The Worst-Run Cities in America

24/7 Wall St: Worst-Run Cities in America

Many qualities separate the best-run and worst-run cities. But perhaps the most important is access to jobs. The economies of the best-run cities fall into two categories. They either have a booming industry or are near other major urban areas that create employment opportunities. The worst-run cities simply do not have the same access to jobs. 24/7 Wall St.’s analysis of the best-run and worst-run cities demonstrates that encouraging businesses to prosper and create jobs is the most important function of local government.

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The Worst-Run Ci... Many qualities separate the best-run and worst-run cities. But perhaps the most important is access to jobs. The economies of the best-run cities fall into two categories. They either have a booming industry or are near other major urban areas that create employment opportunities. The worst-run cities simply do not have the same access to jobs. 24/7 Wall St.’s analysis of the best-run and worst-run cities demonstrates that encouraging businesses to prosper and create jobs is the most important function of local government.

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10. Hialeah, Fla... Violent crime per 1,000 people: 4.36 (26th lowest)
Poverty rate: 22.1% (35th highest)
Adult population graduated from high school: 68.6% (5th lowest)
Credit rating: not rated
Population: 225,461

Hialeah is the sixth-largest city in the state, and yet it receives little press attention, largely because it is overshadowed by the neighboring city of Miami. In many ways, Hialeah is an improvement on its larger neighbor, posting the 26th lowest violent crime rate in the country, as well as the third-lowest vacant homes rate, at just 5%. However, Hialeah also has a 12-month unemployment rate of more than 15% — higher than Miami and all but a few of America’s largest cities. The city, which has grown very quickly over the past several decades, has one of the lowest percentages of adults with health insurance, at 28.6%.

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9. North Las Veg... Violent crime per 1,000 people: 8.93 (28th highest)
Poverty rate: 18.0% (35th lowest)
Adult population graduated from high school: 76.8% (15th lowest)
Credit rating: A2 (negative outlook)
Population: 217,304

The housing market of North Las Vegas plunged 50.9% from 2007 to 2010. In 2010, one in every five homes in the city was foreclosed upon, according to RealtyTrac. On top of it all, the North Las Vegas Housing Authority misspent public money for years meant to help needy residents. It appears that the soft housing market will continue to hurt city coffers. One of its major revenue sources — property taxes — is expected to fall by over a fifth in 2011 in the county. To reduce spending, the city cut or froze more than 800 positions in recent years. The city has a credit rating of A2 from Moody’s, which the agency attributes to its “continued economic weakness and persistent financial challenges,” as well as “the city’s structurally imbalanced operations and reliance on financial reserves” used to support government operations.

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8. Fresno, Calif... Violent crime per 1,000 people: 6.26 (48th highest)
Poverty rate: 30.2% (9th highest)
Adult population graduated from high school: 74.6% (11th lowest)
Credit rating: A3 (negative outlook)
Population: 496,147

Fresno, which was incorporated in 1885, is California’s largest inland city. Like much of the state, the city’s home values declined by more than 30% between 2007 and 2010. However, the vacancy rate in the city, at 9.8%, is better than average. Fresno’s 12-month average unemployment rate was the fifth-highest among the largest cities in the U.S. Also, more than 30% of the population lives below the poverty line. In October, Moody’s downgraded the city’s long-term debt rating to A2, citing an increasing budget gap and weak financial reserves.

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7. St. Louis, Mo... Violent crime per 1,000 people: 17.47 (2nd highest)
Poverty rate: 27.8% (13th highest)
Adult population graduated from high school: 81.5% (36th lowest)
Credit rating: Aa3 (stable outlook)
Population: 319,156

St. Louis has had a hard time controlling violent crime. With 17.47 incidents per 1,000 residents in 2010, the city has the second highest rate of violent crime in the country. This is due in part to the city’s high poverty rate of 27.8% and its median income of $32,688, which is the 10th lowest out of the 100 largest cities. Additionally, nearly 20% of housing units in the city are vacant. All of these measures influence government revenues. Despite this, St. Louis has managed its finances fairly well. While Moody’s credit score is Aa3, the credit agency also reports that the city faces a continued weakening of resident income levels, high unemployment rates and a decreasing population.

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6. Stockton, Cal... Violent crime per 1,000 people: 13.81 (6th highest)
Poverty rate: 23.0% (27th highest)
Adult population graduated from high school: 75% (12th lowest)
Credit rating: Baa1 (negative outlook)
Population: 292,747

Stockton is part of the inland area that also contains Fresno. Stockton was one of the hardest-hit by the burst housing bubble. In 2007, median home value in the city was $364,700. By 2010, that number declined more than 50% to $171,500. This massive drop — the second-largest decline among all major cities — has led to large-scale foreclosures and an increasingly dire economic situation. Stockton has the sixth-highest violent crime rate in the country among major U.S. cities, as well as the second-highest average unemployment rate, at more than 20%. The city currently has a large debt and a weak economy.

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5. Cleveland, Oh... Violent crime per 1,000 people: 12.97 (8th highest)
Poverty rate: 34.0% (3rd highest)
Adult population graduated from high school: 77.7% (19th lowest)
Credit rating: A1 (stable outlook)
Population: 396,240

Cleveland has grown exceptionally poor since its days as a major manufacturing center. Census data from 2010 show that one out of every three Cleveland residents lives in poverty, placing the city among the poorest large American cities. Cleveland also has the second-lowest median household income, at just $25,977, as well as a particularly high rate of violent crime. In addition, Cleveland is the county seat of Cuyahoga County, which is in the midst of a tremendous corruption scandal, centered around County Commissioner Jimmy Dimora.

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4. San Bernardin... Violent crime per 1,000 people: 8.15 (31st highest)
Poverty rate: 34.6% (2nd highest)
Adult population graduated from high school: 64.1% (2nd lowest)
Credit rating: not rated
Population: 210,670

San Bernardino is the third city from California to make our top worst-run cities list. Its economy has arguably been hit harder by the subprime mortgage crisis than any other major U.S. city. Between 2007 and 2010, median home value dropped 55%, from $327,000 to just $147,200. Along with the massive loss in home values, unemployment rates have skyrocketed to the third-highest in the country among the largest cities. The city also has a poverty rate of nearly 35%. Just 64.1% of adults have a high school diploma.

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3. Newark, N.J. Violent crime per 1,000 people: 10.29 (21st highest)
Poverty rate: 30.2% (10th highest)
Adult population graduated from high school: 69.2% (6th lowest)
Credit rating: A3 (negative outlook)
Population: 277,232

Newark has a very high rate of poverty, reaching 30.2% in 2010. Its median household income is $32,043 — the ninth lowest among the 100 largest cities. Less than 70% of the adult population has a high school diploma or more — the sixth lowest rate. Meanwhile, Newark’s violent crime rate has been increasing. In late November 2010, the city laid off nearly 15% of its police force. By May 2011, the annual murder rate had increased a stunning 65%. Robberies, burglaries and thefts increased as well.

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2. Detroit, Mich... Violent crime per 1,000 people: 18.87 (the highest)
Poverty rate: 37.6% (the highest)
Adult population graduated from high school: 77.4% (18th lowest)
Credit rating: Ba3 (on review)
Population: 711,910

Despite being more notorious for its troubles than any other major U.S. city, Detroit managed to avoid the title of worst-run city in the country. The city has been in a tough spot for decades, but continued problems with corruption and poor management have not helped matters. Detroit already sports the worst credit rating awarded by Moody’s and is the only one of the 100 largest cities in the U.S. to have a rating below investment grade. Worse still, the rating agency is currently reviewing the Ba3 rating — which already had a negative outlook — after the state of Michigan announced it was evaluating whether the city’s troubles constituted an economic crisis. Of the 100 largest cities, Detroit has the highest home vacancy rate, the highest unemployment rate, the highest poverty rate, the worst violent crime rate and the lowest median household income.

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1. Miami, Fla. Violent crime per 1,000 people: 11.08 (13th highest)
> Poverty rate: 32.4% (5th highest)
> Adult population graduated from high school: 68.2% (4th lowest)
> Credit rating: A2 (stable outlook)
> Population: 400,892

According to a 2011 UBS study, Miami is the richest city in the country and the fourth richest city in the world by domestic purchasing power. However, a 2011 study by the Census Bureau found the Miami metropolitan area also had the second-highest income inequality rate in the nation — probably due to the incredibly high percentage of households living below the poverty line. Despite the city’s wealth, Miami’s median household income of $27,291 is the third smallest among the 100 biggest cities. Its poverty rate of 32.4% is the fifth highest. The city faces a handful of other problems. Only 68.2% of adults have a high school diploma or more — the fourth lowest rate. Also, 22.5% of housing units are vacant, which is the fifth highest percentage. A 2011 Brookings Institute report put Miami among the 20 weakest-performing metropolitan statistical areas in the country with regards to recovering from the recession, due in large part to the crash of its housing market.

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The opinions expressed are solely those of the author and do not necessarily reflect the views of Comcast.
More From 24/7 W... Click here to see the best run cities in the country.

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The opinions expressed are solely those of the author and do not necessarily reflect the views of Comcast.