Inauguration: Jan 2015 1 TX Next Election: 2022 State Control Party Governor Party Republican Republican OVERALL RANK

PREVIOUS GOVERNORS AND PARTY AFFILIATION Results Rank (1=best, 50=worst): 2000-2015 A situational measure based on George W. Bush 1995-2000 1 the state’s economic outcomes 1991-1995 (equal-weighted average).These variables are highly influenced by Bill Clements 1987-1991 the Governor’s policy. RESULTS RANK SENATE 39% 61% Policy Rank (1=best, 50=worst): Democrat 12 Republican 19 A Measure of policy stances and decisions based on each Governor’s 4 legislative history regarding 6 key HOUSE areas (equal-weighted average).

45% 55% POLICY RANK

Democrat 67 Republican 83

KEY PERFORMANCE INDICATORS RANK ABOUT GOVERNOR GREG ABBOTT TAX POLICY Now into his second term as Texas’ executive, Governor Sales, Personal Income, Fuel, and Other Tax Changes 1 Greg Abbott has earned the ranking of America’s best governor due to his commitment to fiscal conservatism and free market policies. Gov. Abbott’s administration SPENDING POLICY has seen Texas emerge as one of the strongest state Proposed and Enacted Changes in State Spending 35 economies with the second-highest net in-migration of new residents of any state. Despite an influx of new businesses and taxpayers into Texas, Gov. Abbott has CARES POLICY insisted on keeping spending low. In fact, Texas has Handling of Federal Funds as of July 2020 12 seen the lowest growth in spending out of any state. Keeping government trim also enabled Texas to be more prepared for the fiscal shocks of the COVID-19 UNION POLICY Public Employees, Public Employee Raises, pandemic than 40 other states. Despite an estimated and Prevailing Wage Laws 1 revenue shortfall nearing 15%, Texas’ state savings accounts were able to cover the entire budget shortfall without raising taxes. Gov. Abbott’s insistence on saving WELFARE POLICY state resources for a rainy day enabled Texas to respond Welfare Spending per Capita 4 appropriately to the COVID-19 crisis without endangering state finances and protect taxpayers at the same time. EDUCATION POLICY School Choice Participation, NAEP Scores, and per Pupil Spending 12

ALEC | American Legislative Exchange Council 2020 THE LAFFER-ALEC REPORT ON ECONOMIC FREEDOM GRADING AMERICA’S 50 GOVERNORS

RESULTS

19 1 10 3

DEBT RANK SPENDING RANK PREPAREDNESS RANK ECONOMIC RANK

TAX POLICY DATA RANK

State Spending Top Marginal Personal Income Tax Rate 0.00% Yearly Spending per GSP, 2009-2019: 1

9% Top Marginal Corporate Income Tax Rate 2.70% 5 8% Inauguration

7% Personal Income Tax Progressivity (change in tax liability per $1,000 of $0.00 income) 2 6%

5% Property Tax Burden $40.46 (per $1,000 of personal income) 42 ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 ’19

Sales Tax Burden $28.35 (per $1,000 of personal income) 38 2020 Unemployment Rate Monthly Unemployment Rate from January to July, 2020: Remaining Tax Burden (per $1,000 of personal income) $16.15 30% 22

25% Estate/Inheritance Tax Levied No 20% 1 14% 15% 13% Recently Legislated Tax Changes 10% 8% 8% (2018 & 2019, per $1,000 of personal $0.17 5% income) 24 5% 4% 4%

0 Debt Service as a Share of Tax Revenue 9.3% Jan Feb Mar Apr May Jun Jul 46

THE LAFFER-ALEC REPORT ON ECONOMIC FREEDOM GRADING AMERICA’S 50 GOVERNORS