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West Virginia
Cecil Underwood, Republican
Legislature: Democratic
Took Office: 1/97
Grade: C
This is Cecil Underwood's second term as governor; he
served a previous four-year term beginning in 1957, when he
was the nation's youngest governor. When then-governor Gas-
ton Caperton was prohibited from seeking a third term as
governor in 1996, Underwood was convinced to leave his ca-
reer in private business to run again. He won by a 52-46
margin, and, at age 74, became the nation's oldest governor.
Underwood's campaign focused on continuing the policies of
the popular Caperton. Fortunately for West Virginia's tax-
payers, Underwood has not been quite as eager to increase
taxes and spending as was his predecessor, one of the big-
gest spending governors of the 1990s. Underwood has not,
however, governed like the free marketeer his business back-
ground might suggest. Instead of cutting taxes as many of
his fellow governors are doing, Underwood is attempting to
foster economic development by using taxpayer dollars to ex-
pand corporate welfare programs that put government in the
position of picking industrial winners and losers. He has
proposed no major tax relief, although he did approve a mod-
est reduction in business taxes last year. In January 1998
the midyear revenue estimates indicated that tax collections
were running about $50 million ahead of schedule. Instead
of returning those excess revenues to the taxpayers, Under-
wood's budget proposal spent almost the entire windfall.
The Democratic legislature enthusiastically approved. Un-
derwood's record of fiscal restraint is far better than his
big-spending predecessor's. But it is still the same tax-
and-spend ethic that has kept West Virginia one of the poor-
est and least developed states in the nation.
Score
Grade
Rank
Overall Fiscal Policy Score
46
C
27
Spending Score
43
C
31
Revenue and Tax Rate Score
47
C
27
Amount
1.9%
Average Annual Recommended Change in Real Per Capita General Fund Spending through 1999
-0.5%
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
1.2%
Average Annual Change in Real Per Capita General Fund Revenue 1996-98
0.0%
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)
15.5
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)