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faster economic growth.  However, since the economy is also

expanding, the actual burden of taxes per person and as a

share of income--that is, the ratio of revenue to both popu-

lation and personal income--should grow less rapidly than

total revenue itself.  In most cases, the tax burden should

fall.  Conversely, if a tax rate increase reduces economic

growth, as we would expect, then the tax burden per person

and as a share of income will increase faster than the raw

dollar value of revenues.  In short, this report card re-

wards governors who adopt pro-growth measures that increase

migration into the state and increase income levels and pun-

ishes those who adopt measures that reduce economic growth.

All but one of the variables measure the change in the

fiscal policy variable during each governor's tenure.  That

remaining variable measures the current level of the top in-

come tax rates in each state.

Expenditure Variables

1. Average annual change in real per capita direct gen-

eral spending under each governor through FY96.

2. Average annual change in direct general spending per

$1,000 of personal income under each governor through FY96.

3. Average annual recommended change24in real per capita

state general fund spending through FY99.

4. Average annual change in state general fund spending

per $1,000 of25personal income under each governor from FY96

through FY98.

Revenue Variables

1. Average annual change in real per capita state tax

revenue under each governor through FY97.

2. Average annual change in state tax revenue per

$1,000 of personal income under each governor through FY97.

3. Average annual recommended change in state genera6l

2

fund revenue per $1,000 of personal income through FY99.

4. Average annual change in real per capita state gen-

eral f7und revenue under each governor from FY96 through

2

FY98.