Campaign descends on IU

In Tuesday night’s final gubernatorial debate at the IU Auditorium, candidates sparred over the Indiana government’s ties to Fannie Mae and Freddie Mac, the two enormous mortgage-lending companies that the government recently rescued.

Democratic candidate Jill Long Thompson accused Gov. Mitch Daniels of making risky investments with government money.

“Well as you know, junk bonds are considered high-risk investments, and you know that Freddie Mac and Fannie Mae have had a bailout by the federal government,” Long Thompson said. “I think it’s also important to know that there’s no investment policy for those dollars.”

But Daniels defended his actions, saying there are guidelines to government investments.

“First of all, the treasurer decides on the investment of such funds,” Daniels said. “Secondly, there’s a very clear policy governing what is not permissible, and it’s one of the most conservative and cautious in America.”

Daniels said in a press conference after the debate that Indiana Treasurer Richard Mourdock is scheduling a conference at 10 a.m. today to address Long Thompson’s accusations.

Libertarian candidate Andy Horning had a different view of economic policy, which he acknowledged most voters might think is extremist.

“I don’t think it was the investments that were made, but I think it’s more or less the way our government has structured its money in debt in every kind of respect and what we have done over the last 30 years in terms of moving away from a gold standard,” he said.

Other topics, such as the priority of arts and culture, arose. Both Horning and Daniels said they supported the arts personally but agreed that it should not be a priority within the government.

“Throughout human history art has lifted the spirits and called mankind to the highest instincts. It’s never been more important than now,” Daniels said. “Supporting the very best of the arts is essential in the role that it always has been. But in difficult times, a subsidy of the arts is not at the top of my list.”

Horning went even further, citing government influence as a reason to cut government funding of the arts.

“Art can be looked at propaganda as well. ... Only 10 percent of funding coming from the government, and we can do without it,” Horning said. “I would like to cut that out entirely and make no possibility about political influence.”

For the rest of the questions, the main challenge the candidates faced was how to edge in attacks on the other candidate. The ongoing fight between Daniels and Long Thompson did not end here, when Long Thompson’s comments finally made Daniels snap.

“Well, I thought eventually we might see a kinder, gentler you,” he said to her, “but I guess it’s not in the cards.”

But Long Thompson wasn’t afraid her strategy and the bickering between her and Daniels would turn voters away.

“I think it’s very important to talk very candidly about the issues, and that’s what I’ve always done,” she said.