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Illinois

Rod Blagojevich, Democrat

Legislature: Democratic

First-Term Grade: D

Meanwhile, overall state spending in his first

Former representative Rod Blagojevich is

year grew by 3 percent above population and

Ilinois's first Democratic governor in more

inflation according to Census Bureau data.

than 30 years. He campaigned on a pledge

Since then, Blagojevich's general fund

not to raise state personal income or sales

requests have maintained budget growth at

taxes. Once in office, however, he began

around population plus inflation. Yet his

proposing increases, particularly in corporate

most recent budget reversed that trend and

taxes. Over the past four years, Blagojevich

was full of new spending. The governor

has proposed a net tax increase in every year

seems to have finally dropped his crusade to

but one, amounting to a net tax hike agenda

raise business taxes, though he has benefited

of more than $1.3 billion. Fortunately for

most in this report card from a state legisla-

Illinois taxpayers, the Democratic legislature

ture that was not as eager to raise taxes.

didn't give him most of what he wanted.

Indiana

Mitch Daniels, Republican

Legislature: Republican

Midterm Grade: D

more than $100,000 and a freeze of the proper-

Daniels served as President George W.

ty tax relief program, which combined would

Bush's budget director until early 2003. During

have amounted to a tax increase of more than

that time Bush gave Daniels the title of "The

$400 million that year. The Republicans in the

Blade" for preparing budgets that included

legislature instead sent Daniels a budget that

cuts to various federal programs. (Unfortun-

didn't include the income tax increase,

ately, most of those budget suggestions were

although they eventually agreed to the proper-

ignored by the White House.) As governor,

ty tax relief cap. The next year, Daniels pro-

Daniels has been better able to keep a rein on

posed a hike in the cigarette tax mainly as a

spending. He has proposed, and the legislature

means, he said, to discourage teen smoking.

has passed, general fund budgets that have

The legislature refused to agree to that propos-

grown by not much more than population

al, too. Daniels's midterm grade of D is mainly

plus inflation during his first two years in

a byproduct of his endorsement of higher

office. Where Daniels's grade is abysmal is on

taxes. If it weren't for legislative resistance, his

tax policy. Upon taking office, he proposed an

grade would be even lower.

income tax surcharge on taxpayers earning

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