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Lawmaker defends roles on call center

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Sought welfare site in Marion, in a building he has a stake in

Angela Mapes Turner | The Journal Gazette

FORT WAYNE – A state representative who fought hard for a controversial call center created in his district as a part of Indiana’s failed welfare privatization effort has a financial stake in the building that houses it.

Rep. P. Eric Turner, R-Cicero, says his investment in the building owned by his son is a non-issue. But critics say the link should have been disclosed during the many public debates about problems with the IBM-led welfare changes.

House Speaker Patrick Bauer, D-South Bend, said he doesn’t believe anything illegal transpired, but the case, combined with others, fosters a culture of secrecy in Indiana government. Bauer believes the Marion call center should lead to full disclosure on state leases.

In 2007, Indiana inked a $1.16 billion deal with IBM Corp. to modernize the state’s welfare system by providing more services by computer and telephone.

Central to the plan was the creation of a call center to serve the entire state. Instead of caseworkers assigned to clients who need help getting food stamps, Medicaid or Temporary Assistance for Needy Families, contract employees would handle applications submitted through a website and the Marion call center.

Subcontractor Affiliated Computer Services, tasked with creating the call center, entered into a lease in 2007 to rent the former Jones Middle School when the building was still owned by Marion Community Schools, according to school board minutes.

Nearly from the start, the hub was fraught with controversy. The state heard complaints that the call center workers were ill-trained and clients were not getting their benefits, such as food stamps and Medicaid.

By May 2008, 59 of Indiana’s counties had been brought into IBM’s system. Concerns about clients not being served well by the call center had caused state officials to halt the transition of Indiana’s remaining 33 counties.

That’s when Turner toured the call center in his role as legislator and told the Marion Chronicle-Tribune he was impressed.

Turner told the newspaper there could be legislative committees to look into the issues, but the cost of reverting to the old system would be “astronomical” and call center workers were doing their jobs.

At the same time, his son Paul Ezekiel Turner’s company was in negotiations to buy the former Jones Middle School from Marion Community Schools.

On May 5, 2008, the school board voted to sell the building for $350,000 to Mainstreet Capital Partners LLC, a joint venture between “Zeke” Turner and his father.

According to secretary of state records, Zeke Turner created a limited-liability company, MS Jones LLC, co-owned by Mainstreet, to buy the call center.

That company isn’t listed on Rep. Turner’s statement of economic interests required of all state legislators, but Mainstreet and several other joint ventures with his son are, including Turner Partnership, which is MS Jones’ other co-owner.

Turner considers having listed those companies to be sufficient disclosure, he said, adding that all the transactions related to the sale were carried out in public school board meetings and were common knowledge in Grant County.

Turner said he is a supporter of government transparency and maintains that whether or not his colleagues at the Statehouse knew about his ownership interest in the call center, he had disclosed it.

“As far as I am concerned, it is public knowledge,” he said.

Turner said he does not recall specific conversations with his son about whether to invest in the property when Marion Community Schools put it up for sale.

“I’m sure we talked about it,” he said. “He often shares with me ideas he has on investments.”

But his son does his own analyses on investment opportunities, Turner said.

Turner has another tie to the Indiana Family and Social Services Administration: His daughter, Jessaca Turner Stults, was named the agency’s general counsel in 2007 and is legislative director.

Turner said his daughter’s role has not meant FSSA had a lawmaker in its pocket, citing his vote against Daniels’ health insurance plan funded by the cigarette tax.

“FSSA advances issues before the General Assembly, and some I agreed with, and some I didn’t,” he said. “She has her job to do, and I have mine to do.”

Fighting for jobs

On more than a half-dozen occasions over the past three years, Turner defended the call center’s importance to his hometown newspaper, the Marion Chronicle-Tribune. He said his support was motivated by the 400 jobs the call center represents.

“I will continue to defend those jobs in Marion,” he said. “I can’t apologize for defending those jobs.”

While the school district considered Jones Middle School “surplus and/or worthless,” the property has been anything but worthless to the younger Turner’s company.

After taking out a $280,000 loan to buy the property in July 2008, it was mortgaged for an additional $200,000 in September of that year. This spring, his company took out a second mortgage on the property for $5 million, according to records from the Grant County recorder’s office.

Mainstreet Asset Management did not respond to a request for comment.

Zeke Turner’s portion was assessed for more than $7.1 million in 2009, according to the Grant County treasurer’s office.

Affiliated Computer Services is leasing about 53,000 square feet in the building, FSSA spokesman Marcus Barlow said. That company – not the state – created the lease and pays the rent of $14,400 a month, or $172,800 a year, he said.

The rent is similar to the cost of less expensive industrial warehouse space, not more expensive commercial real estate, Barlow said.

“They actually got a really good deal,” he said.

Speaker Bauer argues it’s hard to know whether something’s a good deal if it’s brokered privately, behind closed doors.

“We’re having trouble in general getting information out of these private contractors,” he said. “Let the people judge.”

Early this month, in an unrelated case, Bauer sent a request to U.S. Department of Health and Human Services Secretary Kathleen Sebelius. Bauer is asking for a review of real estate leases brokered by John M. Bales that put a private contractor involved in Indiana’s welfare-to-work program into two buildings owned by Bales.

In another matter, Bauer also filed a public information request with the Indiana Economic Development Corp., asking for information on job-creation numbers, after an Indianapolis TV station was able to obtain only aggregate data from the agency.

Bauer said he does not believe anything illegal occurred in Turner’s case, but the same let-the-people-judge theory applies and he personally finds the cozy relationship troublesome.

“What’s to say it doesn’t cloud your judgment,” he said. “It creates an impression of impropriety.”

Seeking review

The speaker said he was surprised when he learned about the ownership of the call center, as was state Rep. Gail Riecken, D-Evansville.

Riecken presented a bill during the 2009 special session that would have called for an audit of the privatized welfare system, including the physical facilities being used by contractors.

That bill was doomed by the summer session’s express purpose – passing a budget.

By the fall of 2009, the Daniels administration had acknowledged the IBM plan’s failure and canceled the contract.

The state retained many private contractors, including Affiliated Computer Services, and kept the Marion center open. FSSA continues to roll out a “hybrid” welfare system that combines elements of the IBM-led automated system with more caseworker contact.

Early this year, Riecken offered another bill that would create a 10-member committee to oversee the changes to the welfare system and would have the authority to cancel private contracts under certain circumstances.

FSSA and Republicans argued the bill would surely result in the loss of jobs at the Marion center. Riecken said no one was beating that drum louder than Turner, who told the Marion Chronicle-Tribune he was “very offended” by the bill.

“He was my main opponent,” Riecken said

Riecken said the facts of the bill were misconstrued by Turner and others, which contributed to its failure. While she heard rumors about the ownership of the call center, they were never verified, she said.

“If it had been verified, I think one of us would’ve called him out on it,” Riecken said.

That bill is so much water under the bridge now, but Riecken said this case is leading to other bills being planned that will speak to the broader issue of government transparency.

“The issue is bigger than that,” she said. “The issue is about government and how it works.”

aturner@jg.net

Reprented with permission from
The Journal Gazette
600 W. Main St.
Fort Wayne, IN 46802
260-461-8201

Business Needs and Deserves the Rule of Law

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By Joe Wallace
Business Consultant
hadannahbusiness@aol.com

The United States of America was founded as a Republic by the founding fathers because they had their fill of King George and because they understood that a pure democracy was just another term for mob rule. The proclivities of mob rule to appropriate resources on their own and to remove the heads of those who fell out of favor with the democratic mob was demonstrated clearly with the birth of the French nation through the utilization of Madame Guillotine to appropriate the heads and property of those whom the mob deemed to be of the ruling class.

One of the hallmarks of a Republic is the rule of law. The rule of law is the only thing that protects the rights of individuals from the capriciousness of a King or Queen and the emotional whims that the huddled masses can bend to under a pure democracy. In a well designed Republic, laws are created to protect the health and well being of people from callous exercise of free will by other people. Balancing the common good with the rights of individuals is what enables a Republic to survive the cyclical swings toward democracy or a charismatic leader.

As much as we as citizens need and depend on the rule of law, the business entities through which we derive most of our sustenance and wealth are in need of a similar system. Businesses need a form of the rule of law to insure that the rules are known prior to making investments and to stabilize industrial output. Businesses and people both seek routines and predictability to insure that prosperity earned is prosperity kept. The rules of business should not change in the middle of the game any more than criminal laws should be allowed to change in the middle of a trial. The whims of the mob or the will of the dictator damage many people when business gets jerked around unnecessarily and without merit.

When it comes to business, the rule of law takes the form of regulations. There are local, state, and federal regulations surrounding nearly every type of activity or transaction that businesses can contemplate at the time the regulations were written. As profit seeking enterprises, businesses have traditionally sought ways to minimize taxation and regulation to the highest extent possible. In financial markets, when stock sales are regulated, options are invented, when options become regulated, derivatives are invented, and so on and so forth. Derivatives will soon be regulated and traded on an open bourse or stock exchange. Guess what? Something else will be created to skirt that regulation.

Why are governments so slow in responding to the invention of financial instruments that are just outside the reach of regulation? It always seems that deregulation is blamed for failures in financial markets whether it is the savings and loan failures, banks, credit default swaps, or Alt-A mortgages. I would submit that either the regulation was in place or could have easily put in place to prevent all of these expensive melt downs. The only real needs are expediency of adapting the regulations or the will to enforce the regulations that are already in place.

Under the rule of law, the enforcement of the law is just as important as the fairness and soundness of the law itself. In a city with a murder problem there must be enforcement to blunt the growth of the murder rate. In business, if the regulations are not enforced it is as if there is not regulation at all. The businesses of the United States depend not only on good regulations but on fair and equal enforcement of those regulations. Passing new regulations, while allowing violations of the existing ones is of little value. That is a guard dog with no teeth.

Regulations are being called for by the chattering class and the mob in the areas of finance reform, medicine, oil exploration, food supply, and even salt in prepared meals. Maybe these are necessary and will make our lives better and maybe they are just the head of a monarch for the American Bastille. Either way, if these regulations and the ones that are already in existence are not enforced, they will be meaningless. It is incumbent upon the governing authority to find solutions to monitor and enforce all of our sane regulations. After all, our business community deserves the rule of law as much as our citizens do.

Indiana Chamber of Commerce PAC endorses Ron Bacon for District 75 State Representative

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The Indiana Chamber of Commerce PAC, Indiana Business for Responsive Government (IBRG), has endorsed Ron Bacon Candidate for District 75 State Representative. IBG’s mission is to aid and support candidates that will improve the business climate in Indiana. Michael R. Davis, Vice President of the Indiana Chamber of Commerce states that Ron Bacon holds “Pro-Job Growth and Pro-Economic Development views and agenda deserving of our endorsement”.

Upon announcement of the endorsement Candidate Bacon commented “I am very appreciative to receive the Indiana Chamber of Commerce endorsement”.

Bacon stated “Whirlpool Corp. idling their facility in District 75, is another example of the need to have local law makers working with employers in our district and our community crafting incentives for job creation and job retention”. Bacon continued “Affordable education opportunities for those displaced from such closing need to be available within our community college system at IVY Tech. An educated workforce in a business friendly environment is what it is going to take for Indiana to remain competitive in landing new job creation in the future.”

Ron Bacon is a candidate for State Representative in District 75 which covers part of Vanderburgh, Warrick and Gibson Counties.

Job creation starts with ending politics of division

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By Wenda McNamara
Candidate for State Representative District 76
wendymac2010@att.net

When I first announced my candidacy for State Representative, I pledged that my top priority would be to help bring new jobs to Southwestern Indiana. As we’ve watched the national recession unfold, it’s clear that economic development is more competitive and more vital than ever before. But while Indiana as a state continues to lead the country in new private-sector job growth, I can’t help but feel that our corner of the state often lags behind.

So what are we to do to ensure that new jobs come to places like Posey County? I think we must put a stop to the divisive politics so often used by those who represent us today. We must focus on those shared common goals of new jobs, increased income and a robust economic climate that is inviting to businesses looking to start up or relocate.

Nowhere is this more evident to me than in how some local leaders have handled the construction of the Aventine plant in Mount Vernon. Elected state officials have continued to lambast, ridicule and openly protest this company as they seek to bring permanent jobs to our area, all for the sake of short term political gain.

Fighting for the use of local labor in the construction of the facility is certainly a worthy cause, and an idea I champion wherever possible. But putting members of the community at odds with one another on economic development issues isn’t a case where one side wins and one side loses. If the plant doesn’t open at all, we all lose out on those new jobs and that new economic development.

But this isn’t just about one plant. This is about the message it sends to other businesses that could potentially bring other jobs. When they look at how hostile our legislative leaders have been to one business, what incentive is there for any of them to attempt the same? In an economic climate where business is already tough, why add the burden of unfriendly elected officials?

Under the current economic strain, we need leaders who will do everything possible to bring together the labor force and business owners who would invest in our corner of the state. We must send the message that Posey County and Southwestern Indiana are open for business, and we welcome with open arms any who would like to add jobs here. We’re all in this together, and the politics of division do nothing to benefit any of us. We need representatives who will work to bridge those divides, not create them.

CITIZEN SPEAKS ON TRANSPARENCY AND SEWERS!

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City Council President BJ Watts & City Council members:

I appreciate the ordinance that got passed recently regarding transparency. However, I have a hard time agreeing that anything regarding City Budget is transparent at all as long as the budget hearings are not televised. Since we started televising public meetings, County Council has always televised all their budget hearings and City Council never has televised one of their budget hearings. It is past time that we find ways to schedule the correct room and televise the meetings. If the cost is the issue, don’t televise something else, but all the budget hearings need to be televised.

Regarding sewer rate increase that will be discussed Monday night:
In recent weeks, County Commissioners had a hearing on Bohanan Estates Barrett Law regarding obtaining city sewers. Basically the residents agreed a couple of years ago for public sewers. It finally has progressed to time to bid the project. The cost for this could run as high as $9,000 per lot plus tap-in fee plus 30-35% surcharge on sewer which will only continue to increase as we continue to address CSO issues. I am not sure where this project is now because it came out in public testimony that the initial cost for Barrett law was low-balled and the residents are now not so sure they want it or can swing it at this price. One sucker even has a double lot so I think they get to pay double.

If it actually does cost them 9,000-10,000 per lot, you could buy a car for that and that would pay for how much college….. at least some. Unreal amount for privilege of having city sewer plus they get the 30-35% surcharge each and every month thereafter.

I agree that county residents get a break on a lot of things in this community and I am more than willing to address that with reorganization. I don’t think we should have to wait for reorganization to address the sewer issue.

I would like to see real justification for the 30-35% surcharge. I would like the percentage to be reduced as we continue to address the never-ending CSO issues.

Cathy Edrington

WHO-WHAT-WHEN-WHERE by “Life Style Lil”

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Ever see the TV ad “What’s In Your Driveway?“ In my case, it’s a D-Patrick Mercedes Benz sold to me last week by the renowned TONY RICKETTS.
　
One of the best keep secrets in downtown Evansville is the Twilight Bistro located at 221 Main Street, Evansville. It serves out of the world lunch specials and homemade soups. For outstanding service call 421-0606 for takeout orders.
　
Congratulations to Lezlie Adams for bringing new life to the North Main business district. Lezie just opened up a Plus Sized Chick consignment shop at 309 North Main Street in Evansville. The CHIC is taking consignments and is open Tuesdays through Saturday from 9:00 A. M to 5 P. M. Oh, she will take sizes 14 and up!

Went to the new LAMASCO BAR & GRILL with friends and had one heck of time! Got to meet personality plus! Amy Word has the LAMASCO BAR & GRILL rocking! Ask her to make you one of her special IRISH drinks!
　
Well, well, well. Did you know the famous Tell City Pretzel is back? You now can purchase them at the Newburgh Country Store. Are you aware of the plants and herbs sale going on at the Newburgh County Store? I just purchased 7 herbs for an unbelievable price of 99 cents each. They were normally $3.99 each.
　
While in Newburgh you should have lunch at the newly opened Café Arazu located at 17 Jennings Street. They have a “monster” appetizer called Tabouleh. The Red Cabbage and Napa slaw with a side dressing called Parmesan Peppercorn is “WOW”. You guessed it; I had had a couple glasses of my favorite wine. For lunch I suggest Chicken Tandoori Pitas. CAFÉ ARAZA is a must “You Should Eat Place.” Call 812-842-2200 or e-mail them at www.cafeazu.com.
　
I hear that a Creative Knitting business is ready to be launched. After talking about doing this for several years, Marilyn has finally decided to begin her newly created knitting line after urging from her friends and family members. Her specially creative lines of newborn baby booties, hats and blankets are out of this world. Last week she sold about 25 newly born hats she created to a well known photographer in Louisville Kentucky. To get an idea of the specialized knitted keep sakes for your new born or infant please call her at 812-774-8012. I hear she will e-mail you pictures of her one of kind personalized master pieces! They tell me that she is extremely affordable and the yarn she uses is top of the line!
　
Speak of top of the line. Well-known businessman, Ronald Reicken and Associates did it again. He has created 2 great places to hang out on the mighty Ohio River at Marina Point. You must try the delicious hamburgers with ice cold beer at OV WATER SPORTS and GRILL. Oh you can rent Pontoon Boats and Wave runners at OV WATER SPORTS and GRILL. After boating, friends and family must stop by 2 DADDIES RESTAURANT at the Pointe and treat yourself to great food and beach music. I highly recommend the pizza at 2 DADDIES Restaurant at the Pointe!
　
Every time I turn around I hear, read or see Anne Wright Tornatta doing a creative fundraiser for the local Red Cross. I say thanks Anne; keep up the good volunteer work!
　
Ever heard of Vecchio’s Italian Market and Delicatessen? E-mail them at vecchiositalianmarket.com or call 812-490-7879 to learn more about them.
　
Thanks to the Deaconess Foundation group for providing area women with free mammograms.
　
It’s sad to see the Hayne’s Corner property is still dormant after all these years. Even after the local political people throwing millions of tax payers’ dollars in that area it hasn’t helped. Maybe Adrian Brooks, pastor of Memorial Baptist Church and a local businessman, should volunteer his services by teaching a seminar to elected officials on how to provide attractive, affordable housing in the Center City!
　
Hear that the live band at KC’s TIME OUT Lounge & Grill located at the Washington Square Mall was a “MONSTER“! Drink specials, food and live entertainment make this a place worth visiting!
　
Speaking of free enterprise system – I like the idea of the Evansville Farmers Market locating at the old Greyhound bus station property. It helps local farmers and bakers to make more money by selling their home-grown produce and baked products! That, my friends is economic development, not hula hoop and belly dancing lessons!
　
The “Healthy Families” Health Fair event sponsored by St. Mary’s Health System held at the BOYS and GIRLS Club of Evansville was a smashing success! Thanks to St. Mary’s Health System for looking out for health concerns of the needy in our community!
　
Glad to hear Mike Martin, owner of Architectural Renovators, bought the Audubon. I understand he does a masterful job with fixing up historical buildings. Who knows, I just might lease one of his plush condos when he finishes them.
　
I bought a new TV last week. I went to hhgregg and was waited on by Neil Herzog, general manager. This young man knows his stuff! He sold me a name brand T V at a bargain price. I highly recommend hhgregg!
　
I hear that the John F Kennedy Club of Vanderburgh County “Meet Your Legislative Candidates” was rousing success.
　
Oh, if you want “MONSTER” chicken wings go to Show Me’s Restaurant and Bar on the East Side and tell Steve Jr. that Life Style “LIL” sent you!
　
‘Til next time, don’t take any wooden nickels!
LOVE,
“LIL”

COUNTY ASSESSOR’S CLAIMS RECKLESS AND IRRESPONSIBLE, NOT BASED ON FACTS OR LAW

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EVANSVILLE – Vanderburgh County Assessor Jonathan Weaver released a statement July 13, 2010 saying he is “still seeking answers” about the payment of the Level II Certified Indiana Assessor appraiser stipends to four of his employees. In addition to being a misrepresentation of the facts, he falsely accuses the County Council of secretly making decisions regarding his office behind closed doors.

During 2010 budget hearings the majority on County Council funded the County Assessor’s budget request of $20.500.00 for Level II Appraiser stipends to be paid to his employees in 2010. This amount covered $1,000.00 for each of eight former township assessors and the County Assessor, plus $500.00 each for twenty three deputy assessors. As is the case for any county officeholder, if additional tax dollars are needed for a budget item, the officeholder submits an appropriation request for the County Council’s consideration and explains the need for the additional money. Mr. Weaver has not done that. He should understand after serving 3 ½ years in office that if he doesn’t have the funds in place in a budget line, he can’t pay any more.

If the County Council would consider and approve his request, the salary ordinance would be amended to allow payment of these funds. Without this approved request, the County Council and the County Auditor as payroll agent has no authority to pay additional compensation to a county employee.

The County Assessor’s claim that paperwork he received from the County Council indicated a decision was made on July 7 outside a public meeting is nonsense. The document his is referring to is a listing of current employees and former township assessors who are currently receiving the stipend. A footnote at the bottom states “AS OF 07/07/12010 – Council APPROVED ONLY 23 Level II (Mandatory).” The date indicates when the document was prepared, not when the action was taken.
“I’m disappointed Mr. Weaver would fire off an inflammatory news release with unfounded allegations against the County Council that are patently untrue. We council members work hard to stay in compliance with the Indiana open door law. He’s been an officeholder long enough to understand the process, he has to request an additional appropriation payment if he has Level II certified employees that are not receiving the stipend. That would then trigger the process for County Council to consider his request,” said County Council President Lloyd.

“Unfortunately, Mr. Weaver has a history of contentious dealings with the County Commissioners, County Council, County Auditor, County Surveyor and County Treasurer. Here we have an example of his latest rant, which makes it appear he doesn’t understand the process,” says Lloyd.

EPD DAILY ACTIVITY REPORT

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EPD

 

 

FOOTNOTE: EPD DAILY ACTIVITY REPORT information was provided by the EPD and posted by the City-County-County Observer without opinion, bias, or editing.

 

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