Best and Worst Governors

The Club For Growth announced their list of Best and Worst Governors for 2004. First place went to Arnold Schwarzenegger with a score of 84 and a grade of A. Oklahoma's Brad Henry (D) got a score of 65 and a grade of C, which put him in 16th place.

4 governors (all Republicans) received a grade of A, 11 governors (7 Republicans, 4 Democrats) recieved a grade of B, 11 governors (7 Republicans, 4 Democrats) received a grade of C, 12 governors (4 Republicans, 8 Democrats) received a grade of D, and 4 governors (1 Republican, 3 Democrats) received a grade of F.

The grades of the governors of some of America’s most populous states are Jeb Bush of Florida, B; George Pataki of New York, B; Rick Perry of Texas, B; and Jennifer Granholm of Michigan, D.

Oklahoma ranked 8th in Real per Capita Spending Increases,1991 –2002 (99% increase), Henry got a 78 Soending Score and a grade of B with -3.4% for Average Annual Recommended Change in Real per Capita General Fund Spending through 2005, and -2.9% Average Annual Change in General Fund Spending per $1,000 Personal Income 2002 – 2005. He got a 60 Tax Score and a grade of C with 2.1% Average Annual Recommended Tax Changes as % of Prior Year’s Spending through 2005, -0.2% Average Annual Recommended Change in General Fund Revenue per $1,000 Personal Income through 2005, and 0.2% Average Annual Change in Real per Capita General Fund Revenue 2002 –2005, 0.0 Change in Top Corporate Income Tax Rate (%point), 0.0 Change in Top Personal Income Tax Rate (%point), 13.0 2004 Combined Top Income Tax Rates (personal plus corporate), 0.0 Change in Sales Tax Rate (%point), 0.0 Change in Gas Tax Rate (cents per gallon), 77.0 Change in Cigarette Tax Rate (cents per pack).

The report says Governor Brad Henry scored an upset electoral victory over conservative favorite Steve Largent by a narrow margin. Compared with Largent, Henry looked like a status quo candidate: the GOP contender had proposed eliminating the state income tax, while Henry sang the praises of his plan to institute a state lottery. The idea of eliminating the income tax was promoted vigorously by outgoing Republican governor Frank Keating, and it’s a testament to his leadership on tax cuts that gubernatorial candidates of all political stripes—including Henry’s primary opponent and the independent candidate—endorsed some version of that idea. All except Brad Henry, that is. But to his credit, in 2003 Henry refused to endorse a 1-cent sales tax increase strongly supported by the teachers’ unions. His FY04 budget included no broad-based tax increases but did include a cigarette tax increase. Henry’s main strength on this report card is spending control, at which Keating did a terrible job. Henry’s budgets have grown substantially more slowly than population plus inflation. Henry’s best tax proposals were a freeze in the top income tax rate at 6.65 percent and the elimination of the capital gains tax for Oklahoma-based property held for five years or more. Both of those represent strong supply-side tax policy that Henry should be encouraging. More of that could earn him a higher grade in 2006.