Anti-tax group gives Guinn a D

Thursday, March 3, 2005 | 8:25 a.m.

WASHINGTON -- Gov. Kenny Guinn earned a D grade on a report card ranking of the nation's governors by an anti-tax libertarian think tank.

The Washington-based Cato Institute, which advocates limited government and free markets, said Guinn's performance fell dramatically from when he took office.

The 72-page Cato study graded 42 governors, based on 15 measures of fiscal performance. Governors who cut taxes and spending earned higher grades and governors who increased spending and taxes earned low grades. The institute claims that states with low taxes and restrained spending have better long-term growth. Six governors were excluded because they just took office; the governors of Alaska and Wyoming were excluded for "technical reasons."

"In one of the biggest falls from grace in this report card's history, Kenny Guinn went from being one of the best new governors in 2000 -- when he received an A -- to one of the worst governors in the nation today," the Cato report said.

The report said Guinn's first-term budgets grew more slowly than population, but ballooned when deficits appeared. The report criticized Guinn for pushing business taxes. Additionally, the institute didn't like Guinn's call in 2002 for $800 million in tax increases, and later, his proposals for cigarette, alcohol and business license taxes. The report criticizes Guinn for new anti-smoking and college education and health care programs, which were partly funded from a tobacco settlement.

The institute simply slams tax and spending hikes and doesn't consider the realities of the complex fiscal crises Guinn has faced, Guinn spokesman Greg Bortolin said. Governors who take bold actions "get dinged for it" by Cato, Bortolin said.

"The governor didn't pay any attention to the Cato rankings when he got good grades and he certainly doesn't pay attention to it now," Bortolin said.

Michael Hillerby, Guinn's chief of staff, said the governor met the needs of the state. Nevada, he said has a low unemployment rate and is judged one of the best states in the nation to locate.

While the Cato Institute's people have been "locked in an office in Washington, D.C. ... we've been busy making a success story."

Four governors, all Republican, received A grades from the institute: Arnold Schwarzenegger of California, Craig Benson of New Hampshire, Bill Owens of Colorado, and Judy Martz of Montana. Four received F's: Democrat Bob Holden of Missouri; Republican Bob Taft of Ohio; Democrat Edward Rendell of Pennsylvania; and Democrat James McGreevey, former governor of New Jersey who stepped down in November amid a sex scandal.