(The Center Square) – A new report grades U.S. governors on their fiscal responsibility.
The Cato Institute has released its 17th biennial Fiscal Policy Report Card on America’s Governors, scoring each state leader according to how much they raised or lowered taxes, and whether they spent conservatively or significantly increased spending.
The report looks at data since 2022 for each state and awards an objective grade based on spending, revenue, and tax rate variables. Governors who have cut taxes and spending the most receive the highest grades, while those who have increased taxes and spending the most receive the lowest grades.
Author Chris Edwards gave Gov. J.B. Pritzker a “C” grade, but said if you look at his overall term in office, he receives an “F”. He said Pritzker seems unconcerned that Illinois is losing workers and entrepreneurs who are fleeing to lower-tax states.
He notes that in 2024, Pritzker’s budget included about $1 billion in tax increases, including on sports wagering, limits on business net operating loss deductions, limits on retailer payments for collecting sales taxes, and various other charges.
Edwards said there is a correlation between red states and fiscal restraint.
“Republicans do always score better by my small government metric than the Democratic governors on both taxes and spending,” said Edwards.
Edwards gave the highest marks to Iowa Gov. Kim Reynolds, calling her a lean budgeter and dedicated tax reformer since entering office in 2017, and has “greatly simplified Iowa’s income tax system.”
At the other end, six governors received the lowest grade of “F”, including Minnesota Gov. Tim Walz, who is on the Democratic ticket as the vice presidential candidate.
“Governor Walz has overseen large spending increases and pushed major tax hikes on businesses and individuals. He seems oblivious that Minnesotans have been steadily leaving the state for more tax-friendly climates,” wrote Edwards.
