sector funding of new highways. To close a
on government agencies to cut overall spend-
state budget gap this year, Gibbons has
ing by 4.5 percent, and he has formed a com-
focused on cutting program spending rather
mission to cut waste, similar to the federal
than agreeing to tax hikes. Gibbons has called
Grace Commission of the 1980s.
New Hampshire
John Lynch, Democrat
Legislature: Democratic
Grade: D
Took Office: January 2005
New Hampshire enjoys the lowest state tax
ing another increase this year.
burden in the nation, measured as a share of
A major fiscal issue in New Hampshire regards
state income. True to that status, Governor
a state Supreme Court decision that has mandat-
Lynch proposed restrained budgets his first two
ed big increases in education spending. Lynch has
years and has opposed a state income tax or
supported a constitutional amendment in an
sales tax. Lynch has also worked to repeal a
effort to avoid the large spending increases
statewide property tax. But the governor has a
required by the court. But the amendment has
penchant for tax increases on cigarette con-
failed to pass the legislature, which approved a
sumers, which greatly pulled down his score on
plan to comply with the court and increase edu-
the report card. The governor increased the cig-
cation spending. With a budget gap opening this
arette tax in 2005, again in 2007, and is propos-
year, Lynch is calling for spending cuts.
New Jersey
Jon Corzine, Democrat
Legislature: Democratic
Grade: F
Took Office: January 2006
budget, and proposing no major tax changes
Governor Corzine's first budget proposed
in his fiscal 2009 budget. Indeed, Corzine's
a spending increase of more than nine per-
fiscal 2009 budget reduces state spending by
cent and large increases in sales, cigarette, and
cutting programs and offering early retire-
vehicle taxes. The enacted budget raised taxes
ment to some state workers. The enacted
$1.9 billion and included an increase in the
budget included an overall reduction in
sales tax rate from 6 to 7 percent, with half
spending. Also to his credit, the governor is
the increased sales tax revenue used for prop-
grappling with the state's enormous debt
erty tax rebates. Since then, the governor has
changed course, proposing modest tax cuts
load and the unfunded retirement costs of
and property tax rebates in his fiscal 2008
state workers.
Governor
New Mexico
Corzine's first
budget proposed
Bill Richardson, Democrat
Legislature: Democratic
Grade: B
Took Office: January 2003
large increases in
sales, cigarette,
lican Gary Johnson, who had advocated in-
Governor Bill Richardson inherited the tax
and vehicle taxes.
cutting mantle from former governor, Repub-
come tax rate cuts for years but could not get
20