IBM Ordered to Pay $78 Million to the State Ending Decade Long Lawsuit

Good afternoon friends! Well it appears that the decade long shit show IBM-FSSA lawsuit has come to an end. IBM has been ordered by the Indiana Supreme Court to pay $78 Million to the state over the bungled welfare privatization performed during Mitch Daniels “reign of error” as Governor. Olivia Covington over at The Indiana Lawyer gives the lowdown on this case:

In its second opinion issued in the years-long dispute between Indiana and IBM Corp. over the failed contract to create a new Hoosier welfare system, the Indiana Supreme Court has allowed IBM to collect post-judgment interest on its $49.5 million damages award. However, that interest will date back only to a 2017 judgment on remand, not the original judgment entered in the company’s favor in 2012, and only serves as an offset to the greater sum IBM owes the state.

Justice Steven David wrote for the court in the Wednesday opinion in International Business Machines Corporation v. State of Indiana, acting on behalf of the Indiana Family & Social Services Administration, 19S-PL-19. The justices, excluding Justice Mark Massa, heard their second round of arguments in the case in February.

At issue in the litigation is a contract between IBM and the state requiring IBM to develop a new welfare system that utilized a centralized call center to handle customer requests. The new system, colloquially known as “modernization,” was meant to be a shift away from the prior welfare system that emphasized face-to-face contact with customers.

But the state terminated the IBM contract in 2009 after modernization began experiencing problems. Instead, the state created its own welfare system, known as “hybrid,” that combined the call center with the former face-to-face model.

Both parties filed breach complaints, and the Marion Superior Court initially determined modernization’s failure was not a breach of IBM’s contract. Instead, the state was ordered in 2012 to pay IBM $49.5 million for the costs of equipment and assignment fees.

Barnes & Thornburg attorneys John Maley and Peter Rusthoven, counsel for the state in the IBM litigation, released a statement Wednesday afternoon saying they are pleased with the court’s ruling.

“Hoosiers will finally benefit from IBM’s multi-million-dollar payment of this judgment,” the statement said, referring to the $78 million owed to the state.

The article does mention the ruiling was 3-1 in favor of the state. Justice Mark Massa did not participate in the ruling since he worked as General Counsel for Governor Mitch Daniels who had ordered the IBM contract canceled. We have blogged previously on this issue once or twice before. Personally we feel that IBM was royally shafted by the state and should have not been forced to pay the state anything. On the other hand though IBM should have realized that doing business with the state was a bad idea. Especially since after IBM was given the heave ho, Affiliated Computer Systems (ACS) was put in to do the work. This was a big problem because then FSSA Secretary Mitch Roob had previously worked for ACS. Why this matter was never investigated by the US Attorneys Office in Indianapolis is a mystery to this day. Barnes and Thornburg’s role in representing the state is particularly troubling because as Paul Ogden pointed out back in 2012 that Barnes and Thornburg had lobbied the state to get ACS put in charge of the states welfare privatization project. Paul Ogden said at the time:

According to Judge Dreyer, the services provided by ACS were the major source of the complaints, Nonetheless, IBM ended up being discharged from the while ACS remained on as part of a "hybrid system."  Conveniently for ACS, a former executive theirs, Mitch Roob, headed FSSA, when IBM-ACS won the original privatization contract and yet another ACS executive, Mike Gargano, headed FSSA during the litigation over IBM's discharge.

The State, i.e. FSSA, ended up suing IBM to recover under the contract.  IBM countersued, claiming that the State breached the contact through its termination.  But who does the Daniels' administration insist the State hire to represent the State?  None other than Barnes & Thornburg the very law firm that represented ACS in lobbying to get the contract and still represents ACS to this day.  

Let me summarize what appears to have happened. ACS lobbies state officials to oust IBM so ACS can have the lucrative Medicaid privatization contract to itself.  ACS eventually succeeds.  The State sues IBM, perhaps to counter the inevitable breach of suit IBM was about to file.  After, IBM sues, the State hires Barnes & Thornburg, ACS's attorney to represent the state.

The State appears to be nothing more than a proxy for ACS. This case is essentially ACS v. IBM, yet we taxpayers are on the hook to pay Barnes & Thornburg, ACS' attorneys, $9.6 million.  That is uttterly outrageous.

Given that federal money here is involved, I too wonder why there has not been a federal investigation opened up by the FBI into this matter.  There certainly should be now that the facts here expose troubling, if not illegal, conduct by government officials and private lobbyists.

Between attorneys fees and the cost of the original contract with IBM. We estimate that the state has easily put us taxpayers on the hook for well over $500 Million. This whole mess could have been avoided if the Daniels administration had just listened to what some of his own people told him and given FSSA caseworkers new computers. Instead “Little Man” Mitch was determined to privatize food stamp delivery no matter what. Daniels and his bagman Governor “High Tax” Holcomb seem content knowing they slit the wrists of us taxpayers to feed the vampire looters and moochers who have helped through their demonic means to advance their political careers. 

Some of INDY REPUBLICANS allies in the cultural war against President Trump. Have tried to assuage our concerns about Holcomb by saying he is not on the side of Trumpian tribalism and authoritarianism. Don’t be fooled. Former Governor Mitch Daniels his boss whose legacy Holcomb carries out. Mitch Daniels created the tribalism, authoritarianism, and waste and theft of taxpayers money that would have been an embarrassment even in Tsarist Russia. We the men and women of truth, the guardians of freedom and justice for all will continue to fight until the Daniels-Holcomb Syndicate is a distant memory. 

Why Governor Eric Holcomb Deserves Re-election Next Year

INDY REPUBLICAN has decided to switch gears before we get back to our regularly scheduled programming. We wanted to talk seriously with you all and in the interest of intellectual honesty. After having undertaken an exhaustive review of all that we know about Governor Eric Holcomb and will outline every reason in existence that is an iron clad argument for his reelection as Governor next year. WARNING: The remainder of this post is long and voluminous in detailing why Holcomb should be re-elected. Please take your time and read at your own leisure. 

Here it goes:

Hope you are all feeling enlightened after having now just read why Eric Holcomb should have a second term. 

Betz & Blevins Mystery Curtis Hill Announcement

The IR gang was surfing around in cyberspace when we came across a tweet by Associated Press Reporter Brian Slodysko. Slodysko’s tweet mentions that tomorrow at 10 AM that the Indianapolis law firm Betz & Blevins will be holding a press conference about embattled Indiana Attorney General Curtis Hill.

Here is the tweet in question:

Law firm holding press conference tomorrow “regarding Indiana Attorney General Curtis Hill.” pic.twitter.com/BYJ6OrylWC

— Brian Slodysko (@BrianSlodysko) July 17, 2018

Interestingly Kevin Betz the Managing Partner of Betz & Blevins is not only a former Indiana University Law School classmate of Hill’s. According to Betz’s LinkdIn page he served on Hill’s transition team.

Kevin Betz, Managing Partner at Betz & Blevins 

We are naturally curious as to what exactly Betz & Blevins are going to announce in regards to Hill tomorrow. Given Betz & Hill’s past history together. It seems doubtful that Betz is antagonistic towards Hill. Given Hill’s digging in his heels regarding allegations of groping various women. Indy Republican highly doubts that Hill is going to announce that he is resigning tomorrow. Our best guess is that Betz might be holding the conference to defend Hill and fight back against calls for Hill to resign. Indy Republican has been hearing rumors for sometime now of an ongoing feud between Curtis Hill and Governor Eric Holcomb. According to the scuttlebutt going around the Statehouse some Republicans (possibly including Curtis Hill) want Hill to challenge Holcomb in the 2020 GOP Gubernatorial Primary. So far we have gotten contradictory reports at best about Hill running for Governor in 2020. Our contacts tell us that many political junkies (IR and the Gang included) did not expect Eric Holcomb to beat John Gregg in 2016. Originally so we are told is that Hill didn’t anticipate Holcomb winning. So Hill decided that he would serve his term as Attorney General and then run for Governor against John Gregg in 2020. When that did not happen rumors began circulating that Hill was being talked about as a challenger to Holcomb in 2020.  

We believe that Hill has always wanted to run for Governor. Despite rumors from some of the political rags down town we cannot say if there is a groundswell for Hill to challenge Holcomb or not. As to what Holcomb and Hill’s issues are with each other. IR’s view is that Hill and Holcomb are just two party hacks who are competing to see which one can be the biggest asshole. Could tomorrow’s announcement be a shot across Holcomb’s bow by Hill? Only time will tell. 

We would recommend that our readers listen to last Sunday’s broadcast of “The Rob Kendall Show” for Rob’s insightful thoughts on the whole Hill-Holcomb Clash:

Feds Give Green Light to Holcomb’s Workforce Group

Governor Eric Holcomb 

In March IR reported on Governor Eric Holcomb’s plan to organize a new workforce cabinet for the state of Indiana. In our post we mentioned how there were concerns that Indiana might lose out on $40 million plus in federal funding with the Governors new cabinet. Well the IBJ reported today that the federal government has granted the state a waiver to have our new workforce cabinet. The IBJ reports: 

A waiver granted last week will allow the state to continue receiving millions of dollars in federal funding for the job-training programs despite the changes Holcomb implemented.

Holcomb and Republican lawmakers overhauled the cabinet's membership this year. But the changes conflicted with federal guidelines, so Holcomb's office requested a waiver in March.

The 21-member Workforce Cabinet is a smaller group with more authority than the state's previous Workforce Innovation Council. Holcomb said it will better react to changes in the economy and meet the needs of employees and employers.

The waiver is approved for two years, starting July 1.

IR will keep an eye on this new cabinet that “High Tax” Holcomb has created and see what comes of it. 

Tribalist Mitch Daniels urges Graduates to Reject Tribalism

Three weeks ago David Bangert of the Lafayette Courier & Journal reported that former Indiana Governor now Purdue University President Mitch Daniels in a speech he gave to this years graduating class a call for people to resist political tribalism.

From Bangert's report:

The biggest challenge facing this graduating class, Daniels said, “will involve the repair and renewal of trust among ourselves as a people.” Daniels’ speech was set along themes similar to his commencement addresses from recent springs. (Purdue tradition holds that the president gives most commencement speeches, rather than calling on guest speakers.) He called the class of 2018 new aristocrats, privileged elites “of a knowledge economy” who might well be tempted “unintentionally to segregate from their less blessed, less well educated fellow citizens.” 

Daniels had some other things to share with this year's graduating class:

“As we trust each other less, trust in the institutions of our society has eroded in parallel.  Almost no sector – government, business, the media, even higher education – has escaped a steep drop in public confidence.  Some constant vigilance and skepticism about centers of authority is a healthy, all-American instinct.  But ultimately, to function effectively as a free and self-governing people, we must maintain some degree of faith that our institutions and those leading them have our best interests at heart, and are performing their duties with sincerity and integrity.  And today, we plainly lack such faith.

“There are plenty of culprits here, starting with too many who have misused positions of authority.  The so-called social media – I have come to think of it as ‘antisocial media’ – enables and encourages hostility from the insulated enclave of a smartphone or a laptop.  People say things to and about each other that they would never say face to face, or maybe even think, if they knew each other personally. 

“Our various modern media lead us to, and feed us from, information sources that reinforce our existing biases.  They put us in contact with other tribe members, but rarely those who see things differently.  We’re starting to resemble ominously our primitive forbearers, trusting no one outside the tribe.

Daniels has no business lecturing anybody about the dangers of tribalism. During his eight year "Reign of Error" as Governor he was the ultimate tribalist and political hack insider. His ego is so enormous that he had his face plastered throughout every state agency and government building. His bungling of FSSA, DCS, the BMV, and his creation of the IEDC the ultimate tool in which to give away taxpayer money to those who bow before this pathetic runt of a man. Daniels misuses his authority everywhere he goes. Who can forgot the still questionable conduct of the Department of Child Services years ago involving the tragic death of Tajanay Bailey? A sad story which we, Paul Ogden and Gary Welsh have all written about. Mitch Daniels may preach about unity, and individualism when it suits him. Don't be fooled! He is an evil nasty little troll who deserves nothing less then the excoriation not the following of Hoosiers.

An old friend of IR's who  has detailed knowledge of the inner workers of the Daniels Cartel had this reaction to Daniels speech:

Haha...he would know all about tyranny...his first step everywhere he goes is to consolidate agencies/divisions under lt. Governor under him, try to end more local Gov’t to help him consolidate power into fewer local offices so he can have B&T push their folks to control easier and then move all the Purdue of Purdue foundation money into a new entity so it was easier for him to control...would say the Mitch Mafia could be characterized as a tribe...or a personality cult

Unfortunately the high priest of the Cult of Mitch, Eric "High Tax" Holcomb is now our Governor. Hold onto your wallets and liberties before old Eric takes them all away. Our sources tell us there is more trouble brewing for DCS. Will let you know if we hear anything. Once again this is IR and the Gang wishing you all a good night!

Tim Swarens Hypocritical Attack on Todd Hoekita w/Update

Tim Swarens Opinion Editor of The Indianapolis Star

Earlier in today’s Indianapolis Star. Tim Swarens an editorial writer for the establishment paper of record penned an article “Todd Rokita wants to be your Jerk in the Senate”. We have written about Swarens being a bitch for the Hoosier political establishment before. As his column today shows he is still in the establishment’s pocket after all these years.

It is no secret that the IR team has no problem hurling criticism at Todd Hoekita as a reader of ours loves to call him. Truth compels us to point out that not everyone who goes after Theodora Todd Rokita is any better than him. Swarens article is proof positive of that.

Todd Rokita attempts Jedi Mind trick “You will vote for me!”

Swarens had this to say about old Todd: 

Todd Rokita, in his bid for a U.S. Senate seat, has worked carefully to craft an unusual, perhaps effective image of himself: I'm a jerk.

Why would any candidate want to encourage such a perception? Well, Rokita's other message to Republican primary voters is that Washington squashes nice guys faster than Donald Trump on a Twitter rampage. And it will take someone who doesn't care about good manners or good taste to be an effective fighter for Hoosiers in the D.C. swamp.

What other Indiana Republican today would criticize Mitch Daniels, even indirectly, for correcting a structural deficit in the state budget by reducing a property tax subsidy way back in 2005? Who else would release a campaign commercial that essentially says it was a mistake to build Lucas Oil Stadium and expand the Indiana Convention Center? Who besides Rokita would criticize the sitting Republican governor and state legislative leaders for increasing the gas tax to improve Indiana's neglected streets and highways?

What Swarens should be asking is why aren’t most Hoosier Republicans criticizing Mitch Daniels for using taxpayers money to pay for Lucas Oil Stadium? As for Holcomb’s raising gas taxes, and hiking user fees to maintain our roads. Why should this be necessary given that “Major Moves” which Mitch Daniels pushed for and signed into law in 2006 was supposed to provide for Indiana’s road needs for decades?

Todd Rokita deserves no credit for his criticism indirect or otherwise of Daniels and Holcomb. As some the following from the Indy Republican mailbag will make clear:

“TR (Todd Rokita) actually has never been their Daniels and Holcomb’s) bitch he criticizes them to "raise" himself to their level of perceived "stature" not bc he cares about the issues”

“Rokita is a little bitch, a thief, etc, but he has never been in the Daniels/Holcomb orbit...Daniels and Holcomb are evil strategists. Todd is like the insecure irrational Prince in Shrek 3 whose mommy has groomed his fragile ego”

Matt Stone from Indy Student Blog pointed out why Democrats should welcome Rokita being the GOP Senate Nominee:

Dear @GOP, please run @ToddRokitaIN. It'll be a win-win. We'll get a re-elected @SenDonnelly and you get six more years to bitch about him. https://t.co/rMxi1eni3S

— Matthew Stone (@IndyMattStone) February 1, 2018

@ToddRokitaIN couldn't help himself. These guys followed Mike Braun around the Statehouse after he filed Senate candidacy papers. Braun regularly pulled Democratic primary ballots until 2012. pic.twitter.com/iQq8w9VPrz

— Brian Slodysko (@BrianSlodysko) January 31, 2018

UPDATE: Todd Rokita was asked by CBS4’s Dan Spehler about his statement in early 2016 in which he called Donald Trump “vulgar, if not profane”. Here is Rokita’s laughable attempt to walk back his 2016 statements on Trump:

NEW: @ToddRokitaIN reacts to AP story on 2016 #INfocus interview in which he called then-candidate Trump "vulgar"

Rokita tells me @POTUS is "not politically correct" and that he's "come to love that about him"

I'll have more on the #INsen race tomorrow & Sunday #INfocus @FOX59 pic.twitter.com/iGYosYN0X6

— Dan Spehler (@DanSpehler) April 5, 2018

Holcomb to Call Special Session

Around noon today Governor Eric Holcomb stated that he will call the Indiana General Assembly into a special session sometime in May.

Holcomb listed the following five areas he would like lawmakers to focus on:

1. Increase funding for the Indiana Secured School Fund by $5 million in 2018 and 2019.
2. Allow school corps to obtain funding advances for school security equipment and capital purchases.
3. Provide Muncie Community School Corporation with one-time $12 million loan from Common School Fund.
4. Conform with federal tax reform changes.
5. Comply with IRS rules to protect federal taxpayer information and assure access to federal tax data.

According to our sources the session can last as little as one day but no longer than 40 days. Rob Kendall over at WIBC had this to say about the whole situation:

High Tax @GovHolcomb calls a special session at a cost of $30,000 PER DAY (plus mileage) because he and the lawmakers couldn't do their jobs! Pathetic! @indgop

— Rob Kendall (@RobMKendall) March 19, 2018

Spot on again Rob! No mention of DCS at all. Perhaps Governor Holcomb doesn’t feel that’s important. We will watch and see what happens. 

Is Governor Holcomb Going to call the General Assembly into Special Session?

Governor Eric Holcomb 

It appears our esteemed Governor is so hard up for company that according to INDYSTAR’s Tony Cook, Kaitlin Lange, and Arika Herron good old Eric may just decide to call the recently adjourned members of the General Assembly back into session  Of course that’s 150 legislators at a cost of around $30,000 a day at taxpayer expense just so the Governor can feel more secure about himself.

Cook, Lange and Herron writing for the Indianapolis Star have the following information: 

Gov. Eric Holcomb faces a big decision after the General Assembly unintentionally allowed several bills — including two of the governor's top priorities — to die on the chaotic final day of the 2018 legislative session. (Note to everyone at home: the legislators didn’t “accidentally” let Lil Eric’s priorities die. Like him they are uninspiring and lifeless. They just died due to their own ineptitude)

“After meeting with Speaker (Brian) Bosma and Senator (David) Long, I’ll look at all that can be done to complete unfinished business — whether that’s by administrative or legislative authority, if needed," he (Eric Holcomb) said.

State House Speaker Brian Bosma RINO

More details could emerge Monday, when Holcomb is scheduled to hold an 11 a.m. news conference at the governor's residence.

The biggest points of contention that Governor Holcomb appears to have are over two bills. One dealing with funding for school safety, the other bill dealing with driverless cars.

The Star reports that Holcomb was so anxious to get some of his pet bills passed that he tried to extend the deadline to one a.m. from midnight for the legislators to adjourn.

Cook and Co. report the legislators response to Holcomb’s temper tantrum: 

Ultimately, lawmakers decided to disregard the directive amid legal questions about the move, bringing the session to a close with five bills still pending on the House floor. Casualties included two tax-related measures and a takeover plan for school districts in Muncie and Gary, in addition to the school safety and driver-less vehicle bills.

As to the costs to we the people in terms of tax dollars the Star says:

Lawmakers would receive $173 per day, including weekends, while in session. That means a special session would cost taxpayers nearly $30,000 for each day of a special session — and that doesn't include mileage lawmakers would receive for driving to and from Indianapolis once a week.

Such spending could be unpopular among Republicans who control the General Assembly, especially in what could be a tough election year. More Democratic challengers have filed to run against Republicans this year, and special elections in other states have resulted in gains for Democrats, even in districts that went heavily for President Donald Trump in 2016.

The Star gives lawmakers reactions to a special session being called as being mixed to say the least:

"Much will depend upon what the governor feels he can do regarding certain key issues without legislative action, such as money for school safety programs," State Senate President Pro Teme David Long said. "There are also key economic development issues and tax relief measures that should be addressed."

He (David Long) said it's not clear what the precise cost would be, "but if it occurs, our focus will be to keep it as short and inexpensive as possible."

His counterpart in the House, Bosma, initially seemed less interested, suggesting Thursday that leftover issues from the session could be dealt with administratively.

"I don't see anything on this list that's going to require (a special session)," he said.

But his tune changed on Friday after consulting with Holcomb's office. (IR is surprised it took Bosma THAT long to cave to his master Holcomb)

"We have had discussions with the governor’s team and have made it clear we will cooperate in every way if we determine any remaining items require legislative action," he said. "If a special session does occur, it will be limited to very a small number of critical issues, which remained on the table at the close of the regular session."

Even if Holcomb does call a special session, the timing could be complicated by an ongoing review of the Department of Child Services.

Back in January we had reported on the resignation of DCS Director Mary Beth Bonaventura which led to the current review of DCS. The review of DCS could complicate matters so much that if a special session is called now another may have to be called to deal with DCS.

More from the Star:

Democrats called for action this session, but Republicans put them off, insisting on waiting for results of the review, which are due June 21. If urgent legislative action is needed, they said, they would consider a special session.

But those promises now put them and Holcomb in an uncomfortable position. Do they wait more than three months to take care of issues like school safety? Or do they schedule a special session soon and risk the need for another one later this summer?

Those are difficult questions, especially in an election year with primaries just around the corner in May.

One thing is certain: If the governor calls a special session this year for any reason except to address problems at DCS, Democrats will pounce.

All we at IR can say is Holcomb and the other so-called Republicans in our State Legislature have seriously shot themselves and all Hoosiers in both feet! With control of the Governors office and both state houses there should be no reason at all they should need to call a special session. But largely because the Indiana GOP was to busy raising our taxes, and trying to coverup the absolute disaster that is the Department of Child Services started by former “Godfather” Governor Mitch Daniels. The taxpayers will be on the hook for even more money. Speaking of DCS is anyone at the state going to look into DCS and the murder of Tajanay Bailey over a decade ago? Tajanay Bailey’s blood cries out from the ground for justice! We can just picture Gary Welsh pounding away furiously over this if he was here now. The torch which Gary Welsh lit for all of us is being picked up!  It will burn away all the impurities that fester in this state and in the rest of these United States! Our countrymen stand up! Stand Up! All men and women of good faith and force the Governor and the lawmakers to fear We the People! Remember there has never been nor ever will be a night so dark to prevent the coming day. We are convinced that the Hoosier State will never atone of it’s sins but through the work of intractable, stubborn individualists such as ourselves, Paul Ogden, Christine Scales, Charlie White, everyday hoosiers who choose to never submit to ruthless politicians, and the master himself Gary Welsh. Gary’s soul lies a moldering in the grave, but his soul goes marching on! 

Governor Holcomb’s Workforce Development Plan Could Cost Indiana $49 Million

Governor Eric Holcomb 

Tony Cook and Arika Herron over at IndyStar reported earlier today that the Indiana Manufacturers Association normally a Holcomb ally. Has yanked it’s support from Holcomb’s plan to reshape the state’s Workforce Development programs. 

Cook and Herron writing:

Holcomb's office publicly acknowledged for the first time Monday that the state will need a waiver from the U.S. Department of Labor to continue receiving $49 million in federal funding for Indiana workforce development programs.

"We do not have a federal waiver at this point," Holcomb's spokeswoman, Stephanie Wilson, said. "However, Gov. Holcomb and his team have been in communication with the federal Department of Labor and Secretary (Alexander) Acosta, and we believe our actions are in line with the secretary’s pledge to provide states flexibility to do what’s right."

The Indiana Manufacturers Association announced Monday it was withdrawing its support for Holcomb's proposal. Association President Brian Burton said he considers the potential loss of federal funding a critical flaw.

"This bill becomes law effective upon passage," he said. "So without a waiver, we could be in violation of federal law."

Cook and Herron make reference to the specific legislation that is the source of such tension between legislators and many business leaders throughout Indiana SB 50:

Senate Bill 50 replaces the state's Workforce Innovation Council with a new Governor's Workforce Cabinet that would have fewer members and more authority over the nine state agencies that administer about $1 billion in various workforce development programs.

But the new cabinet would not conform with federal rules for states' workforce investment boards, the governor's office confirmed Monday.

The Workforce Innovation and Opportunity Act requires a majority of the board to be business representatives who reflect the state’s major employment sectors. It also requires two members from each chamber of the state legislature.

Holcomb's proposal would not include any state lawmakers and just under half would be actual business representatives. The majority of the board will be filled with state agency and education officials, with one member from a community-based organization.

States that don't meet federal requirements are at risk of losing their funding. Indiana receives about $49 million a year through the federal program. That money goes to programs that support out-of-work adults and at-risk youth, including WorkOne, the state’s employment centers.

Click here to read all of Cook and Herron’s excellent piece.

IR and Company are all wondering why Holcomb would want to antagonize the Indiana Manufacturers Association during what is shaping up to be a really bad year for Republicans. The IMA if they get mad enough could and should do everything they can to make Holcomb’s life hell. Back in November we reported on Holcomb’s administration being sued for $1 Billion over trucking fees by powerhouse GOP lawyer Jim Bopp.

Tony Cook also reported on that in November. Between pissing off the state’s Manufacturing, Trucking Industries and everyday Hoosiers by signing into law last year over 45 tax and user fee hikes. Holcomb should be run out of town on a rail. That may or may not happen but let’s all do what we can to kick Holcomb’s ass out in 2020. Barring that we make his life hell. Let’s do this for Gary Welsh. 

Update: Hayleigh Colombo has also written a good piece about the IMA’s opposition to Holcomb’s Workforce Development plan click here to read her article. And please reach out and tell Tony Cook, Arika Herron and Hayleigh Colombo to keep up the good work.

Fox’s Steve Hilton Explains why State Government Corruption is such a threat

Yesterday Steve Hilton the host of Fox News’s “The Revolution” gave a monologue on why we need to drain the swamp at the state level. We found this video to be very well done and informative. IR used to love much of the Fox News Channels programming. But have grown fed up with its transformation into a propaganda arm for Donald Trump. We still like Shepherd Smith, Brit Hume, Brett Baier, Chris Wallace and Juan Williams. But they are now minority voices at FNC. Seeing Hilton’s monologue gives us hope. 

Here is Hilton’s piece:

Former DCS Director hired by Attorney General Curtis Hill

Chris Sims over at Indystar reported yesterday that Mary Beth Bonaventura who resigned as head of the Department of Child Services last month. Will be starting work as Special Counsel for Attorney General Curtis Hill.

Sims writing for the Indianapolis Star said:

Indiana Attorney General Curtis Hill announced Bonaventura will be joining his staff as special counsel in a new release on Wednesday.

Bonaventura was appointed lead DCS in 2013 by then-Gov. Mike Pence. On Dec. 12, Bonaventura wrote stinging letter of resignation to Gov. Eric Holcomb.

Bonaventura, who has worked in child welfare for 36 years, said could not watch Hoosier children "being systematically placed at risk, without the ability to help them."

"I feel I am unable to protect children because of the position taken by your staff to cut funding and services to children in the midst of the opioid crisis," she wrote. i"I choose to resign, rather than be complicit in decreasing the safety, permanency and well-being of children who have nowhere else to turn."

“I am honored and excited to have the opportunity to work with (Attorney General) Hill on continuing the fight against the opioid crisis and tackling the many challenges facing Hoosiers and their families,” Bonaventura said.

The hiring of Bonaventura by AG Hill has led to rumors in political circles that there could be a rift between Hill and Governor Eric Holcomb. Bonventura's very public and angry resignation as head of DCS did not please Holcomb and has caused him much misery. We will be going more in depth regarding Bonventura's resignation and the issues at DCS in future blog posts. We apologize for having taken so long to get to this story. But the staff has had a hectic few months. Marisa Kwiatkowski provided a link to Bonaventura's Resignation Letter here. IR recommends that our readers take a look at the letter. We appreciate your support and patience with us. If you have any information or suggestions for other posts please contact us by email at: 6vwts@notsharingmy.info, or the contact form on the blog webpage.

Alas Poor Jim Atterholt We Hardly Knew Ye

Jim Atterholt 

John Russell over at IBJ.COM reports that after less than a year back at the Indiana Utilities Regulatory Commission (IURC). That political hack and Paul Ogden’s old bete noire Jim Atterholt has decided to run like hell resign as Chairman of the IURC. 

Russell writes:

James Atterholt, chairman of the Indiana Utility Regulatory Commission, will leave Jan. 12, Governor Eric Holcomb’s office said Monday.

The powerful agency regulates $14 billion worth of electric, natural gas, telecommunications, steam, water and sewer utilities. It approves utility projects and determines how much utilities can charge customers.

In a statement, Atterholt said his wife, Brenda, was offered a job transfer to Fort Myers Beach, Florida. “We are looking forward to life at a slower pace.”

Holcomb’s announcement called Atterholt’s departure a “retirement,” but it seemed somewhat unexpected. Holcomb had appointed Atterholt in February, and in a statement at the time made the appointment sound long term.

“Jim Atterholt’s history of service and depth of knowledge on utility issues make him the best choice to lead the IURC, particularly over the next four years,” Holcomb said in February.

Gov. Mitch Daniels originally appointed Atterholt as chairman of the commission, and he served from 2010 to 2014. He had a break to serve as chief of staff to Gov. Mike Pence from 2014 through 2016.
 
Before serving at the IURC, Atterholt served as commissioner for the Indiana Department of Insurance. He previously served two terms as a member of the Indiana General Assembly, from 1998 to 2002.

With Atterholt’s retirement, the Indiana Utility Regulatory Commission Nominating Committee must convene to evaluate candidates and then submit the nominations of three individuals to the governor to fill the vacated position.

It is very observant of John Russell to point out the unusual nature of Atterholt’s departure considering how much fanfare Governor Eric Holcomb had made earlier this year to Atterholt’s appointment to the IURC. IR had blogged about Atterholt and the IURC earlier this year here and here.

Although we applaud Russell for mentioning Atterholt’s previous tenure at the Indiana Department of Insurance (IDOI), IURC and as Chief of Staff to former Governor Mike Pence. We must chastise Russell just as we did earlier this year for failing to mention Atterholt’s past scandals at the IDOI and IURC. Even though Russell reported on one of Atterholt’s IURC scandals years ago.

As we noted back in January:

Interestingly the article (John Russell’s January 2017 article on Atterholt) declines to mention Atterholt's sordid and unethical history at running both the Indiana Department of Insurance and also his time at IURC. Especially considering that John Russell reported on Atterholt's issue at the IURC back in a 2011 article he wrote for the Indianapolis Star! At the time both Gary Welsh and Paul Ogden both reported on Atterholt's unusually close relationship with Duke Energy. Which was the problem his predecessor David Lott Hardy had and was the reason why Hardy was forced out and Atterholt put in Hardy's place! Gary Welsh and Paul Ogden's pieces on Atterholt and the IURC can be found hereand here. As for his conduct as head of the Department of Insurance Atterholt was told repeatedly by then Title Insurance Division Head Paul Ogden about various legal problems being created by a department head at the IDOI who had been put into their position by former Governor Joe Kernan. Atterholt responded by firing Ogden from his position. Longtime readers of Advance Indiana and Ogden on Politics.com will be aware of the story. But for those of you who may not have heard of it we will post links to both Mr. Ogden's accounts of his situation as reported on his blog and also a link to the asinine decision made by the Court of Appeals granting summary judgement to the Department of Insurance. If you like twisted and nonsensical judicial decisions then you will enjoy reading the Court's dismissing of Ogden's lawsuit. 


We are all scratching our heads here as to why Mr. Russell made absolutely no mention of Atterholt's past problems at IURC since he reported on them five and a half years ago! Tell us John why did you fail to mention these facts in your IBJ article last week? It is relevant information and any competent third rate hack would have put it in there article! Why didn't you? If you ever care to explain yourself we are all ears! If any of you feel so inclined you can call John Russell at his office (317) 472-5383 or ask him on twitter if you feel so inclined at www.twitter.com/JohnRussell99.

We are glad that Atterholt is leaving the state. But we are upset that the press is once again letting a lowlife creep like Jim Atterholt off the hook for his sins. If Indianapolis had a halfway competent prosecutor Atterholt would possibly be facing criminal charges for his transgressions at the Department of Insurance and his shenanigans at the IURC. If anyone wants to call up John Russell at 317-472-5383 or contact him at www.twitter.com/JohnRussell99. 

As for Jim Atterholt. Jimmy if you are reading this Go to Hell!

$1 Billion Trucking Fees Lawsuit filed against Eric Holcomb's Administration

It seems that Governor Eric "Bagman" Holcomb just got dragged into the middle of a huge knock down drag-out fight with fellow Indiana Republican and attorney Jim Bopp. The great Tony Cook of the Indianapolis Star reports on the upcoming slugfest between Holcomb and Bopp:

A class-action lawsuit accuses the state of Indiana of illegally collecting more than $1 billion in fees from truckers across the nation — and could set up a high-stakes showdown between two top Indiana Republicans. 

The lawsuit filed Friday in Marion County Superior Court accuses the Indiana Department of Revenue of collecting annual Unified Carrier Registration fees from hundreds of thousands of truckers across the nation without authorization under Indiana law.

The attorney behind the lawsuit is Jim Bopp, a high-powered Republican attorney from Terre Haute best known for representing Citizens United in a U.S. Supreme Court case that overturned restrictions on political spending by corporations, nonprofits and labor unions.

His client is the Small Business in Transportation Coalition, a trucking industry trade group with a colorful and controversial leader who recently organized a parade of big rigs in Washington D.C. to promote expanded gun rights and who has been accused by the Federal Trade Commission of deceptive business practices.

On the other side of the lawsuit is the administration of Republican Gov. Eric Holcomb — specifically the Indiana Department of Revenue and its commissioner, Adam Krupp.

A spokeswomen for Holcomb did not immediately respond to messages seeking comment on the lawsuit. A spokeswoman for the Department of Revenue said she couldn't immediately comment on pending litigation.

"I’m a conservative who does not want to see government overreaching, taxing people and collecting money unless the people authorize it through the legislature," Bopp said. "What’s important to me is that government stays within its bounds. This has got to be one of the most expensive violations of law that I’ve seen."

Indeed, the stakes could be huge.

Indiana handles registrations and fees on behalf of 41 states under the so-called Unified Carrier Registration Plan, a federally authorized compact that allows interstate truckers to register and pay fees just once a year, rather than in multiple states. 

Bopp said the state collects $100 million a year in UCR fees from close to 400,000 truckers a year. The fees depend on the size of the fleet, the form of payment and location of the truck's home base, but begin at $76 per vehicle, according to the lawsuit. 

"Without such authority under Indiana law, INDOR’s nationwide collection of the UCR-related fees is unlawful and every trucker since 2008 is entitled to a refund of these illegally collected fees," Bopp said.

The lawsuit comes four months after the state settled the second of two class-action lawsuits over unauthorized Bureau of Motor Vehicle fees. Between settlements and voluntary refunds, the BMV admitted to overcharging Hoosier drivers more than $115 million over 15 years.

Well INDY REPUBLICAN doesn't know enough about this particular lawsuit to comment on the merits of Mr. Bopp's case. But Bopp's legal skills are good and he is not crazy. So for him to file such a lawsuit means that he thinks that it is a good case. So far as Governor Eric Holcomb has continued the tax-and-spend legacy of his master Mitch Daniels. It will be interesting to see just how this all goes down. Bopp is also a former Vice Chair of the Republican National Committee and has been a Republican National Committeeman from Indiana. Not exactly somebody that Holcomb wants to get into a fight with. Here's to old Eric getting his ass kicked!

Governor Eric "Bagman" Holcomb Once Again Jets Around The World

It seems in a shocking turn of events that the CIA's Paper of Record the Indianapolis Star put out another decent story. This time from another one of our favorite reporters. IR has frequently cited the work of Kaitlain Lange on this blog. If the Star hires just a few more reporters like Ms. Lange, Fatima Hussein, and Tony Cook. We all here may have to slighty revise our long standing negative view of "Pravda Indianapolis". INDY REPUBLICAN does not think that will happen anytime soon. But we all believe in the redemptive power of prayer. So we will not give up just yet.

Now let's get down to business. Kaitlain Lange's October 27th, 2017 piece "Gov. Eric Holcomb travels to India on third international trip as Governor", will be the subject of this post. Most people who have read Gary Welsh's "Advance Indiana" blog. Will most likely be aware that the old master loved to call out Governor's Mitch Daniels and Mike Pence for their frequent "trade mission" trips. It was Gary's contention as well as IR's that these trips, unless proven otherwise, are a waste of taxpayer money and are simply an excuse for politicians and lobbyists to conduct underhanded and possibly illegal activities away from the eyes of the public.

The reason that the IR gang has not written about "trade missions" before. Is that although we share Mr. Welsh's negative view of these trips. We feel that we the people are better off when these politicians and parasites leave town. Yes they do waste taxpayer money by having the trips abroad. But they can and do waste more money and inflict more pain when they are in Indiana. So we have done our best not to encourage Holcomb and others like him from actually staying in town.

But honesty and our commitment to carrying the torch Gary Welsh light for all of us. We felt compelled to write about this. Notwithstanding our own feelings on the subject.

Ms. Lange writes:

Gov. Eric Holcomb is traveling to India on Friday for his third international trade mission in his first nine months as governor

Holcomb and Secretary of Commerce Jim Schellinger will focus on expanding business opportunities for both countries as they meet with governor officials, business leaders and representatives of foreign chambers in Delhi, Bangalore, Mysore and Pune.

Holcomb previously traveled to Hungary and France in June and Japan in September for economic development.

"With recent, large job commitments from India-based companies, we are building even greater momentum to send more Hoosier-made goods to India and recruit more Indian businesses to grow here in Indiana," Holcomb said. "I'll remain focused on taking our state to the world and bringing the world back to our Hoosier communities."

Holcomb has made workforce development a priority since he became governor, creating a new position as the chief talent recruitment officer.

There are currently nine India-based companies in Indiana.

In March, Infosys became the latest Indian company to announce plans to add an Indiana site with the creation of a tech and innovation hub. The company will invest $8.7 million and employ up to 2,000 Hoosiers. Holcomb will meet with the executives of Infosys as well as Indian company Cummins while in India.

Since 2006, Indiana exports to India have increased 117 percent, totaling more than $266 million in 2016, while India imports to Indiana totaled $349 million.

India also has strong ties to the state's colleges: Purdue University, for example, had the largest enrollment of Indian undergraduate students in the U.S., with 881 students in the fall of 2016.

The international trade trips are funded by the Indiana Economic Development Foundation, which receives private donations.

INDY REPUBLICAN is skeptical to say the least that this trade mission is being funded by private donations. According to the government watchdog site ProPublica the Indiana Economic Development Foundation's address is listed as One North Capital Avenue in Indianapolis. The Indiana Economic Development Corporation created by former Governor Mitch Daniels is also located at One North Capital Avenue. The IEDC was created to replace the former Indiana Department of Commerce and has been frequently criticized for fabricating the number of jobs they have brought into Indiana among other things. To be fair the article only states that the IEDC Foundation receives private donations. It does not say it ONLY receives private donations. Nor does the article state that any private funding is being used for Governor Holcomb's little jaunt to India. Here is hoping that "Bagman" Holcomb does not do anything to asinine while in India. And remember no matter how disgusting it is that old Eric and the gang are traveling the world on trips of dubious value. We still want them to stay the hell out of this state.

For further information about the problems that have been plaguing the IEDC since it's creation back in 2005 click here and here to read Gary Welsh and Paul Ogden's articles on the matter.