Cato Institute
Policy Analysis
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Page 36
Florida
Lawton Chiles, Democrat
Legislature: Republican
Took Office: 1/91
Grade: F
Lawton Chiles won election to a second term in 1994 by
a 51 to 49 percent margin, narrowly keeping his undefeated
record unblemished.  He is prohibited from serving more than
two consecutive terms and will retire in January 1999.
While Chiles's public image is that of a moderate New Demo-
crat, his record could hardly be in greater conflict with
that image.  In his first term, he proposed a $1.3 billion
tax hike that the legislature rejected; instead, it passed a
$400 million increase.  In 1994 he proposed an expensive
Clinton-style health care reform plan that was also rejected
by the legislature.  In 1997 Chiles proposed a $121 million
(10-cent per pack) cigarette tax hike.  The legislature re-
jected that proposal as well and instead sent Chiles a $22
million package of targeted business tax reductions that he
vetoed.  This year Chiles proposed a $45.1 billion budget
for FY99, a 6.5 percent increase.  Unfortunately, with the
revenues pouring in, the legislature passed an even larger
$45.3 billion budget.  Even with the large spending in-
crease, there were several tax cuts: a $185 million ($50 per
homeowner) property tax rebate, a one-week sales-tax holiday
on clothing purchases timed for the back-to-school buying
season, and about $100 million in various business tax
breaks.  Chiles vetoed the largest of those tax cuts, saying
it was unfair because the rebate would not go to renters.
When Chiles took office, the state legislature was con-
trolled by the Democrats, but it is now controlled by the
GOP.  If not for this more fiscally conservative legisla-
ture's repeated rejections of his calls for tax hikes,
Chiles's record would have been even worse.  Nevertheless,
without a state income tax to drag it down, Florida's econ-
omy has continued to prosper in spite of the larger, cost-
lier state government that will be Chiles's legacy.
Score Grade Rank
Overall Fiscal Policy Score
32
F
45
Spending Score
25
F
44
Revenue and Tax Rate Score
35
F
45
Amount
3.2%
Average Annual Change in Real Per Capita Direct General Spending through 1996
2.2%
Average Annual Change in Direct General Spending Per $1,000 Personal Income through 1996
3.0%
Average Annual Recommended Change in Real Per Capita General Fund Spending through 1999
0.4%
Average Annual Change in General Fund Spending Per $1,000 Personal Income 1996-98
2.8%
Average Annual Change in Real Per Capita Tax Revenue through 1997
1.5%
Average Annual Change in Tax Revenue Per $1,000 Personal Income through 1997
2.5%
Average Annual Recommended Change in General Fund Revenue Per $1,000 Personal Income through 1999
1.4%
Average Annual Change in Real Per Capita General Fund Revenue 1996-98
1.5%
Average Annual Recommended Tax Changes as % of Prior Year's Spending through 1999
0.0
Change in Top Personal Income Tax Rate, proposed and/or enacted (% points)
0.0
Change in Top Corporate Income Tax Rate, proposed and/or enacted (% points)
5.5
1998 Combined Top Income Tax Rates (Personal plus Corporate) (*0.5)
0.0
Change in Sales Tax Rate, proposed and/or enacted (% points)
1.2
Change in Gas Tax Rate, proposed and/or enacted (cents per gallon) (*0.5)