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Nebraska

Dave Heineman, Republican

Legislature: Nonpartisan

First-Term Grade: C

the income tax brackets instead of cutting the

Dave Heineman became governor in

tax rate. Yet Nebraska still has a state and local

January 2005 after Mike Johanns left the posi-

tax burden that is sixth highest in the nation.

tion to become President George W. Bush's

Where Heineman's grade suffers most is on

agriculture secretary. His record on taxes has

spending. The budgets he proposed grew mas-

been better than Johanns's. Heineman's bold

sively--by close to 8 percent this year alone. The

proposal to return personal income tax rates to

legislature was happy to give him all he wanted

their 1998 levels was an attempt to reverse the

and more. Perhaps not surprisingly, Heineman

large tax hikes that were enacted over Johanns's

opposes a state ballot initiative to put a consti-

vetoes. Heineman was able to get the usually

tutional cap on spending. His predilections for

pro-tax legislature to finally agree to a compro-

big budgets, however, might just compel voters

mise in 2006 that cut taxes--although only by

to clamp down on spending for him.

half as much as he wanted--mostly by raising

Nevada

Kenny Guinn, Republican

Legislature: Divided

Final-Term Grade: F

Final Overall Grade: D

and a brand-new gross receipts tax on busi-

Kenny Guinn went from being one of the

nesses. When legislators rejected those propos-

best new governors in 2000 to one of the worst

als, the state supreme court helped Guinn

governors in the nation today. In his first term,

strong-arm them into passing many of them.

Guinn submitted disciplined budgets and

In 2005 Guinn finally acknowledged that a tax

opposed new taxes. His second term, however,

revolt was likely if the budget surplus that

was mostly a nightmare for taxpayers. Starting

materialized wasn't returned to taxpayers. His

in 2002, Guinn's budgets began to grow, and

motor license fee rebate plan was eventually

his FY02­03 budget spending grew by 20 per-

passed by the legislature. Still, Kenny Guinn's

cent, including big hikes for college education,

name might as well be synonymous with fiscal

health care, and anti-smoking programs.

failure in Nevada. Perhaps it's telling that the

About a month after being reelected in 2002,

Republican candidate for governor had a tax

Guinn announced that he would seek close to

cut plan at the ready and supported a cap on

$800 million in tax increases, and then the fol-

state spending. It seems it is good politics in

lowing year he proposed hikes in taxes on cig-

Nevada today to be on record against the fiscal

arettes, alcohol, business licenses, and slot

damage of the Guinn years.

machines. He also called for property tax hikes

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