Republican Field Grows for U.S. Senate; Reminder of Chamber Endorsement Process

It’s been a busy week for Republicans wanting to challenge Sen. Joe Donnelly for his seat. The number now stands at six.

On Wednesday, Congressman Todd Rokita (IN-04) officially announced his intentions while on the steps of the Indiana Statehouse – it marked the first stop in his nine-city tour sharing the news.

“Hoosiers want a commonsense senator willing to take on tough fights. Hoosiers want a conservative senator who shares our values and works with President Trump and Vice President Pence to turn the country around,” Rokita said. “Hoosiers want a senator who votes the interests of Hoosiers, not the Washington elite. We don’t have that in Joe Donnelly, and too much is at stake to accept it. That’s why I am announcing my candidacy for the United States Senate.”

Rokita’s campaign slogan promises to “Defeat the Elite” in Washington.

Meanwhile, Congressman Luke Messer (IN-06) will formally announces his bid Saturday at the 6th Annual Messer Family BBQ in Morristown.

Senator David Long, President Pro Tempore of the Indiana State Senate, has already thrown his support behind Messer:

“As a young and talented member of the Indiana House, Luke proved his conservative credentials early on by helping us create a new vision for Indiana in partnership with Gov. Mitch Daniels. As a strong and innovative leader for educational choice, Luke fought to ensure Hoosier families and children have the options they need to obtain a world-class education. As a quickly-rising star in Congress, Luke has proven he can work with difficult coalitions of interests to move an agenda for the American people.

“While the Republican Party is blessed to have a number of candidates interested in the seat, I believe Luke to be the absolute best person to effectively represent the interests of all Hoosiers in the U.S. Senate.”

State Representative Mike Braun of Jasper officially entered the race on Thursday. He previously cited the public sparring of Messer and Rokita as well as his business experience as reasons for his decision.

Meanwhile, Indiana Attorney General Curtis Hill made it clear on Wednesday that he hasn’t ruled out joining the GOP primary.

Other Republicans already in the field are Hamilton County businessman Terry Henderson, Kokomo attorney Mark Hurt and Floyds Knobs educator Andrew Takami.

In terms of any congressional endorsement the Indiana Chamber may provide, the matter is taken up by our federal political action committee (PAC). Bill authoring and voting history on pro-jobs, pro-economy legislation and in-person interviews of the candidates will play large roles in the decision making.

The PAC’s work won’t begin until after the candidate filing deadline early next year – as it’s possible a candidate may decide not to run, while there also could be someone else elect to throw their hat into the ring. But when the time comes, you can be assured that a thorough vetting process will take place before a determination is made to endorse a candidate (or no candidates).

Budget Deal Reached in Congress – But Process Broken

The House and Senate passed a budget deal to secure federal funding until the end of September 2017 last week. The House passed the funding measure by a vote of 309 to 118 on Wednesday, and the Senate followed suit 79-18. It is important to note that the Indiana delegation was divided – and not by political party – on the $1.1 trillion spending proposal.

Republican House members Jim Banks (IN-03), Trey Hollingsworth (IN-09) and Todd Rokita (IN-04) voted against the measure, while both House Democrat members André Carson (IN-07) and Pete Visclosky (IN-01) voted yes with the rest of the Hoosier delegation.

Congressman Hollingsworth released the following statement after casting his vote against the continuing resolution. “The spending bill that was brought before the House of Representatives today failed, yet again, to address the conservative principles that Hoosiers and Americans demanded to see this past November. For this reason, I voted against the $1.1 trillion spending measure that neglected critical priorities such as our nation’s nearly $20 trillion debt.”

Similarly, Congressman Banks added: “This legislation fails to properly address our $20 trillion national debt and reduce the size and scope of the federal government. As work immediately begins on next year’s spending bills, I am hopeful that Congress will follow the regular budget order and work with the Trump Administration to cut spending and change the Washington status quo.”

Despite passage of this funding measure, negotiations will begin again soon to pass a budget starting October 1 – with many of the same arguments on spending to be rehashed. But this has become all too familiar. Congress has regularly failed to meet the deadlines required by the Congressional Budget Act of 1974 under both Republican and Democrat control. In fact, the last annual federal budget approved by the U.S. Senate was on April 29, 2009. The federal government has operated by enacting these series of continuing resolutions – short-term measures that keep the government running and spending money at previously adopted rates.

The Indiana Chamber believes this is a gross dereliction of duty, as the federal government has spent trillions since the last adopted budget, further adding to the debt.

What the Indiana Chamber would like to see is Congress move from a yearly (or semi-yearly) mad dash to a biennial budget system. This would take much of the politics out of the budget process and would encourage efficiency in the management, stability and predictability of federal funding, especially for Indiana. A biennial budget would also enhance congressional oversight of government operations and encourage better policy planning. Biennial budgets should occur during non-election years to promote bipartisanship (or at least lessen partisan tensions) in the budgetary process. We can dream!

ESSA Passes Final Hurdles, Signed by Pres. Obama

36107229Last week, the Senate passed and President Obama signed into law the Every Student Succeeds Act (ESSA) – sweeping education legislation that replaces No Child Left Behind (NCLB). Most notably, this legislation sends significant power back to the states and local districts, while still maintaining some limited federal oversight over policies.

NCLB created a national system that judged schools based on math and reading scores, and had significant requirements to raise test scores every year or face significant penalties. ESSA, on the other hand, shifts power to the states and locals while providing flexibility. This legislation seeks to ensure that all children receive a high-quality education and close student achievement gaps.

Still, this legislation is not perfect by any means. We wish stronger accountability measures were included, but in the spirit of compromise and collaboration, it is a strong step forward in ensuring a balance between federal, state and local governments. It has an emphasis on challenging academic standards and accompanying assessments and accountability plans; it also institutes changes to funding for innovative programs – including Preschool Development Grants, a competitive one-year grant program to develop, update or implement a strategic plan that facilitates and improves coordination, quality and access for early childhood education, which will now be administered jointly by the U.S. Department of Health and U.S. Department of Education.

A special thank you to Congressmen Todd Rokita and Luke Messer for their tireless work on ESSA while sitting on the House Education and Workforce Committee.

Union Landscape Continues to Change

More than twice as many union members now work for the U.S. Postal Service than in the domestic auto industry. Given that and other facts of declining union membership, the Heritage Foundation notes that labor laws need to be updated. Indiana Congressman Todd Rokita's efforts are mentioned.

Unions Resist Recognizing Achievement

Such sharp drops in union membership indicate that U.S. labor laws are out of step with the modern economy. Traditional unions no longer appeal to workers the way they did two generations ago. Outdated restrictions in labor laws are now seen as holding back both employers and employees.

For example, union wage rates are legally both minimum and maximum wages: A unionized employer may not pay employees more than the union rate without the union’s permission. While unions happily accept group raises, they often resist individual performance pay. They typically insist that employers base promotions and raises on seniority instead of individual recognition.

In 2011, Giant Eagle gave individual raises to two dozen employees at its Edinboro, Pennsylvania, grocery store. These raises were in addition to the union wages. United Food and Commercial Workers Local 23 nonetheless argued that the pay increases violated their collective bargaining agreement. They objected to the fact that some entry-level employees made more than senior union members. The union filed charges. Last November, the Federal District Court for Western Pennsylvania ordered Giant Eagle to rescind the pay increases. Nationwide, union members are less than half as likely to receive performance pay as non-union employees.[8]

This holds back union members. A one-size-fits-all approach was workable when all employees brought essentially the same skills to the bargaining table. But the nature of work is changing. Employers have automated many rote repetitive tasks. At the same time, employers are also flattening the job hierarchy. The line between management and workers is blurring. Employers increasingly expect workers to exercise independent judgment and take initiative on the job. Employers want to reward—and employees want to be rewarded for—individual contributions that no collective contract can reflect.

UPDATED: Our Congressmen Agree on Something! (Paperwork is Terrible)

Any time eight members of a nine-person Congressional delegation can agree on something these days, it must be a good thing. That is the case with the Small Business Paperwork Mandate Elimination Act of 2011.

H.R. 4 is expected to be considered on the House floor today and the subject of a vote on Thursday. The 273 co-sponsors include all six Indiana Republicans (Larry Buschon, Dan Burton, Mike Pence, Todd Rokita, Marlin Stutzman and Todd Young) as well as Democrats Andre Carson and Joe Donnelly. Only Pete Visclosky is missing from the co-sponsor list, which, of course, doesn’t disqualify him from supporting the bill.

For those who don’t recall the provision or prefer to block it out in order to try and get a good night’s sleep, a section of the Patient Protection and Affordable Care Act mandates that small business owners file a 1099-MISC with the IRS for all payments of $600 or more to a vendor in a tax year. In other words, just about everything. In a regulatory world gone awry, this might be the biggest nightmare of all if allowed to proceed.

The repeal earlier passed the Senate 81-17. Let’s hope common sense prevails in the House this week. The Small Business & Entrepreneurship Council has additional background and facts.

UPDATED: Thankfully, the U.S. House has voted to repeal this ridiculous measure. Surprisingly, despite being listed as a co-sponsor, Indiana Rep. Andre Carson voted against the measure. All eight other Hoosiers representatives sided with the majority in a 314-112 vote. The Senate has passed a slightly different version, so a compromise will need to be reached. Journal of Accountancy has the story.

Hoosier Legislators Remark on State of Union

As is standard practice, Indiana’s congressmen and senators released their thoughts on last night’s State of the Union speech. Here are a few samples, courtesy of Inside INdiana Business:

Sen. Richard Lugar
“More jobs, now, in private industry are essential to strengthen our country. The President spoke of his strong interest in job creation, but his State of the Union address needs immediate follow-up with very specific proposals and personal negotiation to bring bi-partisan legislation and encouragement for all businesses that are prepared to hire more people. This is job number one for President Obama and the U.S. Congress.”

Rep. Andre Carson
“I hope my colleagues on the Republican side recognize that leadership is more than just slashing spending. It’s also recognizing the importance of making investments in areas that are crucial to keeping the United States at the forefront. The President has committed to cutting the deficit as well as improving resources for infrastructure, education and research. This approach is bold, necessary and one that I support.”

Rep. Todd Rokita:
The President’s proposals to freeze discretionary spending does not go far enough. Rokita told WIBC the federal government should follow Indiana’s lead. He says the state reverted to 2008 spending levels and then cut another 15 percent across the board.

Rep. Pete Visclosky
“President Obama made clear tonight, and I agree, that our nation’s economic security is a critical component of ensuring our broader national security. As we rebuild our nation’s economy, we must defend our existing industries, invest in our public infrastructure, and address the problem of our massive federal debt. Meeting these worthy goals can help ensure access to solid employment, expanded economic opportunities, and a good quality of life for residents of Northwest Indiana.”

Scam Alert: Rokita’s Letter to Businesses About New Scam

Dear Indiana business:

I am writing to alert you of a continuing scam being perpetrated on Indiana businesses. Several businesses have reported receiving a deceptive letter that would appear to come from an official government source. The letter solicits an annual fee of $125 or $150 and claims it will be used for record keeping and processing of a company’s annual minutes. It gives the appearance of coming from a legitimate government agency and cites fictitious state law.  

Specifically, copies of the letter that have been forwarded to my office appear to come from the "Indiana Corporate Compliance Business Division." They include a return by date to give the false impression that action is necessary on your part.  

This letter is NOT an official correspondence from my Business Services Division or any other Indiana state agency. Investigators from my office are working with federal law enforcement to determine who is responsible for these letters and ensure they are stopped. If you received one of these solicitations, ignore it!  If you have already responded to such a letters and believe you are a victim of this scam, please call the Business Services Division at (317) 232-6576. 

Please also remember you can securely comply with your legitimate business entity reporting requirements to the state securely online through the INBiz portal found on my Web page at www.sos.in.gov/business. As always, my office will provide you with a courtesy reminder when your report is due to be filed. Legitimate notices from my office include the state seal of Indiana and my name.

Best regards,

Todd Rokita, Indiana Secretary of State

2008 Indiana Election Fun Facts

Some stats about the 2008 election in Indiana (courtesy of the Secretary of State):

2008 Registered Voters: 4,513,593

New Voter Registrations since 2006: 525,314

New & Updated Voter Registration Applicants in 2008: 818,194 (New: 345,632; Updated: 472,562)

Absentee Ballots submitted: 668,868