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Page 52

Montana

Marc Racicot, Republican

Legislature: Republican

Took Office: 1/93

Grade: C

Marc Racicot won a close race in 1992 despite calling

for a first-ever 4 percent state sales tax, which the voters

rejected by a 3-to-1 margin in a June 1993 referendum.  By

that time, Racicot and the legislature had already crafted a

fallback measure, an income tax hike that would automati-

cally go into effect if the sales tax was defeated.  Over-

whelming public opposition to that back-door income tax hike

allowed a taxpayer group to collect enough signatures to

suspend the increase until the voters had a chance to con-

sider it.  In November 1994 the income tax hike was also re-

jected by a wide margin.  On the spending side, Racicot has

consistently favored fatter budgets and has fought with the

legislature to win funding for Head Start, public schools,

higher education, foster care, and environmental regulation.

Throughout his term, the legislature has had to repeatedly

scale back his bloated budgets.  Even so, spending has out-

paced the growth of population and inflation by 3.3 percent

and outpaced the growth of personal income by 1.9 percent.

Perhaps not surprisingly, Racicot received the endorsement

of the teachers' unions in 1996.  He cruised to victory with

a gaudy 79-19 margin over a little-known opponent, and he

remains enormously popular with approval ratings of near 80

percent.  In his second term Racicot has pursued heightened

spending on infrastructure and on research and development

at state universities.  Racicot's fiscally liberal record

has played well in Big Sky country--especially since the

voters have been able to reject his proposals for broad tax

increases--but in this era of tax-cutting governors it earns

him a grade of C for his lack of fiscal restraint.

Score

Grade

Rank

Overall Fiscal Policy Score

43

C

35

Spending Score

46

C

25

Revenue and Tax Rate Score

41

C

37

Amount

3.3%

Average Annual Change in Real Per Capita Direct General Spending through 1996

1.9%

Average Annual Change in Direct General Spending Per $1,000 Personal Income through 1996

-0.6%

Average Annual Recommended Change in Real Per Capita General Fund Spending through 1999

-2.7%

Average Annual Change in General Fund Spending Per $1,000 Personal Income 1996-98

-1.0%

Average Annual Change in Real Per Capita Tax Revenue through 1997

-2.6%

Average Annual Change in Tax Revenue Per $1,000 Personal Income through 1997

-3.0%

Average Annual Recommended Change in General Fund Revenue Per $1,000 Personal Income through 1999

-0.7%

Average Annual Change in Real Per Capita General Fund Revenue 1996-98

1.1%

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)

17.8

1998 Combined Top Income Tax Rates (Personal plus Corporate) (*0.5)

4.0

Change in Sales Tax Rate, proposed and/or enacted (% points)

7.0

Change in Gas Tax Rate, proposed and/or enacted (cents per gallon) (*0.5)