By Michael B. Sauter, Alexander E. M. Hess, Samuel Weigley and Ashley C. Allen
The answer depends a lot on where you live.
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 is managed fiscally. We reviewed taxes, exports, and GDP growth, including a breakdown by sector, to identify how each state is managing its resources. We looked at poverty, income, unemployment, high school graduation, violent crime and foreclosure rates to measure if residents are prospering.
The best-run states have certain characteristics in common, as do the worst run. The high-ranking states all have well-managed budgets. Each of the top ten has a perfect, or near-perfect, credit rating from Standard & Poor’s, Moody’s, or both. Of the ten worst-ranked, only three received top scores from one agency, and none from both. California is currently the only state rated A- by S&P, the lowest score given to any state. These poor-ranked states have high debt relative to both income and expenditure.
There is a strong correlation between well-educated populations and generally well-managed states. Of the ten best-scoring states on our list, nine have among the highest percentages of adults with high school diplomas.
Employment is also closely correlated to how well a state is managed. The unemployment rates of most of the poorly ranked states are among the highest in the country. Nine of the ten best-ranked states had an unemployment rate of less than 7% in 2011. This includes North Dakota, which had the lowest rate in the country in 2011, at just 3.6%. The average unemployment rate nationwide was 8.9% in 2011.
These are the best- and worst-run states in America.
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