June 16, 2010

Mitch Daniels - Momentum Building for 2012

This profile in the Weekly Standard is long but well worth fifteen minutes of your day.

For my ADHD readers:

Daniels is a font of statistics, but one comes to his lips more than any other. “Only 61 cents of every education dollar gets into the classroom in Indiana.” School funding increased every year under Daniels before the recession, and since the downturn, when most areas of state government have seen cuts of 25 percent or more, education has been reduced by only 2 percent. Yet the local school boards and their Democratic allies in the state legislature continue to complain. Daniels calls education funding “the bloody shirt” of Indiana politics: “It doesn’t take long before somebody starts waving it.” One of my favorite bits of Daniels video on YouTube shows him at a press conference defending a bill to end “social promotion” in the state’s grade schools. School districts were appalled that the bill would pass without “additional resources” to educate the kids who would be held back.

A reporter asked him about it.

“By the time a child has finished third grade, the state has spent $40,000 and the school district has had 720 days to teach that child to read,” he said, tight-lipped. “If that child can’t read by then, there is a fundamental failure in that district. And they’ll need to remedy it. The most unacceptable thing to do is to shove that child along to fourth grade into almost certain academic failure. That’s a cruel thing to do, it’s a wrong thing to do, and we’re going to put an end to it.”

The reporter pressed: But won’t the schools need more money?

Daniels’s eyes got wide.

“More than $40,000 to teach someone how to read? No. It won’t and it shouldn’t and any school district that can’t do it ought to face consequences.”

We were having lunch one day at a favorite spot, the St. Louis Street Soda Shop in Vincennes, on the Wabash River. Having resisted the Fried Bologna Sandwich ($3.49, with chips, pickle extra), Daniels was washing down a quarter-pound Coney Island dog with a large butterscotch milkshake—“the best in the state,” he assured Dolly, the delighted owner—when a reporter from the local radio station appeared. She pressed him on the education budget cuts too. She told him the local school board had just laid off nine teachers and an administrator.

“What would you say to those people?” she asked.

He visibly flinched, just as he had on MitchTV.

“I’d say it should have been nine administrators and one teacher. There are 20 things that school board could do before it had to lay off one teacher.”

In fact, the governor’s office has publicized a “Citizens’ Checklist” that people can take to their local school boards to see if school officials have made every possible economy. Citizens in Vincennes need to take that list and get answers, he said. The list is filled with questions. Have the administrators “eliminated memberships in professional associations and reduced travel expenses”? Have they “sold, leased, or closed underutilized buildings”? Have they “outsourced transportation and custodial services”?

“I want citizens to understand,” he said. “When people start demanding we spend more money, they’re saying, ‘We want to raise your taxes.’ And the citizens should say, ‘Okay, tell me. Which one of my taxes do you want to raise?’ ”

.........Daniels’s goal means cutting government, high and low. It is work to which he is well suited. He is a famous skinflint. A former employee recalled that Daniels, in private business at the time, asked him to dinner for a job interview and then insisted on splitting the bill. He played golf for several months using a garden glove from home instead of a store-bought golf glove​—“I didn’t want to buy one until I knew I was going to like the game enough to stick with it,” he told me. Family lore has one of Daniels’s four daughters, in grade school, piping up in class during a discussion of money. “Our family has money,” she announced to the teacher, “but my daddy won’t let mommy spend any of it.”

Like governor, like state. Daniels’s miserliness has proved infectious. In the early days of the administration he had a hunch that the government owned more cars than it could use. Lieutenants were dispatched to the parking lots of state facilities to place pennies on a tire of each car. They returned in a month and if the pennies were still there, Kitchell told me, “We said, ‘Give us the keys.’ ” To save on paper, a study was made to find the narrowest type font. Most state newsletters, once printed in color, are now in black and white. The state no longer pays for employee business cards. Agencies that were discovered to be net-users of paper clips—another study—were put in touch with the revenue service, which had a surplus of clips sent by taxpayers with their tax forms. The list of economies is long.

..........In 2000, George W. Bush, at Hubbard’s suggestion, named Daniels director of the Office of Management and Budget. “I never thought I’d go back to Washington,” he said, “but this was the one job I’d go back for. It’s the best job in government. Everything comes together right there.” Daniels left Lilly and liquidated all his stock options and other securities, for a payoff well over $20 million.

Bush called him the Blade, at least in public, and the first budget Daniels submitted was indeed restrained, in comparison with the Bush budgets that followed. With his excellent political sense Daniels fastened on a couple of gimmicks to illustrate his tight-fistedness. He tried to have his office voicemail system altered to play “You Can’t Always Get What You Want” when callers were on hold, but had to settle for piping the song into the Government Printing Office location when congressional staff showed up to pick up their copy of the budget. At a Capitol Hill hearing, out of patience, he said he’d discovered the motto of Congress: “Don’t just stand there, spend something.”

Then came 9/11 and Iraq. In some quarters, Daniels is notorious for publicly declaring that the war in Iraq would cost no more than $60 billion, as a way (goes the theory) of solidifying political support. It’s a particularly egregious charge, reeking of toadyism. It won’t die, and it clearly rankles him.

“The facts are otherwise,” he told me, exasperated, when I mentioned it. “I thought we’d dispensed with this, but I guess not. I think we got it straightened out on Wikipedia at least. I got so sick of it I put together a whole file of stuff that lays out the facts.” Among the material is a background briefing Daniels gave reporters in April 2002, outlining Bush’s request for $74 billion to fight the war. “I said to the Pentagon, give us your assumptions. They talked about a six-month conflict, and we made our estimate on the basis of that.”

The briefing transcript bears this out. “This [budget request] will, to the best of our ability to estimate this, cover all costs from now to the end of the fiscal year,” Daniels said then. “Six months contemplates a conflict, a period of stabilization in Iraq, and the phased withdrawal of a large number of troops.”

He says now, “If someone had come to us and said, What will it cost to invade Iraq, beat the Iraqi Army and stay in Iraq for eight more years, we would have given a different answer. But that wasn’t the question.”

...........As our dinner wound down—I insisted on paying the bill, he offered to split it—he said he was going to give a commencement address the coming weekend, at Franklin College, south of Indianapolis. It had been inspired partly by the theme of “public service” struck by Obama’s recent commencement addresses, in which the president discouraged the pursuit of mere material gain in favor of nonprofit and government work.

“That strikes me as exactly the wrong message to send to young people,” Daniels said. “He’s got it completely wrong. Government service—nonprofits—all that’s fine and necessary. But the host can only stand so many parasites.”

He stopped himself and glanced at my open notebook.

“Maybe that’s too harsh,” he went on. “But someone’s got to say to these kids, There’s nothing wrong with going into business. It’s not selfish. It’s good. Build a business, create jobs for people, create wealth for people. It helps people. And that’s what we’re supposed to do, isn’t it.”

The troopers pulled the Sequoia up to the door of the restaurant, and Daniels left me with what he said was one of his favorite quotations.

“I remember it from a book by Bruce Catton,” he said. “It’s a Union general commenting on Ulysses S. Grant. He said, ‘There was no nonsense, no sentiment; only a plain businessman of the republic, there for the one single purpose of getting that command across the river.’

“I like that. I like that a lot.”

1 comment:

  1. I am fortunate enough to live in Indiana under the direction of Mitch Daniels. Thank you for writing this to show others what a real leader looks like.

    ReplyDelete