California has landed near the bottom of a new ranking measuring freedom across the United States, with the state’s tax policies, education choices and personal liberties drawing especially poor marks. The results also cast an unfavorable light on Gov. Gavin Newsom.
The report, released Monday by the libertarian Cato Institute, evaluates all 50 states and their governors according to how strongly they support economic and individual freedom.
Researchers assigned scores and letter grades after examining government spending, taxation, business rules and limits on construction. The personal-freedom portion considered issues including school choice, gun rights, medical decision-making and protections tied to the First Amendment.
California ranked 44th overall and received an “F,” scoring just 1.95 out of 10. Its economic-freedom rating was even lower at 48th, while its personal-freedom ranking was comparatively stronger at 34th, according to the study.
Newsom ranked 48th among the governors evaluated, placing him third from the bottom for policies the Cato Institute said have moved California in a less-free direction.
“The governor scores might also be best thought of as gauging the direction they are taking their state,” Stephen Slivinski, the Cato analyst who wrote the report, said in a blog post.
Slivinski noted that a governor in a state that is already broadly supportive of individual liberty may receive the same rating as the state if he or she has not significantly changed its policies. By contrast, leaders who advance reforms that make their states freer overall — particularly when those leaders are responsible for the improvement — can score above their states.
Newsom’s office was contacted for comment.
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Critics have targeted Newsom over a series of tax increases, including two recently approved levies affecting health care and software. One anti-tax organization described the combined measures as the largest tax increase in California history.
The Cato Institute also pointed to California’s labor rules, including a statewide minimum wage set to reach $17.40 next year, extensive occupational licensing requirements and the absence of a “right to work” law. The group said those policies can make it harder for entrepreneurs to operate and expand.
The state’s zoning restrictions and environmental regulations also hurt its standing, according to the report. Opponents of those rules argue they have constrained housing construction and helped drive California’s soaring home prices.
Montana Gov. Greg Gianforte topped Cato’s governor rankings and earned an “A” for his record on freedom-related policies.
Democratic Colorado Gov. Jared Polis placed second and received strong recognition for broadening medical marijuana access and other health care choices. He also earned credit for defending First Amendment rights after vetoing legislation that could have limited social media use.
Polis was further praised for curbing potential law enforcement overreach by narrowing police officers’ ability to invoke “qualified immunity” in civil lawsuits.
Florida Gov. Ron DeSantis and Texas Gov. Greg Abbott rounded out the third- and fourth-place spots among the governors.
Cato’s five highest-ranked states for freedom were Arizona, Montana, Nevada, Florida and Idaho.
At the bottom of the governor rankings were New York Gov. Kathy Hochul and Hawaii Gov. Josh Green. They were followed by Newsom, Rhode Island Gov. Dan McKee and Massachusetts Gov. Maura Healey.