including all audited financial statements prepared by an outside CPA firm, to be posted posted online immediately and covering at least the past five years. We'll be damned if the $400,000 a year CEO is going to run around keeping all of those facts and figures under raps. Gutwein is required by law to prepare an annual "auditor's report." The HHC's budget ordinances are published; however, it is not subject to oversight by the City-County Council. Like the CIB, it is not subject to audits by the State Board of Accounts, notwithstanding its taxing authority. Apparently the mainstream media is quite willing to jump on the bandwagon touting the benefits of a new three-quarter billion dollar hospital without doing any independent investigation of its own, but I'm not prepared to do that.

Several people have asked me this question so let me make it clear that Matt Gutwein is not a Ballard appointee. Gutwein worked under Bart Peterson when Peterson worked as Evan Bayh's chief of staff and succeeded him to that position. Gutwein became a partner at Baker & Daniels before Mayor Peterson had him installed at the HHC during his administration. Gutwein's wife, Jane Hinegar, served as a deputy mayor for Peterson. One of Gutwein's predecessors is Mitch Roob, who former Mayor Goldsmith installed to run the organization. Through it all, the HHC has been represented by Barnes & Thornburg. Gutwein is no supporter of Republicans and certainly not Greg Ballard, and he will glady help out with the public hanging of the Mayor and the Republicans on the city council on this issue, who seem a little too willing to swallow his spin on the new hospital proposal hook, line and sinker, regardless of the long-term debt and prospects for higher taxes to pay for it.

Doris Minton-McNeil's Acquittal And Other Ruminations

Yesterday, Judge Annie Christ-Garcia acquitted City-County Councilor Doris Minton-McNeil (D) on charges of battery on a law enforcement officer and resisting law enforcement after a one-day bench trial conducted on Wednesday. Indiana Barrister has posted a copy of Judge Christ-Garcia's one-page ruling. The Democratic-elected judge offered no explanation for her finding of not guilty on the felony and misdemeanor charges. Democrats are, not surprisingly, very happy with the verdict. McNeil is the second member of the City-County Council in recent years charged with misconduct towards a city police officer. Both incidents involved African-American councilors, both were accused of being under the influence of alcohol and both accused city police officers of racism. Charges against former City-County Councilor Ron Gibson were later dropped after the prosecutor's office bungled his case.

It is disappointing that Judge Christ-Garcia did not explain her ruling yesterday. We can only deduce that she did not believe the testimony of several police officers. A detailed police report filed in the case paints a very negative picture of a belligerent McNeil spewing abusive and profanity-laced words towards police officers from the moment they arrived at her house to investigate her complaint that a knife-wielding pedophile was in her home and had attempted to cut her. A 9-1-1 recording of the call McNeil placed before police were dispatched to her home confirms the state of mind police described in their report. Police found no knife-wielding man in McNeil's home and a subsequent investigation of the allegations the man had sexually abused a juvenile turned up the fact that the alleged abuse had actually taken place years earlier, if it even happened at all. It is undisputed that Officer Emily Perkins injured her wrist after she and other officers claimed McNeil shoved her with both hands placed to her chest, causing her to fall against the house. Although McNeil denied suggestions she was drunk, she told police she had consumed two margaritas earlier. Police said McNeil repeatedly told them she couldn't be arrested because she was a city councilor and flashed her business cards at them. After police took her into custody, McNeil urinated herself while being transported for booking the police report alleged.

Judge Christ-Garcia's ruling yesterday gives IMPD a big black eye whether it is deserved or not. None of the news reports I've reviewed since the ruling came down have included a response from IMPD or any of the individual officers involved in the case. McNeil seemed contrite after testifying at her trial on Wednesday. "It's an unfortunate situation," McNeil told reporters. "I'm embarrassed about the public out springing of profanity that was exhibited by myself, and that's all I can say," she said.

McNeil's arrest generated lots of media interest. The fact that she was arrested and a 9-1-1 call and police report had been made available to the media helped fuel the coverage. I recently discovered another incident, however, involving a scuffle between a state senator and another man where no charges were brought against the elected official or the other individual. Although a publicly-accessible police incident report was filed, the case did not draw any media attention of which I'm aware. The New Year's Eve incident at the Columbia Club at the end of last year allegedly involved Sen. Brent Waltz (R) and another club member, Scott Weaver. Here'a what police wrote about that incident. The identity of bystanders who witnessed the scuffle between Waltz and Weaver have been redacted from the report by me:

ON WEDNESDAY 12 31 2008 AT APPROXIMATELY 1045 PM I, OFFICER ROBERT LAWSON, ALONG WITH OFFICER JOSHUA SHAUGHNESSY, BOTH OF THE IMPD, WERE DISPATCHED TO A PERSON ASSAULTED AT THE COLUMBIA CLUB AT 121 MONUMENT CIRCLE. UPON ARRIVAL I SPOKE WITH BRENT WALTZ, WHITE MALE 35 YEARS OF AGE, AND MR. WALTZ STATED THAT WHILE AT A NEW YEARS PARTY AT THE ABOVE MENTIONED ADDRESS, MR. WALTZ AND SCOTT WEAVER, WHITE MALE APPROXIMATELY 45 YEARS OF AGE, WHO HE HAS KNOWN FOR ABOUT 12 YEARS AND HAS HAD SEVERAL DISAGREEMENTS WITH OVER THE YEARS, WERE ENGAGED IN AN ARGUMENT AND THAT MR. WEAVER GRABBED HIM BY THE NECK WITH BOTH HANDS. MR. WALTZ THEN STATED HE TRIED TO PUSH MR. WEAVER OFF OF HIM. MR. WALTZ ALSO STATED THAT [Name redacted], WHITE FEMALE 35 YEARS OF AGE, ALSO TRIED TO SEPARATE THE TWO AND MR. WEAVER SHOVED [Name redacted], CAUSING HER TO SPILL HER DRINK. AFTER SPEAKING WITH [Name redacted] SHE ALSO STATED THAT WHILE THE TWO WERE ENGAGED THAT SHE TRIED TO SEPARATE THE TWO AND SHE WAS SHOVED BY MR. WEAVER, CAUSING HER TO SPILL HER DRINK ON THE FLOOR. I THEN SPOKE WITH [Name redacted, WHITE FEMALE 34 YEARS OF AGE, AND SHE STATED THAT WHEN RETURNING BACK TO THE PARTY FROM THE RESTROOM, SHE WITNESSED BOTH MR. WALTZ AND MR. WEAVER HAVING THEIR HANDS ON EACH OTHER'S NECKS. [Name redacted] THEN STATED THAT AFTER THE TWO WERE SEPARATED THAT [Name redacted] DELIBERATELY DREW BACK AND THREW HER DRINK AT MR. WEAVER, HITTING HIM WITH IT. [Name redacted] ALSO STATED THAT BOTH MR. WALTZ AND MR. WEAVER WERE BOTH EQUALLY COMBATIVE TOWARDS EACH OTHER. MR. WEAVER WAS NOT AT THE SCENE UPON MY ARRIVAL. BOTH MR. WALTZ AND MR. WEAVER ARE MEMBERS OF THE BUSINESS [sic]. PARTIES INVOLVED APPEARED TO BE INTOXICATED. I WAS UNABLE TO LOCATED [sic] ANOTHER WITNESS WHO WOULD SAY THEY WITNESSED THE ALTERCATION. THERE WAS NO COMPLAINT OF PAIN BY ANYONE AND NO VISIBLE INJURIES TO ANY OF THE PARTIES INVOLVED. A REPORT WAS DONE TO DOCUMENT EVERYONE'S SIDE OF THE STORY.

The police report notes that the involved parties appeared to be intoxicated. It's unclear to me why no arrests took place in the incident, other than as the police report notes, there was "no complaint of pain by anyone" and "no visible injuries." The police report makes no mention of one of the parties involved being a state senator, presumably because Waltz didn't draw attention to that fact while being questioned, unlike McNeil. Some might argue that the venue and the persons involved made a big difference in the decision not to arrest anyone. What do you think?

Ballard Endorses Vaughn In Senate District 30 Race

Mayor Greg Ballard wades into the 30th Senate District Republican caucus race by offering a letter of endorsement dated July 15 on behalf of City-County Councilor Ryan Vaughn, a lobbyist for Barnes & Thornburg. The letter began arriving in precinct committeepersons mailboxes today. Sources began complaining yesterday to me that Ballard had caved to pressure from Barnes & Thornburg's Bob Grand and Joe Loftus and agreed to endorse him. The two hired Vaughn soon after the Republicans gained control of the council and Vaughn assumed a leadership position in his party's caucus.

Ballard's endorsement is likely to have little effect on the outcome of the race either for or against Vaughn given the low regard he is currently held by so many within the party because of his repeated breaking of promises he made as a mayoral candidate in 2007, including a promise not to raise taxes. Ironically, Ballard is backing a candidate for the Senate who is the same lawyer-lobbyist type he railed against during his campaign against Bart Peterson as having too much influence over government decision-making. Three other candidates, including financial advisor Chris Douglas, cable TV lobbyist and former state representative John Ruckelshaus and former City-County Councilor Scott Schneider, are also vying for the support of precinct committeepersons at the caucus election scheduled for next Tuesday, July 21.

UPDATE: An astute reader of this blog has a good point. The nearly one-third precinct committeepersons who hail from Hamilton Co. may be a little less than enthused about supporting a candidate who comes off as Mr. Indianapolis. I agree. Ballard's letter, as the reader notes, may have more to do with Vaughn's struggle to sell Marion Co. committeepersons on his candidacy, potentially a sign of weakness. A precinct committeeperson advises me that Ballard's letter went to Hamilton County committeepersons as well.

The Case Of The Missing Headstone

Damn, this is really harsh. First, Michelle Obama tells her press secretary to release a statement saying her father, Fraser Robinson, III, was buried in Burr Oak Cemetery, the nightmarish scene where cemetery workers have been digging up the dead for years to sell off new burial plots and to pocket the money for themselves. The White House quickly withdrew the statement after Cook County records revealed he was actually buried in Chicago's Lincoln Cemetery. Today, the Sun-Times reveals that Robinson's grave site is marked only by this numbered marker. Yikes, a bit embarrassing, don't you think? Columnist Michael Sneed is awaiting word from the White House on whether this was a family decision not to mark his burial site. Here's her generous take on this latest item:

Thank goodness First Lady Michelle Obama did not have to suffer the nightmare of having her father's grave disturbed, even though it was NOT located at the nightmarish Burr Oak cemetery -- despite an erroneous/quickly retracted report from the White House.

However, there is something, shall we say, troubling.

• • To wit: Sneed is told there is no headstone for the first lady's father, Fraser Robinson III, at the nearby Lincoln Cemetery in Alsip, where he is buried.

• • Translation: Only a number (254/255) encased in a circle -- marks his grave in section EE, Lot 254, space 53.

• • The big question: Is it missing? Was this a father's request? Or a family's decision?

We are awaiting a reply from the White House.

• • Meanwhile: Jennifer Brandino, a spokesman for Dignity Memorial Providers, which owns Lincoln Cemetery, tells Sneed: "I'm confident that our management at that cemetery is aware of [Mr. Robinson's] burial. Sometimes families choose for a grave not to have a headstone. But our company's policy would not allow me to comment on any one person's specific burial situation."

Rezko Mansion On Auction Block

The Wilmette mansion of convicted political fixer Tony Rezko, a former best pal of Barack Obama, is going on the auction block after he defaulted on a $5.9 million mortgage. Bank of America holds the mortgage to the home. Rezko bought the home in 2003, in part, with his ill-gotten gains from political insider deals with Illinois' most corrupt politicians, including Barack Obama. Rezko even chipped in and helped the Obamas purchase their South Side mansion, a potentially criminal act that will probably go unpunished to protect Obama from one of several alleged criminal acts he committed as a state senator and U.S. Senator from Illinois before his election as president. While Obama and Rezko lived the life of luxury in their mansions, people living in the government-subsidized housing projects Obama helped secure for Rezko lived in complete filth and unsafe conditions. That's the Chicago way, and they wouldn't have it any other way.

Council Dems To Force Full Frontal Exposure Of Republicans On Issue Of Raising Taxes

I can't say that I'm surprised or disagree with their strategy. Indianapolis council Democrats plan to force Republicans to put at least 15 votes on the board, the number needed for passage of a council resolution, before any Democrats will cast a vote in favor of the $25 million a year tax and spend CIB bailout. Democratic blogger Terry Burns suggests that CCC President Bob Cockrum has let it be known he'll need at least 3 or 4 Democratic votes to pass the CIB bailout:

Council Democratic leader JoAnne Sanders was even more to the point when asked by the Indianapolis Times about Cockrum's hunt for Democratic votes.

"The legislature gave us a "funding tool" to resolve a crisis the governor created. Now I hear the council president expects us to deliver 3 to 4 votes -- no call, no letter, no e-mail. Show me 15 Republican votes and we'll talk," Sanders said.

When former Mayor Bart Peterson sought support for his income tax increase in 2007, Republicans aligned in opposition to the tax increase, promising voters that year there would be no tax increases if voters put them in charge of the City-County Council. One incumbent Republican councilor who voted for the tax increase, Scott Keller, got trounced at the polls. Keller had pledged not to raise taxes when he narrowly defeated Karen Horseman in 2003.

There are consequences when politicians say one thing to get elected and then do quite another thing once in office. Republicans should think long and hard before jumping off this cliff to which Mayor Ballard is leading. Ballard has already reneged on numerous campaign promises, including an anti-tax pledge. The Republican number of councilors shrunk by one earlier this year when Ed Coleman left the party to become a Libertarian. He differed with his caucus on a number of fiscal matters, including the CIB bailout.

Although the council resolution to be introduced next Monday to bail out the CIB will technically only include one tax increase, a hike in the hotel tax, making it the highest in the nation, a vote for this bailout is effectively a vote for raising more taxes in the future. Additional taxes will have to be raised by 2013 to fund the repayment of $27 million the plan calls for the CIB to borrow from the State of Indiana.

Fifth District Fundraising Update

The latest FEC reports for candidates in the 5th congressional district Republican primary are now available online, and it doesn't look like the worst economy in decades is hurting the ability of candidates to raise money. Ice Miller lobbyist Luke Messer raised the most money. He maxed out contributions from the usual suspects of attorneys, lobbysts and downtown elites. He raised $205,000 during the quarter compared to $152,000 by incumbent U.S. Rep. Dan Burton. A third of Burton's money came from political action committees, while the challengers relied almost exclusively on individual contributions. Many of Burton's individual contributors noticeably live out-of-state. Burton has $418,000 on hand, more than any of the candidates, compared to $175,000 for Messer.

Rep. Mike Murphy demonstrated the advantage a lawmaker has raising campaign contributions while casting votes on important state matters. He pulled down $62,000, well below Messer's total, but many of his contributors maxed out their contributions. He now has $81,000 on hand. Dr. John McGoff, the candidate who came close to knocking off Burton last year, raised $39,000 compared to Brose McVey's $26,000. McGoff was the last to jump into the race and he raised all of his money in a short 20-day period. McVey emphasised in a press release on his new numbers the fact that he raised money from 385 individual donors, 93% of which came from Indiana and 70% from contributors within the 5th District. He boasts raising 20% of his money online.

It is worth noting that several individual contributors showed up on more than one candidate's FEC report, suggesting that some folks are hedging their bets, including Barnes & Thornburg. Although Burton's daughter, an attorney, works for the firm, and the firm's PAC contributed to Burton, a number of the firm's lawyers show up on Luke Messer's contributor list.

Obamas Don't Know Where Michelle's Father Is Buried

Well, now I'm really confused. Barack Obama has been real confused when it comes to figuring out which hospital in Honolulu, Hawaii he was born. When he started running for president, news reports and the Library of Congress claimed he was born at Queen's Medical Center. By the time he took office, the birth hospital changed to Kapi'olani Medical Center. A couple of weeks ago, Barack forgot where he met his wife-to-be. Now comes word that the Obamas are a bit confused about where Michelle's father, Frasier Robinson, III, was buried. After news of the scandalous pillaging of Burr Oak cemetery in Alsip, Illinois by cemetery workers spread last week, the White House dispatched official word that Michelle's father was buried at Burr Oak. The Sun-Times' Michael Sneed learned from another source that her father was not buried at Burr Oak. The White House then retracted the claim that her father was buried at Burr Oak. Cook County records indicate he was buried at Lincoln Cemetery. Aahh, one record that is not shielded from the public. Here's how Sneed describes this latest bizarre happening:

Yipes! The White House dispatched OFFICIAL word Tuesday morning first lady Michelle Obama's father, Frasier Robinson III, was buried in the Burr Oak Cemetery complex.

• • Shortly thereafter, a source told Sneed Mrs. Obama's father wasn't buried at Burr Oak.

• • Shortly thereafter, the White House retracted their statement owing to "confusion."

• • Here's a question: Didn't anyone at the White House ask the first lady where her father was buried? Or ask the first lady's mother?

Just asking.

Incidentally, Kapi'Olani still won't publicly confirm Obama's birth at the hospital despite the appearance of a letter allegedly written by Obama on White Housse stationery identifying it as his place of birth, which has since been scrubbed from the hospital's website. And soldiers, if you want to avoid service in Iraq or Afghanistan, simply take President Obama to court and claim he is not eligible to be president because he's not a natural born citizen. A U.S. Army Reserve major from Florida's order to ship out to Afghanistan this month has been revoked. A court hearing on the officer's constitutional challenge was to take place tomorrow. Was this another legal maneuver by Obama's lawyers to prevent any court from considering the merits of his natural born citizen status? Presidential scholars may as well head out to Fantasyland to research who Obama is based on the fairy tales the American people were told to convince them to elect this fraud as their president.

How To Destroy A Building's Viability

Well, that didn't take long. Let some bloggers talk about the potential viability of the vacant Winona Hospital in the 3200 block of North Meridian and watch the self-dealing insiders swing into action to knock the building out of the game. It seems the building has fallen into disrepair since the City acquired ownership of it at a tax sale more than a year ago. Although the City used it to train public safety workers just last year, in November the City declared the building a public health hazard because it contains asbestos and tagged it as a brownfield. WRTV swung out to the hospital today and featured a hit piece on the "public hazard" the building poses.

The original Winona Hospital opened in 1966. A major expansion to the hospital added an additional wing in 1983. The hospital operated through 2004 when its owners filed for bankruptcy and closed its doors. According to WRTV's report tonight, the hospital still contains medical equipment and furniture left behind the day it closed down five years ago. The City has not properly secured the building since taking possession of it at a tax sale, allowing homeless and other trespassers to enter the building at will. Weeds have been allowed to grow up around the building and graffiti has blemished the building's facade.

The Children's Museum is determined to get control of the building so it can level it and build an interactive learning park on the site. You can bet that Ballard, who wants to borrow and spend a billion dollars on a new Wishard Hospital, will have this building leveled in a heartbeat to prevent any viable use for it as a hospital. That's the Indianapolis way. We've got to keep huge construction projects in the pipeline to feed the construction industry complex that has bought and paid for most of our politicians. They don't make all of those campaign contributions for nothing.

Jim Shallow Hasn't Changed

WISH-TV' political reporter Jim Shella proves once again his hostility towards any candidates seeking to turn out of office insider elites he kisses up to daily in his job. Shella shoves down the throats of the station's viewers the fact that Sen. Evan Bayh's re-election campaign will report to the FEC at least $12 million in campaign funds on hand to fund his 2010 campaign. Referring to the size of Bayh's campaign funds, Shella opines, "But the challenge in tackling Evan Bayh is large and growing." "The 2010 election still 15 months away could already be getting away from the Republicans," he suggests. "This Bayh campaign finance report just might provide some negative reinforcement for them."

Anyone who followed Shella's coverage during the 2007 Indianapolis mayoral election will recall how Shella delivered report after report to WISH-TV viewers emphasizing how much more money then-Mayor Bart Peterson had compared to challenger Greg Ballard. Shella never once reported on how most of Peterson's money came from attorneys, lobbyists and contractors doing business with the City of Indianapolis. Shella repeatedly dismissed Ballard's chances and made fun of his grassroots supporters. Similarly, Shella offers no analysis of where Bayh is getting the millions of campaign dollars that are fueling his re-election bid. Shella has never reported on the inherent conflict of interest created by Bayh's wife, Susan, serving on multiple corporate boards that have business before Congress and earning millions for the Bayh household during his years of public service.

This is why I just call him "Jim Shallow." He's a lazy, has-been State House reporter who simply regurgitates what State House insiders spoon feed him. He refuses to do any hard-hitting investigative reporting of wrongdoing in government because that might mean exposing the ways of his State House buddies. Shella's mission in the Bayh race is to discourage any would-be challenger to the incumbent and people contemplating giving money to support them in order to clear a safe passage to his re-election. What a poor excuse for a State House reporter.

So Much For The Doom And Gloom IPS Budget

Remember how IPS officials, teachers unions and Democrats were blasting the state-approved budget as dealing a fatal body blow to IPS schools as recently as last week? IPS is now rehiring all of those laid off teachers and is looking for other teachers to fill vacancies. The Star's Andy Gammill writes:

Indianapolis Public Schools sent staff morale crashing and created a public splash when it laid off 300 teachers this spring.

But almost all of those teachers have been hired back or been offered other teaching jobs in the district, thanks to a boost from federal stimulus money and the district's normal turnover.

About a dozen -- all high school teachers not in core subjects -- remain involuntarily on the district's reduction-in-force list.

In fact, because of the turnover plus nearly 200 new jobs created with the stimulus money, the district now has about 100 vacancies and is looking to hire teachers to fill those spots.

This is precisely the reason I tell you that you can no longer believe what our government officials tell us. They flat out lie about budget numbers to convince taxpayers to dig deeper into their pockets whether the money is needed or not. If that two-year state budget had been as bad for IPS as you've been reading in the newspaper for the past two weeks, these teachers wouldn't be rehired at a school system with rapidly declining enrollment.

Cubs To File For Bankruptcy Despite $900 Million Sale?

The Tribune Company announced the sale of the Chicago Cubs major league baseball franchise to Ameritrade founder Joe Ricketts for $900 million last week. A story, first broken by Bloomberg News (not the Chicago Tribune), suggests the team will file a prepackaged bankruptcy as part of the sale to clear some of its liabilities. Well isn't that special? The Cubs' parent company, the Tribune Company, is involved in the midst of its own bankruptcy reorganization under Chapter 11. You may recall that federal investigators are looking into allegations that former Illinois Gov. Rod Blagojevich attempted to arrange a quid pro quo with Tribune officials to facilitate a sale of the Cubs.

Daley Bodyguard Captures Escaped Indiana Inmate

The story of three inmates at Indiana's high security Michigan City prison escaping over the weekend already made for interesting headlines. Now we learn this morning that a bodyguard to Chicago Mayor Richard Daley captured one of the escapees near the Mayor's vacation home in Grand Beach, Michigan. The captured inmate, Charles Smith of New Castle, was serving a 99-year sentence for murder. Smith and two other inmates escaped from the high security prison through underground tunnels and pipe chases. This story is rapidly becoming a major embarrassment for the Indiana Department of Corrections.

Lucas Oil Success Translates Into Higher Costs For Taxpayers

The Star's Dan McFeely has a story today entitled, "Lucas Oil Stadium Has Shown Success In Bookings." His story focuses on the ability to book 155 events during its first 320 days of operation. That translates into more money for Colts' owner Jim Irsay and higher costs for taxpayers. You need to check out the sidebar to McFeely's story to get into those nitty-gritty details. Unlike the RCA Dome, all of the revenues generated from the stadium go to the Colts, and taxpayers get stuck footing the bill for all of the expenses, which are close to $15 million a year higher than the RCA Dome:

According to the CIB's 2008 budget, operating expenses rose by about $14.9 million, or 26 percent, when the new stadium opened. Meanwhile, operating revenues decreased: The new contract with the Colts forced the CIB to give up about $3 million in game-day concessions revenue, $1.3 million in advertising income (when the Lucas naming rights went to the Colts) and $2.5 million in labor reimbursements because of an agreement that calls for the CIB to pay all game-day security costs. And the light bill went up about $1 million.

The sidebar to the story suggests some of those costs were offset by capital contributions from the Colts of $102 million. That's bullshit. The Colts kicked in nothing for the new stadium. Half of that money came form the break-up fee for the old lease, which taxpayers had to cough up and then the Colts graciously agreed to forgive, a little shell game the CIB played to make it look like they were contributing something. The rest of the money came from the NFL, not the Colts. The sidebar also suggests the CIB is getting more revenues to pay for those expenses from the taxes that were raised to build the new stadium. Something doesn't add up there. When the stadium deal passed, the state legislature and the governor refused to agree to allow any of those new revenues to be used to pay for operating expenses; all of the revenues were to be used exclusively to pay down the debt on the bonds.

The sad part of this saga is that taxpayers are financially better off if the stadium sits empty all but those 10 days a year the Colts are playing in it. Even worse for local groups is the near-doubling of rental charges for using the stadium, 13 cents per square foot versus 24 cents per square foot. McFeely's story also fails to discuss the subsidies taxpayers pay to groups through the ICVA to host their events in Indianapolis because our costs are too high. For some reason, the Star doesn't want its readers to know this dirty little secret.

Illinois Cemetery Scandal Blowback On Senate Candidate

The scandalous pillaging of several hundred grave sites by workers at one of Illinois' most historic African-American cemeteries, Burr Oak, could have damaging consequences for at least one prominent Illinois Democratic politician. Illinois Comptroller Dan Hynes, who plans to seek the U.S. Senate seat held by Sen. Roland Burris next year, used a campaign against what he called the "death care industry", making news splashes ranting about cemetery rip-offs, but he was nowhere to be seen last week when the scandal at Burr Oak broke, even though his office is responsible for oversight of cemeteries. Making matters worse for Hynes, Burr Oak is located in his 19th Ward Democratic organization.

News reports out of Chicago indicate that Hynes' office had received at least 20 complaints about Burr Oak over the past several years but referred all of the complaints back to the cemetery. Hynes' office is responsible for auditing all funeral homes and cemeteries that sell pre-death funeral arrangements, administering annual financial reporting from the licensed entities and conducting audits to ensure financial compliance with the safeguarding of consumers' monies. The Chicago Tribune's John Kass has a prescient column today tackling this sordid mess.

Gay Panic Defense Works Again

If you're a man and want to avoid a rap for murder in this country, just claim you were fending off an unwelcome sexual advance from another man. Joseph Biedermann of Hoffman Estates, Illinois fatally stabbed his neighbor, 38-year-old Michael Hauser, 61 times last year. The 30-year-old Hauser told a Cook County jury that he only used the 7-inch dagger on Hauser to defend himself because he felt threatened by his sexual advances. "On Friday, a Cook County jury acquitted him of first-degree murder, buying his claim that he was defending himself against an unwanted sexual advance, his mother confirmed Saturday," the Sun-Times reports. Both men were drunk at the time of the killing.

Similarly, a Jackson County, Indiana court accepted manslaughter pleas instead of their original murder charges last year from two men accused of beating and then dumping Aaron Hall alive in a rural field after one of the men claimed the 5'4" Hall had made an unwanted sexual advance towards him. Hall later died from exposure and the brutal beating he sustained. His killers retreived his body and hid it in a garage until police discovered it later while executing a search warrant. The home where Hall's body was discovered belonged to a Jackson Co. deputy coroner, whose son was one of the killers. As with Biedermann's killing, Hall and his killers were drunk when his killing occurred.

Health & Hospital Corporation Says We Have No Choice But To Build New Hospital

The public relations campaign has begun in earnest to convince Marion County voters they must borrow and spend at least three quarters of a billion dollars to build a brand new hospital to replace Wishard Hospital. I've previously told you the cost would reach $900 million, a cost I plan to stick by given the huge cost overruns that typically occur with these projects. The HHC's $400,000 a year CEO says:

"Really, what we're looking at is we either build new or we close down," said Matt Gutwein, chief executive officer of the Health and Hospital Corporation of Marion County, which operates Wishard Memorial Hospital. "For the future, renovation is not an option for us to be able to meet the needs of the community."

So Wishard plans to ask Marion County voters Nov. 3 for the right to borrow $604 million to $703 million -- calculating best- and worse-case scenarios -- over 30 years to finance a new hospital complex. Gutwein said the most likely debt level is $613 million, according to calculations.

The 1.2 million-square-foot facility on the west side of the campus of Indiana University-Purdue University Indianapolis would include an 11-floor hospital with about 300 inpatient beds, as well as outpatient facilities and administrative offices.

Gutwein said the more efficient new hospital would allow Wishard to treat roughly 20 percent more patients annually with about the same number of inpatient beds.

It is not uncommon for our major systems to fail. We have water leaks. Or steam pipes burst," Gutwein said. "Unfortunately, it's become routine."

"Inevitably, those major systems will completely fail. When that happens, we do not have the ability to replace those systems."

Health and Hospital Corp. plans to tap several sources of funding for the project.
It has set aside about $150 million in cash for a new hospital.

The Wishard Foundation wants to raise about $50 million over the next five years.
Health and Hospital Corp.'s surpluses also can be used to pay down debt. The company is projecting a surplus of about $55 million for 2009.

"We are completely committed to no tax increases," Gutwein said. "You should only seek a tax increase if that's your last alternative, and we have other alternatives."
Property taxes now supply about $24.9 million -- or about 5.4 percent -- of Wishard's $486 million in revenue.

If the referendum is approved by Marion County voters, the new Wishard complex could be completed by late 2013, according to Gutwein.

Let me begin by saying the first order of business should be to cancel this November special election and push it back six months to the 2010 primary election. This will save Marion County taxpayers more than a $1 million. The legislature, in typical form, mandated this special election and left it to our City-County Council to appropriate the funds to pay for it. It matters not whether HHC or the county general fund pays for it, it's all taxpayer money. This will allow for a long, thought out public process that HHC officials are trying to deny Marion County voters.

Secondly, it's disappointing in reading Dan Lee's story in the Star today that Mayor Greg Ballard has automatically agreed to go along with the advice he has been given by Bob Grand and Joe Loftus to support the construction of a new hospital. The two represent the HHC, and their law firm stands to make plenty of money in legal fees associated with the new project , but Mayor Ballard has ceded control of the City to the two and does whatever they order him to do. We aren't going to make the same disastrous mistake Ballard made with the CIB bailout. We must demand a long, thorough public debate before any decisions are made whether he likes it or not.

Finally, who decided the only choice is to build a new hospital if the current Wishard Hospital has outlived its usefulness? Marion County has no shortage of hospitals in this county. A hospital building expansion boom has been under way in the region for years. Further, we have a perfectly good hospital sitting vacant on the City's southside. [Update: Make that two vacant hospitals. In addition to St. Francis' vacant hospital on the southside, there is the vacant 317-room Winona Hospital in the 3700 block of North Meridian.] Most of Marion County's indigent population no longer lives near the center of the City; they are dispersed throughout the county. Instead of building one hospital in the center of the City to handle the indigent population, why don't we utilize existing hospitals in the county to treat indigent patients and use existing property tax revenues to compensate them for serving this population. These hospitals are also reimbursed additional "disproportionate share payments" through the federal Medicaid program. It is high time Marion County stopped segregating indigent patients from other publicly-subsidized hospitals that don't want to be bothered with these patients.

Mayor Ballard's statement in the Star story that Wishard Hospital has a "positive economic impact" that "reaches nearly every Indianapolis resident" is absurd. If he wants the hospital to have a positive economic impact, he will look for a way of doing this the most efficient, economical way, while still delivering the same quality of care services our citizens expect to receive from publicly-subsidized hospitals. The City-County Council needs to step up to the plate and provide some leadership on this issue that Mayor Ballard is quite clearly incapable of providing. The idea that this project can be undertaken and funded with existing revenues sources as the proponents suggest is preposterous. Taxes will have to eventually be raised to pay off those bonds and these people know it. They are, true to form, telling outright lies to the public to win approval and putting off the tough decisions to another day.

City-County Councilors should study what happened with the Cook County Hospital in Chicago. A more than $700-million hospital was built and soon faced budget shortfalls approaching a half-billion dollars. Several articles about that hospital's woes can be found here. Note also that Wishard had been running deficits annually as recently as 2005. Today's Star report indicates the HHC has stashed away $150 million for the new hospital! If the HHC has those kinds of cash reserves, why have we been levying new property taxes annually on Marion Co. taxpayers?

Deputy Prosecutor Charged With DUI And Hit And Run

A deputy prosecutor in the Marion Co. Prosecutor's Office has been charged with driving under the influence and hit and run in Broad Ripple following the incident late Friday night. A Star report indicates that Gillian DePrez struck a car as she was driving east on 61st Street but continued on and turned south on Winthrop. When police pulled her ovcer, an alcohol breathalyzer test registered a 0.15 reading. "Police officers smelled alcohol on DePrez's breath before administering three field sobriety tests, which she failed," the Star report reads. A separate story on WRTV's website suggests DePrez drove at a high rate of speed as she fled from the scene where she struck another car.

A former deputy prosecutor in the office, Terry Record, was recently sentenced to 11 months in prison for driving drunk and killing another man after he ran a red light at a high rate of speed and struck the other man's vehicle. Record had just been admitted to practice law in Indiana at the time he began working for the prosecutor's office. The office subsequently terminated him after his car had been found abandoned and overturned on the City's near northside. Record initially told police his car had been stolen while he had been in a Broad Ripple bar; however, he later admitted he had been driving the car at the time it was overturned. Record was never charged for that crime. He was also suspected of striking a pedestrian downtown and fleeing with his car a few months after the first incident but was also not charged with that crime. The Indiana Dept. of Health hired Record after his employment with the prosecutor's office had been terminated but fired him after his drunk driving causing death arrest.

UPDATE: WTHR is reporting DePrez' resignation. The report quotes a spokesman for the office as calling DePrez "a great asset" to the office. She worked in sex crimes according to the report. WTHR says she worked in the prosecutor's office for the past four years. I'm still not sure why she doesn't show up on the Indiana Roll of Attorneys. Hold it. Spelling her last name as two words "De Prez" brings up her listing. She was admitted in May, 2007 and is currently in good standing.

Cops Saw Questionable Scrap Metal Purchases At OmniSource And Did Nothing

The saga of more than 50 off-duty cops providing services to the scrap metal giant, OmniSource, continues. It seems OmniSource is trying to get a license to buy and sell scrap metal, a license it didn't think it had to bother with getting before law enforcement raided its businesses earlier this year on suspicion of buying stolen scrap metal according to a Star report today. "They operated without a license since the law went into effect in January 2008," Teri Kendrick said, "despite the fact that they were well aware of the requirement because they helped draft the ordinance."

Further evidence emerged at the license hearing this week that OmniSource and the off-duty cops who worked there knew some scrap metal purchases were highly suspicious:

Off-duty Indianapolis police officers allowed their part-time employer, OmniSource, to purchase suspicious or stolen metals at least 21 times in 2008, a city attorney said Friday.

The off-duty officers documented the suspicious purchases in reports that came to light during a hearing to determine whether the company should be granted a license to continue buying and selling scrap metal in Marion County.
But while they documented the purchases, they took no action to stop them at the time.

"They saw something wrong and felt it was wrong enough to document it, not knowing what would become of it," said Maj. Chris Boomershine. "That's not uncharacteristic of a lot of part-time situations where things come to an officer's attention."

Boomershine is the commander of a team of detectives who spent nearly a year documenting allegedly illegal transactions at OmniSource locations.

Several weeks ago, WRTV reported that the grand jury investigation would be concluded that week. Still, there have been no charges brought against OmniSource or any of the off-duty officers. I reported earlier on how Public Safety Director Scott Newman said at one of the Mayor's Night Out meetings that he saw no evidence that either OmniSource or any of the off-duty police officers had broken the law, essentially giving them a clean bill of health. During the period that off-duty police officers were employed in large numbers at OmniSource, its competitors were regularly targeted by undercover officers and charged with purchasing stolen scrap metal. The lead scrap metal investigator for IMPD was employed by OmniSource for off-duty work.

Under the circumstances, it would seem to be making a complete mockery of the City's licensure requirement to issue OmniSource a license now, but I wouldn't be surprised if a license is awarded to them. The fact that the company never bothered getting a license after it helped write the ordinance suggests it thought it was above the law because it had more than 50 police officers on its payroll. The company has hired high profile criminal defense attorney Larry Mackey, a Barnes & Thornburg partner, to defend it in this action. The law firm does considerable legal work for the City and two of its top attorneys, Bob Grand and Joe Loftus, personally advise Mayor Ballard.

As I reported earlier, Mackey wrote a letter to Scott Newman and Marion Co. Prosecutor Carl Brizzi urging them to discipline IMPD's lead investigator in the case because he shared information about the case with members of the news media while the case was pending before a grand jury. Newman is a former partner at Barnes & Thornburg.

Indianapolis May Privatize Parking Meters To Raise Revenues

Mayor Greg Ballard's administration is pondering a plan to enter into a long-term lease with a private firm to operate the City's parking meters as a quick way of raising significant revenues, perhaps as much as $100 million according to the IBJ's Cory Schouten. A similar privatization scheme for Chicago netted $1 billion for the over-taxed and bankrupt city to the north, but it left commuters fuming as parking meter fees skyrocketed. While Chicago used its windfall to fix a big hole in its budget, Ballard's administration wants to use the funds to make sewer and road improvements.

Several well-known firms, including Denison Parking, KPMG, Michigan-based Carl Walker parking, Maryland-based IMG and ACS, one of the company's currently managing the botched privatized welfare services for FSSA, have submitted proposals to the City in response to an RFP. One thing is certain, parking meter rates will go up substantially from the City's current 75-cent per hour rate. Some plans call for extending the time fees are charged from 6:00 p.m. to 10:00 p.m., a move that could hurt downtown businesses.

Any privatized meter plan will likely see the introduction of meters that allow payment by credit card or cell phone. At the same time, the City is likely going to raise parking rates for the approximately 10,000 off-street spaces it controls with the Capital Improvement Board. Denison Parking is currently under contract to enforce the City's parking meters. The City pays Denison about $330,000 a year according to Schouten. Parking meter revenues annually are about $2.2 million, while parking citations rake in $2.7 million. With $1.1 million in expenses, the City nets about $3.5 million.

I have a simple solution for boosting parking meter revenues. Anyone who spends any time downtown has noticed the common practice of city workers coming around bagging parking meters for special events and planned construction work well in advance of the event or planned work. This practice infuriates business owners, particularly along Massachusetts Avenue, who sometimes take it upon themselves to post signs on the bagged meters advising people to park there for free because the event won't take place until the next day.

As for the City potentially looking for a short-term windfall for a long-term deal, I think the Ballard administration is playing with fire. When the City says it wants to use this money for road and sewer projects, that tells me the deal will also involve long-term borrowing through bonds. Inevitably, the City winds up spending a far greater sum than it derived from the initial lease of the asset. I hope the Ballard administration takes a hard look at these proposals and acts according to the best interests of the taxpaying-public and not the lawyers, consultants and campaign contributors pushing this idea.

McGoff Rejects "Pageant-Like Scheme"

Dr. John McGoff, Republican candidate for the Fifth District congressional seat held by U.S. Rep. Dan Burton, released a statement today critical of a proposal by would-be kingmaker, P.E. MacAllister, to allow him and a few other Republican elitists to winnow out the four candidates challenging Burton for re-nomination to a single candidate. McGoff says of the plan:

"I've been asked to participate in this proposal to shortcut the election process and take the decision out of the hands of the voters of the Fifth District," McGoff reports, "In 2008, I received 45% of the votes cast in the primary. I trust the voters and believe 'the people' should elect their Representatives. It's a process that has worked well for over 230 years. I will not take part in this pageant-like scheme."

"It is obvious that some of the Republican Party leaders still don't get it," he points out, "The voters are tired of these backroom deals; it's politics as usual. Voters across the country threw the Republicans out of power in 2006. We have become a party without a message and one that appears to exclude, rather than include. This scheme seeks to do just that, exclude voters and candidates in the Fifth District from the rights provided to them by our democratic process."

McGoff points to his challenge in the last primary election against Burton and recalls how he was asked by many within the Republican Party leadership to abandon his campaign because, 'Congressman Burton was doing a fine job and there was no need to change.'

McGoff's statement notes that many of the same political leaders who are now backing one of his challengers to Burton in 2010 backed Burton for re-election during the 2008 primary race and urged him to drop out because they claimed Burton was "doing a fine job and there was no need to change." McGoff received 45% of the primary vote in 2008. "I believe the voters of the Fifth District deserve the right to select the person they want to represent them and their interests in Washington, D.C.," McGoff states. "They don't want a self-proclaimed watchdog group that is operating under the banner of 'party unity' to make their decision for them. This primary election is not about 'The Party.' It's about the welfare and future of our country and its citizens, and that's why I'm running for Congress."

Post Reporter: New York Senate Democratic Leader Fired 200 White Employees Because Of Their Race

A long-time New York state house reporter, Fredric Dicker of the NY Post, pens a column critical of the declining standards of political discourse in the Empire State over the past several years. Disgusted by the "anarchy, chaos and lack of leadership" that he has witnessed recently, he confesses that he has all but given up. "After three decades as a journalist covering state government, if I had to do it all over again, I'd find another job," he writes. "We're going backwards, not forwards, and of late we've even been falling apart," he continues, suggesting that New York is on the "brink of ruin." Particularly troubling is an assertion Dicker makes in his column that the state's first African-American Senate Majority Leader, Malcolm Smith, fired about 200 white legislative employees over the past several months in order to replace them with minority workers. Dicker writes:

During the long years of Republican control, the all-white GOP "conference" would regularly bemoan its lack of diversity, and make extra efforts to recruit minority Senate candidates and hire minority staff.

During the first five months of this year, with the Senate under the control of its first African-American majority leader, Smith, top Democrats bemoaned the lack of minority Senate staffers.

But instead of trying to recruit new hires, they fired nearly 200 almost exclusively white workers and replaced them with a large number of minority employees, many of whom were seen by their fellow workers to be unskilled at their new jobs.

The move produced severe racial tensions, made worse by the fact that, as a high-level Democratic staffer confided, "We've been told to only hire minorities.''

In May, the New York Post reported on a $300,000 settlement the State of New York entered into with a fired white Senate photographer. The suit originated from a time when Gov. David Paterson served as the Senate Democratic leader. The photographer alleged Patterson fired him in order to hire a black photographer. Smith reportedly tried to block the settlement earlier this year with the photographer but eventually agreed to it to avoid taking the case to trial.

Hospital Referendum Could Cost $1.2 Million

Star business columnist John Ketzenberger takes a look at the four referenda that will be on a special election ballot in Marion County this fall. He says the Election Board is trying to determine whether the Marion Co. Health & Hospital Corporation should pay all or a part of the $1.2 million cost for its referendum on constructing a new $900 million hospital to replace Wishard Hospital. It's not like it makes a big difference to taxpayers, who either way wind up footing the bill.

In addition to the hospital referendum, Beech Grove and Franklin Township will have referenda on school construction projects. Perry Township is still in the process of certifying a ballot referendum for a school construction project.

Ketzenberger talks about Indiana becoming more like California, where voters frequently vote on a wide variety of public questions. What he doesn't focus on is the fact that these issues are being decided in a completely unnecessary special election. The additional costs would be largely avoided if these questions were put to voters during a regularly-scheduled election. Proponents of these measures wanted the special election option because they believe most people will ignore the election and not come out to vote, allowing special interest groups with a vested interest in the outcome a larger influence and thereby improve chances of passage.

Ginsburg's Stunning Bigoted View On Abortion: Feared "Growth In Populations That We Don't Want To Have Too Many Of"

Abortion opponents often claim that Planned Parenthood has racist origins as a plan by wealthy, well-educated white Americans to prevent poor women and, in particular, poor African-American women, from bringing more children into this world. In an interview with New York Times' magazine, Associate Supreme Court Justice Ruth Bader Ginsburg makes a stunning admission about her view of abortion at the time Roe v. Wade was decided legalizing abortion, which essentially confirms anti-abortionist suspicions of liberals' rationale for legalizing abortions and making them accessible on demand:

Yes, the ruling about that surprised me. [Harris v. McRae — in 1980 the court upheld the Hyde Amendment, which forbids the use of Medicaid for abortions.] Frankly I had thought that at the time Roe was decided, there was concern about population growth and particularly growth in populations that we don’t want to have too many of. So that Roe was going to be then set up for Medicaid funding for abortion. Which some people felt would risk coercing women into having abortions when they didn’t really want them. But when the court decided McRae, the case came out the other way. And then I realized that my perception of it had been altogether wrong.

This stunning admission came after Ginsburg explained the need for reproductive choice to be "straightened out." "There will never be a woman of means without choice anymore," she said. Lamenting the lack of government-funded abortions for poor women because of the congressionally-imposed Hyde Amendment, which the Supreme Court upheld in 1980, Ginsburg said, "So we have a policy that affects only poor women, and it can never be otherwise, and I don't know why this hasn't been said more often." Ginsburg believes the government has decided poor women can't have abortions because it chooses not to fund them. "The basic thing is that the government has no business making that choice for a woman," she said.

Ginsburg is candid in her views on abortion, if not charitable. If Justice Scalia had made a similar bigoted comment from the perspective of the Right, you can bet the media would be all over it. I suspect Ginsburg's comments will scarcely gain a mention in the mainstream media. Ironically, Ginsburg, in defending comments Supreme Court nominee Sonia Sotamayor made about a Latina woman being able to make better decisions than white males, offered this reply: "Think of how many times you’ve said something that you didn’t get out quite right, and you would edit your statement if you could." Is this one of those occasions for Ginsburg?

Taking Grave Robbing To A New Level

You can always count on Chicago to deliver some of the most diabolical schemes of public betrayal to shock the conscience. A Sun-Times report today tells us about cemetery workers at one of Chicago's most historic burial places for the City's African-Americans, Burr Oak, desecrating old grave sites to sell new plots for cash. Bodies from old grave sites at the cemetery where a number of prominent African-Americans are buried were found stacked up near the rear of the cemetery. Cook Co. Sheriff Tom Dart described the horrifying scene:

The thieves dumped the bodies in a mass site in the rear of the cemetery — caskets and all.

Dart said he’s seen evidence that the desecration of graves may be widespread.

“There were plenty of concrete vaults that were shattered,” he said. “More than we could count.”

Because I have several close relatives buried at Burr Oak, I will be among those demanding answers.

Frankly, I am outraged.

How could cemetery owners not have a clue until now that this shameful crime against the dead was being committed?

The fact that a group of employees was able to get away with such a diabolical scheme for so long points to gross neglect of this historical cemetery.

“It was well thought out,” Dart said.

The employees apparently freelanced selling grave plots and dealt with cash.

“One person had an inordinate control of records, and a lot of those records have since been destroyed.

“We don’t know the full extent of this yet,” he said.

UPDATE: Felony charges have been filed against four cemetery workers, including the cemetery manager, for dismembering a human body. At least 100 graves sites are believed to have been descrecated by the employees over a 4-year period. The scattered remains of the unearthed bodies were visible to anyone walking near the rear of the cemetery according to Sheriff Dart.

2 Years For Pit Bull Owner

Brenda Hill, a 68-year-old northside Indianapolis resident, lived in fear of her neighbors' two pit bull dogs. Her fears turned to shocking horror when she was dragged by the two dogs from her front porch and down an alley last January after they broke through a fence. She lost her left leg, is now wheel chair-bound and has endured seven surgeries since the attack. The dogs' owner, Lee Carroll, received a two-year jail sentence yesterday from Marion Superior Court Judge Linda Brown reports the Star's Jon Murray. Carroll had pleaded guilty to two misdemeanor counts of failure to restrain a dangerous dog, causing serious bodily injury.

Most of these cases have not ended in jail time for the irresponsible owners who harbor these dangerous dogs. Hill told Murray she was delightfully surprised Carroll received a jail sentence. Judge Brown reminded the dogs' owner of the propensity of these dogs for violent attacks. "Sir, I think it's very known in our community that a pit bull dog has a propensity (for violence)," Judge Linda Brown told Carroll. "I guarantee that a Chihuahua wouldn't have done that kind of damage to Ms. Hill's ankle."

Hopefully, Judge Brown's decision will give a reason to people who own these or other dangerous dogs to ponder their ownership responsibilities as dog owners.

The Missing Pieces Of Obama's Life Story

Normally, the question of a president's place of birth is established long before he assumes the office of the Presidency, unless you're Barack Hussein Obama. Prior to taking office, the Obama meme was that he was born at Queen's Medical Center in Honolulu, Hawaii on August 4, 1961; however, as WND reports, Obama shifted his birth place account to name Kapi' olani Medical Center in Honolulu as his birth place. The Library of Congress' genealogist, William Adams Reitwiesner, originally listed Queen's Medical Center as Obama's place of birth. He has now changed it to Kapi' olani. WND has tried to confirm with Kapi' olani hospital officials' the validity of the claim Obama was born at the hospital, but hospital officials declined to answer, citing health privacy concerns. WND notes that Snopes.com identifies Queen's Medical Center as his place of birth. A UPI story on his presidential campaign announcement said, "Obama described his birth at Queen's Medical Center in Hawaii Aug. 4, 1961, to a young white woman and a father of Luo ethnicity from Nyanza Province in Kenya . . . " It appears Obama switched the account of his place of birth after taking office as President.

That such simple matters of Obama's life story remain a mystery even after he's been in office for eight months is troubling. Unlike his presidential predecessors, Obama has gone to great lengths to block reporters and the public from obtaining his school records, particularly his records at Occidental College, Columbia University and Harvard Law School. His records from his tenure as a state senator simply disappeared. Medical records have been limited to a simple one-page letter from a doctor who hadn't examined Obama in over a year. He has refused to furnish his original birth certificate, the one he described holding in his hand when he wrote his second books, Dreams From My Father, which would have stated the hospital at which he was born and cleared up the confusion over his actual birth place. On his first day as President, Obama signed an executive order restricting the release of presidential records.

WND has devoted considerable time and resources trying to prove Obama really wasn't born in Hawaii. Instead, WND has attempted to prove he was born in Kenya based on the claims of some Obama relatives in Kenya, including his step-grandmother, Sarah Obama. WND's efforts have been misplaced and based on a false assumption that Obama's birth abroad alone would disqualify him as a natural born citizen, a constitutional requirement for serving as president. Other constitutional scholars disagree. Obama's Hawaiian birth certificate identifies a Kenyan citizen, Barack Hussein Obama, Sr., as his father. By the Obama campaign's own admission, Obama had dual citizenship at birth. Constitutional research of the meaning of "natural born citizen" suggests the founders intended that a candidate must be born of U.S. citizen parents to be considered a "natural born citizen." His father's Kenyan citizenship alone disqualified Obama as a natural born citizen. More importantly, his mother later divorced and remarried an Indonesian citizen, Lolo Soetoro, who adopted the younger Obama and had his legal name changed to "Barry Soetoro" according to his Indonesian school records. Those same school records identified Barry Soetoro as an Indonesian citizen.

During the 2008 presidential campaign, the U.S.Senate actually conducted hearings on Sen. John McCain's "natural born citizenship" status and declared him such by resolution based on his birth to U.S. citizen parents, who were stationed in Panama at the time of his birth while his father served in the U.S. Navy. That resolution read:

Whereas John Sidney McCain, III, was born to American citizens on an American military base in the Panama Canal Zone in 1936: Now, therefore, be it

Resolved, That John Sidney McCain, III, is a ‘‘natural born Citizen’’ under Article II, Section 1, of the Constitution of the United States

Former DHS Secretary Michael Chertoff was questioned by senators about the meaning of the term, "natural born citizen." "My assumption and my understanding is that if you are born of American parents, you are naturally a natural-born American citizen," he said. Oddly, though not surprising, the U.S. Senate never conducted hearings to determine Obama's eligibility.

According to a State Department manual, the issue of whether the term included persons like McCain had never been officially determined. “It has never been determined definitively by a court whether a person who acquired U.S. citizenship by birth abroad to U.S. citizens is a natural born citizen within the meaning of Article II of the Constitution and, therefore, eligible for the Presidency,” the manual states. Implicit in the State Department's statement, however, is the requirement that both parents be U.S. citizens. Perhaps the best explanation of what the term means can be found in the Law of Nations, a constitutional treatise sometimes cited in U.S. Supreme Court opinions:

“The citizens are the members of the civil society; bound to this society by certain duties, and subject to its authority, they equally participate in its advantages. The natives, or natural-born citizens, are those born in the country, of parents who are citizens. As the society cannot exist and perpetuate itself otherwise than by the children of the citizens, those children naturally follow the condition of their fathers, and succeed to all their rights. The society is supposed to desire this, in consequence of what it owes to its own preservation; and it is presumed, as matter of course, that each citizen, on entering into society, reserves to his children the right of becoming members of it. The country of the fathers is therefore that of the children; and these become true citizens merely by their tacit consent. We shall soon see whether, on their coming to the years of discretion, they may renounce their right, and what they owe to the society in which they were born. I say, that, in order to be of the country, it is necessary that a person be born of a father who is a citizen; for, if he is born there of a foreigner, it will be only the place of his birth, and not his country."

This definition clearly excluded Obama as a natural born citizen and arguably would exclude McCain as well, which explains why many Republicans were reluctant to push the issue during last year's presidential campaign. The State Department manual notes that the original Immigration and Naturalization Act defined the term in a way that was helpful to McCain. "The 'Act to establish an Uniform Rule of Naturalization', enacted March 26, 1790, (1 Stat. 103,104) provided that, “...the children of citizens of the United States, that may be born ... out of the limits of the United States, shall be considered as natural born citizens: Provided that the right of citizenship shall not descend to persons whose fathers have never been resident in the United States." Again, Members of Congress who wrote this law immediately after the adoption of the Constitution would have deemed Barack Hussein Obama ineligible to be president based upon this Act. Many people confuse subsequent immigration laws deeming persons born on American soil as U.S. citizens, forgetting that "natural born citizen" is a unique term used only once in the Constitution to determine the qualifications for the president. Being a statutory citizen at birth does not equate to being a natural born citizen as mistakenly believed by many persons.

During the debate over the adoption of the 14th Amendment nearly a hundred years after the adoption of the Constitution, Rep. John Bingham stated what a natural born citizen is: “I find no fault with the introductory clause [S 61 Bill], which is simply declaratory of what is written in the Constitution, that every human being born within the jurisdiction of the United States of parents not owing allegiance to any foreign sovereignty is, in the language of your Constitution itself, a natural born citizen . . ." Can it be said that Obama's father did not owe allegiance to the British Commonwealth of which Kenya was a part at the time of his birth? I think not. U.S. Supreme Court Chief Justice Waite touched on the conflict in what the term means in an 1875 opinion in Minor v. Happersett:

“The Constitution does not, in words, say who shall be natural-born citizens. Resort must be had elsewhere to ascertain that. At common-law, with the nomenclature of which the framers of the Constitution were familiar, it was never doubted that all children born in a country of parents who were its citizens became themselves, upon their birth, citizens also. These were natives, or natural-born citizens, as distinguished from aliens or foreigners. Some authorities go further and include as citizens children born within the jurisdiction without reference to the citizenship of their parents. As to this class there have been doubts, but never as to the first.”

In the final analysis, it must be conceded that this constitutional issue has never been decided by the U.S. Supreme Court. Numerous citizen attempts to challenge Obama's qualifications in U.S. courts, both federal and state, were thwarted on standing grounds and not the merits of the challengers' claim. People on the Left can knock the people who raise the issue as "birthers" and "nuts" all they want, but there is considerable constitutional authority that would suggest Barack Hussein Obama is not a natural born citizenship by reason of his dual citizenship at birth because of his father's Kenyan citizenship.

Watchdog Indiana Tax Ratings Questioned

Watchdog Indiana is a so-called taxpayer group founded by Aaron Smith to "provide information about the revenues, spending, and long-term debt assumption of Indiana local and state governments", including voting record ratings for lawmakers. Smith's analysis of lawmakers' votes on the state budget during the recent special session leaves much to be desired. Smith's analysis concludes that the recently-passed budget is "sufficiently Taxpayer Friendly" because it "provides enough resources for good government" and it "satisfactorily protects Hoosier working families from state and local tax increases." Consequently, Smith rates lawmakers who voted for the budget as "taxpayer friendly" and those who voted against it as "taxpayer unfriendly".

Smith's "taxpayer unfriendly" category includes Republican Senators Vaneta Becker, Mike Delph and Jean Leising, the only three Republican lawmakers to vote against the state budget. I can't speak for Becker and Leising, but I've observed Delph's voting record enough to ascertain that he is one of the most taxpayer-friendly legislators in the State House. There were many reasons to vote against the budget, not to mention the bailout of the Capital Improvement Board, a referendum for constructing a $900 million county hospital for Marion County, the creation of a northwest Indiana transit authority and lots of last-minute pork barrel projects for the state's higher education community, which in turn is rewarding students with large tuition hikes in a difficult economy. Smith's analysis does not consider any of these tax and spend projects as worthy of a no vote on the state budget. In fact, income and property tax increases to fund the Northwest Indiana transit district are characterized by Smith as "taxpayer friendly"; the tax, spend and borrow provisions for the CIB bailout don't even merit a mention by Smith.

The final vote on the state budget bill is the worst piece of legislation to gauge a lawmakers' true fiscal voting record. The legislative logrolling process results in the inclusion of many non-budget items, some of which were never subjected to a public hearing. You have to study lawmakers' votes on tax and budget-related amendments during the process to get a better sense of their fiscal philosophy. You also have to study lawmakers' votes on substantive legislation that drives budgetary costs for state and local government. Smith's analysis of lawmakers' voting records based on this single budget vote is totally useless and should be so regarded by the 25,000 Hoosiers he claims receives e-mail updates from him.

30th Senate District Caucus Scheduled

The 30th Senate District Republican caucus to fill the vacancy of Teresa Lubbers, who resigned to become Higher Ed Commissioner, has been scheduled for July 21 at 7:00 p.m. at the Knights of Columbus Hall at 71st and Keystone. There are currently four candidates vying for the appointment to the remainder of Lubbers' term, including Chris Douglas, John Ruckelshaus, Scott Schneider and Ryan Vaughn.

What Does It Cost To Produce A High School Graduate In Marion County?

The average cost in Marion County by school to graduate a high school student yields few surprises. The most costly school is IPS at $383,594, while the least costly school is Washington Township at less than half IPS' cost at $154,137. How could the costs vary so wildly within the same county? The statistics were compiled by an avid Advance Indiana reader and Washington Township school board member Greg Wright based on information furnished by the Department of Education. "This is my personal short-cut for determining the efficiency of a K-12 district," Wright says. "I believe that one very important measure of a public school district is the cost to produce a high school graduate." "Since it measures the efficiency of all expenditures, this analysis doesn’t leave great opportunity for creative accounting." Wright notes that Speedway's numbers don't include any student transportation costs, contributing to its lower numbers. Washington Township has several popular private schools, which tends to reduce its K-8 student population Wright adds.


1. IPS ($383,594)
2. Decatur Township ($289,515)
3. Pike Township ($263,569)
4. Wayne Township ($244,179)
5. Franklin Township ($223,605)
6. Lawrence Township ($216,946)
7. Perry Township ($213,235)
8. Warren Township ($201,842)
9. Beech Grove ($178,035)
10. Speedway ($161,244)
11. Washington Township ($154,137)

Will FSSA Finally Admit Error Of Roob's Way?

Perhaps Indiana's Family & Social Services Agency is on the brink of acknowledging the colossal mistake its former head, Mitch Roob, made in forcing through a privatization deal for the state's welfare program that involved the participation of his former employer, ACS. "A top Indiana official says the state's privately run welfare project has so many problems that Indiana could begin taking steps to cancel its $1.16 billion contract this fall," the AP reports. The private vendors are being given until the end of September to prepare a "corrective action plan" or face the cancellation of the 10-year contract.

Have People Forgotten The Purpose Of A Bonus?

I guess it should come as no surprise to see IPS awarding bonuses to Supt. Eugene White for failure since it has become the norm in the corporate world to reward huge bonuses for utter failure. To the school's credit, it did not raise Supt. White's annual salary of $188,000, which has remained the same for 3 years. The $12,000 in bonuses it awarded him, however, to boost his annual pay to $200,000 are disturbing. The Star's Andy Gammill writes:

The board determined White should receive two of four performance-based bonuses for which he is eligible. One is an automatic $7,000 bonus if more than half of the district's elementary school students pass ISTEP tests, which they did. White did not receive an additional $14,000 in bonuses he would have gotten if middle- and high-schoolers had met the same threshold.

The other $5,000 he received is at the board's discretion, taking into consideration progress toward the board's goals and strategic direction.

"That is based on whether we think the district is moving in the right direction, which we do," School Board President Michael D. Brown said.

Brown said the board is happy with White's performance and that he appreciates the superintendent's leadership in turning down a raise until teachers have one.

Barely getting half of your elementary school students to pass the ISTEP test is hardly an accomplishment worth rewarding. And if the board thinks the school is moving in the right direction, then we have a real problem. Gammill's story notes that the bonuses were slipped into the board's agenda after it had already been posted. Apparently the board didn't want a public discussion of Supt. White's pay like what happened in the blogosphere with the discussion of the pay for the Washington Township school district superintendent recently.

Brownsburg Choking Game

Fox59 News' Kimberly King reports on a problem in Brownsburg with teens playing a dangerous game of choking. At least two teen-age boys have been taken to the hospital while playing what they call "bare knuckle fighting." A 15-year-old boy was recently charged with battery after he caused a 13-year-old to pass out after putting him in a choke hold. King says a Hendricks County judge dismissed the charges against the teen. Parents complain that the 15-year-old has choked other boys as well. Vickey McKinley tells King that the boys are mimicking wrestlers doing ultimate fighting. You can find YouTube clips all over the Internet of young guys putting someone in the so-called sleeper hold until the person passes out.

Thanks to a new law sponsored by Sen. Dennis Kruse and Rep. Ed DeLaney, Indiana will soon become a venue for pay-for-view ultimate sports fighting events. The organization that promotes these blood sport events hired Ice Miller as their lobbyist and got Kruse and DeLaney to carry the legislation, which Gov. Daniels signed into law in May. The Simon-run Conseco Fieldhouse hopes to bring the gruesomely violent sport to Indianapolis next year. Sen. John McCain has called the sport "human cockfighting" and has fought to ban it. A New York Times' editorial earlier this year lamented the introduction of the same legislation there. "In New York, they have hired some of the oiliest lobbyists to start the legislative version of arm twisting." There was no arm twisting required to pass the law here. The blood sport got the blessing of every single member of the Indiana House and Senate.

A Tale Of Two School Aid Formulas

Headlines can be misleading as the Star's front-page story on Indiana's school aid formula under the new state budget reveals. The headline says, "State's budget formula favor suburban, charter schools." That headline is accompanied by this bold claim in the story: "The schools attended by the poorest children in the state took it on the chin." The story focuses, in particular, on the funding of the state's two most urban districts, IPS and Gary Community Schools. "IPS, because its enrollment is dropping, loses $28 million -- a 2.8 percent drop in 2010 and 4.3 percent in 2011." "And Lake County's Gary Community Schools, also with declining enrollment, loses more than $12 million, a 3.6 percent cut in 2010 followed by a 4.1 percent cut in 2011."

Unless you dig deep into the story, you won't learn that the facts belie the headline and the story's assertion that somehow or another urban schools are taking it on the chin so rich suburban districts can roll in the dough. The architect of the state budget, Sen. Luke Kenley, points to facts that cannot be disputed. IPS and Gary schools receive 50% more in per-student aid than the state average, and they receive the greatest increases under this budget, "nearly four times the state average" according to Kenley. The fast-growing suburban districts are getting more money because of their rapidly growing enrollment; however, on a per student basis, their funding has actually been decreased. The story acknowledges this comparison of IPS' funding compared to Carmel Clay schools:

IPS, for instance, will get $8,844 in state funds per student, an increase of 5.1 percent per student. The statewide average, $6,553, will increase by 1.3 percent. Carmel Clay Schools, serving a fast-growing area of wealthy suburbs, will get $5,596, a decrease of 1.5 percent.

So people are fleeing these failing urban schools, which are rewarded with more money per student than schools that are succeeding, and they're still complaining that they are being short-changed. The Star is only fomenting racial division by suggesting ala Amos Brown that poor, predominantly minority urban schools are getting screwed over to benefit wealthy, predominantly white suburban schools. If people really care about these urban schools, then they should start demanding some accountability from the people who run them. Despite a lot of talk about accountability by the Star's editorial writers, today's front-page story does nothing to advance that ball; it's a step backwards.

Palin Haters Make Me Sick

I've never witnessed anything as vicious as the pure hatred that Palin's rise to political fame has wrought from the news media and the Left. I'll never forget how within the first 24 hours after she was nominated, Democratic bloggers were falsely claiming that she was not the mother of her son, Trigg. The Palin haters insisted her daughter actually gave birth to the baby and Sarah pretended to be his mother to cover up a scandal pregnancy as a result of an alleged relationship with an older friend of the Palins. It turned out to be completely false, but the rumor shot through the liberal blogosphere as fact.

From the moment John McCain selected her as his running mate, the Left never relented in its efforts to destroy her. Even now that she has announced her decision to step down as Alaska governor, the Left couldn't avoid another parting shot at her and her family. Leftist bloggers claimed Palin resigned because she was the subject of an FBI investigation surrounding the construction of her home on Lake Lucille in Wasilla. The bloggers claimed a Wasilla building supply company had subsidized construction of the Palins' home as consideration for its participation in the construction of a public facility that Palin as mayor had no part of managing. This Internet rumor got its boost from Shannyn Moore, a radio talk show host and blogger from Alaska, who is an avowed Palin hater. Like they did throughout the campaign, the Left and its friends in the mainstream media ran with Moore's false and defamatory claims. The Palin-hating MSNBC allowed Moore to state the false claims during an interview. The story has caused the FBI to take the unusual step of denying an investigation. As the Anchorage Daily News reports:

"We are not investigating her," FBI spokesman Eric Gonzalez said on Sunday. "Normally we don't confirm or deny those kind of allegations out there, but by not doing so it just casts her in a very bad light. There is just no truth to those rumors out there in the blogosphere."

The Palin-hating Moore was characteristically indignant about reporting yet another false rumor about her. She conducted a press conference in front of Palin's Anchorage office to deny a claim by Palin's attorney that she had defamed the Palins, hiding behind the First Amendment. The ADN reports:

Moore fired back on Sunday by calling a press conference in front of the governor's downtown Anchorage office and calling Palin "a coward and a bully." Moore said she only pointed out that rumors existed -- and she never claimed them to be fact.

"What kind of politician attacks an ordinary American on the Fourth of July for speaking her mind? What's wrong with her? The first amendment was designed to protect people like me from people like her. Our American revolution got rid of kings. And it got rid of queens, as well. Am I annoyed? You betcha," Moore said.

She said that "Shannyn Moore will not be muzzled."

"There is a scandal rumor here that there is a criminal investigation into some activities and that's been rumored for about, I don't know, probably six weeks or two months," Moore said on MSNBC, later commenting that Palin looked nervous and she believed the governor was doing damage control for news that would come out.

Van Flein on Sunday also highlighted a message Moore sent Friday on her own Twitter account, saying "yes, I know the nature of the scandal. Timing, baby timing." He said Moore has been cited as a source for reporting of a possible federal indictment. (The national "Brad Blog" quoted Moore as saying Palin resigned because a scandal was about to break. Moore said she was misquoted and can't control other blogs.)

Moore said the governor's sudden resignation didn't make sense and has Alaskans wondering what is really going on. She said Palin had a "massive overreaction" to her comments.

"I think it's great that the FBI has come out and said the rumor isn't true. ... But the fact, that I reported, that there was a rumor, is true. There was a rumor and she dispelled the rumor and that's great," Moore said.

As I said when I heard of her resignation announcement on Friday, I thought Palin was making a mistake. On the other hand, I haven't had to endure the non-stop, hate machine she has faced from the Left and the mainstream media from the day John McCain made her a household name. We have learned more things, true and untrue, about the life of Sarah Palin over the past year than we know about Barack Hussein Obama, the man we elected as our President. When is the media going to start telling us about the missing pieces of his life story?

Kenley's Duplicity On Voter Input

Northwest Indiana legislators didn't want a referendum to allow Northwest Indiana voters to decide whether to create a regional transit authority with the power to levy a one-quarter percent local income tax, but Senate Appropriations Committee Chairman Luke Kenley (R-Noblesville) is forcing a special election on them this fall that will cost taxpayers more than a $1 million. The NWI Times' Patrick Guinane writes:

Northwest Indiana legislators didn't want the referendum requirement, which is expected to cost county election boards $250,000 in Porter County and up to $1 million in Lake County. But the powerful chairman of the state Senate Appropriations Committee insisted voters decide whether to create an appointed board of mayors and elected county officials with the power to impose a local income tax of up to 0.25 percent.

"Let's convince the people and get their approval that this is what they want," said Sen. Luke Kenley, R-Noblesville. "I think it's a matter of public confidence in Northwest Indiana. The political people in Northwest Indiana do not have a high level of public confidence in their activities now. If they can get that (referendum) vote, then they've got a base to build from."

Although the transit authority will be supported by a local income tax, the referendum language Kenley inserted into the state budget bill that area voters will consider makes no mention of a tax increase. It reads:

"Shall there be created the northern Indiana regional transportation district under Indiana Code 8-24 to provide a regional rail system serving Lake, Porter, LaPorte, and St. Joseph counties and regional bus public transportation system serving Lake and Porter counties with (insert name of County becoming a member of the district?"

A separate referenda will take place in four counties, including Lake, Porter, LaPorte and St. Joseph Counties. Oddly, the legislation allows the authority to be created if only two of the counties adopt it. So you could have a regional transit authority consisting of Lake and St. Joseph counties with the two counties in between, LaPorte and Porter, not a part of the transit district; however, the authority will be able to collect the income tax from people living in those counties that work in one of the other counties. "If you get two counties on the extreme ends (Lake and St. Joseph) that vote for it and the two counties in the middle (Porter and LaPorte) don't, what happens to them?" asked Rep. Chet Dobis, D-Merrillville. "That (referendum requirement) was so haphazardly put together, it wasn't funny."

U.S. Rep. Pete Visclosky (D-Merrillville), who is currently under investigation by federal prosecutors for campaign fundraising-related activities, supports the plan as a way of raising $500 million to match federal funding he will help the region obtain to build rail lines to Lowell and Valparaiso. The plan is also seen as aiding the financially-struggling bus agencies in East Chicago, Gary and Hammond. Hammond Mayor Tom McDermott worries that voters will reject the referenda out of hand according to Guinane's story.

Kenley suggests the referenda was needed because of the level of public confidence in Northwest Indiana officials isn't real high right now. Is the public confidence in the Marion County Capital Improvement Board any higher? That didn't stop Kenley from including a $25 million state bailout of the corrupt and inefficient agency in the state budget bill. Voters in Marion County will have no say in the matter. Under Kenley's CIB bailout plan, the City-County Council will have to raise the hotel tax immediately if it wants an $8 million a year subsidy and a $27 million-dollar loan from the state. In three years, the City-County Council will be compelled to raise another two taxes to finance repayment of the $27 million state loan. Note also that Kenley's regional tax to support construction of Lucas Oil Stadium was decided by county councils and not by the voters.

Marion County voters will have a special election referendum this fall thanks to Kenley and his legislative colleagues, which will cost more than a million dollars to conduct. Voters will be asked to vote on this language: "Shall the Health and Hospital Corporation of Marion County, Indiana, issue bonds or enter into a lease to finance (insert the description of the project)?". Proponents of the project claim a $900 million new hospital to replace the current Wishard Hospital can be constructed without a tax increase. Yeah, and if you believe that, I've got a bridge in Brooklyn to sell you as well.

Happy Fourth Of July Chicago Style

We need more legislators in Indiana like State Rep. Paul Froehlich (D-IL). After switching from the Republican to the Democratic Party, Froehlich pulled out all of the stops to win re-election last year with some help from Chicago Democrats. It seems Froelich showed up at the door of hundreds of his constituents offering to help lower their property taxes. Of the cases he filed with the Cook County Board of Review, he had a 94% success rate. Constituents were happy and gladly rewarded him with contributions, put up campaign yard signs at their homes, etc. Everyone was happy--until Froehlich fired his district assistant, who just happened to keep a copy of the master list of property tax appeals, along with all of the political favors Froehlich received in consideration for his help, which she shared with a local FOX News affiliate in Chicago. She is planning to bring a whistleblower suit against Froehlich. He thinks she should be jailed for stealing the list. Others are wondering why all of the appeals Froelich filed were adjudicated by Board of Review Commissioner Joe Berrios (D), a former state representative and head of the Cook County Democratic Party. The Fourth of July heat is too much for Froehlich, who just announced he won't seek re-election. The Cook County State's Attorney's Office is continuing its investigation of the matter. Not that it matters to the Obama-friendly media, but then-State Senator Barack Obama used constituent service to enrich himself personally. He took more than a $100,000 in legal fees from a business for which his office lobbied a state agency successfully for hundreds of thousands in state business grants. Enjoy the video of this excellent investigative piece by FOX Chicago News.

Palin Resignation A Big Mistake

If Gov. Sara Palin's decision to resign her office later this month is to allow more time to campaign for president in 2012, I think she is making a big mistake. Palin has been the unfair subject of dozens of ethics complaints filed by partisan Democrats as a result of her vice presidential campaign last year, which has caused her to incur hundreds of thousands of dollars in legal bills. Leaving office more than a year before the end of her term looks like she's escaping the heat of the kitchen rather than finishing the job to which Alaska voters elected her. I wish her well, but I'm disappointed in her decision.

Mark Miles For Governor, Or Mayor?

That's what Star editorial writer Russ Pulliam tosses out for consideration in his weekly column today. He's even getting encouragement from the religious right's Curt Smith, who heads the Indiana Family Institute and is a leading advocate for adoption of a constitutional amendment banning same sex relationships or similar civil unions. The Democratic blog, Indianapolis Times, has speculated that Miles is working behind the scenes to dump Ballard to make way for his own candidacy. Miles is best known for his leadership role at the CICP, a publicly-funded nonprofit that promotes welfare for corporations, including hundreds of millions in subsidies for billionaire sports team owners. He has been a big proponent of the CIB bailout, tax increases and all. One thing is clear. Russ Pulliam is not just engaged in idle speculation. Somebody put a bug in his ear. You can bet on that.

TRO Quietly Issued By Judge Hanley This Week Turning Heads

As a state budget deadline loomed this week, Gov. Mitch Daniels announced a shutdown plan that included the closing of the state's licensed gaming facilities. Unknown to the general public, not to mention the State of Indiana, the Indiana Gaming Association went into Marion Co. Superior Court Judge John Hanley's courtroom and obtained a temporary restraining order that would have allowed the casinos to remain open if the legislature failed to approve a new state budget by the end of Tuesday. The Indiana Attorney General's office was not even been permitted to respond to the Gaming Association's request before the TRO was issued! The Indiana Legislative Insight reports on this highly unusual court order:

The prospective shutdown of state government might not have been quite as sweeping, complete, or devastating as the Governor painted it in the days leading up to July 1. While he threatened to shut down the casinos, our sister newsletter, INDIANA GAMING INSIGHT, reports that the Casino Association of Indiana late last Tuesday afternoon quietly obtained a Temporary Restraining Order from Marion County Superior Court Judge John F. Hanley, a former chair of the Indiana Alcoholic Beverage Commission, that would have allowed the state's 11 casinos and two racinos to remain open. The Office of the Attorney General says that it did not have the opportunity to appear and respond prior to issuance (the Hanley TRO was time-stamped by court personnel at 4:20 p.m.).

Judge Hanley's detailed TRO specifically finds that "Gaming agents are essential employees in that they are necessary to protect and preserve the State's financial assets and resources by allowing Plaintiffs' casinos to operate and pay taxes to the State," theoretically opening the door to other state employees (such as those with the Department of Revenue) being labeled "essential" in any future such scenario. He also notes that for each day the casinos are closed, the State of Indiana [and local governments] would lose approximately $3 million in tax revenue. Additionally, approximately 16,000 employees would be laid off; casinos would potentially lose valuable trained employees and the various state funds and local governments benefitting from casino operations would suffer greatly." Judge Hanley also finds that the State's removal of gaming agents from casinos, forcing their closure, "would constitute a taking of property," triggering due process protections. "Since all expenses associated with the Gaming Commission and the gaming agents are required to be paid directly by Plaintiffs the State of Indiana will incur no benefit by shutting down Plaintiffs" casinos. However, the injury to Plaintiffs would be catastrophic and total negative effect of such action by Defendants is unpredictable. By shutting down Indiana casinos, the State will lose millions of dollars in tax revenue and receive no benefit. Both Plaintiffs and Defendants would benefit by the continued operation of Plaintiffs' casinos."

Just What Has The Health & Hospital Corporation Been Up To For The Past Three Years?

A source in Indianapolis' construction trade business tells me it's been no secret in those circles that the Health and Hospital Corporation of Marion County's Board of Trustees has been laying the groundwork to build a $900 million new hospital to replace Wishard Hospital for at least the past three years. In fact, word on the street is that they've already lined up an architect to design the building. That's the same way Lucas Oil Stadium went down. The CIB quietly began purchasing land and making plans for the new stadium years before the public had any idea what was happening. Early on in Mayor Peterson's administration he was asked about talk of a plan for a new stadium and denied its existence.

If you have some spare time, rummage through these old board minutes of the HHC and see if you can find any discussion of the new hospital. You'll have a tough time. I think the board minutes use the term "HHC Strategic Plan" as code whenever the topic of building a new hospital is concerned so nobody can read the minutes and figure out what the hell they're talking about. I also notice that attorney Greg Fehribach serves on the board. He makes his living as a city contract attorney, getting paid well north of a $100,000 annually. Gee, whose interests does he represent on the board I wonder?

The next public inquiry needs to resolve which Marion County legislator stuck a public referendum requirement this November for Marion County, a special election that will cost taxpayers well over $1 million, in the state budget without a public hearing on it. There would have been no extra cost to taxpayers if it had been scheduled at a regular election. The Health & Hospital Corporation's registered lobbyist is Barnes & Thornburg. Did B&T lobbyist, part-time City-County Councilor and wannabe state senator Ryan Vaughn have anything to do with placing the referendum language in the state budget? Inquiring minds want to know.

Mary, Mary, Quite Confused

WTHR's Mary Milz turns in this baffling report about how the success of Lucas Oil Stadium is not translating into additional revenues for the cash-strapped CIB. Well, duh, that's because the stadium deal allows Colts' owner Jim Irsay to pocket all of those revenues, a point Milz story completely misses. Here's what she says:

The city says business is good at Lucas Oil Stadium, but the money it's making is not filtering down to the Capital Improvement Board, the board that runs it. Nearly one year after the stadium opened, it's hosted more than football fans.

Stadium Director Mike Fox says so far Lucas Oil has hosted 174 events, or more than four times as many as the RCA Dome did in its last year. The stadium's hosted everything from the Kenny Chesney concert to a job fair to luncheons and board meetings.

Still, it's not anywhere near enough to cover the operating costs.

Paul Okeson, the mayor's chief of staff, said while the city does need to market itself more, there just aren't that many of the big multi-day events out there. He said, more importantly, running a stadium isn't exactly a break-even proposition.

"It's a bit of a loss leader," Okeson said. "The idea isn't for the facility to necessarily make money but for the economy to grow and for people to spend more."

He says it's why scoring the 2012 Super Bowl was such a big deal as it will bring more than 100,000 well-heeled fans to Indianapolis with a potential economic impact of several hundred million dollars.

"Some of the more lucrative events don't pay to use the facility," he said, "and that's the competitive nature of the business."

The CIB's continuing money issues have raised some concerns among some who've booked the stadium. Dan Acheson, Executive Director of Drum Corps International, says he's well aware of the CIB's $12 million shortfall.

"I'm sure it will have an impact on services at some point, so yeah, I'm concerned about that and hopefully we'll have good people doing the work on finding a solution," he said.

Indianapolis Convention and Visitors Association President Don Welsh said he's working hard to alleviate any concerns.

"They can be assured that the buildings will be open and operating and serviced in the manner they'd expect in Indianapolis," he said.

Despite the CIB's financial trouble, some groups like Music for All, formerly Bands of America, are getting a break to keep them marching back.

Music For All's CEO L. Scott McCormick said the stadium cost his group 25% more to rent than the RCA Dome, which was too much more for a non-profit. Given the growing competitiveness of the convention market, the CIB agreed to broker a better deal.

McCormick said, "When they asked what it would take to keep the organization here, they asked us to lay it all out and I think we presented a fair number and it looks like we'll end up with that."

He declined to give the final number as the deal had yet to be finalized.

What I find particularly troubling in the report is Mike Fox's comment that "some of the more lucrative events don't pay to use the facility, and that's the competitive nature of the business." Huh? You know Irsay isn't allowing groups to use the stadium for free. What Fox is saying is that the CIB is subsidizing those groups to come to Indianapolis, which translates into the taxpayers paying Irsay for the use of LOS for those events. Her story notes that the CIB brokered a better deal for Music For All after its costs soared 25% at LOS compared to the RCA Dome, which means the CIB is subsidizing the event. I've reported previously on how the CIB uses the ICVA to buy down hotel rates for conventions to lure them to the City because the room costs are high in Indianapolis compared to other cities. You can bet the ICVA is also picking up those costs to subsidize the higher costs of hosting events at LOS.

This probably helps explain why Jim Irsay says the CIB is inflating the actual costs of running LOS. He charges much higher rates for events than the CIB charged for those same events when they were hosted at the RCA Dome. Obviously, the CIB has no control over the charges he imposes. Instead of addressing that problem, the CIB puts out fires created by the higher fees by offering cash incentives to groups to use LOS. That's part of the reason it costs $20 million more to operate LOS compared to the RCA Dome. If taxpayers knew what was really going on . . .

Yikes, He's A Public Defender?

A 31-year-old Marion County Public Defender attorney, Ikedigbo Nnaemeka, is accused of breaking into a residence and attacking a 17-year-old boy according to WRTV:

Ikedigbo Nnaemeka, 31, was charged with attempted residential entry and battery after he tried to force his way inside a home in the 2500 block of East 18th Street just after 2 a.m. Tuesday, said Lt. Jeffrey Duhamell.

According to the police report, Nnaemeka also attacked the homeowner's 17-year-old son, who was trying to keep him out of the home.

Investigators told 6News' Jack Rinehart that the arrest is the latest in a string of bizarre behavior by Nnaemeka.

A month ago, police said he was seen speeding and weaving in and out of traffic near Washington and East streets. According to the police report, Nnaemeka stopped his car in the middle of the intersection and "acted erratically" when he got out of the vehicle.

Nnaemeka has worked for the Marion County Public Defender Agency for just more than a year.

In 2003, he was convicted in New York of carrying a handgun without a license and was on probation when he was hired in Marion County.

Long Punishing Leising For Voting Against Budget?

Jim Shella has a blog item that is turning heads at the State House because of what some say is an attempt by Senate President Pro Tempore David Long to damage one of his own Republican senators, who was one of three Republican members who voted against the state budget deal yesterday:

State lawmakers are gone from the Statehouse but a couple of issues remain. State Senate Democrats are upset that majority Republicans forbid them from videotaping the final budget debate. They had videotaped only the Democratic speeches throughout the Special Session, or so they say.

Republicans, meantime, are upset with one of their own. Senator Jean Leising voted against the budget (one of 3 Republicans to do so) but sent a memo to President Pro Tem David Long asking why Senators didn’t get per diem payments on days during the Special Session when the Senate didn’t convene. Whether Senators deserve the pay is a point that is unclear in the law.

Absolutely clear is the fact that fellow Senators leaked the memo to make Leising look bad.

Did Long's office leak an edited version of Leising's e-mail that allowed it to be interpreted out of context? That's what some are saying. His office says no. See the update below.

UPDATE: Senate Republican spokesman Scott Minier has sent me the full text of Sen. Leising's e-mail, which you can view below. Minier assures us the leak of the e-mail did not come from anyone within Senate President Pro Tempore David Long's office, "nor to his knowledge, from anyone else in the Senate Majority Caucus or its staff." "If the memo was provided to a member of the media, it could have come from any number of sources, since it was widely distributed by Sen. Leising personally," Minier writes. "As for Sen. Leising’s vote, while it may have been disappointing to Senate leadership, Sen. Leising is an independently elected legislator and is entitled to vote as she chooses," he continued. "If there is to be any discussion between Sen. Leising and Sen. Long, it will be handled in private and not through the mainstream media or blogs." "That is how Sen. Long has always managed the Senate in the past and there has been no change in that approach or policy," Minier concluded.

Here's the text of Leising's June 30 memo to Sen. Long:

Can you please clarify for me the law on Special Session per diem? After reading two articles in the Indianapolis Star stating that we are receiving per diem, I took the time to research the attached copies from the Indiana Acts.

It would appear to me that we are to be paid per diem during the Special Session.

Thanks for your attention to this matter.

Minier forwarded a memo that Sen. Long directed Senate staff to send to all senators on June 8 before Leising sent her memo to Long that stated the following policy for payment of per diem during the special session:

Per Senator Long, June’s Per Diem will be handled in the following manner:

The Interim Per Diem will still be limited to two (2) days for the month but once Special Session has convened on June 11, 2009 there will be no additional Interim Per Diem and travel sign-ins allowed until Sine Die.

Session Per Diem will be paid for the following:

1) Each day the Senate actually meets in Session and you are present on the roll call;
2) Each day you attend a “special” committee meeting, of which you are a member, that has been approved in advance by Senator Long, to address issues pertaining to Special Session; and
3) Other individual cases approved in advance by the President Pro Tem. Included in the definition of special cases would be a caucus meeting called by leadership.

Once Special Session has convened there will be no sign-ins allowed for Interim Per Diem and travel until after Sine Die. Mileage will be paid a maximum of one round trip per week in any week a senator receives session per diem under one of the three circumstances above. On any day a senator does not qualify for session per diem, he/she will continue to receive the normal $55.20 as if we were not in session.

We anticipate the House of Representatives will be following essentially the same protocol. Interim committee meetings will still be handled through LSA as they normally are during the Interim.

It would appear to me that Sen. Leising had a misapprehension about the per diem policy, which can get complicated as you can see from the staff member's description of how it was to handled during the special session. It doesn't appear to me that she was asking for anything the June 8 memo didn't say would be covered. WISH-TV reporter Jim Shella interpreted the leaking of the Leising memo as a slight by Long's leadership, and the same message was communicated to me as well. I can't read into Leising's memo that she thought members were entitled to a session per diem payment on days they weren't actually in session, although the Senate memo clearly allows the per diem on days when they were attending a committee on which they served as a member or a caucus meeting, in addition to actual session days.

A big thanks to Minier for sending the information to clear it up. Whoever leaked her memo to the media put a negative spin on it from Leising's standpoint. I understand why she and her supporters believed it was being interpreted out of context. Clearly, the memo was not edited by anyone though as had been suggested by some.

Oxley Charged With Public Intoxication And Impersonating A Lawmaker

Former State Representative and 2008 Democratic Lt. Governor candidate Dennie Oxley, Jr. has been charged with public intoxication and impersonating a state legislator to avoid arrest, stemming from an incident at a downtown Citgo gas station last Friday morning according to the Marion Co. Prosecutor's Office. A female companion of Oxley's, who works for the House Democratic staff, had to be taken to the hospital after she passed out at the gas station. Indianapolis police planned to arrest Oxley for public intoxication, but he avoided arrest by telling police he was a state lawmaker in Indianapolis for the special session. In fact, he resigned from the House last year after being named to the Democratic ticket and his father, Dennie Oxley, Sr., took his seat. Oxley works as a senior advisor to House Speaker Pat Bauer. Oxley has a pending drunk driving arrest charge from February, which had originally been scheduled for disposition this week, but has been delayed in light of these new charges.

UPDATE: According to various television news reports in Indianapolis, Dennie Oxley, Jr. had been expected to surrender to Indianapolis police today at 1:00 p.m. to be booked on the charges, but he failed to do so as of 7:00 p.m. tonight.

WRTV now reports that Oxley turned himself in to police early this morning.

IURC: Ballard Administration Allowing Veolia To Rape Indianapolis Water Company

I've been telling you for months now about the self-dealing and corruption that surrounded the purchase of the Indianapolis Water Company and the subsequent operating agreement the City entered into with the French-owned company, Veolia, to manage it. Top Democratic lobbyists with close ties to former Mayor Bart Peterson were hired to help ink the deal, which nets the company more than $40 million a year, and which represents 80% of the water company's maintenance and operating budget.

An IURC order this week scaling back a 17.6% emergency rate hike sought by the Ballard administration has some scathing observations about the administration of Veolia's management agreement. The IURC winced at a 5% scheduled payment increase to Veolia approved by the Ballard administration. The IURC says the administration told it the management fee could not be reduced, although it admitted it had never attempted to renegotiate the contract with Veolia. Jim Steele told the IURC that Veolia wasn't to blame for the variable rate bond fiasco so it shouldn't be asked to sacrifice any fees.

The IURC found it disturbing that the administration had made no effort at cost-cutting before seeking the emergency rate increase. "If the Department operated the utility through its own employees, the Commission would expect the implementation of cost cutting measures related to those employees, such as a freeze on pay raises, and other costs that are embedded in the Veolia management fees," the order said. "The Commission certainly would not anticipate a proposed increase in salaries in the face of an emergency financial situation," the order reads. "The evidence is undisputed that the Department has made no attempt to contact or negotiate with Veolia on maintaining the 2009 management fees at the 2008 level or postponing any increase given the Department's current financial situation." The Commission then ordered to management agreement altered to the extent it allows for higher fees to be paid to Veolia.

There's more. The IURC concluded that the management agreement with Veolia is "profoundly disturbing." In 2007, the water company amended the management agreement with Veolia to increase its fees without notifying the IURC, a requirement imposed by a 2002 order issued by the Commission. That 2007 amendment requires the water company to pay $5 million to Veolia for "past unexpected increases incurred during the years 2002 through 2006." Two of three payments of that amount have already been paid to Veolia; the Commission ordered the third payment of $1.667 million halted until the Commission can determine that the payment is "reasonable and in the public interest."

Further, the IURC questioned "incentive payments" being paid to Veolia that may not be supported. Although Veolia has claimed 90% of its eligible incentive payments, the Commission said the record lacked evidence "Veolia ha[d] been able to reach or exceed the performance metrics in the first few years." Even more disturbing is the Commission's discovery that 60% of potential incentive payments were being paid out to Veolia "before it is technically determined that those payments have in fact been earned." The final payment each year is described as an "incentive true-up." "To characterize compensation for which there is somewhere between a 60% and better than a 90% probability of being paid, and for which that can be determined almost a year in advance, as being 'incentive' compensation which is purportedly 'performance based' stretches credulity at a minimum and approaches disingenuousness," the order reads. "If the intent of the agreement is simply to expand Veolia's compensation by an amount little short of 25%, on top of the fixed fee amount, then the Commission suggests that the agreement should have simply said so."

As I previously reported, the water company's original consultant, Carlton Curry, opposed a number of incentive payments being claimed by Veolia early on in the contract. If he denied the payment, Veolia simply went behind his back with its powerful lobbyists and got the payments it wanted whether it earned them or not. Curry's guardian role was effectively nullified by the Peterson administration.

The Commission's order also halved the more than $12 million the Ballard administration sought in capital improvement funding as part of the rate increase. The Commission noted that the water company's budget for funding extensions and replacements is higher than comparable budgets over the past five years and the highest experienced in the last three years. The Commission approved capital project needs the administration was able to document with evidence.

The findings contained in the IURC's latest order should be deeply disturbing to the public, which ultimately has to foot the bill for the operation of the water company. Mayor Ballard promised an investigation into the water company deal when he ran for mayor in 2007. Like so many of his promises, that one got swept away. In its place, we have an administration being operated for the benefit of big campaign contributors, city contractors and lobbyists. The taxpayers are the big losers. As a Republican, it is very disillusioning to see the City continuing to be operated in the same fashion it operated during the eight years of the Peterson administration. Hats off to the IURC for doing the job the Ballard administration failed to do.

Three Lonely Republicans

Only three Republican members of the legislature voted against the state budget approved yesterday. They are Senators Mike Delph, Jean Leising and Vaneeta Becker. I didn't hear the debate so I don't know what reasons they offered for voting against it. All 48 House Republicans voted for it. It's worth noting that two Marion County legislators, who went out of their way to make sure I listed them on this blog during last year's election as taking a pledge to oppose a bailout of the CIB, voted for the budget with the CIB bailout. They are Rep. Phil Hinkle and Sen. Brent Waltz. I will let them explain to you why they broke their pledge to the voters of their respective districts. My state representative, John Day, voted against the budget bill. He had said earlier that he opposed the CIB bailout but might have to vote for it if it wound up in the state budget. It wound up in the state budget and he still voted against it. I'm not sure why he voted against it, but I suspect it was over something like school funding and not the CIB. Note that Mary Ann "No Fancy House" Sullivan voted for the budget bill. Her husband's construction firm, Shiel-Sexton, has made tens of millions off CIB projects. Of course she supported the CIB bailout.

UPDATE: The Evansville newspaper says Becker voted against it, like other Evansville area legislators, because it put a higher priority on bailing out the CIB than other more pressing matters like education: "Rep. Gail Riecken, D-Evansville, said she couldn't support the budget because "it just doesn't have the right priorities." Like Van Haaften, she cited the inclusion of the stadium bailout. "It was possible to get $24 million together for stadiums, but it wasn't possible to support the kids in the state," she said. One of the only Senate Republicans to oppose the spending plan, Vaneta Becker of Evansville said she voted no for the same reason."

Here's a report explaining Sen. Leising's vote against the state budget, which complained about priorities, including the CIB bailout and the tax treatment of the Shelbyville racino:

“I felt I could not support the budget for several reasons,” Leising said. “Unlike the budget of April 29th that I supported, this bill did not include language to continue the Indiana Soldiers’ and Sailors’ Children’s Home in Knightstown. Although it provided generous sources of revenue for the Indianapolis Capitol Improvement Board (CIB), the double taxation issue negatively impacting the Shelbyville Racino was not addressed.

“Several educational issues also created concern,” Leising continued, “but the most serious for me is the shortfall for schools in the second year of the biennial budget. While it leaves a substantial amount in reserves for a rainy day, each of my 11 school corporations will experience a decrease in funding during the second year of the two-year budget.”

Leising said once again urban areas of the state like Indianapolis and Lake County won in the budget fight at the expense of rural counties and school corporations.

According to Leising, the CIB – which operates Conseco Fieldhouse, Lucas Oil Stadium, Victory Field, the Convention Center and the Colts Practice Facility – currently makes no direct contribution of sales or income tax to the state general fund. Instead, under current law, up to $16 million per year generated by these facilities goes directly to the Marion County Professional Sports Development Area (PSDA) for operation of these facilities.

Under the new budget, the CIB will receive an additional $8 million per year from the expansion of the downtown PSDA. They will be permitted to borrow $9 million in loans from the state treasurer for each of the next three years. They anticipate a $4 million savings in debt service as the state is going to back up their existing loans. The Marion County City-County Council will be allowed, under the new law, to increase the hotel tax from 9 to 10 percent, generating $4 million. After 2013, the City-County Council would be permitted to increase the admissions tax and car rental tax in Marion County.

In contrast, the Shelbyville Racino – Indiana Live! – paid the state $250 million dollars for a license to locate in Shelby County. This money was used directly for statewide property tax relief last year. From July 1, 2008, through June 19, 2009, the racino contributed over $50 million dollars to the state general fund in gaming tax and $5.4 million directly to Shelby County.

“It is difficult for me to understand why the state refuses to fix their double taxation problem,” Leising said. “Indiana Live! is one of the largest employers in my district with approximately 1,000 workers.

State Budget Includes Referendum For New Hospital

Our friends over at the State House stuck referendum language into the state budget asking Marion County voters to approve the construction of a new hospital to replace Wishard Hospital. "This is an important issue that warrants the public's participation." Matthew Gutwein, chief executive officer of Marion County Health and Hospital Corp., which oversees Wishard, wrote in an e-mail Tuesday to the Star. "Any project that Wishard would propose would not involve any tax increase."

Now do you believe that? Does Gutwein think we are stupid enough to believe that this county can spend hundreds of millions of dollars on a new hospital and there won't be any tax increase somewhere along the line? Folks, this is another deal cooked up by the big law firms to generate some money for the professional services crowd. With school construction projects getting voted down all over the state, except for IPS, the bond deals are drying up. Don't believe a word they're telling you. I suppose this is just one of the few dozen surprises we're going to learn about over the next few weeks that got stuck in the state budget at the last minute. Lawmakers did not upload the proposed state budget online until right before the House began debating it and then voted on it a couple of hours later, allowing no time for public scrutiny of it.