An Analysis of the 2016 Governors’ Addresses
About the ALEC Center for State Fiscal Reform
The ALEC Center for State Fiscal Reform strives to educate those who share a commitment to our principles and shared goals and to educate our legislative members on how to achieve greater economic prosperity by outlining which policies work and which ones fail.
How does ALEC do this? By "briefings" if you ever wondered why you get the same "newspeak" from states all the country, or why the same legislative initiatives appear in all those same states - ALEC = the source.
This is done by personalized research, policy briefings in the states and by releasing nonpartisan policy publications for distribution such as
- Rich States, Poor States: ALEC-Laffer State Economic Competitiveness Index;
- The Unseen Costs of Tax Cronyism: Favoritism and Foregone Growth;
- Tax Myths Debunked;
- Keeping the Promise: State Solutions for Government Pension Reform
- The State Budget Reform Toolkit.
- Theodore Lafferty Legal Research Analyst, Center for State Fiscal Reform American Legislative Exchange Council
- Jonathan Williams Vice President, Center for State Fiscal Reform American Legislative Exchange Council
- Joe Horvath Research Analyst, Center for State Fiscal Reform American Legislative Exchange Council
- Jack King Summer Research Associate, Center for State Fiscal Reform American Legislative Exchange Council
- Theodore Lafferty Legal Research Analyst, Center for State Fiscal Reform American Legislative Exchange Council
- John R. Richardson Summer Research Associate, Center for State Fiscal Reform American Legislative Exchange Council
- Kati Siconolfi Legislative Manager, Center for State Fiscal Reform American Legislative Exchange Council
- Jonathan Williams Vice President, Center for State Fiscal Reform American Legislative Exchange Council
This report observes and analyzes the economic policy proposals discussed in each governor’s State of the State address. In those states where no State of the State address was given, the equivalent inaugural or budget address is discussed when applicable. Also included are special session addresses that had significant discussions of economic policy.
A number of different trends and priorities regarding economic policy were observed when reviewing these addresses.
1. Following a similar trend observed in the majority of 2015 State of the State addresses, many governors focused a considerable portion of their addresses on the issue of tax relief. 2. For the second year in a row, more governors proposed reducing taxes to facilitate economic growth than governors who proposed increasing taxes.
3. Aside from tax proposals, many governors discussed a number of different policy topics which, while less directly related, can still significantly affect state economies.
Some of the most important of these issues included pension reform, expanding or shrinking Medicaid, changes to the state’s minimum wage and government efficiency.
4. The majority of governors seem to understand that lower tax rates and limited government give citizens and businesses a greater incentive to reside and operate in their states compared to others with higher tax rates and more regulations.
This concept is further explored in the Center for State Fiscal Reform’s Rich States, Poor States: ALEC-Laffer State Economic Competitiveness Index, in which years of economic data and empirical evidence from each state are examined in order to determine what economic policies lead to prosperity.
1. Generally, states with lower tax rates, fewer regulations and responsible spending habits outperform other states in terms of economic growth.
2. Based on the observations made in reviewing the 2016 State of the State addresses, many governors are following these policies to help their states better compete for residents, jobs and capital.
Best and Worst State of the State Addresses, 2016
The following lists contain the best and worst State of the State addresses of 2016, based on the economic policy proposals included in each address.
The “best” addresses include proposals that are proven to enhance economic competitiveness and growth, while the “worst” addresses include proposals that are proven to hinder economic competitiveness and growth.
The addresses are ordered by the state’s economic outlook ranking in the 9th edition of Rich States, Poor States
On top of the list - and best - The State of Arizona, beating out Florida Governor Smith and in third place Maine's loud-mouthed Governor LePage
Best : Arizona – Governor Doug Ducey Rich States, Poor States 2016 Economic Outlook Ranking: 5
“A year later, the big spenders who told us we couldn’t balance the budget, are beating the drum—celebrating our hard work with plans to spend and party like it’s 1999. Some people never learn, no matter how much their heads hurt in the morning.”
Governor Doug Ducey of Arizona delivered one of the most impressive State of the State addresses this year, emphasizing the need to continue on a path toward greater prosperity and freedom by eliminating waste and getting government out of the way of businesses and residents.
The governor lauded his proposed budget which responsibly prioritized government spending in areas such as education, child safety and public safety.
In addition, he stated the budget does not raise taxes and promised the legislature and the people of Arizona that “we will lower taxes this year. Next year. And the year after.”
- While continuing to highlight the success Arizona has had under his administration, Governor Ducey emphasized that the state cannot go back to their old spending habits which previously led them down a path of economic decline. The policies put in place under Governor Ducey’s leadership have led to an Arizona that isn’t just strong, but on the rise, with Arizona ranking 5 in the 2016 Rich States, Poor States economic outlook rankings
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About the American Legislative Exchange Council
The 2016 State of the States Report was published by the American Legislative Exchange Council (ALEC) as part of its mission to discuss, develop and disseminate model public policies that promote limited government, free markets and federalism. ALEC is the nation’s largest non-partisan, voluntary membership organization of state legislators, with more than 2,000 members across the nation. ALEC is governed by a Board of Directors of state legislators. ALEC is classified by the Internal Revenue Service as a 501(c)(3) nonprofit, public policy and educational organization. Individuals, philanthropic foundations, businesses and associations are eligible to support the work of ALEC through taxdeductible gifts. Acknowledgements and Disclaimers
The authors wish to thank Lisa Nelson, Bill Meierling, Nathan Brinkman, Ashley Varner, Shana Sally, Christine Phipps, Christine Smith, Elliot Young and the professional staff at ALEC for their valuable assistance with this project.
All rights reserved. Except as permitted under the United States Copyright Act of 1976, no part of this publication may be reproduced or distributed in any form or by any means, or stored in a database or retrieval system without the prior permission of the publisher. The copyright to this work is held by the American Legislative Exchange Council. This study may not be duplicated or distributed in any form without the permission of the American Legislative Exchange Council and with proper attribution.
Contact Information: American Legislative Exchange Council 2900 Crystal Drive, Suite 600 Arlington, VA 22202 Tel: 703.373.0933 Fax: 703.373.0927
