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New York

George Pataki, Republican

Legislature: Divided

Final-Term Grade: D

Final Overall Grade: C

run for the GOP presidential nomination,

George Pataki started out as a tax-cutting,

Pataki tried to convince people that the tax cut-

small-government governor. He ended up as a

ter they knew and loved was back. But most of

big spender seemingly hell-bent on overturn-

the tax cuts he proposed wouldn't even kick in

ing anything good he had done in his first

until after he's left office and are too small to

term. Among his leading first-term accom-

reverse the billions of tax hikes he's already

plishments were his $3 billion, 25 percent

inflicted. Meanwhile, general fund spending

income tax cut and a substantial cut in the cap-

has ballooned by more than 25 percent in the

ital gains tax and inheritance tax. But by his

Empire State during Pataki's final term. If he

second term, he was proposing multi-billion-

runs for the Republican presidential nomina-

dollar bond initiatives for roads and pork-bar-

tion on a record like that, it's going to be very

rel environmental projects. He raised the ciga-

hard for him to convince the small-govern-

rette tax to $1.50 per pack. He raised taxes, on

ment advocates who vote in the GOP presiden-

net, by more than $3 billion his final term in

tial primaries that he's still one of them.

office. This year, perhaps in anticipation of a

North Carolina

Mike Easley, Democrat

Legislature: Democratic

Midterm Grade: F

the cigarette tax from 5 cents to 50 cents, but

Mike Easley has quickly become one of the

the Democratic legislature was willing to boost

worst governors in America in terms of fiscal

it to only 30 cents. When the state booked a $2

policy. He racked up a grade of C for his entire

billion surplus this year, the best Easley could

first term on the last report card. His already

do was scale back the sales tax by one-quarter

low grade was mainly a result of raising sales

of a point and the income tax by one-eight of a

and income taxes. The taxes were supposed to

point--not enough to reverse the previous

be temporary, but in 2003 they were extended

hikes. Meanwhile, the state budget grew by

through 2005. Easley proposed a cut in the cor-

nearly 18 percent in the past two years. Tax

porate tax rate of 0.1 percentage points in 2003,

rates and government spending are vastly high-

but, once he was reelected in 2004, he reneged

er today than they were when Easley took

on that proposal. His budgets this term have

office. Keeping taxes so high with a budget sur-

extended the supposedly "temporary" tax

plus is simply bad policy.

increases of his first. He also proposed to hike

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