Gibbons gets grade of B for stand against taxes

CARSON CITY -- Gov. Jim Gibbons was one of 14 state chief executives to earn a grade of B from the Cato Institute in its 2008 report card examining state tax and spending decisions.

Three governors received an A grade, while eight others were failed with an F.

Gibbons received a high grade by promoting spending discipline while sticking to his campaign promise not to raise taxes, said the report, which came out in late October.

•In 2007, he proposed reductions in the modified business tax, but the Legislature agreed only to put off a scheduled increase in the tax.

•He has opposed gasoline tax increases to pay for highway construction, instead calling for private sector funding of new highways.

•To close a state budget gap this year, Gibbons has focused on cutting program spending rather than agreeing to tax hikes.

•He has formed a commission to cut waste, similar to the federal Grace Commission of the 1980s.

"I think they are recognizing Governor Gibbons' fiscal discipline and the need for the state to live within its means," said Ben Kieckhefer, press secretary for Gibbons.

"The governor has been deliberate with how we've had to deal with the fiscal downturn. We've kept our books balanced and done so with minimal effect on the citizens of the state where possible," he said.

"A good solid grade from the Cato Institute is warranted, and I'm glad they saw it that way," Kieckhefer said.

The report found that Republican governors, on average, received slightly higher grades than Democratic governors.

"More importantly, there has been a disappointing lack of major spending reforms among governors of both parties in recent years," the report said.

"State tax policies have also been uninspiring. Most tax cuts pursued by the governors have been small and targeted breaks, not broad-based rate cuts that can foster economic growth," it said.

The Cato Institute is a non-profit public policy research foundation based in Washington, D.C. Its mission is to increase the understanding of public policies based on the principles of limited government, free markets, individual liberty and peace.

Contact Capital Bureau reporter Sean Whaley at swhaley@reviewjournal.com or 775-687-3900.