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TERRE HAUTE MAYOR ELECTION NULLIFIED: A news conference has been called for 4 p.m. today in the mayor’s office in city hall, following an Indiana Court of Appeals ruling this morning in favor of former Terre Haute 
Mayor Kevin Burke who had challenged Republican Duke Bennett’s eligibility in the 2007 election (Terre Haute Tribune-Star). The court by a 2-to-1 decision stated that Bennett was ineligible to take office and that Burke is not entitled to fill that post as a result of the ruling, because voters were unaware of Bennett’s ineligibility. Thus, the votes cannot be counted and the court ruled the office vacant. Burke lost the 2007 election by 107 votes but claimed Bennett was not eligible citing the federal Hatch Act. Bennett had been employed at Hamilton Center Inc., a mental health facility that receives some federal funding. Burke’s wife, Vicky, told the Tribune-Star that her husband was enroute to Indianapolis to meet with his attorney. She said Burke will be available to comment later today after he has learned more about the ruling. Todd Nation, city council president, said he just learned of the ruling about 11 a.m. today and needed to study it before commenting. A 59-page court document released today seems to indicate a special election may be necessary.
SOUDER, PENCE DIVIDED ON AUTO BAILOUT: The auto industry, from the General Motors Corp. truck plant to the manufacturer that supplies bolts, is such a key part of the northeast Indiana economy that Rep. Mark Souder, R-3rd, said he’s sympathetic to a government rescue plan (Fort Wayne Journal Gazette). Other Hoosier lawmakers say they are not necessarily opposed to helping the sputtering U.S. automakers, but they are skeptical. Souder estimated that 75 percent of all manufacturing in northeast Indiana is tied to the auto-, truck- and RV-making sector. His support depends on what the proposal is, Souder said of legislation the House might be presented next week in a lame-duck session. “But based on my district, I’m a ‘lean yes,’ ” he said Wednesday. Rep. Mike Pence, R-6th, said he’s not an absolute “no” on a proposal to help the industry, “but I don’t believe we can bail our way out of a failing economy.” He said he would listen to the argument for a loan to GM, Ford and Chrysler, but he is “very hesitant” to use any of the $700 billion financial-sector rescue money to help the auto industry.
DANIELS SEES GOOD MONEY AFTER BAD: In Washington to accept an award, Gov. Mitch Daniels said that with an auto-industry rescue plan, Congress is “in very serious danger of sending good money after bad.” He noted that although the auto industry is a significant portion of Indiana’s manufacturing base, more Hoosiers work in the Honda and Toyota assembly plants than in the plants of U.S. automakers. Daniels said it would be “terribly sad” if GM went bankrupt, “but throwing taxpayer money at it won’t make it work.” (Fort Wayne Journal Gazette)
OBAMA MAY APPOINT AUTO CZAR: President-elect Barack Obama has raised the idea of appointing a so-called “auto czar” to oversee emergency federal aid to automakers, exact tough corporate reforms and ensure taxpayers earn a return on any investment in the auto industry (Detroit News). The Obama transition team hasn’t identified who the car czar would be, but the president-elect has three auto advisers. They are economic adviser Jason Furman, Georgetown University law professor Dan Tarullo and Joshua Steiner, a former Clinton Treasury official, but none of them have emerged as the point person on autos yet. Michigan Gov. Jennifer Granholm and former Michigan Congressman David Bonior also are advising Obama on the troubled auto industry.
NO OVERSIGHT OF BAILOUT: In the six weeks since lawmakers approved the Treasury’s massive bailout of financial firms, the government has poured money into the country’s largest banks, recruited smaller banks into the program and repeatedly widened its scope to cover yet other types of businesses, from insurers to consumer lenders (Washington Post). Along the way, the Bush administration has committed $290 billion of the $700 billion rescue package. Yet for all this activity, no formal action has been taken to fill the independent oversight posts established by Congress when it approved the bailout to prevent corruption and government waste. Nor has the first monitoring report required by lawmakers been completed, though the initial deadline has passed. “It’s a mess,” said Eric M. Thorson, the Treasury Department’s inspector general, who has been working to oversee the bailout program until the newly created position of special inspector general is filled. “I don’t think anyone understands right now how we’re going to do proper oversight of this thing.”
PALIN HOSTS FIRST PRESSER: Alaska Gov. Sarah Palin on Thursday argued that she and her fellow Republican governors were ready to put aside “extreme partisanship” and act if Washington fails to provide the leadership America needs (CNN). Speaking at her first formal news conference before the national media since the GOP presidential ticket lost last week, the former vice presidential nominee argued that her fellow Republican governors “don’t let obsessive, extreme partisanship … get in the way of doing what’s right.” “I think that this group is going to be looked to and looked at for leadership that perhaps had been lacking in Congress and in Washington, D.C.,” she said. “This group is going to be uniquely qualified to provide leadership in this nation.” Palin addressed reporters at the annual Republican Governors Association convention in Miami, Florida. Palin was joined on stage by a long line of Republican governors. Palin also criticized the media for wanting to “dissect the past” and “playing the pundit’s role” for the 2012 presidential campaign. “As far as we’re concerned, the past is the past,” said Palin. “We’re focused on the future. [The future] is next year, and our next budgets, and the next reforms in our states.” Asked why she chose to hold her first formal news conference now, Palin replied, “The campaign is over.”
INDIANA INSOLVENT ON JOB FUND: Indiana is one of five states whose Unemployment Insurance Trust Fund is insolvent, according to a recent report on the preparedness of the nation heading into what could be a severe recession (Fort Wayne Journal Gazette). The fund is financed through taxes paid by businesses and provides unemployment payments to Hoosiers who are out of work through no fault of their own. The National Employment Law Project examined the trust fund balances for all 50 states as of Sept. 30 compared with their average monthly benefit payments over the past 12 months. Any state with only enough cash to pay benefits for three months or less was deemed insolvent. According to the report, Indiana had $91 million in the bank, with average monthly benefits of $66 million. Other states in Indiana’s category include Michigan, which has a $340 million deficit, Ohio, New York and South Carolina. “It is particularly troubling that so many states are facing insolvency so early in this economic downturn,” the report said.
KLAIN TO JOIN BIDEN: Indianapolis native Ron Klain has been tapped as chief of staff to Vice President-elect Joe Biden, the Capitol Hill newspaper Roll Call reported today. A spokeswoman for Biden did not immediately respond to a request for comment. Klain, a Washington lawyer who served as Vice President Al Gore’s chief of staff, was a top aide to Biden when Biden headed the Senate Judiciary Committee. The North Central High School graduate helped both Biden and President-elect Barack Obama prepare for the campaign debates. Klain was Gore’s chief legal adviser in the 2000 fight over the presidential vote in Florida and was the central figure in the HBO movie “Recount” where he was played by Kevin Spacey.
SMARTGOV TAKES AIM AT TRUSTEES: Voters decided last week to eliminate the three remaining township assessors in Hamilton County. Now opponents of township government are taking aim at other elected offices. Township boards, trustees and related employees could be next on the chopping block (Indianapolis Star). Mary Dieter, spokeswoman for government-streamlining proponent MySmartGov.org, said the group plans to take its cue from Gov. Mitch Daniels. Last year the governor appointed the state Commission on Local Government Reform to recommend changes that would reduce the size of local government and decrease the tax burden on residents. The commission made 27 recommendations, including eliminating all township government. Now that his re-election campaign is over, Daniels is expected to push that agenda a little harder during the upcoming legislative session. “We hope our elected officials in the legislature do what they were elected to do — make tough decisions,” Dieter said.
LAYOFFS IN LAKE COUNTY: The Lake County Highway Department has reduced its labor force by 8 percent in response to declining tax revenue and escalating operational costs (Times of Northwest Indiana). Lake County Highway Department Superintendent Marcus Malczewski said Wednesday he laid off five laborers and eliminated two vacant job positions last month that will translate to a decline in services on county roadways. “It’s the first layoffs we’ve had in my 46 years with the department,” Malczewski said.
COLUMBUS LAYOFFS: The city of Columbus would cut 6.4 percent of its permanent jobs under a 2009 budget that passed its first reading Wednesday (Columbus Republic). Twenty-nine jobs, made up of 11 full-time positions and 18 part-time positions, would be eliminated out of the city’s 450 permanent jobs, according to city budget consultant Oakel Hardy.
CARTER SETTLES RACKETEERING CASE: An engineering firm has agreed to pay $3,750 to settle out of the state’s civil racketeering lawsuit against former East Chicago Mayor Robert Pastrick (Times of Northwest Indiana). Michigan-based Great Lakes Engineering LLC reached the settlement with Indiana Attorney General Steve Carter, who launched the 2004 federal lawsuit aimed at holding former city officials and contractors financially responsible for a 1999 East Chicago sidewalks-for-votes scheme. Great Lakes agreed to testify against Pastrick, if necessary, when the federal case goes to trial in January.
MUNCIE INVENTORY AUDIT REVEALS SURPRISES: An inventory of city-owned properties has resulted in several surprises for Mayor Sharon McShurley (Muncie Star Press). Among the things McShurley learned is that the Muncie Sanitary District is occupying city-owned property — and paying no rent — and that the International Association of Firefighters Local 1348 is using offices in a city building on Granville Avenue as “a union hall,” but has no lease to do so. McShurley initiated the inventory this year to better understand the city’s assets in light of declining property tax revenue. “If you look at it in the corporate world, you always know your assets,” McShurley said Wednesday during an editorial board meeting with The Star Press.
ST. JOE BUDGET OK’d: The St. Joseph County Council approved a 2009 budget Wednesday night, but not before amending it to accommodate changes resulting from last week’s general election (South Bend Tribune). Voters approved a referendum question to abolish the office of Portage Township assessor. As a result, the county assessor is preparing to absorb the workload — and possibly most of the employees — into his office. Merging the township into his office will result in a budget increase from $444,316 to $657,542 in the county assessor’s account. The township’s budget will drop to zero.
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