The Best and Worst Run States in USA

Don · Feb 24, 2014

USA Today reports on the best and worst-run states, according to analysis based on a number of criteria.

To determine how well the states are run, 24/7 Wall St. reviewed hundreds of data sets from dozens of sources. We looked at each state's debt, revenue, expenditure, and deficit to determine how well it was managed fiscally. We reviewed taxes, exports, and GDP growth, including a breakdown by sector, to identify how each state was managing its resources. We looked at poverty, income, unemployment, high school graduation, violent crime and foreclosure rates to assess the well-being of the state's residents.

While each state is different, the best-run states share certain characteristics, as do the worst run. For example, the populations of the worse-off states tended to have lower standards of living. Violent crime rates in these states were usually higher and residents were much less likely to have a high school diploma.

The worst-run states also tended to have worse fiscal management reflected in higher budget shortfalls and lower credit ratings by Moody's Investors Service and Standard & Poors.

The better-run states tended to display stable fiscal management. Pensions were more likely to be fully funded, debt was lower, and budget deficits smaller. Credit ratings agencies also were much more likely to rate the well-run states favorably. Only two poorly run states received a perfect credit rating from either agency. California and Illinois, which are ranked worst and third worst, received the lowest ratings from both agencies.

The best-run state?

North Dakota:
Debt per capita: $3,033 (20th-lowest)
Budget deficit: None
Unemployment: 3.1% (the lowest)
Median household income: $53,585 (19th-highest)
Pct. below poverty line: 11.2% (6th-lowest)

Wyoming, Iowa, Nebraska and Utah round out the top 5.

The worst-run state?
California:
Debt per capita: $3,990 (20th-highest)
Budget deficit: 27.8% (3rd-largest)
Unemployment: 10.5% (2nd-highest)
Median household income: $58,328 (11th-highest)
Pct. below poverty line: 17.0% (18th-highest)

Rounding out the bottom 5 are New Mexico, Illinois, Rhode Island and Nevada.

Maps as well as lots on interesting data on the various states at the links.

There's even a handy state comparator where you can sort and slice the data various ways.

clintl · Feb 24, 2014

Don said:
USA Today reports on the best and worst-run states, according to analysis based on a number of criteria.

The best-run state?

North Dakota:
Debt per capita: $3,033 (20th-lowest)
Budget deficit: None
Unemployment: 3.1% (the lowest)
Median household income: $53,585 (19th-highest)
Pct. below poverty line: 11.2% (6th-lowest)

Wyoming, Iowa, Nebraska and Utah round out the top 5.

The worst-run state?
California:
Debt per capita: $3,990 (20th-highest)
Budget deficit: 27.8% (3rd-largest)
Unemployment: 10.5% (2nd-highest)
Median household income: $58,328 (11th-highest)
Pct. below poverty line: 17.0% (18th-highest)

Rounding out the bottom 5 are New Mexico, Illinois, Rhode Island and Nevada.

Maps as well as lots on interesting data on the various states at the links.

There's even a handy state comparator where you can sort and slice the data various ways.

What year is that data from? California has a budget surplus now. It's clearly badly outdated.

Don · Feb 24, 2014

clintl said:
What year is that data from? California has a budget surplus now. It's clearly badly outdated.

I think badly outdated is a bit of a reach. Most 2013 figures haven't been reported yet, given it's early in 2014.

Most figures are for 2012. Debt per capita, obtained from the Tax Foundation, and state budgetary data, which came from the U.S. Census Bureau, are for fiscal year 2011. Figures from the CBPP are for the fiscal year 2012. Credit ratings and the Tax Foundation’s rankings for business tax climate are based on the most recently available publications.

raburrell · Feb 24, 2014

Don said:
I think badly outdated is a bit of a reach. Most 2013 figures haven't been reported yet, given it's early in 2014.

If they're not reflective of current reality however, the relevance of the analysis certainly goes down.

In any case, the methodology seems to boil down to 'do lots of fracking and don't have much of a population', neither of which are options for most other states.

Will agree, however, that RI is run very, very badly.

Snowstorm · Feb 24, 2014

Wyoming's fortunate because of our high revenues from minerals, oil, and gas. Plus, our legislature meets for only a couple weeks a year, so there's very little time to mess with spendthrifty bills--instead they're very thrifty.

But, the winters are hard, towns are very small, the nearest mall is three hours away, the wind blows all the time, no major league sports teams, cattle roam the roads... Stay far, far away...

Xelebes · Feb 24, 2014

Would be nicer if it somehow included some measure of corruption and other determiners of state husbandry.

Myrealana · Feb 24, 2014

Snowstorm said:
Wyoming's fortunate because of our high revenues from minerals, oil, and gas. Plus, our legislature meets for only a couple weeks a year, so there's very little time to mess with spendthrifty bills--instead they're very thrifty.

And North Dakota is benefitting from a massive influx of money due to natural gas fracking, but it's not all wine and roses.

http://rt.com/usa/flammable-water-dakota-fracking-023/

http://www.npr.org/2011/12/02/142695152/oil-boom-puts-strain-on-north-dakota-towns

http://www.triplepundit.com/2014/02/fracking-boom-makes-williston-nd-expensive-city-live/

http://www.huffingtonpost.com/2011/...ses-drunkenness-rowdy-behavior_n_1032326.html

clintl · Feb 24, 2014

Don said:
I think badly outdated is a bit of a reach. Most 2013 figures haven't been reported yet, given it's early in 2014.

I'm sorry, but California's current budget situation does not even remotely resemble what it was in 2011. That makes it badly outdated. Gov. Jerry Brown's fiscal policies have dramatically reversed the situation from then.

onuilmar · Feb 25, 2014

The other reason North Dakota is number one is because it has a state owned bank. In other words, the state lends money for activities/businesses it wants to encourage and is paid back both in capital and interest.

http://banknd.nd.gov/

Not only is the cost of borrowing less in North Dakota, but the state itself is paying little in debt service.

In any business, the finance office is a cost. A necessary cost, but still a cost and not a value added good. Wall Street is a cost to the business activity in the US and as it metastasizes, it is becoming a larger and larger portion of the GDP.

Wealth are goods. But wealth is measured in terms of money. Wall Street makes no goods. It is a cost of doing business, but is not a value added good in and of itself. No matter what the Masters of the Universe claim.

kuwisdelu · Feb 25, 2014

Myrealana said:
And North Dakota is benefitting from a massive influx of money due to natural gas fracking, but it's not all wine and roses.

This. There is a real cost to the land that is not being accounted for here. Until that is added to the calculation, I can't take these kinds of reports seriously. Sustainability needs to be a consideration if we're going to talk about what is well run and what isn't. North Dakota is borrowing resources it can't give back.

The Best and Worst Run States in USA

Don

All Living is Local

clintl

Represent.

Don

All Living is Local

raburrell

Treguna Makoidees Trecorum SadisDee

Snowstorm

Baby plot bunneh sniffs out a clue

Xelebes

Delerium ex Ennui

Myrealana

I aim to misbehave

clintl

Represent.

onuilmar

(w)ride like the wind

kuwisdelu

Revolutionize the World