National Study Ranks Best and Worst Run States in America
Monday, April 18, 2011
The business Web site 24/7 Wall St. has broken down how well each of the US States are run – their findings have some surprises and Rhode Island is neither #1 nor did it drop to #50.
In a comprehensive evaluation based on the principles developed by Financial World Magazine in the 1990’s, 24/7 Wall St. has chosen 10 critical factors and standardized them across states that are fundamentally different – California is one of the top 10 largest economies in the world and states like North Dakota, Wyoming and Vermont are fractional in size.
24/7 Wall St. Core Evaluation
“Ultimately, however, states can control their own destinies. Well-run states have a great deal in common with well-run corporations. Books are kept balanced. Investment is prudent. Debt is sustainable. Innovation is prized. Workers are well-chosen and well-trained. Executives are picked based on merit and not “politics.”
The following are some of the states that stand out:
Debt per Capita: $4,310 (2nd)
Unemployment Rate: 6.8% (8th)
Home Price Change (’06 – ’09): 23.6% (1st)
Median Household Income: $52,664 (19th)
24/7 Wrote: Wyoming comes in first place in 24/7 Wall St.’s Best Run States. Falling in the top fifteen in every metric, including sixth in debt per capita and second in percent below the poverty line. The only two flaws in the state’s record is median income, where it ranks 19th, and health insurance coverage, where it ranks 32nd. It also ranks first in high school completion. With just over half a million residents, it is the least populous state.
#2 North Dakota
Debt per Capita: $5,651 (10th)
Unemployment Rate: 3.7% (1st)
Home Price Change (’06 – ’09): 17.2% (4th)
Median Household Income: $48,827 (27th)
24/7 Wrote: North Dakota, which ranks second on our list, owes much of its success to a well-managed state economy. It is one of only two states in the country with a budget surplus, and in 2008 its economy grew 7.3% – double that of any state other than Wyoming, which grew 4.4%. The state also has the tenth lowest debt per capita in the country and has the lowest unemployment rate in the U.S., at just 3.7%.
#3 Iowa
Debt per Capita: $5,138 (6th)
Unemployment Rate: 6.8% (8th)
Home Price Change (’06 – ’09): 8.3% (22nd)
Median Household Income: $48,044 (26th)
24/7 Wrote: Iowa ranks 7th in education, with more than 90.5% of 25-year-olds having completed high school or the state equivalent. It is also sixth in lowest debt per capita and has the third-lowest rate of citizens without health insurance, with only 8.6% without coverage. While the Hawkeye State may be known for its corn fields, its economy is meaningfully supported by The University of Iowa. According to the university, it is one of the state’s top employers and supports over 51,000 jobs, both “directly and indirectly ” – more than 1 in 30 of the state’s total jobs. Iowa’s governors have been smart to invest heavily in the institution, and have reaped the benefits: the state ranks eighth lowest in the U.S. for unemployment, which stands at 6.8%.
Debt per Capita: $6,983 (23rd)
Unemployment Rate: 6% (5th)
Home Price Change (’06 – ’09): 12.1% (12th)
Median Household Income: $51,618 (20th)
24/7 Wrote: Vermont, the second smallest state in the nation, has the third smallest debt, due in part to its tendency to budget conservatively. The state also boasts the third smallest percentage of people without health insurance and the second lowest rate of violent crime: only 137.5 reported cases per 100,000 people.
#8 New Hampshire
Debt per Capita: $7,946 (33rd)
Unemployment Rate: 5.7% (4th)
Home Price Change (’06 – ’09): -1.4% (38th)
Median Household Income: $60,567 (7th)
24/7 Wrote: New Hampshire stands out in many categories. Only 8.5% of the state’s population lives below the poverty line, the lowest rate in the country. The state also has the third lowest rate of violent crime. It was not as badly hit by the recession as many other areas of the country.
Debt per Capita: $5,913 (12th)
Unemployment Rate: 8% (20th)
Home Price Change (’06 – ’09): 4.1% (29th)
Median Household Income: $45,734 (31st)
24/7 Wrote: The state, known for its lobsters and rocky shores, ranks tenth in high school completion. “Vacationland,” as it’s called, also happens to have the lowest violent crime rate in the country, with only 119 violent crimes committed per 100,000 people. It ranks in the middle for most other categories, however the state ranks a meager 40th in GDP per capita.
#19 Massachusetts
Debt per Capita: $14,079 (49th)
Unemployment Rate: 8.8% (26th)
Home Price Change (’06 – ’09): -8.6% (44th)
Median Household Income: $64,081 (6th)
24/7 Wrote: Massachusetts is a good example of a state which falls towards the median range of our ranking, not because it is either high or low in its metrics overall, but because it does very well by some measurements and very poorly by others. It is third in GDP per capita, seventh in poverty level, sixth in median household income, and, at 4.2%, has the smallest percentage of its residents without health care coverage. On the other hand, it is 49th in debt per capita, at $14,079 for each citizen, and it had the sixth-worst decline in home value from 2006 to 2009.
#20 Connecticut
Debt per Capita: $10,457 (46th)
Unemployment Rate: 9.1% (30th)
Home Price Change (’06 – ’09): -2.6% (40th)
Median Household Income: $67,034 (3rd)
24/7 Wrote: Connecticut, often noted as a state with many affluent communities, excels in a number of areas related to wealth. The state has the fourth smallest population below the poverty line and ranks third for highest median household income. However, they rank 46th in debt per capita, at $10,457.
Debt per Capita: $10,820 (47th)
Unemployment Rate: 11.8% (47th)
Home Price Change (’06 – ’09): -9.7% (45th)
Median Household Income: $54,119 (16th)
24/7 Wrote: Rhode Island ranks 34th on our list, but it has the fourth-worst debt per capita in the country. The state also has an unemployment rate of 11.8%, the third-worst in this category. All the same, the state manages to maintain a fairly high median household income (16th highest) and a relatively small percentage of the population below the poverty line (13th lowest).
#42 Florida
Debt per Capita: $7,666 (29th)
Unemployment Rate: 11.7% (46th)
Home Price Change (’06 – ’09): -20.9% (48th)
Median Household Income: $44,736 (38th)
24/7 Wrote: Despite receiving the ninth-lowest rank, Florida maintains an amazing AAA rating from S&P, which is the only reason it didn’t rank as the worst state on our list. From 2006 to 2009, property values in the sunshine state dropped 20.9%, making it the third-worst in that category. Despite its significant number of older residents, Florida also ranks 47th in health insurance coverage and has the fourth-worst violent crime rate.
Debt per Capita: $8,899 (37th)
Unemployment Rate: 10% (38th)
Home Price Change (’06 – ’09): 6.1% (24th)
Median Household Income: $40,072 (41st)
24/7 Wrote: Although Kentucky doesn’t place 50th in any one category, its overall poor scores secures its place as the worst-run state on our list. It is 43rd in GDP per capita, 47th in median household income, 47th in citizens with high school diplomas, and, at 18.6%, is 48th for percentage of the population below the poverty line. Kentucky also has an extremely weak S&P rating of AA-, supporting our assessment that it is the worst-run state in the country.
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