FISCAL GRADING

The Cato Institute is a leading free-market think tank in Washington, D.C. For the last three years, Cato scholar Stephen Moore has assessed the nation's governors, judging them on their stewardship of the fiscal affairs of their respective states. Included in the Cato review are all aspects relating to taxing, spending and debt levels in each state. Governors are assigned a grade ranging from A to F.

This year's Cato report didn't brighten taxpayers' spirits in either Missouri, under Democratic Gov. Mel Carnahan, or in Illinois, under Republican Gov. Jim Edgar. Both chief executives received a grade of D. The orientation of Cato is conservative/free-market, but its credibility is enhanced by its evenhandedness in assigning sub-par grades to both Republicans and Democrats.

In Gov. Edgar's case, he was scored for failing to cut taxes at a time when most states are moving aggressively to do so. Twenty-one states have already cut taxes, and 27 governors have recommended tax cuts to their lawmakers.

Missouri taxpayers are perhaps more familiar with the reasons why Mel Carnahan deserves such a rating. In his first days in office he turned his back on a solemn campaign pledge and pushed through one of the largest tax increases in Missouri history, and this without the public vote he had promised. By the time the dust settled on his first legislative session in 1993, working Missourians were groaning under nearly a half-billion dollars in higher taxes.

In four years Mr. Carnahan has presided over a literal explosion in state spending, as the state budget has grown nearly 40 percent on his watch. For the first time since voters adopted the Hancock Amendment in 1980, Missouri's tax revenues have grown so much faster than personal income that tax refunds are now owing to taxpayers. This is hardly an occasion for gratitude. It is axiomatic that these refunds can't be owing unless your state government has overtaxed you to begin with. Missouri's governor also failed to cut taxes, despite beginning the year with great fanfare as he announced an intention to do so. Mel Carnahan got his grade of D the old-fashioned way: He earned it.

Cato scholars are performing a great service in imitating watchdogs on tax and spending issues. Voters in all states should take notice.