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Table 2

The Graduating Class: Final Overall Grades of Governors Leaving Office in 2007

Governor

State

Grade

Jeb Bush (R)

Florida

B

Kenny Guinn (R)

Nevada

D

Mike Huckabee (R)

Arkansas

D

Bill Owens (R)

Colorado

C

George Pataki (R)

New York

C

Mitt Romney (R)

Massachusetts

C

Bob Taft (R)

Ohio

F

Tom Vilsack (D)

Iowa

C

was a new gross receipts tax on the state's

the second year of his first term. His success

businesses, which has the potential to limit

at cutting the state budget in his first year in

homegrown job creation and sap the ability

office has catapulted him to the top of the

The

of the state to attract business. That was an

report card this year. Blunt proposed bold

highest-scoring

unnecessary move, since the state was rolling

initiatives to cut more than 1,000 state jobs

in a $4 billion budget surplus.

and restrain Medicaid spending by tighten-

Democrats in this

Governor Mark Sanford of South Carolina

ing eligibility requirements and requiring

report card are

has been battling a Republican-controlled leg-

many recipients to make copayments. His

Phil Bredesen of

islature to keep spending down since his first

budget cutting was among the most sub-

day in office. He has proposed budgets that

stantial in the nation--indeed, he was one of

Tennessee and

reduced government in real per capita terms

only a few governors who attempted to

John Lynch of

each year, but the legislature has avoided the

restrain the growth of government health

tough choices necessary to restrain govern-

care spending in his state--and the state leg-

New Hampshire,

ment. Sanford even vetoed the entire budget

islature passed his budget mostly intact.

both of whom

this year, but that veto was overturned by the

There are signs that Blunt's commitment to

received a

legislature. Still, Sanford's example and leader-

fiscal discipline is fading, though. His most

ship seem to have persuaded the legislature to

recent budget boosts spending by more than

grade of B.

keep spending relatively close to population

5 percent in real per capita terms. If Blunt

growth and inflation. Where Sanford really

spends taxpayer money like that for the rest

excels is on tax policy. He's gotten the legisla-

of his term, his grade will surely drop on the

ture to help him cut the top income tax rate

next report card.

from 7 percent to 5 percent. As he did on the

The next two highest-scoring governors are

2004 report card, Sanford ranks as one of

Republicans who receive a grade of B. Both

America's best governors in terms of fiscal pol-

Rick Perry of Texas and Mark Sanford of

icy in 2006. He was able to maintain a grade of

South Carolina have shown a solid commit-

B throughout his entire first term.

ment to keeping taxes and spending burdens

The highest-scoring Democrats in this

low in their states over their entire terms.

report card are Phil Bredesen of Tennessee and

Texas governor Rick Perry has kept spend-

John Lynch of New Hampshire, both of whom

ing under control better than most gover-

received a grade of B. Lynch's strength has

nors in this report card. He also proposed

been his crusade to eliminate the statewide

and signed into law a substantial $1.5 billion

property tax that was imposed by the last

property tax cut. The main blemish on his

Democratic governor, Jeanne Shaheen. He has

record is the tax hikes he lobbied for and

been unsuccessful at this task, but he has been

signed into law to offset the overall impact of

able to cut that tax a bit. Unfortunately, as his

his property tax reform plan. Among them

4