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109-623: PART was spearheaded by OMB Director Mitch Daniels . OMB staff designed PART and set the final evaluation assigned to a program. By the end of the Bush administration, PART had been applied to over 1,000 federal programs, representing 98% of the federal budget . PART was introduced in the 2004 Fiscal Year Federal budget. The Bush administration claimed that PART built upon previous efforts of American presidents to make sure federal programs were accountable and achieved results. PART grew out of an early Bush administration blueprint for administration called

218-574: A 73% increase in ridership from South Bend, attributing this to the fact that the previous location of the station was in an area, "isolated and very difficult and perceived to be unsafe" Plans to move the South Shore Line station to the airport, creating an air, bus, and rail intermodal terminal, had dated back to the 1970s. Kernan and others would work to see a new intermodal transit center built in Downtown South Bend, which would feature

327-444: A Republican—if he had any" but Daniels had "nothing to do" with selling drugs. Another roommate said that police obtained a warrant to search the room based on the activity of the first roommate arrested. "Unbeknownst to [Daniels and the other current roommates] ... [he] was coming back there and using the room when we're not there and was involved with drugs much worse than pot...We considered ourselves innocent victims." Daniels refutes

436-503: A September 15, 2007, Wall Street Journal column, Daniels was quoted as saying about the Healthy Indiana Plan and cigarette tax increase saying, "A consumption tax on a product you'd just as soon have less of doesn't violate the rules I learned under Ronald Reagan ." Joe Kernan (politician) Joseph Eugene Kernan III (April 8, 1946 – July 29, 2020) was an American businessman and Democratic politician who served as

545-607: A better working relationship between the South Bend city government and the nearby University of Notre Dame. In December 1988, a fire that destroyed the Morningside Club Residence , an apartment hotel , displaced more than a hundred residents. Kernan was able to persuade the then-unopened Center for the Homeless to rush its opening in order to accommodate some of these displaced residents. In 1988, taking advantage of

654-479: A chief political advisor and as a liaison to President Ronald Reagan in 1985. He then moved back to Indiana to become president of the Hudson Institute , a conservative think tank. He later joined Eli Lilly and Company where he served as president of North American Pharmaceutical Operations from 1993 to 1997 and as senior vice president of corporate strategy and policy from 1997 to 2001. In January 2001, Daniels

763-505: A common nuisance" for allowing the room to be used for the sale and use of drugs. In a plea agreement, the prosecutor dropped the charges in exchange for Daniels agreeing to pay a fine of $ 350 for using marijuana. Thirty-four years after the arrest, the first roommate detained (the individual arrested months before Daniels), told the Indianapolis Star that he was a partisan Democrat who "would gladly offer unflattering information about

872-431: A complicated economy, was needed to end constant confusion and bring Indiana into a year-long alignment with the rest of the country. Prior to the change, the counties in the western side of the state did not observe daylight saving time, although the counties in southeastern Indiana near Cincinnati , Ohio, did observe it unofficially due to being in that city's metropolitan area. Interests for both time zones had prevented

981-470: A decline in interest rates, Kernan refinanced Coveleski Stadium through the newly created South Bend Redevelopment Authority. Kernan instituted a mayor's night out/mayor's night in to provide an opportunity for his constituents to better meet with him and share their concerns with him. He held his first such event in January 1988. This practice was also continued under his successor, Steve Luecke. Kernan

1090-459: A deficit to defeat the Republican ticket of Stephen Goldsmith and George Witwer. Upon being elected Lieutenant Governor, Kernan was involved in the process of helping guide the selection of a successor for mayor. Kernan involved St. Joseph Democratic Party Chairman Butch Morgan and South Bend City Council President Roland Kelly in the interviewing of prospective successors. By law, his successor

1199-669: A good job". Kernan negotiated contracts for city employees, including contracts for the police and fire department workforces. He also negotiated contracts with Teamsters . Kernan left the office on February 17, 1984, in order to enter the private sector for employment, announcing on his last day in office that he would be working as a vice president for the McWilliams Corporation. He was succeeded in office by Michael Vance. Following his tenure as South Bend Controller, Kernan held his jobs as vice president and treasurer of MacWilliams Corp until he ran for mayor in 1987. Kernan

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1308-816: A good reputation, and the ability to raise lots of money. All the Democrats still considering a candidacy lack at least one of these qualifications." In 1992, Democratic presidential nominee Bill Clinton proposed a $ 200 billion ($ 20 billion annually) plan for infrastructure. Mayor Kernan declared to the media that under Clinton's plan, in which a city of South Bend's size would have received at least $ 5 million annually, South Bend would have been able to complete critical road construction and complete reclamation on hundreds of acres of former industrial property. In 1993, Kernan campaigned in support of President Clinton's deficit reduction and economic stimulus proposal . After meeting with Clinton when accompanying Governor Evan Bayh to

1417-502: A job at the Indianapolis headquarters of the pharmaceutical company Pitman-Moore. The 10-year-old Daniels was accustomed to the mountains, and he at first disliked the flatland of central Indiana. He was still in grade school at the time of the move and first attended Delaware Trail Elementary, Westlane Junior High School, and North Central High School . In high school he was student body president . After graduation in 1967, Daniels

1526-499: A judgment, programs were assigned a "results not demonstrated" judgment, which was generally believed to be a negative assessment on a par with an ineffective grade. To complete the tool, OMB budget examiners conducted extensive consultation with agency staff, though the final judgment rested with the OMB. Bush used the rating tool to partially justify cuts or elimination of 150 programs in his 2006 FY budget. One study found that PART scores had

1635-469: A libel suit for $ 20 million. A judge dismissed the case. Eli Lilly experienced dramatic growth during Daniels's tenure at the company. Prozac sales made up 30–40% of Lilly's income during the mid-to-late 1990s, and Lilly doubled its assets to $ 12.8 billion and doubled its revenue to $ 10 billion during the same period. When Daniels later became governor of Indiana, he drew heavily on his former Lilly colleagues to serve as advisers and agency managers. During

1744-726: A modest correlation with budget changes proposed by Bush. Reaction from the United States Congress was mixed. However, Congress paid little attention to the PART scores. Scholars at the Heritage Foundation support the program and its potential to reduce the size of government. The program won the 2005 Government Innovators Network Award, noting that the program's reception has led to similar program evaluation systems in Scotland , Thailand, and South Korea . Efforts to institutionalize

1853-569: A native of the Southern Indiana city of Corydon . O'Bannon had previously signaled that he was exploring choosing a running mate from Northern Indiana in order to provide that geographic benefit. Kernan and O'Bannon had a strong preexisting acquaintanceship. O'Bannon had developed a working relationship on issues of economic development since O'Bannon oversaw the Indiana Department of Commerce as lieutenant governor. Kernan had developed

1962-503: A new station for Amtrak and a new transit center for South Bend Transpo . Efforts planning this station date back to 1992. It ultimately opened in 1998, after Kernan's mayoralty had ended, as the South Street Station , but only as a bus center without an Amtrak component. During Kernan's tenure many changes were made to South Bend's parks. Several new facilities opened, including Blackthorn Golf Course in 1994. In 1993, for

2071-419: A number of companies had left the city or closed, such as South Bend Toy in 1985 and Wheelbrater-Frye. Kernan took credit for stopping companies like Allied Products' South Bend Stamping from leaving the city. He also took credit for attracting other jobs to the city, arguing that as mayor he had been able to create or retain 4,000 manufacturing jobs. Another example that illustrates Kernan's work in this area

2180-413: A number of infrastructure projects took place under Kernan's mayoralty. Among the infrastructure projects that took place during Kernan's tenure as mayor was the shifting of South Bend's South Shore Line station from a facility shared with Amtrak to a new location at the city's airport , which opened in 1992. In 1993, Kernan testified before congress that this move had been partially responsible for

2289-417: A one time payment of $ 3.85 billion and the commitment to make $ 4.4 billion worth of upgrades to the road. Most Democrats opposed the measure by starting an advertising campaign accusing Daniels of selling the road to foreign nations. Other critics characterized the deal for fundamentally changing the relationship between infrastructure and taxpayers" saying "the road intended to serve the people of Indiana now

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2398-484: A part of a several months long drug investigation that began on Saturday, March 7, 1970, when one of Daniels's roommates was arrested for possessing "large quantities" of marijuana and other drugs. Two months later police raided the same residence hall, finding enough marijuana to fill two size 12 shoeboxes and arresting five additional individuals, including Daniels. Daniels and a roommate were charged with possession of marijuana, LSD and other drugs, along with "maintaining

2507-430: A particularly strong camaraderie with O'Bannon six years earlier in 1990, when Kernan and other Indiana mayors accompanied O'Bannon on a trade mission to Poland , Soviet Union , Ukraine , and Yugoslavia . O'Bannon's selection of Kernan was announced June 3, 1996 with a press release followed by press conference in South Bend and Indianapolis. in its press release, the gubernatorial campaign promoted Kernan as having had

2616-416: A record of success in attracting businesses to the city of South Bend. While campaigning for lieutenant governor in 1996, Kernan continued to fulfill his duties as mayor. In part to facilitate this, Kernan operated his end of the campaign out of a separate campaign office from O'Bannon, located in South Bend. Despite starting the general election as underdogs, O'Bannon and Kernan's ticket to defeat overcame

2725-410: A running mate included Tom DiGuillio , Mike Gery, Baron Hill , John Walda, and Jill Long Thompson . Pamela Carter had ruled herself out of consideration. There has been some reporting that O'Bannon may have first offered the running mate position to Long Thompson and that she had rejected. Kernan, the mayor of a Northern Indiana city, brought geographic balance to the ticket headed by O'Bannon,

2834-560: A savings of $ 190 million, resulting in a budget of $ 23 billion. Annual spending growth for future budgets was cut to 2.8% from the 5.9% that had been standard for many years. Increase in revenues, coupled with the spending reductions, led to a $ 300 million budget surplus. Indiana is not permitted to take loans, as borrowing was prohibited in its constitution following the 1837 state bankruptcy . The state, therefore, had financed its deficit spending by reallocating $ 760 million in revenue that belonged to local government and school districts over

2943-524: A search committee, composed mostly of Purdue faculty and administrators recommended Daniels to become the university's 12th president after his term as governor ended on January 14, 2013. Ultimately, the hiring decision was made by the Trustees of the Board of Purdue University , all of whom Daniels appointed or re-appointed while Governor. He retired as Purdue president on January 1, 2023. Mitchell Elias Daniels Jr.

3052-445: A second term, defeating Jill Long Thompson . During his tenure, Daniels cut the state government workforce by 18%, cut and capped state property taxes, balanced the state budget through austerity measures and increasing spending by less than the inflation rate . In his second term, Daniels saw protest by labor unions and Democrats in the state legislature over Indiana's school voucher program, privatization of public highways, and

3161-404: A state take-over of a project initially started by the city of Indianapolis and led to a bitter feud between Daniels and the city leadership over who should have ownership of the project. The state ultimately won and took ownership of the facilities from the city. In 2006, Daniels continued his effort to reduce state operating costs by signing into law a bill privatizing the enrollment service for

3270-744: A stock sale leading to speculations of insider trading; and, because of his role at Eli Lilly, the high cost of prescription drugs. The 2004 election was the costliest in Indiana history, up until that time, with the candidates spending a combined US$ 23 million. Daniels won the election, garnering about 53% of the vote compared to Kernan's 45%. Kernan was the first incumbent governor to lose an election in Indiana since 1892. On his first day in office, Daniels created Indiana's first Office of Management and Budget to look for inefficiencies and cost savings throughout state government. The same day, he decertified all government employee unions by executive order , removing

3379-402: A subsidy from the state. The plan promotes health screenings, early prevention services, and smoking cessation . It also provides tax credits for small businesses that create qualified wellness and Section 125 plans. The plan was paid for by an increase in the state's tax on cigarettes and the reallocation of federal Medicaid funds through a special waiver granted by the federal government. In

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3488-509: A tenure C&P Telephone , where she worked her way up to a communications representative. As a communications representative she handled The Pentagon 's account, and held security clearance . Kernan's father was the unsuccessful Democratic nominee in 1963 for the 4th district seat on the South Bend Common Council, and in 1964 ran unsuccessfully for St. Joseph County commissioner. Kernan's family moved to South Bend when he

3597-439: A two-seat fighter plane he was serving as a weapons officer on was shot down by enemy forces while on a reconnaissance mission over North Vietnam and Kernan was detained as a prisoner of war on May 7, 1972. He was held as a prisoner of war for 11 months. For part of his time as a prisoner of war, Kernan was imprisoned Hỏa Lò Prison , however he spent most of his sentence at a nearby prison dubbed "The Zoo". Kernan

3706-434: A whole, it has great benefit for the country. On balance it is extreme fair. To promote the legislation to Indiana's federal representatives and their constituents, Kernan pointed to an analysis that had found that Indiana would be one of only five states that would benefit fiscally from the proposal, as Indiana, at the time, had typically received less in federal funding than it contributed in federal taxes. Kernan also touted

3815-510: A win. In his many public stops, he frequently used the phrase "every garden needs weeding every sixteen years or so"; it had been 16 years since Indiana had had a Republican governor. His opponent in the general election was the incumbent , Joe Kernan , who had succeeded to the office upon the death of Frank O'Bannon . Campaign ads by Kernan and the Democratic Party attempted to tie Daniels to number of issues—his jail time for marijuana use;

3924-604: Is applied everywhere else in life," he said. Despite such efforts, during Daniels's 29-month tenure in the position, the projected federal budget surplus of $ 236 billion ballooned to a $ 400 billion deficit , due to the recession of 2001, tax cuts, the War in Afghanistan (2001–present) , and Iraq War . Nobel economics Laureate Paul Krugman noted Daniels is "held up as an icon of fiscal responsibility" without having earned it. Commenting on Daniels leadership he wrote "what I can't forget

4033-528: Is his key role in the squandering of the fiscal surplus Bush inherited. It wasn't just that he supported the Bush tax cuts; the excuses he made for that irresponsibility were stunningly fraudulent. So I just can't take his current pose of deficit hawkishness seriously." Following the September 11, 2001 attacks , Congress passed legislation authorizing the creation of the Department of Homeland Security . Just before

4142-437: Is serving the profit needs of a multinational corporation". Daniels defended the lease, claiming that the road was not earning the state money because of the historical lack of political will to raise tolls. He told a congressional committee, "…instead of making money for the state, the road had operated at a loss for 5 of the previous 7 years…Political timidity had kept tolls locked at the same price since 1985…Even if we raised

4251-459: Is the most recent governor of Indiana from the Democratic Party. Joe Eugene Kernan III was born in Chicago, Illinois on April 8, 1946. He was the eldest of nine children. Kernan's father, Joseph E. Kernan Jr. (1923–2008), was a naval aviator during World War II and would go on to have a career in government service. His mother, Marian Powers Kernan (1922–1998), held a variety of jobs, including

4360-420: Is the only game in town. While there may be some folks who disagree with some party of it, it's the only economic package in the country that has a change of passage." He argued that failure to pass the proposal without a viable alternative would worsen federal legislative gridlock and hurt the chances of Clinton achieving his target of implementing a significant economic change. As mayor, Kernan worked to create

4469-561: The 48th governor of Indiana from 2003 to 2005. He previously served as the 47th lieutenant governor of Indiana from 1997 to 2003 under Frank O'Bannon and succeeded the governorship after O'Bannon's death. Kernan had also served nearly a year as a prisoner of war during the Vietnam War . After graduating from the University of Notre Dame , Kernan joined the Navy in 1969. A naval aviator , he

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4578-558: The College Football Hall of Fame . Kernan had been instrumental in getting South Bend selected over 89 other cities as the site for the College Football Hall of Fame. Kernan originally pledged that city funds would not go towards the project, and that it would be funded by corporate donations. However, after the city was only able to raise under $ 2 million in corporate donations, the city issued municipal bonds to pay for

4687-579: The Democratic Governors Association quarterly meeting in March 1993, Kernan declared that he had been persuaded by Clinton that it was necessary to pass both deficit reduction and economic stimulus in a singular piece of legislation rather than separating them into separate bills. Kernan declared, It must be viewed as an entire package. If you begin peeling away pieces, the whole thing will fall apart. Combined it has something for everyone. As

4796-560: The Hudson Institute , a conservative think tank . In 1988, Dan Quayle was elected Vice President of the United States , and Indiana governor Robert D. Orr offered to appoint Daniels to Quayle's vacant Senate seat. Daniels declined the offer, saying it would force him to spend too much time away from his family. While serving as the executive director of the Senate Republican campaign committee, Daniels expressed concern about

4905-555: The United States Navy in 1969, and served as a Naval Flight Officer aboard the carrier USS  Kitty Hawk . After he completed Naval Flight Officer training, reconnaissance training, & RA-5C Vigilante Replacement Air Group training, he served with RVAH-7 at Naval Air Station Albany , Georgia, until deploying to Southeast Asia aboard the aircraft carrier USS Kitty Hawk , where he served (flying 26 missions over Laos and North Vietnam ) from February 1972 until

5014-489: The United States Senate in the 1990 special election for the seat that had been vacated by Dan Quayle upon becoming vice president. While Kernan was considered a strong prospective candidate among the possible Democratic contenders, commentator James Grass observed prior to Kernan making his decision not to run that, "to run a successful campaign," a Democratic nominee would likely need, "statewide name recognition,

5123-565: The requirement that state employees pay union dues by rescinding a mandate created by Governor Evan Bayh in a 1989 executive order . Dues-paying union membership subsequently dropped 90% among all state employees. In his first State of the State address on January 18, 2005, Daniels put forward his agenda to improve the state's fiscal situation. Indiana has a biennial budget, and had a projected two-year deficit of $ 800 million. Daniels called for strict controls on all spending increases and reducing

5232-560: The 49th governor of Indiana from 2005 to 2013. A Republican , he later served as president of Purdue University from 2013 until the end of 2022. Daniels began his career as an assistant to senator Richard Lugar , working as his chief of staff in the Senate from 1977 to 1982. He was appointed executive director of the National Republican Senatorial Committee when Lugar was chairman from 1983 to 1984. He worked as

5341-552: The Commissioner of Agriculture. In 1998, Kernan headed the Insurance Industry Working Group, a group aiming to boost the economic fortunes of the state's insurance industry. The group succeeded in getting a reduction to the insurance premium tax rate, securing the passage of a new demutualization law, and getting Ivy Tech to create a new associate degree focusing on the insurance industry. In 1998, Kernan

5450-551: The Hoosier Heartland Highway, I-69, and the Ohio River bridges. It also rehabilitated 1,400 bridges and 50% of the state's roads without using tax dollars or taking on new debt. As anticipated, drivers experienced dramatic hikes in tolls after the lease, which increased the cost to travel on the public road from $ 4.65 to $ 8.80 for passenger vehicles, and semitrailer trucks from $ 18 to $ 35.20. Despite doubling toll prices,

5559-502: The PART into a permanent process failed in Congress, and PART was viewed with suspicion by Democratic lawmakers in particular. Actual PART assessment at George W. Bush online presidential archives: https://georgewbush-whitehouse.archives.gov/omb/expectmore/part.html Mitch Daniels Mitchell Elias Daniels Jr. (born April 7, 1949) is an American academic administrator , businessman, author, and retired politician who served as

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5668-557: The President's Management Agenda, which set a goal of integrating performance data with the federal budgeting process. PART was a survey instrument, developed by OMB staff with outside advice. The instrument asked 25-30 questions divided into four categories: Based on the responses, programs were given a numerical score that aligned with a categorical scale of performance ranging from effective, moderately effective, adequate or ineffective. In cases where evaluators felt they could not make

5777-777: The Reagan administration's response to the Supreme Court's ruling in Garcia v. San Antonio Metropolitan Transit Authority , regarding the Fair Labor Standards Act, and advocated limiting the power of the federal government in defining overtime rules for state and local governments, summing up his position by asking "What business is it of the Federal Government to tell localities how to structure their personnel practices?". In 1987, Daniels returned to Indiana as president and CEO of

5886-453: The administration was budgeting for both. The failure to provide long term cost estimates led opponents to claim that Daniels and the administration had suggested the entire war would cost less than $ 60 billion. The CBO has estimated the total cost of the war in Iraq to U.S. taxpayers will be around $ 1.9 trillion if it was carried on until 2017. Three months later, on March 25, 2003, five days after

5995-531: The annual growth rate of the budget. He also proposed a one-year 1% tax increase on all individuals and entities earning over $ 100,000. The taxing proposal was controversial and the Republican Speaker of the House, Brian Bosma , criticized Daniels and refused to allow the proposal to be debated. The General Assembly approved $ 250 million in spending cuts and Daniels renegotiated 30 different state contracts for

6104-410: The attempt to pass ' right to work ' legislation, leading to the 2011 Indiana legislative walkouts . During the legislature's last session under Daniels, he signed a ' right-to-work law ', with Indiana becoming the 23rd state in the nation to pass such legislation. It was widely speculated that Daniels would be a candidate in the 2012 presidential election , but he chose not to run. Shortly after,

6213-593: The bill's passing and some have raised concerns over potential conflicts of interest. Congress repealed the thimerosal provision following expressions of public displeasure. Conservative columnist Ross Douthat stated in a column about Daniels's time at OMB that Daniels "carried water, as director of the Office of Management and Budget, for some of the Bush administration's more egregious budgets." But Douthat, while calling Daniels "America's Best Governor", defended Daniels against accusations that Daniels inaccurately assessed

6322-634: The city of Atlanta in the 2010s. The Blackthorn, particularly its golf course component, fell short of expectations as well. However, Kernan, as late as 2015, defended the Blackthorn development, having regarded it, personally, to have been a success. In November 1996, Nancy Armour of The Associated Press wrote that Kernan, Took a city that had lost thousands of factory jobs and helped diversify its economy, attracting new manufacturing as well as corporate jobs. Kernan worked on long-term job creation efforts as mayor. Kernan came to office shortly after

6431-470: The construction. Among the developments of which Kernan was particularly supportive was the Blackthorn development, a multimillion-dollar golf course and office park development. In 1992, he had touted the concept that became Blackthorn as a "pump for future development." In 1995, Kernan took interest in a proposal to build an arena in South Bend for a new minor league ice hockey team. However, this proposal ultimately failed to materialize. Some of

6540-501: The costs of the Iraq war. In 2002, Daniels helped discredit a report by Assistant to the President on Economic Policy Lawrence B. Lindsey estimating the cost of the Iraq War at between $ 100-$ 200 billion. Daniels called this estimate "very, very high" and stated that the costs would be between $ 50-$ 60 billion. At the time Daniels would not provide specific costs for either a long or a short military campaign against Saddam Hussein, saying

6649-546: The course of many years. The funds were gradually and fully restored to the municipal governments using the surplus money, and the state reserve fund was grown to $ 1.3 billion. Two of Daniels's other tax proposals were approved: a tax on liquor and beverages to fund the construction of the Lucas Oil Stadium and a tax on rental cars to expand the Indiana Convention Center . The new source of funding resulted in

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6758-489: The deal, including $ 150 million that went to Indiana's 92 counties for local roads, $ 240 million to seven counties for infrastructure and economic development projects, and $ 120 million for the Northwest Regional Development Authority for local economic development. Over the next ten years, Indiana would use the cash and interest from the deal to add or expand several major new roadways such as US 31,

6867-438: The developments that were initially regarded as successes for South Bend when Kernan was mayor ultimately fell short in the long run. For instance, the College Football Hall of Fame never met its initial attendance projections. By the late-90s, it already had begun to be criticized as a failure, due to a lack of corporate sponsorship and poor turnout even during special events. The Hall of Fame would ultimately leave South Bend for

6976-452: The director of O.M.B. is only concerned about numbers ... and he has no concern about what those numbers do or do not do for the country, for our military, for our security." Then HHS Secretary Tommy Thompson complained that Daniels's office would reject a proposal "nine times out of 10, just to show you who the boss is". The $ 2.13 trillion budget Daniels submitted to Congress in 2001 would have made deep cuts in many agencies to accommodate

7085-632: The director of the Office of Management and Budget . and was confirmed by the United States Senate by a vote of 100–0 on January 23, 2001. In this role he was also a member of the National Security Council and the Homeland Security Council . During his time as the director of the OMB, Daniels sought to restrict congressional spending, saying Congress's motto apparently is "Don't just stand there, spend something." During his tenure he

7194-406: The finances of the city. After being reelected to his third term, Kernan stated that his priorities, at that time, were public safety, economic development, and neighborhoods. At the time he was mayor, Kernan was praised for his ability to attract economic development to the community. Among the major developments he was able to garner South Bend was the securing of the city as the location for

7303-533: The first time, non-reverting funds were established to create money for capitol improvements to the parks. Additionally, a City-County parks merger was studied in 1993, but ultimately not implemented. In 1995, South Bend's recreation commission was dissolved, and the Department of Parks took over management of recreation programs and was renamed the Department of Parks and Recreation. In 1989, Kernan considered, but ruled out, running against Republican Dan Coats for

7412-528: The foreign-owned operator of the toll road filed for bankruptcy in 2014, and its $ 3.85 billion purchase price resulted in $ 6 billion in debts owed by the company to its financiers. Indiana retained the $ 3.85 billion lump sum payment and the lease was transferred to another Australian investment company without altering the terms of the lease. An October 2014 ITR report to the Indiana Toll Road Oversight Board cited numerous deficiencies along

7521-577: The governorship in September 2003, Kernan served as lieutenant governor of Indiana. As lieutenant governor, Kernan built a reputation as a skilled orator. Kernan was regarded to be a popular lieutenant governor. Kernan was sworn in as lieutenant governor by his own father. As lieutenant governor, Kernan served as the President of the Indiana Senate , the Director of the Indiana Department of Commerce, and as

7630-540: The highway including: deficient pavements and signage at travel plazas, activities at vehicle maintenance facilities that could allow petroleum products or other chemicals into open storm water drains, and closed sewage dump stations at risk of unmonitored dumping. In response, the new lease owners pledged to invest $ 260 million in capital improvements. In June 2015, Ken Daley, the new CEO of the Indiana Toll Road Concession Company, announced that all of

7739-820: The honesty of Illinois elections saying in 1984, "ballot integrity will be the single most decisive factor in the Illinois Senate race", a theme Daniels has returned to throughout his career. In 1990, Daniels left the Hudson Institute to accept a position at Eli Lilly and Company , the largest corporation headquartered in Indiana at that time. He was first promoted to President of North American Operations (1993–97) and then to Senior Vice President for Corporate Strategy and Policy (1997–2001). During his tenure Lilly pleaded guilty to two criminal misdemeanors, paid more than $ 2.7 billion in fines and damages, settled more than 32,000 personal injury claims—and copped to one of

7848-553: The idea that he was innocent saying he "had used marijuana" and "was fined for that, and that was appropriate". Daniels has disclosed the arrest on job applications and in government background checks and spoken about the incident in opinion columns. In a 1989 opinion piece in The Washington Post , Daniels called the incident the "unfortunate confluence of my wild oats period and America's libertine apogee" and said "On my college campus, just as on most college campuses, marijuana

7957-423: The largest state consumer protection cases involving a drug company in U.S. history. In 2009, Lilly also pleaded guilty for illegally marketing Zyprexa during Daniels' tenure and agreed to pay a $ 1.415 billion penalty that included a criminal fine of $ 515 million, the largest ever in a healthcare case and the largest criminal fine for an individual corporation ever imposed in a U.S. criminal prosecution of any kind at

8066-399: The legislation was signed by Bush, Republican lawmakers inserted language into the bill that authorized protection from liability corporations that manufactured thimerosal , a controversial vaccine preservative that has been the subject of multiple lawsuits. Eli Lilly was once the largest maker of thimerosal and is a major target of the lawsuits. Daniels was the budget director at the time of

8175-506: The manufacturing of Camay , Safeguard , and Zest products. He then returned to South Bend, where he worked for South Bend Community Schools and later for the Schwarz Paper Company. Kernan began his career in government by working for a month in the office of South Bend controller Peter Mullen for a month in 1976 on a special project related to license research. Kernan served South Bend controller from 1980 to 1984. He

8284-590: The northwest and southwest corners that are in the Central Time Zone . In 2006 the legislature enacted Daniels' controversial plan to remake the state's highways system by leasing the Indiana Toll Road . Called the Major Moves, the road was leased to Statewide Mobility Partners, a joint venture company owned by Spanish firm Cintra and Australia's Macquarie Infrastructure Group for 75 years in exchange for

8393-399: The number of the police and firemen , which he later stated were necessary due to the budget squeeze caused by a state tax freeze and cuts in federal aid. When Kernan left the post, Mayor Parent praised Kernan's work on the budget, claiming that Kernan took the job at the city's worst financial time and that, "just putting a budget together and making it work is an accomplishment, and Joe did

8502-582: The official adoption of daylight saving since the 1960s, leading to decades of debate . Daniels pressed for the entire state to switch to Central Time, but the General Assembly could not come to terms. Ultimately after a long debate, the General Assembly adopted Eastern Daylight Saving Time in April 2005. The measure passed by one vote and put most of the state on the Eastern Time Zone , except for counties in

8611-471: The original 1955 travel plazas would be demolished and replaced within the next five years. As of October 2015, the Booth Tarkington service area, the easternmost in Indiana, was permanently closed. In 2007, Daniels signed the Healthy Indiana Plan, which provided 132,000 uninsured Indiana workers with coverage. The program works by helping its beneficiaries purchase a private health insurance policy with

8720-481: The primary with 67% of the vote. While campaigning in the general election, Daniels visited all 92 counties at least three times. He traveled in a donated white RV nicknamed "RV-1" and covered with signatures of supporters and his campaign slogan, "My Man Mitch". "My Man Mitch" was a reference to a phrase once used by President George W. Bush to refer to Daniels. Bush campaigned with Daniels on two occasions, as Daniels hoped that Bush's popularity would help him secure

8829-402: The prospect of South Bend receiving several million dollars in one-time federal funding through the legislation. He also argued that the stimulus portion of the legislation was needed to generate jobs. Kernan also argued that it was past time for legislators to cease considering alternative proposals, as several Republican alternative proposals had already been voted down. Kernan remarked, "This

8938-501: The road was worth $ 2 billion at most and were surprised by the offer of nearly $ 4 billion in cash, plus that much in contracted improvements. Daniels called it the best deal since "Manhattan was sold for beads—except this time, the natives won." Initially, Daniels's support for the controversial legislation led to a rapid drop in his approval rating; in May 2005, a poll showed an 18-point drop in support and that only 42% of Hoosiers approved of

9047-605: The same period, Daniels also served on the board of directors of the Indianapolis Power & Light (IPL). He resigned from the IPL Board in 2001 to join the federal government, and sold his IPL stock along with all other holdings in order to comply with federal ethics requirements. Later that year the value declined when Virginia -based AES Corporation bought IPL. On December 22, 2000, President-elect George W. Bush announced that he would nominate Daniels to serve as

9156-415: The six-month supplemental appropriation as a request to fund the entire war. The costs of the Iraq war have exceeded $ 800 billion. Between September 2001 and October 2012, lawmakers appropriated about $ 1.4 trillion for operations in both the war in Iraq and Afghanistan. On May 7, 2003, Daniels announced that he would resign as OMB director within 30 days in a move that Bush administration officials said

9265-491: The start of the invasion, President Bush requested $ 53 billion through an emergency supplemental appropriation to cover operational expenses in Iraq until September 30 of that year. According to the Congressional Budget Office, Military operations in Iraq for 2003 cost $ 46 billion, less than the amount projected by Daniels and OMB. Douthat and other defenders of Daniels accuse Daniels's critics of mischaracterizing

9374-410: The state's welfare programs. Indiana's welfare enrollment facilities were replaced with call centers operated by IBM . In mid-2009, after complaints of poor service, Daniels canceled the contract and returned the enrollment service to the public sector. One of the most controversial measures Daniels successfully pushed through was the state adoption of Daylight Saving Time , which Daniels argued, in

9483-502: The tax cuts being made, but few of the spending cuts were actually approved by Congress. Shortly after the invasion of Afghanistan , Daniels gave a speech to the National Press Club in which he challenged the view of those who wanted to continue typical spending while the nation was at war. "The idea of reallocating assets from less important to more important things, especially in a time of genuine emergency, makes common sense and

9592-448: The time. Daniels managed strategy to deflect attacks on Lilly's Prozac product by a public relations campaign against the drug being waged by the Church of Scientology . In one interview in 1992, Daniels said of the organization that "it is no church," and that people on Prozac were less likely to become victims of the organization. The Church of Scientology responded by suing Daniels in

9701-427: The tolls, there was little reason to believe that the governors who would come after me would have the inclination or the political ability to do the same. I once asked how much it cost to collect that 15-cent toll on the road and the answer came back at 34 cents. I joked that we would have been better off with the honor system and a fishbowl for occasional donations." Daniels and an independent accounting firm believed

9810-399: The way he was doing his job. In the following months, many of his reforms appeared to have a positive effect and his approval ratings rebounded. The income from the lease was used to finance a backlog of public transportation projects and create a $ 500 million trust fund to generate revenue for the maintenance of the highway system. Local governments also received a significant windfall from

9919-687: Was a member of the American Whig–Cliosophic Society , where he overlapped with future Supreme Court Justice Samuel Alito , who was a year below. He initially studied law at the Indiana McKinney School of Law in Indianapolis. After accepting a job with newly elected Senator Richard Lugar , he transferred to the Georgetown University Law Center , from which he earned a Juris Doctor . In 1970, while an undergraduate at Princeton, Daniels and three roommates were

10028-500: Was appointed by President George W. Bush as the director of the U.S. Office of Management and Budget , where he served until June 2003. Daniels ran in Indiana's 2004 gubernatorial election after leaving the Bush administration . He won the Republican primary with 67% of the vote and defeated Democratic incumbent Governor Joe Kernan in the general election. In 2008, Daniels was reelected to

10137-782: Was appointed by the city's 120 Democratic Party precinct committeemen and committeewoman, and it was required that a successor be appointed within thirty days of Kernan leaving office as mayor. It was anticipated that Kernan's endorsement would be heeded by them. Kernan ultimately endorsed Steve Luecke to be his successor, and Luecke was thereafter voted unanimously to serve the rest of Kernan's term. Other candidates that had been reportedly considered included St. Joseph County Prosecutor Mike Barnes, Portage Township Assessor John Voorde, St. Joseph County Auditor Joe Nagy, City Councilor Sean Coleman, City Councilor John Hosinski, Carter Wolf, and City Controller Kevin Horton. From January 1997, until assuming

10246-465: Was appointed to the position by mayor Roger Parent quickly after Parent took office on January 1, 1980. Kernan had been recommended to Parent by Peter Mullen, who held the position before Kernan. As controller, Kernan served as an ex officio member of the Board of Public Works, and the water and sewage boards. Kernan was tasked with overseeing the drafting of the city's $ 40 million annual budget. While in this office, cuts were made in regards to

10355-412: Was as easy to obtain as Budweiser beer and was viewed with equal complacency. For a time, I was a carefree consumer of both." Daniels claimed his "young Midwestern tail was jerked back into line" following the arrest. Daniels had his first experience in politics while still a teenager when, in 1968, he worked on the unsuccessful campaign of fellow Hoosier and Princeton alumnus William Ruckelshaus , who

10464-792: Was born on April 7, 1949, in Monongahela, Pennsylvania , the son of Dorothy Mae (née Wilkes) and Mitchell Elias Daniels. His father's parents were Syrian immigrants from Qalatiyah , Syria , of Antiochian Greek Orthodox descent. Daniels has been honored by the Arab-American Institute with the 2011 Najeeb Halaby Award for Public Service. His mother's ancestry was mostly English (where three of his great-grandparents were born). Daniels spent his early childhood years in Pennsylvania, Tennessee, and Georgia. The Daniels family moved to Indiana from Pennsylvania in 1959 when his father accepted

10573-598: Was criticized by Republicans and Democrats alike. After his first year in office Senator Ted Stevens , then the ranking member of the United States Senate Committee on Appropriations , suggested 'the best thing Daniels could do to repair relations with Congress was to go back to Indiana'. Representative Bill Young , then chairman of the United States House Committee on Appropriations complained about Daniels' leadership saying ''I'm convinced

10682-572: Was elected chairman of the National Republican Senatorial Committee , Daniels was appointed its executive director. Serving in that position (1983–84), he played a major role in keeping the GOP in control of the Senate. Daniels was also manager of three successful re-election campaigns for Lugar. In August 1985, Daniels became chief political advisor and liaison to state and local governments for President Ronald Reagan . As part of this position, Daniels led

10791-457: Was elected to serve as mayor of South Bend as the Democratic Party nominee in the 1987 election , and was reelected as the Democratic nominee in the 1991 and 1995 mayoral elections. In 1995, he won 82% of the vote, a record for South Bend mayoral elections. He was the first mayor of the city to win a third term since 1905. Kernan was the longest-serving mayor of South Bend, until his tenure

10900-555: Was elected to the U.S. Senate in 1976, Daniels followed him to Washington, D.C. , as his Chief of Staff . Daniels served as Chief of Staff during Lugar's first term (1977–1982). During Daniel's time working with Senator Lugar, he met Cheri Herman, who was working for the National Park Service. The two married in 1978 and had four daughters. They divorced in 1993 and Cheri married again; Cheri later divorced her second husband and remarried Daniels in 1997. In 1983, when Lugar

11009-546: Was his successful work in 1993 to keep the Hoosier Lottery 's 15-employee regional headquarters in South Bend. After they began looking for a new location, eying sites outside of South Bend, Kernan worked directly with them to find a new location for their offices within the city. The loss of $ 20 million annually in federal funds which the city had received prior to Reagan and Bush budget cuts to urban programs had taken its toll on South Bend's infrastructure. Nevertheless,

11118-468: Was involved in the creation of Indiana's Vietnam and Korean War memorials. In 1996, Kernan was elected as Indiana's lieutenant governor on the Democratic Party ticket with then-lieutenant governor Frank O'Bannon topping the ticket as the gubernatorial nominee. Kernan had been reluctant to accept O'Bannon's offer to run with him, initially desiring to instead continue to serve as mayor. Others who had been rumored to have under consideration by O'Bannon for

11227-496: Was named one of Indiana's Presidential Scholars —the state's top male high school graduate that year—by President Lyndon B. Johnson . In 1971, Daniels earned a Bachelor's degree from the Woodrow Wilson School of Public and International Affairs at Princeton University after completing a senior thesis titled "The Politics of Metropolitanization: City-County Consolidation in Indianapolis, Indiana". While at Princeton, he

11336-647: Was repatriated on March 27, 1973, and continued on active duty with the Navy until December 1974. Kernan received the Distinguished Flying Cross , two Purple Hearts and the Navy Commendation Medal . Kernan served as a business manager and executive at several companies. In 1975, after having completed his Naval service, Kernan worked for Procter & Gamble in Cincinnati , supervising

11445-624: Was running for the U.S. Senate against incumbent Democrat Birch Bayh . After the campaign, Daniels secured an internship in the office of then- Indianapolis mayor Richard Lugar , a Ruckelshaus ally. Daniels worked on Lugar's re-election campaign in 1971, and later, in 1974, he worked on Lugar's first campaign for Senate via L. Keith Bulen 's Campaign Communicators, Inc, a political consultancy where Daniels served as vice president. Daniels joined Lugar's mayoral staff in December 1974. Within three years, he became Lugar's principal assistant. After Lugar

11554-638: Was shot down in North Vietnam and taken prisoner in 1972. After his release, Kernan continued on active duty through 1974. A member of the Democratic Party, Kernan served as Mayor of South Bend, Indiana , and then as the 47th lieutenant governor of Indiana from 1997 to 2003. He became governor on September 13, 2003, upon the death of Governor Frank O'Bannon . He lost an election to serve a full term as governor to former Office of Management and Budget director Mitch Daniels on November 2, 2004. Kernan returned to South Bend and retired from politics. As of 2024, he

11663-478: Was surpassed in length by that of his immediate successor Steve Luecke . Kernan was regarded to be a popular mayor. In November 1996, Nancy Armour of The Associated Press wrote that Kernan was, "well-liked by Democrats and Republicans alike. He's friendly and warm, quick to greet residents by name and ask how they are doing. He's accessible too." As mayor, Kernan worked on long-term job creation efforts, made efforts to improve public safety, and strengthened

11772-471: Was ten years of age. Kernan graduated from St. Joseph High School in South Bend in 1964. He graduated in 1968 with a degree in government from the University of Notre Dame . Kernan played on the university's baseball team , serving as a walk-on on the freshman team, and playing for the varsity team his sophomore and junior years in 1967 and 1968. He was initially an infielder , later switching to catcher in his junior year. Kernan joined

11881-509: Was to prepare to run for governor of Indiana . Daniels's decision to run for Governor of Indiana led to most of the rest of Republican field of candidates dropping out of the race. The only challenger who did not do so was conservative activist and lobbyist Eric Miller. Miller worked for the Phoenix Group, a Christian rights defense group. Daniels's campaign platform centered on cutting the state budget and privatizing public agencies. He won

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