Governors play a key role in state fiscal policy. They propose budgets, recommend tax changes, and sign or veto tax and spending bills. When the economy is growing, governors can use rising revenues to expand programs or they can return extra revenues to the public through tax cuts. When the economy slows and budgets go into deficit, governors can respond by raising taxes or trimming spending.
This report grades governors on their fiscal policies from a limited-government perspective. Governors receiving an A are those who have cut taxes and spending the most, whereas governors receiving an F have increased taxes and spending the most. The grading mechanism is based on seven variables: two spending variables, one revenue variable, and four tax-rate variables. Cato’s state fiscal report has used the same methodology since 2008.
The results are data driven. They account for tax and spending actions that affect short-term budgets in the states. However, they do not account for longer-term or structural changes that governors may make, such as reforms to state pension plans. Thus, the results provide one measure of how fiscally conservative each governor is, but they do not reflect all the fiscal actions that governors take.
Tax and spending data for the report come from the National Association of State Budget Officers (NASBO), the National Conference of State Legislatures, the Tax Foundation, the budget agencies of each state, and news articles. The data cover the period from January 2022 to August 2024.1 The report rates 48 governors. It excludes the governor of Louisiana because he has been in office only a brief time, and the governor of Alaska because of peculiarities in that state’s budget.
The next section discusses the highest-scoring governors. Subsequent sections examine trends in revenues and tax policy, business subsidies, school choice reforms, and state debt levels. Appendix A discusses the methodology used to grade the governors. Appendix B provides summaries of the fiscal records of the 48 governors included in the report.
How did your governor score? Below are the main results. Notice who lands at the very bottom of the ranking.
Action Line: America certainly doesn’t need a governor who scored an F on fiscal responsibility only a heartbeat away from the presidency. Click here to subscribe to my free monthly Survive & Thrive letter.
E.J. Smith - Your Survival Guy
Latest posts by E.J. Smith - Your Survival Guy (see all)
- Investment Surprise #1: This One Is Free for You - November 8, 2024
- Are You Getting the Financial Advice You Deserve? - November 8, 2024
- Not All of America Will See Equal Opportunities - November 8, 2024
- Emptying the Post Election Trash: Winners and Losers - November 7, 2024
- Thanks for the Memories President Biden - November 7, 2024