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each state.  The most recently published "State Government

Finances" data are for FY96.  However, the Census Bureau's

annual "State Government Tax Collections" report is

available for FY97, and those data have been used in this

report.  The more recent data on general fund expenditures

and revenues come from semiannual compilations of the

National Association of State Budget Officers, published in

"The Fiscal Survey of States."  The data on enacted and

proposed tax rate changes come from several sources,

including  NASBO's "The Fiscal Survey of States," the

National Conference of State Legislatures' annual "State Tax

Actions" publication, and the finance and tax offices of the

individual states.

24. State-by-state data on general fund spending and revenue

recommendations prior to FY91 were not available.  Thus,

this variable does not reflect all of the earliest budget

recommendations of the four governors first elected before

1990.  However, for the other 42 of the 46 governors in this

study, this variable does reflect every one of their

recommended budgets.  This measure captures two effects that

are not reflected in the Census Bureau data, budget growth

since FY96 and governors' recommended budgets (as opposed to

enacted budget levels).  For this measure we use annual data

compiled by the National Association of State Budget Offi-

cers.  General fund data are far from ideal for measuring

total spending and revenue growth in a state.  Those data do

not include certain types of nonappropriated spending, such

as pension fund spending and some entitlement outlays.

Furthermore, governors sometimes move items into and out of

the general fund to distort the degree of fiscal problems.

Despite those defects, the general fund data do for the most

part provide us with a fairly reliable picture of how the

states' spending patterns have changed since 1996.

25. For the five governors who were elected or took office

after 1996, this variable reflects only growth from FY97

through FY98.  As does the previous variable, this one

reflects spending growth since FY96, which was not reflected

in the Census Bureau data.

26. See note 24 on expenditure variable 3.

27. See note 25 on expenditure variable 4.

28. As do the other two variables on recommended budget

levels, this variable reflects only tax cut and tax increase

proposals from FY91 and after.