Oesterle launches PAC to help Holcomb

Former Angie’s List CEO Bill Oesterle is launching another foray in his campaign to moderate the Republican Party — and this time U.S. Senate candidate Eric Holcomb could benefit.

Oesterle last week started a new federal Super PAC that he says will support Holcomb, a former Indiana Republican Party chairman who trails his two primary opponents — U.S. Reps. Todd Young and Marlin Stutzman — in fundraising.

The new group is called Frugal Hoosiers, an homage to a similarly named group that Oesterle helped create to draft Mitch Daniels in the 2004 race for governor. Both Oesterle and Holcomb worked on that campaign.

Oesterle said the new PAC will raise money for television ads that will draw distinctions between Holcomb and the other two Republicans battling for a chance to replace retiring U.S. Sen Dan Coats.

“Primarily we’re going to look to fund media that articulates the very stark differences in the candidates,” Oesterle said. “We want to make sure people understand two of these candidates want to shut down the government; one of them has said he won’t do that. Two of these candidates are not supportive of the LGBT community; one of them is. Two of these candidates are very xenophobic on immigration policy; one of them isn’t.”

The PAC could breathe some much-needed resources into Holcomb’s campaign, but it could also put the candidate in an awkward position with Republican primary voters, who tend to be more conservative than the general electorate on issues such as immigration reform and expanded LGBT protections.

In a phone interview Monday, Holcomb said he does not support efforts to shut down the government and that he has a zero tolerance policy on discrimination.

“Anyone that’s worked for me or with me will say I can work with people who come from very diverse perspectives. I’ve always tried to approach these hard issues that need to be solved with consensus,” he said. “I am not for the shut-it-down approach.”

But he declined to take a position on whether civil rights protections for LGBT people should extend to public accommodations, and he said he believes securing the border should be the priority on immigration.

When asked about Oesterle’s characterization of him and how it might play in a primary setting, Holcomb emphasized that the Frugal Hoosiers group is “separate from my campaign completely.”

At the same time, Holcomb needs fundraising help. He is banking on a network of former Daniels supporters, but he trails in campaign cash.

Young, a Bloomington Republican, raised $721,000 last quarter and had more than $2.25 million in the bank. He has emerged as the favorite in the race and has locked up the support of some key GOP donors, including former Indiana GOP party chairman Jim Kittle and businessman Al Hubbard.

Stutzman, R-Howe, raised $618,000 and had $1.1 million on hand. He has strong support from social and tea party conservatives, but recently saw the departure of several top campaign staffers.

Holcomb raised the least by far – about $115,000 for the quarter. He had just $300,000 in the bank.

Oesterle’s new PAC could be a game changer if it can raise enough money to help Holcomb compete with Young for the establishment vote on the airwaves.

“I’m going to contribute meaningful dollars to this race,” Oesterle said. “The differences among the candidates are significant, especially in light of what I’m trying to accomplish with respect to establishing appropriate priorities for the party and the country.”

The Senate race will be the latest battleground in Oesterle’s efforts to turn the GOP’s focus toward economic and business issues while embracing or at least conceding issues that he feels reduce the party’s appeal among minorities such as Hispanics and gay, lesbian, bisexual and transgender people.

That battle began when he resigned suddenly from Angie’s List, the Indianapolis-based consumer review company whose stock had been falling amid concerns about competition from online giant Amazon.

The resignation in April came two weeks after a bruising Statehouse battle over Indiana’s Religious Freedom Restoration Act.  The law, signed by Gov. Mike Pence in March, set a judicial standard to weigh religious objections and ignited a national firestorm over concerns that it could lead to discrimination against LGBT Hoosiers.

Oesterle, who had contributed $150,000 to Pence and was one of his top 10 donors, was among the fiercest critics of the law. He canceled a $40 million Angie’s List headquarters expansion on the Eastside in protest (although the project was dependent on city incentives that had not yet gained approval).

Under immense pressure from business leaders, Pence and the Republican-controlled General Assembly later approved clarifying legislation to bar the law’s use as a defense for discrimination.

Since then, Oesterle has been on the warpath.

In June, he commissioned a poll on the eve of Pence’s re-election announcement that showed a majority of likely voters preferred a new governor.

In September, he created a group called Tech for Equality to bring together technology firms to advocate for the rights of lesbian, gay, bisexual and transgender Hoosiers. The group is expected to play a role in the upcoming legislative debate over the issue.

In October, he contributed $20,000 to the race of moderate Indianapolis city-county council candidate Colleen Fanning, setting off a rare television advertising war in the District 2 race. She ended up defeating Kip Tew, a former state and county Democratic Party chairman.

His ability to impact a much more expensive U.S. Senate race remains to be seen.

The campaigns of the other two GOP candidates say they’re unfazed.

"Todd Young will never apologize for standing up to President Obama's overspending, for protecting our Hoosier values, or for securing our borders,” Young’s campaign manager, Trevor Foughty, said. “Our campaign has successfully built a strong grassroots organization and broad donor network across the state because Hoosiers know Todd Young is a pro-life, pro-gun Marine with a record of advancing conservative principles in Washington."

“Marlin Stutzman will continue to be a commonsense conservative leader who is focused on delivering principled solutions for Hoosiers,” said Joshua Kelley, Stutzman’s new campaign manager. “Our campaign is already getting overwhelming feedback from grassroots supporters who are ready to send Marlin to the U.S. Senate to change Washington.”

Call Star reporter Tony Cook at (317) 444-6081. Follow him on Twitter: @indystartony.