State Tax Update Archive
[2003 - 2004] [2002 and Older]

MAINE GOVERNOR IMPEDES DEMOCRATIC PROCESS

In a move to make the initiative referendum process even more difficult, Governor Angus King has supported four anti-referendum proposals:  increase required signatures by 50% (LD 59), require at least 5% of signatures from each of Maine's 16 counties (LD 123), limit frequency of return to referendum of previously defeated issues to six years (LD 199), and prohibit the collection of signatures anywhere in Maine on state election days (LD 580).  These proposals will further reduce the ability of taxpayers to directly affect taxation; Maine ranks among the worst for its state and local tax burden.

EDUCATION SPENDING CUTS IMMINENT IN ALABAMA

Alabama state lawmakers and Governor Don Siegelman struggled to resolve a stalemate over education spending during a special session March 2.  Gov. Siegelman's package of bills included a constitutional amendment that would create a rainy day fund for the purpose of softening the impact of future education budget cutbacks.  Rep. Greg

Wren (R-Montgomery) sponsored the bill; Gov. Siegelman declared a 6.2% education cut earlier in the month as required by law, because tax collections are not meeting projections.

MONTANA ECONOMY SLOWS, EDUCATION SPENDING GALLOPS AHEAD

On March 2, Governor Judy Martz said that she supports a plan to tap $40 million from Montana's coal tax trust fund to keep state education spending consistent with previous years (HB 277).  Education spending increased significantly in both the 1999 regular session and the 2000 special session.  Gov. Martz also supports HB 121, by Rep. Doug Mood

(R-Seeley Lake), to increase basic and per-pupil entitlements by $13.2 million over the next two years.  Gov. Martz was awarded Friend of the Taxpayer for the month of December, 2000, for her campaign promise not to rely on new tax increases to balance the state budget.

Gov. Frank Keating proposed cutting the state income tax rate by 45% over six years as a part of a legacy for Oklahoma as he prepares to leave office in two years.  Gov. Keating also proposed abolishing Oklahoma's estate tax,  $55.4 million reduction in administrative costs for state agencies, $100 million for textbooks, education programs, and school grants, reducing the legal blood alcohol level to 0.08, and passing right-to-work laws that would allow employees to work at union jobs without paying union dues.  The legislative session began February 7 and will end May 25.

Governor Jesse Ventura has announced plans to cut property, sales, and income taxes in Minnesota, amounting to nearly $1.9 billion in cuts.  Gov. Ventura proposed reducing local property taxes by shifting more of the burden of state education costs to the state from local governments, allowing local governments to reduce property taxes.

Minnesota taxpayers have received a total of $2 billion in sales tax rebates over the last two years; Gov. Ventura intends to reduce the current sales tax of 6.5% to 6.0%.  However, Gov. Ventura announced plans to apply the sales tax to Internet purchases and to a number of professional services, such as legal work.  Gov. Ventura also proposed reducing state income taxes by half of a percentage point.

GOV. TOM RIDGE of PENNSYLVANIA is awarded FRIEND OF THE TAXPAYER for the month of FEBRUARY for holding the second "Tax-Free PC Week," beginning Feb. 18.  Gov. Ridge signed the "Tax-Free PC Week" into law in May of 2000.