Democrat Joe
cal blunder in 2003 when he proposed
year, he supported a ballot initiative to
more than $1 billion in income, sales, and
increase income taxes, but that plan was
Manchin
cigarette tax increases. Voters rejected
soundly defeated by the voters. The gover-
has enacted
Riley's plan by a 2-to-1 margin, and the
nor has also repeatedly pushed for ciga-
probably the
governor has moderated his fiscal appetite
rette tax increases, but the legislature has
since then, mixing tax increases with tax
nixed the idea and voters defeated a ciga-
most pro-growth
cuts. On spending, his record is poor, as he
rette tax increase at the ballot box in 2007.
tax reforms of
has presided over per capita increases aver-
But that vote of the people did not dis-
· Jodi Rell of Connecticut has pushed
aging about 8 percent annually.
suade Kulongoski, and this year he con-
any governor.
tinues to push for a cigarette tax hike.
numerous large tax increases. Her first
Even in boom years when the government
budget in 2005 proposed increases to
is flush with cash Kulongoski has pushed
cigarette taxes, gasoline taxes, and busi-
for tax increases. Spending increases
· Rod Blagojevich of Illinois has been sin-
ness taxes. In 2007 she proposed raising
under Kulongoski have also been large.
cigarette taxes and increasing the top
gle-minded in his drive for tax increases
individual income tax rate. Governor
on businesses. In 2007, he pushed for a
Rell's performance on spending is also
· C. L. "Butch" Otter of Idaho was consid-
huge $7 billion tax hike in the form of a
worse than average.
new business gross receipts tax and
ered a conservative when he was in Con-
increased payroll taxes. That hike was the
gress, but he has promoted fiscal expan-
largest proposed or enacted increase of
sion as governor since 2007. Otter has
any governor in this report, measured in
pushed for a huge $200 million increase in
total dollars or as a percentage of current
vehicle-related taxes to fund higher trans-
taxes. He has proposed schemes to wallop
portation spending, and his first budget
businesses nearly every year since 2003,
proposed to increase state spending by
including plans to raise taxes on refiner-
more than 9 percent.
ies, gaming businesses, and software com-
panies. Blagojevich seems un-aware that
Other Interesting Results
Illinois is competing against other states
The data and news stories compiled for this
and nations for business investment in
· Chet Culver of Iowa has been in office just
report revealed some interesting fiscal pat-
the global economy.
terns in the states. Those patterns include:
· Republican governors did slightly better
a year and a half, but he has already pro-
posed substantial tax increases on both
in the report card than Democrats, with
individuals and businesses. He pushed for
an average score of 55 compared to an
a tax increase on cigarette smokers last year
· Republican governors scored better, on
average for the Democrats of 46.
and followed up with a corporate tax
increase this year. Both of his budgets so far
· Jon Corzine of New Jersey pushed through
have proposed large spending increases.
average, than Democratic governors on
spending (54 to 48), revenue changes (58
a large spending increase and a tax increase
to 44), and tax rates (51 to 48). But those
of more than $1 billion in 2006, which
are just averages with many exceptions--
included increases in sales taxes, cigarette
Democrat Joe Manchin, for example, has
taxes, and vehicle taxes. However, the gov-
enacted probably the most pro-growth
· The average annual per capita spending
ernor's performance has improved since
tax reforms of any governor.
then. He cut the state budget for fiscal
2009, and he is trying to reduce New
increase proposed by the governors was 3.2
· Bob Riley of Alabama made his biggest fis-
Jersey's huge debt load.
percent (see Table A-1). By contrast, the
average annual per capita spending in-
5