Politics in Minnesota: The Weekly Report - Vol. 1, Issue 16 - 8/26/2005

In this issue: Hatch Loses His Case Against Medica: Turning Political Gold into Mud, The Politics of the Northwest Airlines Strike: The Mechanics Stand Alone, The Pawlenty Bench: Judging Lorie and the Son of Casey, Turbulence in Talk Radio, Dollar Domination in the States, Bits & Pieces..., Lobbyist Watch

Hatch Loses His Case Against Medica: Turning Political Gold into Mud

Democrat Attorney Mike Hatch is without peer when it comes to taking ownership of issues and then dominating headlines and broadcasts. At first, your publishers were shocked that Hatch lost his lawsuit against Medica Health Plans. But since that we've had a chance to pore over the wildly good read that was Hennepin County Judge Lloyd Zimmerman's opinion [PDF] (see more on the opinion later in this story), we can't help but wonder what Hatch was thinking in bringing the case in the first place. Hatch certainly did get great headlines; most pols would seriously consider killing their firstborn to have their name and "caped crusader" in the same headline. But the political gold your publishers thought Hatch had walking into the courtroom became mud for Republicans to work with if (make that "if" a "when" as we've written over the summer) he runs for governor.

To recap the case. In 2001, Hatch went after Medica and its parent company, Allina Health Systems and found lavish perks like Calhoun Beach Club suite apartments, luxury trips and sloppy management. He got a court to make Allina (hospitals and clinics) divest itself of Medica (health plans) and personally picked out Medica's new board of directors. Two years later, Hatch accused the board he picked of self-serving behavior and somehow rigging their own reelection. The morass went back to court.

Onto to the resolution and the 50 pages of wit, clarity, and devastation delivered by Judge Zimmerman (a Jesse Ventura appointee). You just have to love a judge who can dish in an opinion. For example, Hatch questioned a $64 dinner tab that Fingerhut CEO and board chair (and no longer Hatch friend, we presume) Ted Deikel submitted as a reimbursable expense for a meeting with Hatch and Medica executive John Morrison. In a footnote, Zimmerman provides the answers inquiring minds want to know. Messrs. Deikel and Morrison each had an appetizer, a salad and the sea bass; and, they dined at Campiello in Uptown. Hatch, on the other hand, emphasized that he didn't eat and bought his own two drinks.

For four years, Hatch was fond of saying that Medica's board of directors had "hijacked the company." But just before trial, Hatch withdrew the thrust of his case--all the issues surrounding a managing operating agreement--and one week after the trial, he filed a post-trial brief recanting four of his five claims of nefarious conduct driving the four-year litigation.

You also just have to love a judge who skips the judicial mumbo jumbo and openly confesses to confusion about what the State is saying. Zimmerman plainly writes, "what exactly is the State (Hatch) alleging Medica did wrong?" And, "The State's position is neither credible nor sensible." And, our personal favorite, "the Court is left with the uncomfortable feeling that it is operating in the uncharted realm of legal metaphysics." Finally, for our lawyer-readers, "The problem with the State's argument is that it eliminates all the requirements of the Rules of Civil Procedure." [For our non-lawyer readers, the Rules govern everything.] To have a judge characterize your argument that way is enough to send the lawyers in question on a week-long binge and then perhaps on to a 12-step program.

Granted, it's tough to make political hay out of judicial opinions, but here's one ad (and please, start some ominous-sounding music in your head): "Democrat Attorney Mike Hatch sued the board of directors of HMO Medica. That's a board, Hatch, himself, appointed. The court dismissed the case, calling it neither credible nor sensible. Hatch's phony lawsuit cost Medica $2.5 million. And that is supposed to help lower our health care premiums?"

What's worse, there are lots more companies that Hatch has sued. What if they all got together and came up with one really big number? "Hatch has cost Minnesota business X zillion of dollars in frivolous lawsuits?" We hear that's happening, and that a growing "coalition of companies sued by and hostile to Hatch" movement is in the works. As we've noted in a previous issue, that kind of coalition among businesspeople sure goes a long way in mitigating against Gov. Tim Pawlenty violating the no new taxes pledge with the cigarette fee.

The Politics of the Northwest Airlines Strike: The Mechanics Stand Alone

Last week we wrote there would be little to no political fall-out from the Northwest Airlines mechanics union strike. And, as we expected, almost none of the major Democratic pols are stepping up to stand with the Aircraft Mechanics Fraternal Association. We can't help but ponder the thought in the bumper sticker, "What Would Wellstone Do?" What, indeed, would the late leading liberal U.S. Senator in the country do? Paul Wellstone always stood with his friends in labor. As best we can tell, most elected Democrats--with the exception of Sen. Maj. Leader Dean Johnson (D-Willmar)--are silent and all other unions are not honoring the picket line. Northwest Airlines management seems to be weathering the strike brilliantly. Opines the Wall Street Journal Wednesday, "Talk about shock and awe. Northwest Airlines appears to be pulling off the heretofore-thought-to-be-miraculous feat for an airline carrier of surviving a labor strike."

Strikes us that the major political story in the strike is the fate of labor. The fact that other Northwest unions have decided not stand with Aircraft Mechanics Fraternal Association is a microcosm of the national and soon-to-be local split in the labor movement that has put the Service Employees International Union, the Commercial Food Workers of America, and the Teamsters in a separate camp than the other unions in the much publicized split in the AFL-CIO that occurred earlier this summer.

Unions no doubt have a growing challenge both in organizing and finding a way to grow, but also in defining what role they will play in politics. The Aircraft Mechanics Fraternal Association has been a very loyal Democratic supporter, but in the last few election cycles, the Republicans have tapped the well-paid suburban and exurban union members (like the mechanics union), who are often pro-gun and anti-tax, and moved them to their camp. This is another factor in the split in the AFL-CIO and why the Aircraft Mechanics Fraternal Association isn't getting the type of support most unions get from their "brothers and sisters" when they strike. By the way, locally, the Service Employees International Union and the Commercial Food Workers of America are the only growing unions. They are building a growing political base of traditionally less skilled, but well-paid jobs that allow them to reach out to immigrant groups. What does all this mean for Minnesota elections? We're not clear on this point, at all.

The Pawlenty Bench: Judging Lorie and the Son of Casey

Gov. Tim Pawlenty continues the tradition of former governors Arne Carlson and Jesse Ventura in appointing top notch people to the bench. [The governors before them also appointed mostly good people, but there was less emphasis on judicial qualifications and a much greater degree of political patronage. For example, former Gov. Rudy Perpich appointed then-very youthful trial lawyers' lobbyist John Stanoch, who is currently president of Qwest Communications, to the Hennepin County bench. Stanoch, by the way, got high marks as a judge.]

Recently the Governor had the extremely good sense to appoint two judges who are both highly respected in law circles and who are near to your publishers' hearts for different reasons. The first is Lorie Gildea, who currently serves as a prosecutor in Hennepin County Attorney Amy Klobuchar's office, was a long-time attorney for the U of M, and continues to be a fabulous neighbor and good friend to one of your publishers. Capitol insiders may recognize the Gildea name: her husband, Andy Gildea, is one of the best and hardest-working staffers in the House Republican Caucus.

The second is Bob Awsumb, a long-time attorney with his own private practice and an adjunct professor at William Mitchell College of Law. While we don't know Awsumb, we sure knew his father, Roger Awsumb, aka Casey Jones. For our younger readers, Awsumb (who went to the great roundhouse in the sky in 2002) played railroad engineer Casey Jones on a kiddy television show called Lunch with Casey which aired on the old WTCN on Channel 11 in the 1950s and 60s. We're betting Gov. Pawlenty has the same fond childhood memories we do. Lunch with Casey, and Campbell's tomato soup and grilled cheese sandwiches - served, of course, on TV trays.

Turbulence in Talk Radio

The transition and turmoil in talk radio continues in the Twin Cities. Last Saturday, the Star Tribune's Deborah Caulfield Rybak wrote an interesting about the change in listener trends in Twin Cities talk radio. Her story led with some amazing numbers: "Locally, conservative-talk icon Rush Limbaugh's show has lost 43 percent of its audience among 25- to 54-year-olds in the past year. Sean Hannity's show is down a whopping 63 percent." Those shows air on AM 1500 KSTP. This week KSTP began to ask for feedback in a Web survey about their station which was sent to subscribers of their e-newsletter. The survey struck us as extraordinary. It asked questions about the traits and political knowledge of specific show hosts, whether people liked the banter with callers and if more humor was needed. We're betting the station is seriously considering blowing up it's current line-up of hosts.

We don't profess to be talk radio professionals, although both your publishers have hosted talk radio shows (one of us on KSTP), but we're more than happy to tell KSTP and its liberal counterpart, Air America Radio (950 AM) what they are doing wrong.

It's pretty simple. People are tired of the rants (plus rants are readily available in the blogosphere). Have civil discussions. Tell listeners something they don't know. Entertain people. And, please, for the most part, skip the anecdotal tales of your personal peccadilloes. Perhaps the most egregious offender in this regard is KSTP's Ron Rosenbaum. Does anyone really care about his wannabe Rat Pack penchant for gambling, drinking and cigars? We didn't think so.

Much of the downward spiral at KSTP can be attributed to the inherent dysfunction in having a program director, Joe O'Brien, make talent decisions, when, he himself, wanted to be on the air. O'Brien, who hosted a show in Rochester on KROC in the 1990s, recently stepped down and now can be heard Saturday afternoons on the station. But, as program director, he made some bad decisions. Evening host Chis Krok simply doesn't belong in this market, which has little tolerance for his brand of immature inflammability. Tape-delaying Rush Limbaugh one hour has been disastrous for the station's flagship show, Joe Soucheray's Garage Logic (GL). Regular GL listeners may have noticed that, in our opinion, Soucheray "gets it." He's been all over the map on new and interesting topics besides mostly politics for some time.

So where does KSTP go? We think there is a chance that KSTP might return to its roots of diversity in opinion and more entertainment than politics, to people like Barbara Carlson or Turi Rider. Maybe do some trading with another Hubbard radio station, FM 107, which focuses on chic chat. One very smart move would be to take Kevyn Burger and put her on AM 1500 in the midmorning time slot. Her breadth of talent is somewhat lost on the female-focused 107. [Full disclosure: Burger is a real (as opposed to Sid Hartmanesque) "close personal friend" of one of your publishers, who did not consult Burger about this story and may find that Burger will kill her for making this suggestion.]

Dollar Domination in the States

We've been remiss in not commenting on the recent study by the Center for Public Integrity, which ranked Minnesota fourth (at over $50 million) among the states in lobbying spending. That comes as no surprise to your publishers. Why? First, in the last few years, there's been a weird convergence of major issues to lobby like increasing gambling and building new stadiums, rail lines and hospitals. Second, the evolution of modern Minnesota state government. In the 1970s, when the Democrats dominated the Capitol, Democrats decided to start regulating just about everything. The problem was compounded in the 1980s during the Reagan devolution of power to the states, which gave legislators a lot more jurisdiction in which to meddle. And, while the Minnesota ranking did raise even our eyebrows, it's worth noting the Center's study has serious flaws. For example, the total dollars spent in Massachusetts were for only half a year, and in Pennsylvania, there is no accounting because the state Supreme Court struck down a lobbyist disclosure law in 2002, holding that it was an unconstitutional regulation of the practice of law.

Perhaps most unsettling is how seasoned public affairs thinkers and writers are interpreting the Center's study results. Witness the following thought from the Star Tribune's editorial board.

"Minnesota's showing on Public Integrity's other set of rankings, however, is disturbing. The center judged Minnesota's laws governing public disclosure of lobbying activity to be "barely passing." By its reckoning, at least 19 other states do a better job of letting the public see what lobbyists are doing to influence the setting of their laws and the spending of their tax dollars."

And, what does the Center use for criteria in that ranking? Some really stupid stuff. Like not requiring lobbyists to submit photos with their registrations. Or not requiring lobbyists to list bill numbers or subject matter to be lobbied. Minnesota does have a subject matter requirement, and bill numbers? Tell that to any health care lobbyist who tracks hundreds of bills and watches the same amendment get tacked on to half of those bills. Another idea the Center likes is to have lobbyists report in time increments (which is done in some states like Wisconsin) to whom they are talking. That is a seriously skewed view of lobbying--let alone how the world works. The mother of a legislator or a major CEO can accomplish more in a five-minute conversation than some lobbyists can in an entire legislative session.

Finally, in our view, the confusion in the Minnesota discussion is compounded by the lack of academic experts other than Hamline University's David Shulz, who in discussing the topic, makes irrational statements like lobbyists are responsible for the political gridlock in our state. [Scroll down to Almanac, August 12, 2005, "Lobbyist Coffers Full."]

Politics In Minnesota: Bits & Pieces...
--Tracking people and events--

The Minnesota Campaign Finance and Public Disclosure Board recently issued an on-line report [PDF] on how many people used the political contribution refund program, which allows citizen refunds of $50 per person. Candidates who use the program must abide by the spending limits.

Here are the top 10 House candidates for 2004 (ironically, five Republicans and five Democrats), who had donors use the program, the amount paid out, and the number of contributors to create that amount (contributions from married couples filing jointly at $100 are counted as one contribution):

• Rep. Erik Paulsen (R-Eden Prairie), $22,335 (286)
• Rep. Greg Davids (R-Preston), $20,915 (274)
• Rep. Tony Cornish (R-Good Thunder), $20,719 (277)
• Rep. Dave Dill (D-Crane Lake), $20,502 (268)
• Former Rep. Rebecca Otto (D-Stillwater), $20,335 (307)
• Rep. Ann Lenczewski (D-Bloomington), $19,658 (283)
• Rep. Joe Atkins (D-Inver Grove Heights), $19,492 (277)
• Rep. Connie Bernardy (D-Fridley), $17,911 (267)
• Rep. Denny McNamara (R-Hasting), $15,773 (197)
• Former Rep. Lynda Boudreau (R-Faribault), $15,701 (220)

Senators were not up for reelection in 2004 and thus didn't make much use of the program, although Sixth District Congressional candidate and Sen. Michele Bachmann (R-Stillwater) got $19,240 from 295 donors, and Sen. Min. Leader Day (R-Owatonna), $16,318 from 231 donors. Also of interest, presumably former Democratic Sen. Majority Leader and 2002 gubernatorial candidate Roger Moe used the program to pay down campaign debt. He got $42,087 from 659 donors. And, apparently the Pawlenty for Governor campaign doesn't work this refund system: he raised a mere $293 from eight donors.

One of your publishers attended last week's meeting in Seattle of the National Conference of State Legislatures. The number one question asked of anyone wearing a Minnesota badge was, "How was your shutdown?"

Exurban Washington state looks much like Minnesota, with one major exception. On the stretch of I-5 north of Seattle, every 20-30 miles, there are the big box retailers like Wal-Mart and Home Depot--and an Indian gaming casino conveniently located right next door.

All four legislative caucuses are busy recruiting candidates. And, as usual, the Sen. caucuses are looking to their House counterparts for candidates, who are viewed as proven vote-getters with legs up to prevail in Sen. contests. In fact, more than one-third of the Sen. is comprised of former House members. House members who could be in play for Sen. races include:

• [Former] Rep. Tim Finseth (R-Angus) to run against Sen. LeRoy Stumpf (D-Thief River Falls).
• Rep. Frank Moe (D-Bemidji) to oppose Sen. Carrie Ruud (R-Breezy
  Point).
• Reps. Bud Heidgerken (R-Freeport) and Al Juhnke (D-Willmar) to
  run for the seat held by Sen. Maj. Leader Dean Johnson (D-Willmar), if Johnson runs for statewide office.
• Rep. Aaron Peterson (D-Madison) to replace rumored retiring Sen. Gary
  Kubly (D-Granite Falls).
• Reps. Doug Magnus (R-Slayton) and former Rep. Ted Winter (D-Fulda) to run for the open seat of rumored-to-retire Sen. Jim Vickerman (D-Tracy).
• Rep. Ruth Johnson (D-St. Peter) to replace rumored retiring Sen. John
  Hottinger (D-St. Peter).
• Former Rep. Carla Nelson (R-Rochester) to run against Sen. Sheila Kiscaden (I-Rochester).
• Rep. Gene Pelowski (D-Winona) to run in the open seat created by retiring Sen. Bob Kierlin (R-Winona).
• Rep. Ron Latz (D-St. Louis Park) to replace gubernatorial candidate
  Sen. Steve Kelley (D-Hopkins).
• Reps. Denise Dittrich (D-Brooklyn Park) and Melissa Hortman (D-Brooklyn Park) to replace rumored retiring Sen. Leo Foley (D-Coon Rapids).

Rep. Dean Urdahl (R-Grove City) is so engaged in attending every event in his district that he mistakenly walked in on a Democratic Party strategy session in Meeker County attended by House Minority Leader Matt Entenza (D-St. Paul). Urdahl said the event was not advertised as a Democrat event. He thought it was a group of nonpartisan citizens getting together to chat about state government issues

Politics In Minnesota: Lobbyist Watch
--Who is working what issues--

From the Minnesota Campaign Finance & Public Disclosure Board:

• Newly registered lobbyists:
  • No new registrations this week.
• Recently terminated lobbyists:
  • Gary Botzek, for the Professional Insurance Agents of Minnesota.
  • Reid LeBeau, for the Minnesota Healthcare Providers.
  • Kendra Shank, for the Minnesota Chamber of Commerce.
  • Lynette Slater, for McGough Development.
  • Nora Stewart, for all the clients represented by Lockridge Grindal Nauen.

Politics In Minnesota: The Coming Week In Other Media

[Publishers Note: To all our friends in the media, take no offense, but our weekly list of public affairs media didn't fare well in our reader survey. We are dropping this section as of this week.]