Text of the State of the State Address

Mr. Speaker, members of the Assembly, Hoosier friends and neighbors, thank you yet again for the privilege of this platform.

For most of us, one of the strongest memories of our youth is that great school teacher, that magical man or woman who somehow reached us, and stretched us, and in the process left indelible recollections. For me, one of those was Bob Watson—still, today, Mr. Watson to me—who introduced us to the mysteries of the periodic table in high school chemistry. In addition to mixing potions that suddenly turned purple, and terrifying pop quizzes, Mr. Watson was famous for his aphorisms, little sayings so often repeated that his students still smile and recite them to each other decades later. And the most frequently applied of all Watson’s wisdoms was: “Good things come to those who wait. Patience is the essence of life.”

Patience does not come easily to a teenager. Or to adults, for that matter. At the grocery store, the airport scanner, or the BMV, none of us likes to wait. Like all Americans, Hoosiers are waiting tonight for a national economic recovery. Far too many are without work and, even worse than their number, is how long many have been waiting, waiting for that next job, waiting for the basic human fulfillment of knowing you are standing on your own feet, providing for yourself and your family.

The deep frustration of unemployed Hoosiers is shared by those of us charged with public duties in these times. The best efforts of our state, or any one state, to break free of recession’s suffocating clutch, are never adequate, and we can’t wait for better times.

Building one of the best job climates in the country isn’t enough. Breaking the all-time record for new job commitments isn’t enough. Adding new jobs at twice the national average isn’t enough. We did all those things in 2010, but it couldn’t offset the terrible drag of a national economic ebb tide that continues to leave too many boats stuck in the muck.

We Hoosiers don’t like to wait, when we can act. If we cannot overcome a nationwide job hemorrhage, we can fight back better than others. Again in 2010, we broke all records for road building and bridge building, for the fourth year in a row, and put thousands to work doing so.

As the final installment of our 2008 property tax cuts took effect, hard-pressed Hoosier home and business owners found an additional $600 million still in their bank accounts. Tonight, because of our action, Indiana’s property taxes are the lowest anywhere in America. And thanks to a ringing 72 percent verdict by our fellow citizens, who voted in referendum to protect those cuts in our constitution, they’re going to stay that way.

And in the clearest example of Hoosier resolve, we handled a two billion dollar drop in state revenues as any family would, as any small business would. We decided what is most important, separated the “must do’s” from the “nice to do’s,” and matched spending to income.

Across the country, state spending, despite the recession, is still up sharply the last six years. But here, it is virtually flat, one-third the rate of inflation. Elsewhere, state government payrolls have grown, but here, we have the nation’s fewest state employees per capita, fewer than we did in 1978. During this terrible recession, at least 35 states raised taxes, but Indiana cut them. Since ‘04, the other 49 states added to their debt, by 40 percent; we paid ours down, by 40 percent. Many states exhausted any reserves they may have had, and plunged into the red, but our savings account remains strong, and our credit AAA.

What we did in 2008, and 2009, and 2010, we will do again this year. We will take the actions necessary to limit state spending to the funds available. We will protect struggling taxpayers against the additional burden of higher taxes. We will continue improving our jobs climate by holding the line on taxes as our competitors take the easy way and let theirs rise. We say tonight, whatever course others may choose, here in Indiana we live within our means, we put the private sector ahead of government, the taxpayer ahead of everyone, and we will stay in the black, whatever it takes.

In two days, I will send to this Assembly a proposed budget for the next biennium. As always, I know that our final product will be a mutual one, and I welcome your amendments and improvements, so long as they live up to the following principles:

One, I just mentioned; no tax increases. Can I get an “amen” to that?

Two, we must stay in the black at all times, with positive reserves at a prudent level throughout the time period.

Three, the budget must come into structural balance, meaning that no later than its second year, annual revenues must exceed annual spending, with no need for any use of our savings account.

Four, no gimmicks. We put an end to practices like raiding teacher pension funds, and shifting state deficits to our schools and universities by making them wait until the state had the cash to pay them. That’s a form of waiting we should never impose again.

And, to hasten the return of an even stronger fiscal position, I again ask you to vote for lasting spending discipline by enacting an automatic taxpayer refund. When the day comes again when state reserves exceed 10 percent of annual needs, it will be time to stop collecting taxes and leave them with the people they belong to. Remember what the Hoosier philosopher said: “It’s tainted money. ‘Taint yours, and ‘taint mine.” Beyond some point, it is far better to leave dollars in the pockets of those who earned them than to let them burn a hole, as they always do, in the pockets of government.

Doing the people’s business while living within the people’s means is our fundamental duty in public service. Redrawing our legislative lines without gerrymandering, and adjusting an out of balance Unemployment Insurance system, are other examples of duties we must meet this year. I know you’ll do so, head on.

So we had a little election last November. It changed a few things, like the seating arrangement in this chamber. One thing it didn’t change at all: our common duty to take every action possible to make this a better state, a more progressive state, a standout and special and distinctive state. That election, like all elections, was not a victory for one side, it was an instruction to us all. It was not an endorsement of a political party, it was an assignment to everyone present. By itself, it accomplished nothing, but it threw open the door to great accomplishment. Starting tonight, we must step through that door, together.

One opportunity lies in reform of our criminal justice system. Helped by the nation’s most respected experts, a bipartisan task force of police, judges, prosecutors, and others fashioned a package of changes to see that lawbreakers are incarcerated in a smarter way, one that matches their place of punishment to their true danger to society. We can be tougher on the worst offenders, and protect Hoosiers more securely, while saving a billion dollars the next few years. Let’s seize this opportunity, without waiting.

Two years ago, the bipartisan commission led by two of Indiana’s most admired leaders presented to us a blueprint to bring Indiana local government out of the pioneer days in which it was created and into the modern age. Of their 27 proposals, seven have been enacted in some form. That leaves a lot of work to do. Indiana is waiting.

Some of the changes are so obvious that our failure to make them is a daily embarrassment. The conflict of interest when double-dipping government workers simultaneously sit on city or county councils, interrogating their own supervisors and deciding their own salaries, must end. The same goes for the nepotism that leads to one in four township employees sharing a last name with the politician who hired them.

Township government, which does not exist in most states, made some sense on the Indiana frontier. Many township lines were laid out to accommodate the round-trip distance a horse could travel in a day. We’ve come a little ways since then.

Today, over 4,000 politicians, few of them known to the voters they represent, run over a thousand different township governments. They are sitting on hundreds of millions of dollars in reserves. Some have eight years of spending needs stashed in the bank, yet they keep collecting taxes. Some townships are awash in money, while the township next door does not have enough to provide poor relief to its needy citizens. Adjacent townships each buy expensive new fire trucks when one would suffice to cover them both.

Those serving in township government are good people, and well motivated. We thank them for their service. Our problem lies not with those holding all these offices, but with the antique system that keeps them there. I support the clear and simple recommendation of the Kernan-Shepard Commission that we remove this venerable but obsolete layer of government, and assign what little remains of its duty to elected city and county officials.

Likewise, our strange arrangement of a three-headed county executive should change. No business has three CEOs; no football team has three head coaches; no military unit would think of having three coequal commanding officers. We should join the rest of America in moving to a single, elected county commissioner, working with a strengthened legislative branch, the County Council, to make decision making accountable and implementation swift and efficient.

As in the last two sessions, I look forward to constructive cooperation with the Assembly in bringing reform about. The only outcome that is unacceptable is no action at all. Hoosiers have waited for decades for our governmental design to catch up to society. Let’s not keep them waiting any longer.

In no realm is our opportunity larger than in the critical task of educating our children. The need for major improvement, and the chance for achieving it, is so enormous tonight that opportunity rises to the level of duty.

Advocates of change in education become accustomed to being misrepresented. If you challenge the fact that forty-two cents of the education dollar are somehow spent outside the classroom, you must not respect school boards. If you wonder why doubling spending didn’t produce any gains in student achievement, you must be criticizing teachers. If your heart breaks at the parade of young lives permanently handicapped by a school experience that leaves them unprepared for the world of work, you must be “anti-public schools.”

So let’s start by affirming once again that our call for major change in our system of education, like that of President Obama, his education secretary and so many others, is rooted in a love for our schools, those who run them and those who teach in them. But it is rooted most deeply in a love for the children whose very lives and futures depend on the quality of the learning they either do or do not acquire while in our schools. Nothing matters more than that. Nothing compares to that.

Some seek change in education on economic grounds, and they are right. To win and hold a family-supporting job, our kids will need to know much more than their parents did. I have seen the future competition, every time I go abroad in search of new jobs for our state, in the young people of Japan, Korea, Taiwan, China. Let me tell you—those kids are good. They ought to be. They are in school, not 180 days a year like here, but 210, 220, 230 days a year. By the end of high school, they have benefited from two or three years more education than Hoosier students. Along the way, they have taken harder classes. It won’t be easy to win jobs away from them.

It’s not just tomorrow’s jobs that are at stake. The quality of Indiana education matters right now. When we are courting a new business, right behind taxes, the cost of energy, reasonable regulation, and transportation facilities comes schools. “What kind of school will my children, and our workers’ children attend?” is a question we’re always asked. Sometimes, in some places, it costs us jobs today. There is no time to wait.

In 1999, Indiana passed a law that said schools must either improve their results or be taken over by new management. The little ones who entered first grade then, full of hope and promise, are eighteen now. In the worst of our districts, half of them will not be graduating. God bless and keep them, wherever they are and whatever life now holds for them. For those children, we waited too long.

And it’s not just about the most failing of our schools. The last couple years have seen some encouraging advances, after years of stagnation. But the brute facts persist: only one in three of our children can pass the national math or reading exam. We trail far behind most states and even more foreign countries on measures like excellence in math: at the recent rate of improvement, it would take twenty-one years for us to catch Slovenia, and that’s if Slovenia stands still. That’s too long to wait. That’s too many futures to lose.

In every discussion, someone says “This is very complicated.” Then someone says, “These changes won’t be perfect,” and then you hear “The devil is in the details.” All true. But we can no longer let complexity be an excuse for inaction, nor imperfection the enemy of the good. When it comes to our children’s future, the real devil is not in the details, he’s in the delay, and 2011 is the year the delay must end.

We know what works. It starts with teacher quality. Teacher quality has been found to be twenty times more important than any other factor, including poverty, in determining which kids succeed. Class size, by comparison, is virtually meaningless. Put a great teacher in front of a large class, and you can expect good results. Put a poor teacher in front of a small class, do not expect the kids to learn. In those Asian countries I mentioned, classrooms of thirty-five students are common, and they‘re beating our socks off.

We won’t have done our duty here until every single Indiana youngster has a good teacher every single year. Today, 99 percent of Indiana teachers are rated “effective.” If that were true, 99 percent, not one-third, of our students would be passing those national tests.

Today’s teachers make more money not because their students learned more but just by living longer and putting another certificate on the wall. Their jobs are protected not by any record of great teaching but simply by seniority. We have seen “teachers of the year” laid off, just because they weren’t old enough. This must change. We have waited long enough.

Teachers should have tenure, but they should earn it by proving their ability to help kids learn. Our best teachers should be paid more, much more, and ineffective teachers should be helped to improve or asked to move. Today, the outstanding teacher, the Mr. Watson whose kids are pushed and led to do their best, is treated no better than the worst teacher in the school. That is wrong; for the sake of fairness and the sake of our children, it simply has to end. We have waited long enough.

We are beginning to hold our school leaders accountable for the only thing that really matters: Did the children grow? Did the children learn? Starting this year, schools will get their own grades, in a form we can all understand: ‘A’ to ‘F.’ There will be no more hiding behind jargon and gibberish.

But, in this new world of accountability, it is only fair to give our school leadership full flexibility to deliver the results we now expect. Already, I have ordered our Board of Education to peel away unnecessary requirements that consume time and money without really contributing to learning. We are asking this Assembly to repeal other mandates that, whatever their good intentions, ought to be left to local control. I am a supporter of organ donation, and cancer awareness, and preventing mosquito-borne disease, but if a local superintendent or school board thinks time spent on these mandated courses interferes with the teaching of math, or English, or science, it should be their right to eliminate them from a crowded school day.

And, while unions and collective bargaining are the right of those teachers who wish to engage in them, they go too far when they dictate the color of the teachers’ lounge, who can monitor recess, or on what days the principal is allowed to hold a staff meeting. We must free our school leaders from all the handcuffs that reduce their ability to meet the higher expectations we now have for student achievement.

Lastly, we must begin to honor the parents of Indiana. We must trust them, and respect them enough, to decide when, where, and how their children can receive the best education, and therefore the best chance in life.

Visiting with high school seniors, I discovered one new option we should be offering. A significant fraction of our students complete, or could complete, their graduation requirements in well under twelve years. We should say to these diligent young people, and their families, if you choose to finish in eleven years instead of twelve, we will give you the money we were going to spend while you cruised through twelfth grade, as long as you spend that money on some form of further education. In this year’s survey of high school students, three out of four said they would like to have that option. Let’s empower our kids to defray the high cost of education through their own hard work, by entrusting them with this new and innovative choice.

Another new kind of choice has come to Indiana parents the last couple years, as a byproduct of our property tax reductions. Families are now able to choose public schools outside the districts they reside in, tuition-free. Schools have begun advertising campaigns, touting their graduation rates and higher test scores. This competition is a highly positive development, as long as it is fair. I ask you to protect our families against any possibility of discrimination by requiring that any school with more applicants than room fill it through a lottery or other blind selection process.

Indiana has lagged sadly behind other states in providing the option of charter schools. We must have more of them, and they must no longer be unjustly penalized. They should receive their funding exactly when other public schools do. If they need space, and the local district owns vacant buildings it has no prospect of using, they should turn them over.

Widening parents’ options in these ways will enable the vast majority of children to attend the school of their choice. But one more step is necessary: For families who cannot find the right traditional public school, or the right charter public school for their child, and are not wealthy enough to move near one, justice requires that we help. We should let these families apply dollars that the state spends on their child to the non-government school of their choice.

In that gallery and outside sit the most important guests of the evening. They are children, and parents of children, who are waiting for a spot in a charter or private school. They believe their futures will be brighter if they can make that choice. Look at those faces. Will you be the one to tell the parents “tough luck”? Are you prepared to say to them “We know better than you do”? We won’t tell you where to buy your groceries or where to get your tires rotated, but we will tell you, no matter what you think, your child will attend that school, and only that school. We have the money to send our children where we think best, but if you don’t, well, too bad for you.

These children, and their parents, have waited long enough, for a better chance in life. And Indiana has waited long enough for the kind of educational results that a great state must achieve. I have spoken of the economic implications. But, at bottom, this is not about material matters. It is about the civil right, the human right, of every Indiana family to make decisions for its children. It’s about the right of all Hoosier children to realize their full potential in life. Will you join me in saying, the waiting is over, change has come, and Indiana intends to lead it?

For us sports fans, recent times have brought a frustrating string of “almosts”. At 60, Tom Watson almost won the British Open. The Colts almost won the Super Bowl. Little Butler almost won a national basketball championship. Besides the disappointment of coming so close, the bad thing about “almosts” is knowing that you may never get that close to victory, and history, again.

This cannot be the “almost” General Assembly. We are on the 18th hole, in the red zone, on the final possession of a chance for historic greatness. Indiana has waited long enough for local government that fits the realities of the 21st Century. We have waited long enough for an education system known for excellence in teaching, and accountable schools that deliver the results our kids deserve. Our parents have waited long enough for the freedom to decide which school is best for their children. We cannot “almost” end the waiting.

One thing is certain. The rest of the world will not wait on us. Other nations, and other states, are forging ahead with the kind of reforms I have proposed here. Indiana is now a leader in business climate, fiscal integrity, transportation, property taxes, and so many other respects. Now comes the chance to lead in ways that, long term, may matter more than all of those.

Wishing won’t make it so. Waiting won’t make it so. But those of you in this Assembly have a priceless and unprecedented opportunity to make it so. It’s more than a proposal, it’s an assignment. It’s more than an opportunity, it’s a duty.

Our children are waiting. Our fellow citizens are waiting. History is waiting. It’s going to be a session to remember. You’re going to do great things. I can’t wait.

God bless this Assembly and this great state.

Source: Office of Governor Mitch Daniels

IS IT TRUE that should Lloyd Winnecke decide to seek the Republican nomination for Mayor of the City of Evansville that he will likely face a Primary battle from one or two other candidates?…that the Vanderburgh County Democratic party has never had a female party Chairperson?…that the Vanderburgh County Republican party has had two female party Chairpersons?….that Democratic party of Vanderburgh County never had a female nominee run for Mayor of Evansville?….that the Republican party of Vanderburgh has had two female candidates for Mayor? …that Evansville has never had a female Mayor? ….that select members of the local political groups would like to change that situation?

IS IT TRUE some that select members of the Vanderburgh County Republican party are not happy with the soon to be announced Republican candidate for Mayor?….that they are trying to draft a candidate to run against him in the upcoming Republican primary?

IS IT TRUE that select Vanderburgh County Party Democrats are not happy with the announced Democratic candidate for Mayor and are actively trying to get someone to run against him?…that Vanderburgh County Treasurer and candidate for the Democratic nomination for Mayor of Evansville, Rick Davis was recently quoted as saying “I am neither a Democrat nor a Republican”?…that such an inclusive expression may not appeal to the extreme partisans within the local Democratic party?…that such an attitude and a willingness to express it is refreshing and may just draw many traditional Republican voters to Mr. Davis’s camp in the general election?

IS IT TRUE “MOLE #3” that predicts that the final lists of people seeking elected offices in the city of Evansville are going to surprise people? ….the wind of political change is upon us? …. that the MOLE asks you to watch out because the local TEA PARTY group will have couple of political surprises of their own?

IS IT TRUE that a recent visit to Biaggi’s Ristaurante Italiano was quite informative?…that sometimes in life you just get lucky?…that the wait staff was engaged in lots of chatter regarding the $3,079 dinner that was held by the Board of Directors of the Evansville Convention and Visitors Bureau?…that Biaggi’s is out of OPUS ONE?….that certain members of the wait staff were questioned about the price of the bottles of Opus by one male member of the party?….that a couple of other members of the ECVB party (both male) let the wait staff know that they should not share the information about the cost of the Opus One with the person who asked about the price?…that the friendly waiter did not recognize the people being waited on?…that this is a story that the truth should have been told about when it happened?

IS IT TRUE that the cost of benefits have been getting higher and higher over the years and that employers are continually struggling to make ends meet while providing a decent benefit package?…that Cripe Architects and Engineers employs three people that are dedicated to the Evansville Arena project?….that one of those employees formerly was employed by the Office of the Mayor of Evansville?….that the agreed upon billing rate for the former employees services was supposedly based on the pay and benefits received as a City of Evansville employee?….that the mark up for these three employees is 3.13 or a full 213% more than they are actually being paid by Cripe?…that a 213% of wages benefit package is a pretty rich benefit package?…that for a package like that, many people would be willing to work for Cripe?…that the benefit package of the City of Evansville is truly burdened at 213%?….that we don’t think so?

IS IT TRUE the locally owned company Woodruff Hospitality cleared another hurdle yesterday in its quest to be chosen to construct and manage a Downtown Convention Hotel?…that both the Evansville Redevelopment Commission and the Evansville City Council have both passed resolutions supporting the proposal that Woodruff has made and the incentive package that they have requested?….that John Kish project manager is to be commended for his quiet deliberate approach to making good things happen on time and under budget?….that if Mr. Kish would have been the “Entertainment Complex Manager” instead of just the “Arena Manager” from day one the Executive Inn would be gone and Evansville would be preparing for a simultaneous opening ceremony in the Fall of 2011?….that the choice of Woodruff Hospitality validates the City County Observer’s long standing assertion that Evansville people and Evansville businesses should be given an opportunity at the significant jobs and projects and not just looked to as a labor force for outsiders?

IS IT TRUE that Evansville Mayor Jonathan Weinzapfel moved very quickly to fill the two vacancies that are his to appoint to the Board of Directors of the Evansville Convention and Visitors Bureau?…that the two people that he appointed Ward Shaw of Casino Aztar and Donna Leader appear to be very good choices and fit the mold mandated by state law?….that in the official press release announcing these two appointments that Mayor Weinzapfel pushed the envelope by stating that an “outsider” should be hired to the Executive Director position vacated by the departure of Marilee Fowler?…that the Mayor also expressed a preference that the new board should move quickly to spend the Innkeeper’s Tax on some significant projects?

IS IT TRUE that there are four more board members to be appointed…that two will be appointed by the Vanderburgh County Commissioners and the other two by the Vanderburgh County Council?…that it is the Board of Director’s job to conduct the search and to make the decision on who to hire as Marilee’s replacement?…that the new Executive Director will have the responsibility to find and recommend projects for board of directors approval when it comes to significant projects being done with the Innkeeper’s Tax?…that Marilee Fowler’s departure was brought to us for the most part by political meddling in the affairs of the ECVB?…that “Here We Go Again” is not the right theme song for the ECVB if a local or national search is to yield the kind of talented candidate that is needed in this important position?…that the kind of person needed is not likely to want to be anyone’s puppet?….that puppets are only as good as their puppet master?

IS IT TRUE that the problems on the south side with respect to sewers and flood control are essentially two separate but vexing problems?…that there are four projects that have been approved and financed to address the flooding issues mostly in the second Ward?…that one of those projects has been started and is reported to be 45% complete?…that the other three projects are not yet started but are scheduled to be completed sometime in 2015?…that if your spouse wants four rooms painted and the first room is half done that the other three have not been started that the job is not yet complete?…that it still takes spending time and money to finish the job?…that the City County Observer believes that the south side flooding problem has a solution that will be implemented?….that having a solution on the drawing board and financing in place does not mean that the problem is solved and that announcing that it was solved was about 4 years premature?…that we do applaud Mayor Weinzapfel for doing something about this legacy problem and wish his successor well in finishing the job without incident?

IS IT TRUE that the other problem, the one that we smell when driving down Southlane Drive is still the subject of a Justice Department ruling and will be much more expensive and time consuming to solve?…that problem will continue to dominate local politics and resources for two decades?

January 10, 2011

News Release

Evansville, Ind. — Evansville Mayor Jonathan Weinzapfel applauds City Council’s unanimous vote this evening in support of a resolution affirming the Evansville Redevelopment Commission’s decision to move forward with an agreement to develop a new
hotel in downtown Evansville adjacent to the new Evansville Arena and The Centre.

“I appreciate City Council’s leadership in pushing this vitally important project to the next level,” said Mayor Weinzapfel. “A hotel of this caliber is essential to the continued revitalization of downtown Evansville and to our community’s ability to most effectively market The Centre and the new Evansville Arena to convention, trade show and event planners, not to mention tourists of all kinds.”

As Mayor Weinzapfel announced on December 21, 2010, the City is ready to finalize an agreement with Evansville firm Woodruff Hospitality to develop a new $32 million Hyatt Place hotel with 220 guest rooms and suites, as well as banquet and meeting facilities to complement those at The Centre.

“Not only is this a positive step for our community, but it’s shaping up to be a good deal financially, especially when compared to the incentives other communities have offered for similar projects. Plus, this project will create hundreds of good paying jobs during construction over the next year and its subsequent operation,” Weinzapfel said at the time.

The agreement will stipulate that the hotel site include at least 305 parking spaces for its operation. Those spaces will also be available for arena functions. The developer will be responsible for all operating and other expenses of the new hotel and parking facility, as well as for the demolition of what remains of the former Executive Inn and its parking garage. If for some reason it is less expensive or otherwise more logical for the City to undertake the
demolition of the former Executive Inn, the incentives will be adjusted accordingly.

The City is in a position to offer public incentives not to exceed $3,500,000 from downtown economic development funds pledged by Casino Aztar; up to $4,500,000 in loans supported by the downtown TIF, not general property taxes; and up to a 10-year property tax phase-in schedule as allowable by law. In comparison, Fort Wayne officials provided a parking facility and more than $1 million for infrastructure improvements, an annual subsidy of $250,000 for at least 10 years, $6 million worth of income tax credits, the construction of a skywalk, and other incentives to spur the development of a new nationally-affiliated hotel near the new baseball stadium in downtown Fort Wayne.

The local development agreement will call for the utilization of local workers and the hiring of local construction companies, engineers and architects to the fullest extent possible. The City also will request that local minority- and women-owned businesses be utilized for a total of 21% of the work.

The development agreement is based on the responses to the initial request for proposals the Evansville Redevelopment Commission (ERC) issued in September to solicit concepts for the development, design and construction of a new hotel and determine the type and amount of public incentives that would be necessary for such a development in the current economic climate.

Woodruff Hospitality was one of four respondents to the initial RFP. Responses were also received from Browning Hotel Associates LLC (Indianapolis), White Lodging Services Corporation (Merrillville) and The Kunkel Group (Evansville), which joined Woodruff in its bid
for the hotel project shortly after the responses were received.

The ERC endorsed these incentives at its meeting on January 3, 2011, and will incorporate them into its final request for proposals for the hotel development as required by State law. The ERC
will consider all responses it receives to its RFP and expects a final agreement to be concluded in March 2011.

Woodruff Hospitality was formed approximately five years ago to acquire, renovate and manage hotel properties. Martin Woodruff, also a State Farm Insurance agent, is Woodruff Hospitality’s
majority owner and principle; and Jeff Stratton is Vice President of Finance. Woodruff Hospitality has engaged Evansville-based Landmark Design & Engineering, Inc., owned by David Stallings, to work with Hyatt corporate officials to design and engineer the new hotel facility.

Source: City of Evansville

Expresses Outspoken Opinions on Marilee Fowler’s Replacement and How to Spend the Innkeeper’s Tax

(EVANSVILLE, IN) – January 10, 2011 – Mayor Jonathan Weinzapfel today announced that he
has appointed Ward Shaw and Donna Leader to the Evansville Convention & Visitors Bureau
(ECVB) Board of Commissioners. Their terms, effective immediately, will expire on December
31, 2011, since they will be filling the unexpired portions of previous members’ terms.
“Ward Shaw and Donna Leader have not only the requisite skills and experience to help lead the
ECVB through this troubling situation, but also the passion for the Evansville community
necessary to move us forward. Ward and Donna fully understand the complexities of the current
situation and are ready to hit the ground running to restore community faith in the ECVB.”
In order to move the ECVB – and our community – forward, Mayor Weinzapfel believes the
Board needs to immediately focus its efforts on the following:

• Finding a new executive director from outside the organization who can provide a fresh
perspective and leadership;

• Determining the most effective use of Innkeeper’s Tax revenues and allocating funds for
one or two large-scale projects that will have a substantial, positive impact on convention
and tourism business and our local economy;

• Working strategically and collaboratively to align the ECVB’s mission and efforts with
our region’s economic and community development goals, understanding that the
Commission was created to promote the development and growth of our convention and
visitor industry, which must be considered as much of a business sector as plastics,
automotive components, healthcare, or banking; and

• Coordinating with the Vanderburgh County Council to ensure proper administrative and
financial controls are in place.

According to State statute, the Mayor must appoint a member to the ECVB Board who is
engaged in the hotel/motel business and to represent the interests of the riverboat. Ward Shaw,
who moved to Evansville in July 2010 to serve as General Manager of Casino Aztar with
Tropicana Entertainment, is a graduate of Vanderbilt University, which he attended on a Naval
ROTC scholarship. After four years as a Naval officer onboard the USS Roanoke in the Western
Pacific, he attended Indiana University’s Kelley School of Business, where he completed a
Master’s in Business Administration. Upon completing the graduate program at IU, Ward began
his career in the gaming industry with the former Harrah’s Entertainment, where he worked in a
variety of senior management roles within the company at multiple locations including St. Louis,
MO; Las Vegas, NV; Kansas City, MO; and Lake Charles, LA. Most recently before coming to
Evansville, Ward worked with stand-alone casinos around the country to assist them with
strategic planning, operational improvements and leadership development.

Ward enjoys staying active and contributing his service to philanthropic and civic organizations.
Since relocating to Evansville in July, Ward has become involved in the Rotary Club of
Evansville and has recently joined a commission to help analyze and improve operating
structures at Evansville’s Mesker Park Zoo and Botanic Garden.

Donna Leader, a native of Evansville, is a graduate of the University of Evansville who also has
received certifications in fundraising, creative problem solving, leadership training, planned
giving, and grant writing. Currently the Development Director at Joshua Academy, Donna
previously served as Executive Director of The Catholic Foundation of Southwestern Indiana,
Inc.; Director of Development for Evansville Catholic High Schools; Director of Meetings and
Conventions for Bristol-Myers Squibb/Mead Johnson; and Vice President of Sales and
Marketing for Ball Communications.

Donna’s present community service and civic involvement includes serving as an at-large
member of the Vanderburgh County Council; membership in the Rotary Club of Evansville,
ANEW – A Network of Evansville Women, and the League of Women Voters; and serving on
the Evansville Arena Project Committee, N.E.E.D.S. Executive Committee, ATHENA Awards
Committee, and Rotary Club of Evansville Civic Awards Committee (Co-Chair).

FOR IMMEDIATE RELEASE

January 10, 2011

AG, legislators support bill for safe disposal of prescription drugs

Legislation would deter abuse, clear obstacles to pharmacies offering drug drop-off option

INDIANAPOLIS – Because of the crisis Indiana faces in the abuse and misuse of prescription drugs, Attorney General Greg Zoeller and state lawmakers and regulators today announced a legislative proposal that would make it easier for Hoosiers to safely discard their unneeded or expired prescription drugs.

The bill, introduced into the 2011 session of the Indiana General Assembly, would revise statutory and regulatory requirements in Indiana law so that pharmacies could accept unused prescription drugs from customers and dispose of them securely and safely at their stores.

“Many parents might not realize that abuse of prescription drugs by teenagers is very common, and the source of the controlled substances is not a dealer on a street corner but the family medicine cabinet. Unused or outdated prescriptions easily get pilfered and the hazardous medications diverted for teen drug experimentation. Flushing away old medicines is not the best option either, since pharmaceutical pollutants can get into waterways. This bill is a good remedy to both problems, and I applaud the legislators for introducing it,” Zoeller said.

State Representative Kevin Mahan, R-Hartford City, is author of the legislation, House Bill 1121, and State Representative Scott Reske, D-Pendleton, and State Representative Randy Frye, R-Greensburg, are co-authors.

“As the former sheriff of Blackford County, I have unfortunately seen the abuse that can take place with prescription drugs and the liability they have in people’s homes. As sheriff, I took a proactive approach and organized a program for proper prescription disposal, which resulted in filling up eight 55-gallon barrels. This legislation is necessary to give pharmacies more control in dealing with discarded prescriptions. Another benefit to this legislation is the fact it does not require a police officer to be present while collecting this unused medication. It will give them the opportunity to participate if available, but will allow them the opportunity to fulfill their duties of keeping us safe,” Representative Mahan said.

“This is one of the many ways we are hoping to address in confronting the increasing problem of prescription drug abuse that is being experienced nationwide,” Representative Reske said.

“These programs give patients and health care providers a way to safely and effectively get these dangerous drugs out of the home. The bill will finally allow pharmacies to collect and destroy the very drugs they dispense,” said Lora Williams, president of the Indiana Board of Pharmacy, which would develop new rules if the bill passes.

In some other states, pharmacies provide disposal bins where consumers can safely discard their unneeded prescription pills, tablets and liquids. State statute would have to be changed for pharmacies in Indiana to be able to widely offer drug-disposal sites for controlled substances, however.

On September 25, the Attorney General’s Office, the Indiana State Police (ISP) and U.S. Drug Enforcement Administration (DEA) participated in the National Drug Take Back Day which allowed people to drop off unused and unwanted drugs at dozens of locations around Indiana. Approximately four tons of prescription drugs were collected in one day and properly destroyed by incineration. Although the Take Back Day event indicated there was pent-up demand for such collection points, federal law requires a law enforcement official to be present at a disposal site.

Mahan’s, Reske’s and Frye’s bill would allow pharmacies to participate in a disposal program to accept unused prescription medications, including controlled substances such as prescription painkillers. It would empower the Indiana Board of Pharmacy to designate who can accept those medications in keeping with the federal law.

If passed, the bill also would authorize the Board of Pharmacy to write regulatory rules to implement the program so that the medications can be securely discarded in an environmentally safe manner while protecting patients’ privacy. The Board of Pharmacy would work with the Indiana Department of Environmental Management (IDEM), the State Department of Health (ISDH), the Indiana State Police and other agencies in developing the new rules and licensing requirements.

Participating in the drug disposal program would be voluntary; pharmacies and other participating health facilities would not be required to offer disposal sites. “Many pharmacy retailers may be eager to offer this service voluntarily since it will draw customers into their stores where they might purchase other products. From a consumer standpoint, the convenience of being able to return unused drugs to pharmacies will mean that fewer medicines get diverted and abused. From a public safety standpoint, providing a drug disposal site no longer will entail taking a police officer off the street to supervise it,” Zoeller said.

According to IDEM, proper disposal of prescription and over-the-counter medications is an environmental concern. Pharmaceuticals, if flushed or poured down a drain, might not be removed during the sewage treatment process and the chemicals can make their way into lakes, streams and groundwater where aquatic species would be exposed to them. IDEM and cooperating Solid Waste Management Districts and other groups offer locations to discard unwanted medicines if they are not controlled substances. For more information, view this link: http://www.in.gov/recycle/6141.htm.

The Attorney General’s Office is the state’s consumer protection agency and brings licensing actions against licensed health professionals and entities. Zoeller thanked the legislators, the Indiana Board of Pharmacy, IDEM, Indiana State Police, DEA and other agencies for their efforts to reduce prescription drug diversion and abuse, and he urged the Legislature to pass the bill this session.

Could Vectren be on Duke’s Shopping List?

January 10, 2011

CHARLOTTE, N.C. and RALEIGH, N.C. – Duke Energy (NYSE: DUK) and Progress Energy, Inc. (NYSE: PGN) announced today that both companies’ boards of directors have unanimously approved a definitive merger agreement to combine the two companies in a stock-for-stock transaction. The combined company, to be called Duke Energy, will be the country’s largest utility, with:

• Approximately $65 billion in enterprise value and $37 billion in market capitalization
• The country’s largest regulated customer base, providing service to approximately 7.1 million electric customers in six regulated service territories North Carolina, South Carolina, Florida, Indiana, Kentucky and Ohio
• Approximately 57 gigawatts of domestic generating capacity from a diversified mix of coal, nuclear, natural gas, oil and renewable resources
• The largest regulated nuclear fleet in the country.

“Our industry is entering a building phase where we must invest in an array of new technologies to reduce our environmental footprints and become more efficient,” said Jim Rogers, chairman, president and chief executive officer of Duke Energy. “By merging our companies, we can do that more economically for our customers, improve shareholder value and continue to grow.

“Combining Duke Energy and Progress Energy creates a utility with greater financial strength and enhanced ability to meet our challenges head-on,” Rogers continued.

“This combination of two outstanding companies is a natural fit,” said Bill Johnson, chairman, president and chief executive officer of Progress Energy. “It makes clear strategic sense and creates exceptional value for our shareholders. Together, we can leverage our best practices to achieve even higher levels of safety, operational excellence and customer satisfaction, and save money for customers by combining our fuel purchasing power and the dispatch of our generating plants.

“This merger also provides predictable earnings and cash flows to support our dividend payments to shareholders,” Johnson added.

Terms
Under the merger agreement, Progress Energy’s shareholders will receive 2.6125 shares of common stock of Duke Energy in exchange for each share of Progress Energy common stock. Based on Duke Energy’s closing share price on Jan. 7, 2011,

Progress Energy shareholders would receive a value of $46.48 per share, or $13.7 billion in total equity value.

Duke Energy also will assume approximately $12.2 billion in Progress Energy net debt. The transaction price represents a 7.1 percent premium to the unaffected closing stock price of Progress Energy on Jan. 5, 2011, and a 3.9 percent premium to the closing stock price of Progress Energy on Jan. 7, 2011.

The transaction price also represents a 6.6 percent premium to the average closing stock price of Progress Energy over the last 20 trading days ending Jan. 5, 2011, and a 6.4 percent premium over the last 20 trading days ending Jan. 7, 2011.

Following completion of the merger, officials anticipate Duke Energy shareholders will own approximately 63 percent of the combined company and Progress Energy shareholders will own approximately 37 percent on a fully diluted basis.

The combination is anticipated to be accretive to Duke Energy’s adjusted earnings in the first year after closing.

Based on Duke Energy’s current quarterly cash dividend of 24.5 cents per common share, Progress Energy shareholders would receive an approximate 3 percent dividend increase.

Duke Energy expects to effect a reverse stock split immediately prior to closing, and, as a result, the exchange ratio will be appropriately adjusted at that time to reflect the reverse split.

Structure, Organization & Leadership
When the merger is completed, Rogers will become executive chairman of the new organization. In this role, Rogers will advise the CEO on strategic matters, play an active role in government relations and serve as the company’s lead spokesperson on energy policy.

Johnson will become president and chief executive officer of the new company.

Both Rogers and Johnson will serve on the board of directors of the combined company, which will be composed of 18 members, with 11 designated by Duke Energy’s board of directors and seven designated by Progress Energy’s board of directors.

The combined company will be headquartered in Charlotte and will maintain substantial operations in Raleigh.

Until the merger has received all necessary approvals and has closed, the companies will continue to operate as separate entities.

Customers will see no change in their current electric utility companies including: Progress Energy Carolinas and Progress Energy Florida and Duke Energy Carolinas, Duke Energy Indiana, Duke Energy Ohio, Duke Energy Kentucky, Commercial Power, Duke Energy Generation Services and Duke Energy International.

Approvals & Timing
Completion of the merger is conditioned upon, among other things, the approval of the shareholders of both companies, as well as expiration or termination of any applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976.

Other necessary regulatory filings include: Federal Energy Regulatory Commission (FERC), Nuclear Regulatory Commission (NRC), North Carolina Utilities Commission (NCUC) and South Carolina Public Service Commission (SCPSC).

The companies also will provide information regarding the merger to their other state regulators: the Florida Public Service Commission, Indiana Utility Regulatory Commission, Kentucky Public Service Commission and Ohio Public Utilities Commission.

The companies are targeting a closing by the end of 2011.

Advisors
J.P. Morgan served as lead financial advisor and provided a fairness opinion to Duke Energy, and BofA Merrill Lynch also provided a fairness opinion to Duke Energy. Lazard Frères served as lead financial advisor and provided a fairness opinion to Progress Energy, and Barclays Capital also served as a financial advisor and provided a fairness opinion to Progress Energy. Wachtell, Lipton, Rosen & Katz served as legal counsel for Duke Energy. Hunton & Williams LLP served as legal counsel for Progress Energy.

About Duke Energy
Duke Energy is one of the largest electric power holding companies in the United States. Its regulated utility operations serve approximately 4 million customers located in five states in the Southeast and Midwest, representing a population of approximately 11 million people. Its commercial power and international business segments own and operate diverse power generation assets in North America and Latin America, including a growing portfolio of renewable energy assets in the United States. Headquartered in Charlotte, N.C., Duke Energy is a Fortune 500 company traded on the New York Stock Exchange under the symbol DUK. More information about the company is available on the Internet at: www.duke-energy.com.

About Progress Energy
Progress Energy (NYSE: PGN), headquartered in Raleigh, N.C., is a Fortune 500 energy company with about 22,000 megawatts of generation capacity and approximately $10 billion in annual revenues. Progress Energy includes two major electric utilities that serve about 3.1 million customers in the Carolinas and Florida. The company has earned the Edison Electric Institute’s Edison Award, the industry’s highest honor, in recognition of its operational excellence, and was the first utility to receive the prestigious J.D. Power and Associates Founder’s Award for customer service. The company is pursuing a balanced strategy for a secure energy future, which includes aggressive energy-efficiency programs, investments in renewable energy technologies and a state-of-the-art electricity system. Progress Energy celebrated a century of service in 2008. Visit the company’s website at www.progress-energy.com.

Source: Duke Energy

Income, Sales, and Sin Taxes May Increase to Cover $13 Billion Deficit

The New York Times is reporting that the State of Illinois has a budget deficit of $13 Billion that is forcing the new legislature to consider increasing every tax that it is within their power to increase just to keep the bills paid. In addition to the massive deficit the State if Illinois is reported to have current unpaid bills of $6 Billion causing concerns about debt ratings and bondability.

To deal with this Illinois is considering increasing the income tax by 75%, a yet to be defined tax increase on businesses, and of course the always popular increase on cigarettes by $1 per pack. The tax increases are being designed to raise about $7.5 Billion per year in additional tax revenue. When asked what the legislature would do with this money, John Cullerton the President of the Illinois Senate simply said “we would pay our bills”.

So what has happened to cause our friends and relatives across the Wabash River to be facing massive tax increases? Illinois more than nearly any other state is dominated by a single large urban city in the form of Chicago that has the population and the votes to dictate state policy. Thus the State of Illinois is governed like a Midwestern city. The rest of Illinois including the parts that we all consider to be part of the Tri-State are much more like rural America. It is somewhat like the City of Chicago has annexed the rest of the state. It will be interesting to see how the rest of Illinois responds to these massive tax increases that are largely necessary because of the excessive spending of elected officials on keeping the bills paid in the northeast corner of the state.

Here is a link to the full article.

http://www.nytimes.com/2011/01/10/us/10illinois.html?pagewanted=1&hp