Five Democratic Governors Get ‘F’ Mark on Fiscal Policy

The Cato Institute has issued its 11th biennial Fiscal Report Card on America’s Governors and only four get an “A” grade — all of them Republicans.

At the other end of the scale, five governors get an “F” grade — all of them Democrats.

The Report Card examines state budget actions since 2010, using statistical data to grade the governors on their taxing and spending records. Governors who have cut taxes and spending the most receive the highest grades, and those who have increased taxes and spending the most receive the lowest grades. Scores ranging from 0 to 100 were calculated based on seven tax and spending variables.

“Some governors are pursuing broad-based tax reforms, such as cutting income tax rates and reducing property taxes on businesses,” Cato’s Chris Edwards observes. “The bad news is that many governors are expanding narrow ‘tax initiatives,’ which clutter the tax code in an attempt to micromanage the economy.”

The four Republican governors who received an “A” rating were led by Sam Brownback of Kansas and Rick Scott of Florida, who both got a 69 score, followed by Paul LePage of Maine and Tom Corbett of Pennsylvania, who got a 65 score.

Brownback signed into law “impressive” tax reforms, according to Edwards. Scott has cut spending and reduced taxes on small businesses. LePage cut spending and reduced income taxes and taxes on business investment. Corbett cut spending and sliced a tax on businesses.

The five Democrats who got an “F” grade were Pat Quinn of Illinois (16), Dan Malloy of Connecticut (17), Mark Dayton of Minnesota (21), Neil Abercrombie of Hawaii (32), and Chris Gregoire of Washington (38).

Quinn raised taxes by $1.1 billion in 2009 and $7 billion last year, and raised cigarette taxes this year. Malloy signed a $1.8 billion tax increase on individuals and corporations. Dayton boosted spending and proposed higher taxes that were rejected by the legislature. Abercrombie increased spending and raised income taxes. Gregoire raised business taxes and sales taxes.

Of the 17 governors who received a “B” grade, 15 are Republicans. The top Democrat is John Lynch of New Hampshire, who earned a “B” with his 62 score.

Of the 11 governors who received a “D” grade, only three are Republicans.