Gov. Mike Leavitt has worn his fiscal conservativeness as a badge of honor. He vetoed a large property-tax increase last year and has promised no new taxes this year.
But according to a report by the CATO Institute, Leavitt rates no better than a C for fiscal policy - somewhere in the middle of the pack of the nation's 50 governors."Leavitt had an average fiscal record in his first year in a very fiscally conservative state," the report says.
"His major accomplishment was to block new taxes to pay for water projects and other public works. His major failing has been a com- plete unwillingness to challenge the extremely powerful education establishment in Utah.
"He is against school choice and for the litany of conventional school reforms. That earned him the endorsement of the teachers unions in the 1992 campaign, but it holds little promise of improving Utah's schools."
The CATO study examined all 50 governors on how well they control spending, how well they restrain taxes and their overall fiscal policy.
When it comes to spending, Leavitt scored a D; when state revenues and tax rates are considered, Leavitt scored a C. His overall fiscal policy also received a C grade.
Predictably, the report card did not set well with Leavitt. "It is a report written by two guys with an ideological bias," said Leavitt spokeswoman Vicki Varela. "Take two different guys with a different bias, and they might give us an A. Take two other guys and they might give us an F.
"But it's frustrating. The governor has injected more change in the education system than any other state. Their only complaint is that the teachers union isn't mad at him."
The CATO report card states it is the only objective analysis of gov ernors' performances, relying on census data and tax and expenditure records. The report card attempted to "measure the degree of fiscal restraint exercised by each governor."
Only three governors, those from Virginia, Mississippi and New Hampshire, received an A grade in overall fiscal policy. The governors of Connecticut, New Jersey, Hawaii, North Carolina and Delaware received an F. Seventeen governors received D grades.
Those who received A grades were praised for their pro-business, pro-jobs approach. The researchers noted a direct correlation between fiscal restraint and overall economic performance.
For example, the report cited the "spectacular economic success" of Mississippi, which also happens to be the poorest state in the nation with one in five residents a recipient of Medicaid.
Mississippi has enjoyed record revenues and budget surpluses since 1992 which, not coincidentally, is when the first of 19 casinos opened for business. The report does not mention that Mississippi casinos have generated $81.1 million in new state-tax revenues that may have offset the need for tax increases.
Mississippi Gov. Kirk Fordice was praised in the report for veto- ing a tax increase and "sticking to his guns." Leavitt, on the other hand, also vetoed a tax increase, but the report makes no mention of that, Varela noted.
The governor receiving the highest overall fiscal policy grade na- tionally was Steve Merrill of New Hampshire; the governor receiving the lowest score was Lowell Weicker of Connecticut.
The report concludes there is no correlation between fiscal conser- vativeness and party affiliation. It also concluded that governors who try to combat budget deficits by raising taxes "harm their states' economies and have very little success in slowing the tide of red ink."
It also predicted that governors who refuse to cut taxes this year will see their states fall further behind in the competition for investment, new business and jobs.
Given those criteria, Leavitt's grades should improve: He and the Republican-controlled Legislature have proposed a tax cut of more than $30 million.
CATO is an independent public policy research organization based in Washington, D.C.
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ADDITIONAL INFORMATION
Governors' report card
Graded by the Cato Institute
GOVERNOR OVERALL RANKING GRADE
Merrill R-N.H. 78 A
Fordice R-Miss. 77 A
Wilder D-Va. 75 A
Dean D-Vt. 73 B
Romer D-Colo. 72 B
Miller D-Ga. 71 B
Weld R-Mass. 69 B
Bayh D-Ind. 69 B
Engler R-Mich. 69 B
Sullivan D-Wyo. 69 B
Campbell R-S.C. 67 B
Thompson R-Wis. 66 B
Chiles D-Fla. 66 B
McWherter D-Tenn. 64 C
Schaefer D-Md. 64 C
Leavitt R-Utah 62 C
Edgar R-Ill. 62 C
Jones D-Ky. 61 C
Branstad R-Iowa 61 C
Symington R-Ariz. 61 C
Cuomo D-N.Y. 61 C
Andrus D-Idaho 60 C
Edwards D-La. 59 C
Walters D-Okla. 59 C
McKernan R-Maine 59 C
Tucker D-Ark. 56 D
Carlson R-Minn. 56 D
Richards D-Texas 56 D
Nelson D-Neb. 56 D
Lowry D-Wash. 55 D
Finney D-Kan. 55 D
Carnahan D-Mo. 54 D
Schafer R-N.D. 53 D
Racicot R-Mont. 52 D
Miller D-Nev. 52 D
King D-N.M. 51 D
Caperton D-W.Va. 51 D
Carper D-Del. 50 F
Voinovich R-Ohio 50 D
Casey D-Pa. 50 D
Hunt D-N.C. 48 F
Wilson R-Calif. 46 D
Roberts D-Ore. 45 D
Sundlun D-R.I. 44 D
Waihee D-Hawaii 41 F
Florio D-N.J. 37 F
Weicker I-Conn. 33 F