Taken as a whole, these reforms are more about state finances than helping small businesses. But Cover Tennessee shows that Bredesen recognizes that insuring more Tennesseans is good for entrepreneurs. Even better, he devised his plan in consultation with the state business community. "Small business appreciates Governor Bredesen for his open door and willingness to listen," says Gary Selvy, head of the NFIB's Tennessee chapter.
Texas
Rick Perry
Appointed: 2000
Reelected: 2002
Rating: 
There's a lot to like about Perry. In 2005, he won passage of a law that lets small businesses join pools in order to negotiate lower health insurance rates; he also relaxed state mandates so that employers can purchase no-frills policies. He approved a major overhaul of workers' comp rules, which restricts injured workers to a network of doctors. A test program set up under the law reimburses small businesses for any equipment alterations made in order to let injured workers return to the job early. But Perry's biggest claim to fame is that he managed to balance the Texas budget in the face of a $10 billion shortfall in 2003.
And here's where things get tricky. To balance the books without abandoning a "no new taxes" pledge, Perry latched on to the idea of ending the state's so-called franchise tax exemption. Though certain companies are exempted, the plan effectively raises $400 million a year in taxes from thousands of limited liability partnerships. It's an especially bitter pill for those that rent space and thus do not benefit from the accompanying reduction in the property tax. Groups that represent large corporations were happy with the proposal, while small-business groups opposed it. To overcome this opposition, the governor bundled the tax plan with popular school financing legislation. It will go into effect in stages through 2008.
Vermont
Jim Douglas
Elected: 2002
Rating:
Wisconsin
Jim Doyle
Elected: 2002
Rating:
Doyle has put so much effort into painting himself a pro-business Democrat that pundits say his support among labor, a major constituency in the land of Bob LaFollette, is more tepid than it needs to be for him to win reelection.
When he first took office, Doyle invited a number of entrepreneurs to take part in 12 economic roundtables that he held across the state. Since then, he has stuffed his "Grow Wisconsin" economic plan with jobs programs and tax credits for technology companies. He set up 55 facilities across the state to serve business owners and farmers. Finally, Doyle has won funding for stem-cell research at the University of Wisconsin at Madison, which his opponent, Representative Mark Green of Green Bay, would curb.
Despite these advances, Doyle is widely considered one of the most likely incumbents to fall in November. The state's finances are shaky, and Doyle and the legislature routinely squabble. A series of allegations of no-bid contracts landing in the laps of Doyle supporters have alienated voters. The bottom line: It's great that Doyle has been a friend to business, but his missteps in other areas have blunted his overall effectiveness.
Wyoming
David Freudenthal
Elected: 2002
Rating:
Freudenthal and his state have benefited tremendously from the surge in oil prices. Wyoming's surplus topped $2 billion in 2005, thanks to oil industry tax revenue. And jobs are so plentiful that companies go to Michigan to recruit workers.
The boom has allowed Freudenthal to invest in education, which will benefit the economy over the long term. In March the legislature approved his plan to pump $2.1 billion into public schools, money that will make Wyoming one of the top three states in spending per pupil, up from 14th. The legislature also okayed $505 million to hire more teachers.
On the economic development front, the brand-new Wyoming Technology Business Center offers education and mentoring to the state's small-business owners, while the Business Ready Grant and Loan program provides access to working capital.
