State Policy Network
2019 in Review: State think tanks encourage states to spend responsibly

Ah, another year has passed—and with it, more tax increases, ballooning state budgets, expanding government, unsustainable…wait! It’s not all bad news. Thanks to a powerful Network of state think tanks, there’s lots of reasons to cheer. In 2019, state think tanks across the country advanced meaningful tax reform, prevented excessive tax increases, and encouraged responsible state budgets.

These organizations promoted fiscal responsibility in state government so average, everyday Americans can keep more money in their bank accounts. Take a look at some of their accomplishments in 2019:  

ALASKA

After publication of the Alaska Policy Forum’s report (prepared in partnership with The Buckeye Institute) “Unsustainable: The State of Alaska’s Budget and Economy,” the Alaska governor moved forward with broad vetoes. The Forum’s report recommended budget reductions instead of new taxes, and while the Legislature made slight reductions, the governor’s vetoes represent significant progress toward a balanced budget.

ARKANSAS

The Arkansas Policy Foundation worked with Governor Hutchinson to identify workable ways to streamline the government and make it more efficient. The Foundation’s Efficiency Project improved nearly every state agency while shrinking the size of state government agencies from 42 to 15, saving Arkansas taxpayers $15 million a year.

HAWAII

In the 2019 legislative session, the Grassroot Institute of Hawaii fought against proposed general excise tax increases and a new government housing program. In their education campaigns, the Institute pointed out that state residents already suffer from the nation’s highest cost of living and cannot afford more taxes or expensive government projects.

IDAHO

The Idaho Freedom Foundation‘s report— “Are you kidding me, Boise?”—revealed Boise City Hall wasted more than $144 million in the last two fiscal years. This report inspired two conservative candidates to jump in this year’s race for mayor. Prior to their entry, two candidates were on the ballot: the incumbent and a progressive city council member, each of whom promised more spending, more regulations, and ever-bigger government. IFF’s research changed the mayoral race dynamic to give voters a more robust and whole discussion about Boise’s future.

Due in large part to Idaho Freedom Foundation‘s efforts, a new law ensures Idahoans get to vote before government goes into debt for extravagant projects. 

IOWA

The Iowa Governor signed important property tax transparency measures into law this year. This bill increases local government transparency, citizen input, and accountability for elected officials. Improving Iowa’s property tax system was a priority for Tax Education Foundation of Iowa. Their most recent work on the issue was developing property tax scorecards for Iowa’s cities and counties.

LOUISIANA

One month into the Louisiana legislative session the Pelican Institute saw progress on advancing some of its proposed reforms. For the first time since 2002, a comprehensive tax reform package—which incorporates the Institute’s proposed policies—was introduced.

MISSOURI

In a big win for taxpayers, Missouri and Kansas agreed to no longer give tax breaks to companies to do business in their state. Since 2010, the two states have wasted $335 million paying companies in the Kansas City area to simply change their employees’ commuting route. The Mackinac Center brought attention to this win in an op-ed for The Hill, and urged the idea be adopted more widely.

MINNESOTA

Center of the American Experiment launched a multi-channel advertising campaign encouraging Minnesotans to speak up against a proposed 70 percent gas tax increase. The campaign made gas taxes the most prominently discussed issue in the weeks before the budget was passed, and it prompted citizens to send 2,500 emails to the governor to express their opposition. The gas tax increase was completely defeated in the final budget agreement, shocking most political observers who thought an increase was inevitable.

NEW YORK

Thanks to ten years of advocacy by the Empire Centerthe tax cap is now permanent in New York. The law limits the annual growth of property taxes levied by local governments and school districts to 2% or the rate of inflation, whichever is less. Empire provided extensive research on how the cap has helped New Yorkers.

Empire Center’s government transparency site, SeeThroughNY.net, celebrated its 11th birthday in 2019. The site is home to over 24 million public spending records and receives almost nine million page views a year. Through the site, Empire Center aims to show lawmakers, media, and the general public the true (and often astonishing) spending by state and local governments and agencies. By shining this light on government spending, SeeThroughNY is driving a different conversation about government spending—one that encourages policymakers to consider worthwhile reforms, thanks to engagement from more informed public and media.

OREGON

Cascade Policy Institute’s testimony helped convince the Oregon Legislature to table a bill that would have extended a three percent electric utility tax by 10 more years. This extension would have cost taxpayers more than $1 billion.

TENNESSEE

Tennessee is on its way to being a truly income tax-free state by 2021! Tennessee’s Hall Income Tax is being successfully phased out, as a result of a repeal passed in 2016. This repeal became a reality, thanks to an issue education campaign led by the Beacon Center of Tennessee. The campaign highlighted the unfairness of the state’s Hall Income Tax on savings and investments. The campaign garnered 1.8 million video views and over 75,000 emails to legislators, who ultimately voted to phase out the Hall Income Tax in April 2016.

VIRGINIA

Recognizing the impact federal tax reform would have on Virginia’s tax policy, the Thomas Jefferson Institute for Public Policy hired Steve Haner as a senior fellow to spearhead its tax reform work. Since fall 2018, legislators have regularly consulted Haner for advice in crafting their own tax legislation. Of the 15 tax proposals filed by the pre-filing deadline, 10 included elements of the Jefferson plan… and five were exact duplicates of the plan.

WASHINGTON

The Washington Policy Center took the City of Seattle to court so they would turn over public records related to the city income tax. WPC won its case, and the public records that were released revealed Seattle council members knew local income taxes were illegal and unconstitutional before they passed the law.

Policy Issues: State Budget, Tax
Organization: State Policy Network