CIB Sees Surplus But Will Still Borrow $27 Million From State

Earlier today, the IBJ's Scott Olson posted a story online bringing news of a potential surplus for the CIB in its 2010 budget. Olson wrote:

Approaching the end of 2009, Indianapolis' cash-strapped Capital Improvement Board is on much more solid financial footing than it was at this time last year.

The not-for-profit is on target in 2010 to turn a $47 million budget deficit into a surplus—additional money that could be used in negotiations with the Indiana Pacers over Conseco Fieldhouse operating costs.

The CIB, which will discuss its financial situation when it meets Monday afternoon, expects to improve its finances by making $26 million in cuts this year. It also avoided $25.5 million in debt-service reserve payments and is poised to collect roughly $11 million more in annual revenue.

Yet, it’s still unclear whether the CIB, which operates the city’s professional sports venues as well as the Indianapolis Convention Center, will absorb $15 million next year in fieldhouse operating costs.

Within a few hours of his earlier online story, Olson posted a second story declaring that the CIB will likely take out a $27 million loan from the state it was authorized under a tax, spend and borrow bailout scheme approved by the legislature and the City-County Council earlier this year. Olson writes:

The Indianapolis Capital Improvement board likely will accept a state loan providing $27 million over three years to help shore up its fragile financial situation.

Members of the not-for-profit that operates the city’s professional sports venues and the Indianapolis Convention Center will vote next month on whether to accept the assistance, or risk losing the initial $9 million installment this year.

“We ought to go ahead and borrow it,” CIB Treasurer Ann Lathrop told the board Monday afternoon.

Lathrop last month hinted that the organization’s bleak financial situation had improved to the point that it may not need the initial $9 million, which would save the CIB from paying 5.25 percent in interest charges.

The not-for-profit is on target in 2010 to turn a $47 million budget deficit into a surplus—additional money that could be used in negotiations with the Indiana Pacers over Conseco Fieldhouse operating costs.

Obviously, someone forgot to tell Lathrop earlier today that the state loan is needed to give the billionaire Simons their $15 million a year subsidy that they are demanding simply because they can. It's also further confirmation of just how much the CIB leadership has lied to the public about its finances. Remember, this discussion began with the CIB claiming last year it would need to find another $20 million a year to pay for the additional operating costs for Lucas Oil Stadium, which it failed to budget before agreeing to the massive public works project. By early this year, that number grew considerably. At times the CIB said it needed anywhere between $30 to $50 million more to cover a budget shortfall. The CIB then went on a well-publicized campaign to demonstrate that it was undertaking budget cuts. As I pointed out at the time, most of the cuts were fake budget cuts. The CIB got a 20% increase in its budget last year, more than it actually needed and then tallied a number of reductions as cuts when it later rolled the numbers back to where they should have been originally.

The Indiana legislature and City-County Council were hoodwinked into hiking taxes and paying out additional subsidies to the CIB to the tune of tens of millions annually, along with a $27 million state loan. During that debate, CIB officials lied and said they would have to make a $25.5 million debt service reserve payment in September. As it turns out, the CIB did not have to make that payment and is actually sitting on a cash reserve of $22 million. The Mayor and the City-County Council have now created a task force made up of persons who naturally want to give the billionaire Simons another $15 million a year of your taxpayer dollars because the more than $400 million our local government has shelled out to the Simon family in public subsidies over the years just won't cut it. Besides, everyone on the task force accepts free tickets to the Pacers games. How cheaply are politicians can be bought these days.

Understand this, the CIB is under NO LEGAL OBLIGATION to give a $15 million a year subsidy to the Simons. The Simons, quite the greedy negotiators they are, got exactly the deal they wanted when Conseco Fieldhouse was built a decade ago. The Simons became infuriated when Jimmy "The Pill Popper" Irsay managed to get a better deal from the CIB for Lucas Oil Stadium. They immediately put out word that they expected a similar deal from the CIB. They even went out and hired a Jim "Rent-A-Civic Leader" Morris to cut the deal. Remember, he's the guy who helped convince your city leaders to pay more than double what the water company was worth and then he walked off with a $6 million golden parachute agreement. Of course, you were left holding the bag to pay for that fiasco with a nearly 100% increase in your water rates. If the CIB says no to the Simons and they choose to break the lease, the Simons are obligated to pay us at least $50 million and perhaps more than $100 million under the terms of the lease. When Pat Early tells you otherwise, he is not talking straight to you. And when the Star begins writing more editorials like it did today saying the Pacers are just too important to lose, remember that the newspaper is only interested in its own financial interest in having an NBA franchise in town to cover and could give a damn less about the financial impact on your wallets.

Dr. Hasan Leaves Behind His Calling Card

Four days after the first Muslim terrorist act on American soil since 9/11, President Barack Hussein Obama and the news media continue to pretend it didn't happen as the evidence of a terrorist attack continues to pile up. Dr. Hasan passed out copies of the Quran and his business card to friends and neighbors right before he executed 13 American soldiers and shot up another 30 of them at Ft. Hood. Being a committed jihadi, his business card used the initials SoA, meaning "Soldiers of Allah", followed by the initials SWT, meaning "Glory To Him, The Exalted" (hat tip to Atlas Shrugs). President Obama and the U.S. Army are still too concerned about the feelings of Muslims to focus attention on the safety and well-being of our troops. President Obama had to be shamed into lowering the flag to half mast at the White House before he headed off for a weekend of golf at Camp David, while his predecessor, President George W. Bush, took time to visit the wounded at Ft. Hood without reporters. Unbelievably, Army Chief of Staff George Casey, Jr. yesterday expressed concern for the well-being of Muslim soldiers. Colleagues knew of the danger Hasan posed but were afraid to speak out for fear of political correctness retribution by their Army superiors. And then there's the outrageous news that U.S. officials knew of Hasan's efforts to contact al Qaeda months ago. This is just so upsetting. We've lost our ability to defend ourselves. Can you imagine if German-American soldiers had refused to fight during World War II? They chose to put their country first. Why should our expectations be any different for a soldier who happens to be Muslim?

Super Lawyer Is Super Busted

A high-flying South Florida attorney is facing the scrutiny of federal agents and his own law partners. Fort Lauderdale's Scott Rothstein owned a $5 million yacht and $36.5 million in real estate. He drove nice luxury car brands, including Mercedes Benz, Rolls Royce, Ferrari, Porsche and Lamborghini. He donated millions of dollars to GOP political candidates both nationally and at the state level. Florida Gov. Charlie Crist appointed Rothstein to a judicial selection committee in Broward County. A button in his office summed up his attitude towards the practice of law: "A good lawyer knows the law. A great lawyer knows the judge." As the Sun-Sentinel describes him:

Seldom has a South Florida figure flown so high, so visibly, so fast – and plummeted so dramatically.

Attorney Scott Rothstein's meteoric rise into the stratosphere of local politics, sports and philanthropy is suspected to have been propelled by millions of dollars handed to him by investors blinded by the glitter of a too-good-to-be-true deal.

Geysers of cash flowed from the flamboyant lawyer, who purchased a veneer of legitimacy through millions of donations to local charities. A hospital is building a lobby dedicated to his family; a Chabad synagogue already bears his name. Millions more went to expensive acquisitions suitable for a Middle East potentate.

The smooth-talking lawyer sat at the center of an empire that included fancy restaurants, million-dollar homes, flashy cars (two $1.6 million Bugattis among them), sports sponsorships, businesses and a nonprofit foundation.

He collected watches – and politicians, and sports celebs. He hosted fundraising parties for presidential candidate John McCain and Gov. Charlie Crist. His image, along with football great Dan Marino's, adorned charity billboards along Interstate 95.

Now Rothstein has achieved a new notoriety: a cadre of federal agents is poring through his accounts, contemplating charges, while investors seethe over their losses.

Investors now fear that Rothstein has been running a giant Ponzi scheme ala Bernie Madoff. According to a complaint filed against Rothstein, a review of his law firm's records showed various funds controlled by Rothstein could not be accounted for. Some investors are alleging that Rothstein may have been fabricating nonexistent structured legal settlements for sale to investors. Rothstein had several honorary designations as an attorney, including Florida's Top Lawyers and Best Lawyers in America.

Rothstein should be a reminder to the public that just because an attorney may have been designated a "Super Lawyer" or a "Best Lawyer", it may mean little about the persons ethics or true professional capability. Some attorneys in Indiana boast of being designated a Super Lawyer. Many attorneys, including me, laugh at some of the individuals who make the list when it gets distributed with the Indiana Lawyer. We refuse to participate in the charade of a survey process that is used to arrive at the designation of an individual attorney. Clearly, the designation has more to do with being employed by the right big law firm or being a member of a connected medium or small-sized firm. State attorney disciplinary commissions should bar the use of these self-serving designations in attorney advertising. New Jersey barred their use and then reversed itself. Anyone who has studied how the results are obtained knows that it is nothing more than an advertising scam for the legal publications that sponsor the Super Lawyer designation in each respective state, devoid of true objectivity in the selection process. It is misleading to the public to make it appear someone is better as an attorney than others because they've played the game to get the Super Lawyer or Best Lawyer designation.

House Approves Obama's Government Takeover Of Health Care

The largest expansion of the federal government in modern times moved one step closer to reality as the House of Representatives voted last night 220-215 to approve a version of President Barack Hussein Obama's national health insurance plan that includes a public option. All five Democratic members of Indiana's congressional delegation, including Andre Carson, Joe Donnelly, Brad Ellsworth, Baron Hill and Pete Visclosky, voted in favor of the legislation, while all Republicans from Indiana voted against it. Only one Republican nationally voted for the plan, Rep. Joseph Cao, a first term Republican who represents a New Orleans district. The federal government has no way of paying for the $1.2 trillion cost of the legislation other than to borrow more money from foreigners. When will the spigot run dry?

Hasan Attended Same Mosque As 9/11 Terrorists

The American news media may be a little slow to piece the facts together that make it pretty clear religion played a role in Major Nidal Hasan's decision to execute 13 of his fellow Army soldiers and shoot another 30 on Thursday at Fort Hood, Texas, but the foreign press is confirming my belief that this was a home-grown act of Muslim terrorism. Here are the pertinent facts from The Telegraph about Hisan that shed light on Thursday's massacre:

• Hasan attended the same mosque as two of the 9/11 terrorists, the controversial Dar al-Hijrah mosque in Great Falls, Virginia.
• Hasan attended the controversial mosque at the same time two of the 9/11 hijackers attended services there.
• Hasan had great admiration for the mosque's iman at the time, Anwar al-Awlaki, who has been accused of supporting attacks on British soliders and backing terrorist organizations.
• Awlaki ran a mosque in Los Angeles before moving to the Great Falls mosque in January, 2001 where another one of the 9/11 terrorists attended services. Two of the 9/11 hijackers started attending services there 3 months after Awlaki arrived.
• Awlaki has since returned to Yemen where he is a supporter of al Qaeda and targets U.S. Muslims online with lectures encouraging terrorist attacks.
• Hasan became angry about the wars in Iraq and Afghanistan and wanted out of the military.
• Medical colleagues says Hasan viewed the war on terrorism as a war on Islam, held anti-Jewish views and supported suicide bombers.
• One of his medical students had warned military officials that Hasan was a ticking time bomb.
• One of Hasan's closest Muslim friends says he believes Hasan carried out the attack because of his religious views.
• Hasan was already under investigation at the time of the attack for posting on the Internet praise for suicide bombers and proselytising to his patients.
• Hasan told Col. Terry Lee that Muslims should rise up against their aggressors.
• Hasan, who was single, had difficulty finding a wife who would wear the Hijab and pray daily.

Let's not forget that Hasan, unlike many other terrorists, was born and raised in America. Oddly, he listed his nationality as Palestinian despite being a native born citizen and a Major in the U.S. Army. He admired the same spiritual adviser who had preached to as many as three of the 9/11 hijackers. He went out and purchased two handguns illegally and armed them with cop killer bullets. Despite being a medical doctor, he took weapons training classes not required of him. He said his goodbyes to friends and neighbors, giving them copies of the Koran. Hasan was "a typical fundamentalist Muslim." So many time I talked with him,” said Akhter, a community leader who is sort of like a mosque gadfly, challenging congregants to reject literal, rigid interpretations of Islam. “I was trying to modernize him. I tried my best. He used to hate America as a whole. He was more anti-American than American.” Despite all the conversations, Akther said, “I couldn’t get through to him. He was a typical fundamentalist Muslim.” Given what we now know, can anyone dispute the fact that Hasan is a home-grown Muslim terrorist?

Hoosier Soldier Among Thirteen Executed By Hasan

If you want to read about how Muslims are the victims of Thursday's horrific massacre by Maj. Nidal Hasan and a bunch of psycho babble about Hasan having to deal with too much post traumatic stress disorder among the troops as an Army psychiatrist, you'll get plenty of that in Robert King's story in the story today; however, Vic Ryckaert has a more poignant perspective on the impact of the trategy to the family of a Plymouth, Indiana man who was among the 13 dead and one of the real victims. Ryckaert writes about the death of Sgt. Justin DeCrow:

Staff Sgt. Justin DeCrow was an Indiana farmboy who joined the U.S. Army 12 years ago out of love for country and hope for a better life.

DeCrow, 32, Plymouth, lost his life Thursday when a gunman opened fire at Fort Hood, Texas, killing 13 and injuring 30 before he was shot.

On Friday, DeCrow's family was coming to terms with his death, reportedly at the hands of Maj. Nidal Malik Hasan, an Army psychiatrist due to be deployed to Afghanistan.

"He was on a base," DeCrow's wife, Marikay DeCrow, said in a telephone interview from the couple's home in Evans, Ga., where she had hoped to be reunited after her husband finished his work at Fort Hood. "They should be safe there. They should be safe."

Daniel DeCrow, Rochester, feared for his son's safety as he watched news of the mass shooting at Fort Hood's Soldier Family Readiness Center flash across the TV screen.
"When that building came on TV, the hair on my neck stood up because I knew he was in there or he was nearby," Daniel DeCrow told The Indianapolis Star in a telephone interview . . .

He was working at Fort Hood until paperwork for his medical discharge came through and was looking forward to being reunited with his family, she said.

His wife has a business in Georgia teaching children to ride horses. He had lined up a job as an Army contractor at nearby Fort Gordon.

Marikay DeCrow, who had known her husband since the start of elementary school, said she wanted everyone to know what a loving man he was. The couple have a 13-year-old daughter, Kylah.

"He was well-loved by everyone," she said through sobs. "He was a loving father and husband, and he will be missed by all."

DeCrow's mother is right. Her son should have been safe there. Our military failed her son. Another Hoosier soldier, Lafayette's Cpl. Nathan Hewitt, was lucky to survive the carnage at Ft. Hood. Here's a little on his story:

When Army Cpl. Nathan Hewitt hit the ground after hearing gunshots in a Fort Hood medical center Thursday, the soldier from Lafayette thought he was reacting to a training exercise.

It was only after he saw blood on the floor that he realized the rounds coming from the shooter's handgun weren't beanbags.

"All I heard was him yelling and the gunshots fire," said Hewitt, who is based at Fort Hood. "I saw him after I was trying to move out of the way and get behind something. The only thing I could see was that he was walking around and just shooting."

Moments before, Hewitt had received the vaccinations he needed to deploy to Afghanistan, along with about 300 other unarmed soldiers waiting for routine procedures at the medical center.

The everyday scene was shattered when the suspected shooter, identified as 39-year-old Army psychiatrist Maj. Nidal Malik Hasan, opened fire.

Authorities said 13 people died and 30 were wounded in the a ttack, including Hewitt, a 2000 Jefferson High School graduate.

Hewitt said that after he sought initial cover, he ran toward the medical center's front door, away from the shooter.

He tried to communicate with those around him and lead them to safety -- but Hewitt said he's unsure how many followed. There were about 30 people in the medical center's general waiting area when the shots rang out, he said.

Will Daniels' Medicaid Cuts Include HHC's Nursing Homes?

Gov. Mitch Daniels announced a new round of cuts in state government spending today in the wake of another month of bad revenue numbers for the state. General fund revenues to date this year are $309 million, or 7.4% less, than state budget planners' forecast. Gov. Daniels announced cuts today to reduce state spending by $300-$400 million. Those cuts include:

• State agencies will reduce spending by at least 10 percent from the as-passed budget. The governor had already ordered a 5 percent spending reduction in July.
  The lieutenant governor, auditor, treasurer, secretary of state, and superintendent of public instruction have committed to 10 percent spending reductions in their own office budgets.
• Reimbursements to some Medicaid providers will be reduced.
• State employees will not receive a pay increase in 2010, the same action as 2009. The last time there were back-to-back years with no pay raises was in 2002 and 2003.
  Governor Daniels will not accept his full pay in 2010, the same action he took for 2009 when his salary was due to increase from $95,000 to $107,882.
• State agencies will offer voluntary unpaid leave for the remainder of the current fiscal year.
• State agency capital projects will be deferred. This includes new buildings or structures, infrastructure and system upgrades, and site improvements.
• Some dedicated funds will be transferred to the general fund. Amounts will vary and will not disrupt the long-term viability of the program supported by the dedicated funds.

Gov. Daniels doesn't specify which Medicaid providers' reimbursement rates will be reduced, but I would recommend he start by forcing the Health & Hospital Corporation's nursing homes to take a reduction and receive the same reimbursement rate as other nursing homes are receiving. I can assure you that won't happen. The HHC's nursing home scam is costing the federal government dearly and Daniels' targeted cuts won't focus on saving money for the federal government.

UPDATE: Sure enough, Daniels cuts will only extent to private Medicaid contractors according to the Star's Bill Ruthhart. Because HHC pretends it owns nursing homes a private company actually owns and operates, I suppose that means they're in the clear.