Every year, 24/7 Wall St. conducts an extensive survey of all fifty states in America. Based on a review of data on financial health, standard of living and government services by state we determine how well each state is managed. For the first time, North Dakota is the best run state. California is the worst run for the second year in a row - no surprise there.
The successful management of a state is difficult to measure. Factors that affect its finances and population may be the result of decisions made years ago. A state’s difficulties can be caused by poor governance or by external factors, such as extreme weather.
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 and 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 and P, the lowest score given to any state. These poor-ranked states have high debt relative to both income and expenditure.
Best-Run States:
1. North Dakota
Debt per capita: $3,282 (22nd lowest)
Budget deficit: None
Unemployment: 3.5% (the lowest)
Median household income: $51,704 (20th highest)
Pct. below poverty line: 12.2% (13th lowest)
Republican Control of Executive (Office of Governor) and Legislative Branch.
2. Wyoming
Debt per capita: $2,694 (18th lowest)
Budget deficit: 10.3% (32nd largest)
Unemployment: 6.0% (7th lowest)
Median household income: $56,322 (13th highest)
Pct. below poverty line: 11.3% (6th lowest)
Republican Control of Executive (Office of Governor) and Legislative Branch.
3. Nebraska
Debt per capita: $1,279 (2nd lowest)
Budget deficit: 9.7% (34th largest)
Unemployment: 4.4% (2nd lowest)
Median household income: $50,296 (22nd highest)
Pct. below poverty line: 13.1% (tied-15th lowest)
Republican Control of Executive (Office of Governor) and Legislative Branch.
4. Utah
Debt per capita: $2,356 (15th lowest)
Budget deficit: 14.7% (25th largest)
Unemployment: 6.7% (tied-11th lowest)
Median household income: $55,869 (14th highest)
Pct. below poverty line: 13.5% (tied-17th lowest)
Republican Control of Executive (Office of Governor) and Legislative Branch.
5. Iowa
Debt per capita: $1,690 (7th lowest)
Budget deficit: 20.3% (18th largest)
Unemployment: 5.9% (6th lowest)
Median household income: $49,427 (24th highest)
Pct. below poverty line: 12.8% (14th lowest)
Republican Control of Executive (Office of Governor) and Split Legislative Branch.
Worst-Run States:
50. California
Debt per capita: $4,008 (18th highest)
Budget deficit: 20.7% (17th largest)
Unemployment: 11.7% (2nd highest)
Median household income: $57,287 (10th highest)
Pct. below poverty line: 16.6% (18th highest)
Democrat Control of Executive (Office of Governor) and Legislative Branch.
49. Rhode Island
Debt per capita: $9,018 (3rd highest)
Budget deficit: 13.4% (28th largest)
Unemployment: 11.3% (3rd highest)
Median household income: $53,636 (17th highest)
Pct. below poverty line: 14.7% (24th lowest)
Democrat Control of Executive (Office of Governor) and Legislative Branch.
48. Illinois
Debt per capita: $4,790 (11th highest)
Budget deficit: 40.2% (2nd largest)
Unemployment: 9.8% (tied-10th highest)
Median household income: $53,234 (18th highest)
Pct. below poverty line: 15.0% (25th highest)
Democrat Control of Executive (Office of Governor) and Legislative Branch.
47. Arizona
Debt per capita: $2,188 (12th lowest)
Budget deficit: 39.0% (3rd largest)
Unemployment: 9.5% (tied-13th highest)
Median household income: $46,709 (21st lowest)
Pct. below poverty line: 19.0% (tied-8th highest)
Republican Control of Executive (Office of Governor) and Legislative Branch.
note: Arizona is impacted by a very large illegal immigrant population that is training services.
46. New Jersey
Debt per capita: $6,944 (5th highest)
Budget deficit: 38.2% (4th largest)
Unemployment: 9.3% (14th highest)
Median household income: $67,458 (3rd highest)
Pct. below poverty line: 10.4% (3rd lowest)
Democrat Control of Executive (Office of Governor) and Democrat Control of Legislative Branch.
