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Page 55

New Hampshire

Jeanne Shaheen, Democrat

Legislature: Republican

Took Office: 1/97

Grade: C

When Jeanne Shaheen was elected in 1996, New Hampshire

became the first state in American history to have a female

governor and a female speaker of the house, prompting the

New York Times to call the state America's first "political

matriarchy."  Shaheen is also the first Democratic governor

in recent memory in this highly conservative, anti-tax

state.  Unlike most failed Democratic gubernatorial candi-

dates who came before her, Shaheen wisely took what is known

in New Hampshire as "the pledge"--a promise not to impose an

income or sales tax.  As governor, Shaheen has been de-

scribed by the Concord Monitor as "the ultimate incremental-

ist."  The problem for New Hampshirites is that she is in-

crementally raising the state's tax burden and inflating the

state budget.  In Shaheen's first two budgets, expenditures

have risen by more than $100 million, or nearly 13 percent.

Under her Advancing Better Classrooms plan she proposes in-

creasing state education spending by 40 percent.  She also

has supported a universal health care program.  The single

issue that dominates New Hampshire politics these days is

school financing.  New Hampshire is under court order to

move away from local property tax funding of schools to in-

crease equity in per pupil expenditures.  To her credit,

Shaheen has so far resisted calls for any new broad school-

financing tax.  But she has endorsed a doubling of the state

cigarette tax to 50 cents a pack and a highly controversial

$80 million plan for video poker and slot machines.  Shaheen

is far from a traditional liberal Democrat, but so far under

her governorship New Hampshire appears to be moving--if only

incrementally--to the left.

Score

Grade

Rank

Overall Fiscal Policy Score

41

C

38

Spending Score

25

F

43

Revenue and Tax Rate Score

45

C

32

Amount

0.9%

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

3.4%

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

-0.6%

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

0.3%

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

1.6%

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)

7.0

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

0.0

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

0.0

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