Fiscal Policy Report Card on America’s Governors: 2008

CATO Institute ^ | October 20, 2008 | Chris Edwards

[Eric Blair 2084]

Revenue poured into state governments as the U.S. economy expanded between 2003 and 2007, prompting the nation's governors to expand state budgets and offer the occasional tax cut. But now that the economy has slowed and revenue growth is down, governors are taking various actions to close rising budget deficits.

This ninth biennial fiscal report card examines the tax and spending decisions made by the governors since 2003. It uses statistical data to grade the governors on their taxing and spending records – governors who have cut taxes and spending the most receive the highest grades, while those who have increased taxes and spending the most receive the lowest grades.

Three governors were awarded an "A" in this report card – Charlie Crist of Florida, Mark Sanford of South Carolina, and Joe Manchin of West Virginia. Eight governors were awarded an "F" – Martin O'Malley of Maryland, Ted Kulongoski of Oregon, Rod Blagojevich of Illinois, Chet Culver of Iowa, Jon Corzine of New Jersey, Bob Riley of Alabama, Jodi Rell of Connecticut, and C. L. "Butch" Otter of Idaho.

Republican governors, on average, received slightly higher grades than Democratic governors. More importantly, there has been a disappointing lack of major spending reforms among governors of both parties in recent years. State tax policies have also been uninspiring. Most tax cuts pursued by the governors have been small and targeted breaks, not broad-based rate cuts that can foster economic growth.

Fiscal policies need to be improved if the states are to meet the huge challenges ahead. Medicaid costs continue to rise, state debt is soaring, and the pension and health care plans of state workers have huge funding gaps. At the same time, rising international tax competition makes it imperative that states cut tax rates to attract jobs and investment. Governors don't have an easy job, but they do need to pursue more aggressive fiscal reforms to meet the challenges of an increasingly competitive economy.

[Eric Blair 2084]

FYI, for anybody who is looking...Sarah Palin and Alaska do not appear in the study. Nothing nefarious. 2 years of executive experience running a state is 2 years more than all 3 other candidates combined, including the liberal lord, god and savior the most merciful Barack Fitzgerald Obama.

But it's still an incomplete score to judge her on.

[Kieri]

What? Our Governatrix blonde bimbo Granholm didn’t get an F?? I’m shocked!

[Eric Blair 2084]

Here is the Readers Digest Version:

Florida Charlie Crist (R) 84 A
South Carolina Mark Sanford (R) 68 A
West Virginia Joe Manchin (D) 67 A
Nebraska Dave Heineman (R) 63 B
Nevada Jim Gibbons (R) 60 B
Texas Rick Perry (R) 60 B
Utah Jon Huntsman, Jr. (R) 60 B
Ohio Ted Strickland (D) 59 B
Georgia Sonny Perdue (R) 59 B
New Mexico Bill Richardson (D) 59 B
Oklahoma Brad Henry (D) 58 B
Maine John Baldacci (D) 56 B
Minnesota Tim Pawlenty (R) 56 B
Indiana Mitch Daniels (R) 55 B
Rhode Island Don Carcieri (R) 55 B
Tennessee Phil Bredesen (D) 55 B
Missouri Matt Blunt (R) 55 B
North Dakota John Hoeven (R) 54 C
Hawaii Linda Lingle (R) 53 C
Arkansas Mike Beebe (D) 52 C
North Carolina Michael Easley (D) 51 C
California Arnold Schwarzenegger (R) 51 C
Arizona Janet Napolitano (D) 51 C
South Dakota Mike Rounds (R) 50 C
Massachusetts Deval Patrick (D) 50 C
Colorado Bill Ritter (D) 49 D
Vermont James Douglas (R) 49 D
Washington Christine Gregoire (D) 49 D
Wisconsin Jim Doyle (D) 47 D
Kansas Kathleen Sebelius (D) 47 D
Delaware Ruth Ann Minner (D) 47 D
Michigan Jennifer Granholm (D) 46 D
New Hampshire John Lynch (D) 46 D
Mississippi Haley Barbour (R) 45 D
Virginia Tim Kaine (D) 45 D
Pennsylvania Edward Rendell (D) 42 D
Wyoming Dave Freudenthal (D) 41 D
Montana Brian Schweitzer (D) 40 D
Connecticut Jodi Rell (R) 39 F
Idaho C. L. “Butch” Otter (R) 37 F
Alabama Bob Riley (R) 37 F
Oregon Ted Kulongoski (D) 34 F
New Jersey Jon Corzine (D) 32 F
Iowa Chet Culver (D) 31 F
Illinois Rod Blagojevich (D) 30 F
Maryland Martin O’Malley (D) 23 F

[Eric Blair 2084]

See page 17

[diverteach]

Interesting that Alaska and Gov Palin is NOT on the list. WHY? Highest rated probably!

[diverteach]

I also noticed Louisiana’s Bobby Jindal isn’t on the list either.

[Eric Blair 2084]

I have to read the footnotes, but there were 4 other states that weren’t included. CATO is not the MSM, they are not in the tank for Socialists. Libertarians hate Socialists despite what social conservatives think.

[Eric Blair 2084]

Probably the same reason, their score is “incomplete”.

[Eric Blair 2084]

From the study:

“The report excludes the governors of Kentucky, Louisiana, and New York
because they entered office just this year. And,
as in prior report cards, the governor of
Alaska was excluded because of peculiarities
in that state’s budget that make interstate
comparisons problematic. “

I can’t say I have no idea at all what the Alaska part alluded to. Just an educated guess but I figure that CATO doesn’t like the idea of every citizen there getting Gubmint cheese for oil.

That’s not Sarah’s fault. She was in High School when the pipeline was built.

[Eric Blair 2084]

To paraphrase Bob Uecker from the movie "Major League"

In case you haven't noticed, and judging by the number of replies on this post you haven't....your local government on the state and city level has been ass raping you."

[pineybill]

Wow, Corslime (my gov) is not dead last -that’s a shock. Rumor has it that if the chosen one is elected, he will move to D.C.and help Obama do to the US what Corzine has been doing to all of us in NJ the last three years.

[pineybill]

Wow, Corslime (my gov) is not dead last -that’s a shock. Rumor has it that if the chosen one is elected, he will move to D.C.and help Obama do to the US what Corzine has been doing to all of us in NJ the last three years.