The list is based on a review of data for financial health, standard of living and government services. While noting that current situations may stem from decisions made years ago and that external factors like weather can be as much to blame as poor governance, 24/7 Wall St. also points out that all of the high-ranking states have “well-managed budgets” and the worst states have “high debt relative to both income and expenditure.”
Here’s how it breaks down at the top and bottom of the list cross-referenced with details on party control based on this map from Americans for Tax Reform:
THE TOP 5 STATES:
1. North DakotaTHE BOTTOM 5 STATES:
Governor: Jack Dalrymple, Republican
State Senate: Republican control
State House of Representatives: Republican control
2. Wyoming
Governor: Matt Mead, Republican
State Senate: Republican control
State House of Representatives: Republican control
3. Nebraska
Governor: Dave Heineman, Republican
State Legislature: Republican control
4. Utah
Governor: Gary Herbert, Republican
State Senate: Republican control
State House of Representatives: Republican control
5. Iowa
Governor: Terry Branstad, Republican
State Senate: Republican control
State House of Representatives: Republican control
46. New Jersey
Governor: Chris Christie, Republican
State Senate: Democrat control
State House of Representatives: Democrat control
47. Arizona
Governor: Jan Brewer, Republican
State Senate: Republican control
State House of Representatives: Republican control
48. Illinois
Governor: Pat Quinn, Democrat
State Senate: Democrat control
State House of Representatives: Democrat control
49. Rhode Island
Governor: Lincoln Chafee, Republican
State Senate: Democrat control
State House of Representatives: Democrat control
50. California
Governor: Jerry Brown, Democrat
State Senate: Democrat control
State House of Representatives: Democrat control
California is 24/7 Wall St.’s “Worst Run State” for the second year in a row. Due to high levels of debt, the state’s S&P credit rating is the worst of all states, while its Moody’s credit rating is the second-worst. Much of California’s fiscal woes involve the economic downturn. Home prices plunged by 33.6% between 2006 and 2011, worse than all states except for three. The state’s foreclosure rate and unemployment rate were the third- and second-highest in the country, respectively. But efforts to get finances on track are moving forward. State voters passed a ballot initiative to raise sales taxes as well as income taxes for people who make at least $250,000 a year. While median income is the 10th-highest in the country, the state also has one of the highest tax burdens on income. According to the Tax Foundation, the state also has the third-worst business tax climate in the country.
More details, like Debt per capita, Budget deficit, Unemployment rate, Median household income: $57,287, and Pct. below poverty line breakdowns, at the link.
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The Best and Worst Run States in America: A Survey of All 50 - Wall St. Journal
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.◼ And, Click here to see how all of the states do with 24/7 Wall St.’s new interactive state tool.
