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Kentucky

Ernie Fletcher, Republican

Legislature: Divided

First-Term Grade: C

ture by making the plan revenue neutral--at

Ernie Fletcher ran as an anti-tax Republican

least on paper--by including a 14-fold increase

who would "clean up the mess in Frankfort," a

in the cigarette tax. Once revenue started pour-

direct reference to the scandals that plagued

ing into state coffers, Fletcher's claim that his

Democratic governor Paul Patton's adminis-

plan was revenue neutral--a claim that some

tration. In Fletcher's first year, he reduced the

fiscal conservatives initially greeted with skepti-

number of cabinet-level offices. Having bal-

cism--began to fall flat. Meanwhile, state

anced the budget with $302 million in spend-

spending exploded by 11 percent in fiscal 2006.

ing cuts, he soon proposed a plan to overhaul

A state grand jury indicted Fletcher in May

Kentucky's tax code. There was much to like in

2006 on charges of cronyism. If he survives

the plan, including a reduction in the top per-

politically and legally, he would be well advised

sonal income tax rate from 6 percent to 4.9 per-

to get the budget under control again and pur-

cent and a 27 percent reduction in the top cor-

sue tax cuts that actually cut the burden on tax-

porate income tax rate. Unfortunately, Fletcher

payers, not just shift it to other taxpayers.

catered to the big spenders in the state legisla-

Louisiana

Kathleen Blanco, Democrat

Legislature: Democratic

Midterm Grade: F

The tax changes she did ask the legislature to

Kathleen Blanco won the governor's chair

adopt in a special session in 2004 amounted to

after two terms as lieutenant governor under

technical tinkering around the edges, and even

Republican Mike Foster. She campaigned on a

the worthwhile changes, such as an elimina-

platform of change to the state's convoluted

tion of the tax on business equipment and

tax system to encourage economic develop-

machinery, were to be phased in over a six- or

ment. Since she became governor, however,

seven-year period. Government has grown

that goal has taken a back seat to defending

massively, too. Since 2005, the budget has

herself against criticism of her handling of the

expanded each year by close to 10 percent in

state's response to the devastation wrought by

real per capita terms. Blanco has two more

Hurricane Katrina. But Blanco hadn't pro-

years to prove that she knows what sort of

posed any dramatic changes to the tax code at

strong medicine the Bayou State needs.

any point since being inaugurated anyway.

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