The Indianapolis Star from Indianapolis, Indiana • Page 1

SPORTS, Dl 1 1 INDIANA LIVING, El FIND A HEALTHY FIT WITH YOUR PHYSICIAN MVP: MANNING WINS NilAMAPOL ARAN TlHfF STAM "Where the Spirit of the Lord is, there is Liberty" II Cor. 3:17 TUESDAY, JANUARY 11, 2005 1 A GANNETT NEWSPAPER I INDYSTAR.COM CITY FINAL I 50 CENTS INDIANA'S 49TH GOVERNOR 1 v.f t1 JllUiyJU(pljJl inn Qn Hp mlmii IN HIS WORDS On making sacrifices: "Every interest group, of every kind and cause, must resolve to demand a little less, relent a little more often." On rolling up sleeves: "Our children are watching, and so, too, are those who came before us. They would not recognize our problems as daunting. They'd say, 'Wipe your nose. Let's get to On closing his speech: "If you will excuse me, I have to get to work." i Vtr 1 jVl i 'if' Thanks to GOP support, Steve Talley (right) defeated fellow Democrat Rozelle Boyd (left).

Council votes to oust Boyd as president Shakcup casts a shadow of doubt oyer fate of several key initiatives. By John Fritze lohn.fritzendystar.com A coalition of Republicans sided with four Democrats on Monday to topple the leadership of the City-County Council an unprecedented move that could affect a number of important city initiatives this year. An 18-11 vote to make Democrat Steve Talley council president pushed aside Rozelle Boyd, who last year became the council's first Democratic president in more than three decades. The political maneuvering came at the start of a year in which the body is expected to weigh in on a long-term deal with the Indianapolis Colts, a controversial plan to consolidate local government and a budget that could include tax increases. Some now question the fate of those proposals, given the political rancor exposed by Monday's coup.

Democrats hold only a one-vote margin on the council, and some wonder whether Indianapolis Mayor See Council, Page A7 Bush chooses Hoosier to guide economic policy By Maureen Groppe Star Washington Bureau WASHINGTON Indianapolis businessman Al Hubbard has long had his presidential nickname: Hubbs. And now he has a seat in President Bush's inner circle. The White House announced Monday that Hubbard a former business school hi l' INSIDE Charlie Nye 1 he Star Vows: Indiana Chief Justice Randall T. Shepard (right) swore in Mitch Daniels, while (from left) daughters Maggie Daniels, Meredith Daniels, Meagan Niese (partially hidden) and Melissa Daniels held the Bible. Cheri Daniels stood next to her husband.

l.l..j.H)J.J,IUlv 'Our actions mutbe bold governor says at inauguration By Mary Beth Schneider mary.beth.schneiderLaindystar.com Mitch Daniels was sworn in as Indiana's 49th governor Monday, taking over a cash-strapped state he said would need the help of all Hoosiers, especially the well-off, to rebuild. that budget Jan. 18, at his first State of the State address. He gave no specifics, but said: "Our actions must be bold because the problem is huge." While he said nothing about tax increases or specific spending cuts Monday, Daniels said I 'I More words from Gov. Daniels: See a list of excerpts from his inauguration.

A7 Scenes from an Indiana inauguration: Photos capture the emotion of the event at the State Fairgrounds. A6 Assorted asides: Daniels fans attend a private breakfast, the attorney general slips up a bit during the swearing-in and more. A7 Government workers face uncertainty: Daniels hasn't said yet whether he supports the continuation of collective bargaining. B1 Governor signs 13 executive orders: Policies address government ethics, the purchase of in-state goods and services and more. B3 throughout the campaign that nothing was off the table.

Later Monday, Daniels was asked whether his first words as governor were meant to prepare Hoosiers for the possibility of a tax increase. "I don't have anything more to say," Daniels said. "I'll have my suggestions for the budget next week." classmate of Bush's, a major Bush fund-raiser and a veteran of the elder Bush's administration will serve as assistant to the president for economic policy and head the White House National Economic Council "Those to whom life in Indiana has been the most kind must be willing to give back in accordance with their good fortune," he said to 9,000 Hoosiers who filled the Pepsi Coliseum at the State Fairgrounds, and to thousands more watching on television around the state. Daniels, the first Republican governor since January 1989, is 1 Charlie Nye The Star First words: Newly sworn-in Gov. Mitch Daniels delivered his inaugural speech at the Pepsi Coliseum.

Hoosiers pay a 3.4 percent state in- mat manes nuDDara one oi I Bush's top economic advisers. I I A I He'll be a key player in pushing major Bush priorities, such as re-Al nuooara structuring Social Security, simplifying the tax code and limiting lawsuit awards. "Al will make a great addition to my economic team," Bush said. He called Hubbard "a proven leader with top-notch management Hubbard, 57, could not be reached for comment. See Hoosier, Page A4 come tax, which hasn't been raised since 4Jf now the chief executive of a state with a $600 million budget deficit as well as rising health care costs, a need for improvements in education and stretched-to-the limit social services.

He will lay out his plans for addressing Frank tspicli The Star Things to do: Daniels began his term as governor immediately after the inauguration by signing executive orders to keep the state's government running. 1987. The sales tax rose to 6 cents in 2002. Daniels was joined at the inauguration See Daniels, Page A7 Go to IndyStar.comtraittl media for inauguration video and photo galleries. Another key Iraqi is assassinated CBS fires investigators blast report on Bush's Guard service Baghdad's deputy police chief, son are slain; bomb destroys armored troop carrier, killing 2.

of the hospital that treated the wounded. The U.S. military also reported that for the second time in four days, insurgents had used a massive roadside bomb to destroy a Bradley fighting vehicle, one of the military's sturdiest and most heavily armored troop carriers. The attack during a patrol in southwestern Baghdad killed two American soldiers and wounded pendent investigators added, however, that they found no evidence of a political bias against Bush, CBS News President Andrew Heyward and Dan Rather, who announced in November he would step down as the anchor of "CBS Evening News," escaped without any disciplinary action. But Rather, who narrated the Sept.

8 story and follow-ups, was criticized by CBS Chief Executive Leslie See CBS, Page A5 By David Baudor Associated Press NEW YORK CBS issued a damning independent review Monday of mistakes related to last summer's "60 Minutes Wednesday" report on President Bush's National Guard service and fired three news executives and a producer for their "myopic zeal" in rushing it on the air. The review said CBS compounded the damage with a circle-the-wagons mentality once the report came under fire. The inde By Richard A. Oppel Jr. and Khaiid Al-Ansary The New York Times BAGHDAD, Iraq Gunmen assassinated the deputy chief of the Baghdad police and his son Monday, the second slaying of a senior Baghdad official in five days as, insurgents continued a campaign of murder and terror in the weeks before the Jan.

30 elections. An hour after the deputy chief, Brig. Amer Naief, was killed as he and his son left their home in southern Baghdad, a suicide bomber killed four policemen and wounded 10 more when he detonated a bomb-laden pickup truck outside the walls of a police station in the southern section of Baghdad, according to the chief Dan Rather was not disciplined, but he was faulted for "errors of credulity and See Iraqi, Page A10 Go to lndyStar.com A 40 to 70 chance of showers. Full forecast, B6 traffic for alerts E2 Lotteries B3 Movies 6 Obituaries Puzzles Advice Buzz Comics Editorials A2 Scoreboard D7 E5 Star Classifieds Fl 6 B4.5 Stocks C2-6 E6 Television E7 INDEX Copyright 2005 The Star WEATHER Low 38 High 55 about accidents and other traffic problems. 5D MO1 FORUM Add strength to your portfolio with a Liquid IRA MM "diversify" 4itu idh wii.k.i..

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