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Georgia

Sonny Perdue, Republican

Legislature: Republican

First-Term Grade: C

program permanent. All of this earned Per-

In 2003 Sonny Perdue was inaugurated as

due a midterm grade of D. Since then, Perdue

the first Republican governor of Georgia

has changed course. With the help of a

since Reconstruction after beating tax-cut-

Republican legislature in place since 2004, he

ting Democratic incumbent Roy Barnes (who

has been able to hold government spending

scored a B on the 2002 report card). Perdue

to roughly the rate of population and infla-

ran on a pledge not to raise taxes. Once in

tion. He managed to cut the Medicaid rolls,

office, however, he proposed one of the

too. Since 2004, he has not proposed any new

largest tax increases in Georgia history--one

taxes, and in 2005 he even proposed tem-

even bigger than the divided legislature had a

porarily suspending the fuel tax to provide

stomach for. In the end, the legislature raised

some relief from high gas prices. If Perdue

cigarette taxes by 25 cents and killed the rest

wins a second term, he could improve his

of Perdue's tax package. In fact, the legisla-

grade by finally cutting taxes for a change.

ture even made the Barnes property tax cut

Hawaii

Linda Lingle, Republican

Legislature: Democratic

First-Term Grade: D

the legislature has maintained a united front to

Linda Lingle's grade has dropped from the

pass budgets that have grown an average of 6

midterm grade of C in 2004, mostly as a result

percent in real per capita terms. It is on tax pol-

of large increases in the size of government. On

icy that her grade suffers the most, however.

that score, Lingle has been disadvantaged by

Hawaii is still a very heavily taxed state, and her

having to fight against a big-spending and

recent proposals to raise the income tax's stan-

heavily Democratic legislature that is often

dard deduction and rebate some surplus rev-

eager to overturn her line-item vetoes. Within a

enue simply lack ambition. Her Democratic

week of taking office, she announced a 5 per-

predecessor Ben Cayetano had a better idea of

cent budget cut and a statewide hiring freeze to

how to spur economic growth in the state. He

help balance the 2003 budget. Since then, she

sliced the oppressive income tax rates and pro-

has vetoed a government employee pay raise--

posed a phasedown of the capital gains tax. If

her veto was subsequently overridden by the

Lingle wins a second term, she'll be well advised

legislature--and proposed budgets that grew

to follow suit.

slower than population and inflation. Instead,

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