Washington
Christine Gregoire, Democrat
Legislature: Democratic
Midterm Grade: F
helped the legislature overturn the law that
Christine Gregoire, one of the worst new
required a supermajority to raise taxes in the
governors in the nation, was elected in 2004 in
future. All of this to fuel her spending binge,
one of the closest and most contentious elec-
which expanded the general fund budget by
tions in Washington history--a controversial
more than 8 percent in fiscal 2006 alone. Tax
Palm Beachstyle recount made her the win-
activists have placed a repeal of the estate tax
ner of the gubernatorial race by only 129
on the ballot in Washington, and Gregoire
votes. Famous for being the lead negotiator in
has already stated her opposition. In the
the $206 billion shakedown of cigarette com-
meantime, she was quick to propose new ways
panies known as the 1998 multistate tobacco
to spend the $1.6 billion budget surplus this
settlement, Gregoire quickly took aim at state
year. With a legislature controlled by her own
taxpayers upon entering office. She's raised
party, perhaps the only check on Gregoire's
multiple taxes already: the cigarette tax (by 42
big-government ambitions in years to come
percent), the gas tax (by 34 percent), the state's
will be the usually feisty tax activists in the
liquor tax (by $1.33 a gallon). And she resur-
state.
rected the estate tax, too. Gregoire even
West Virginia
Joe Manchin, Democrat
Legislature: Democratic
Midterm Grade: D
ordered a freeze in the state's gasoline tax,
Joe Manchin was elected governor on the
which was supposed to increase by 2 cents in
campaign promise to concentrate on advanc-
2006. Over the next two years of his term,
ing policies that would help pull West Virginia
Manchin needs to worry about a rapidly
out of the economic doldrums. Most of his
expanding budget, which grew by 14 percent in
proposals have come in areas beyond the
real per capita terms during his first year in
purview of this report card, particularly his cru-
office. That expansion is partly the reason for
sade to eliminate the $3 billion debt in the
his low grade on this report card. Manchin also
state's workers' compensation fund. He's been
needs to focus more on making the tax climate
able to make substantial progress on this front
in West Virginia more conducive to economic
without broad-based tax hikes that would
growth. He recently held a policy summit to
make West Virginia's tax climate worse. When
discuss tax reform. If Manchin is able to cobble
the state racked up a $43 million budget sur-
together a good plan, his grade will likely rise in
plus in 2005, Manchin proposed using half of
the 2008 report card.
it to eliminate the sales tax on food. He even
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