- Debt per capita;
- Credit Rating;
- State unemployment rate;
- Median household income; and
- Poverty rate.
The study notes that, "the worst-run states ... tend[] to have weak fiscal management, reflected by low pension funding, sparsely padded coffers, and poor credit ratings from Moody’s Investors Service and Standard & Poor’s (S&P). Illinois, the worst-run state in America, received lower ratings than any other state from both agencies. By contrast, the majority of the 10 best-run states had perfect ratings from both agencies."
Additionally, unemployment is low in the nation’s best-run states. "North Dakota, the top-ranked state, had an unemployment rate of 2.9% last year, the best in the U.S. In all, eight of the 10 best-run states were among the 10 states with the lowest unemployment rates."
Top Ten States:
 |
| North Dakota |
> Debt per capita: $2,880 (19th lowest)
> Credit Rating (S&P/Moody’s): AAA/Aa1
> 2013 unemployment rate: 2.9% (the lowest)
> Median household income: $55,759 (19th highest)
> Poverty rate: 11.8% (10th lowest)
 |
| Wyoming |
> Debt per capita: $2,269 (12th lowest)
> Credit Rating (S&P/Moody’s): AAA/NGO
> 2013 unemployment rate: 4.6% (6th lowest)
> Median household income: $58,752 (13th highest)
> Poverty rate: 10.9% (6th lowest)
3. Nebraska
> Debt per capita: $1,110 (2nd lowest)
> Credit Rating (S&P/Moody’s): AAA/NGO
> 2013 unemployment rate: 3.9% (3rd lowest)
> Median household income: $51,440 (25th highest)
> Poverty rate: 13.2% (17th lowest)
4. Iowa
> Debt per capita: $1,995 (10th lowest)
> Credit Rating (S&P/Moody’s): AAA/Aaa
> 2013 unemployment rate: 4.6% (6th lowest)
> Median household income: $52,229 (21st highest)
> Poverty rate: 12.7% (14th lowest)
5. Minnesota
> Debt per capita: $2,441 (16th lowest)
> Credit Rating (S&P/Moody’s): AA+/Aa1
> 2013 unemployment rate: 5.1% (9th lowest)
> Median household income: $60,702 (9th highest)
> Poverty rate: 11.2% (7th lowest)
6. Utah
> Debt per capita: $2,436 (15th lowest)
> Credit Rating (S&P/Moody’s): AAA/Aaa
> 2013 unemployment rate: 4.4% (4th lowest)
> Median household income: $59,770 (11th highest)
> Poverty rate: 12.7% (14th lowest)
7. Alaska
> Debt per capita: $8,039 (4th highest)
> Credit Rating (S&P/Moody’s): AAA/Aaa
> 2013 unemployment rate: 6.5% (18th lowest)
> Median household income: $72,237 (2nd highest)
> Poverty rate: 9.3% (2nd lowest)
8. Texas
> Debt per capita: $1,725 (6th lowest)
> Credit Rating (S&P/Moody’s): AAA/Aaa
> 2013 unemployment rate: 6.3% (17th lowest)
> Median household income: $51,704 (23rd highest)
> Poverty rate: 17.5% (13th highest)
9. Vermont
> Debt per capita: $5,411 (10th highest)
> Credit Rating (S&P/Moody’s): AA+/Aaa
> 2013 unemployment rate: 4.4% (4th lowest)
> Median household income: $52,578 (20th highest)
> Poverty rate: 12.3% (12th lowest)
10. South Dakota
> Debt per capita: $4,270 (13th highest)
> Credit Rating (S&P/Moody’s): AA+/NGO
> 2013 unemployment rate: 3.8% (2nd lowest)
> Median household income: $48,947 (22nd lowest)
> Poverty rate: 14.2% (23rd lowest)
The Bottom Five:
46. Kentucky
> Debt per capita: $3,436 (23rd highest)
> Credit Rating (S&P/Moody’s): AA-/Aa2
> 2013 unemployment rate: 8.3% (7th highest)
> Median household income: $43,399 (5th lowest)
> Poverty rate: 18.8% (6th highest)
47. Rhode Island
> Debt per capita: $8,761 (3rd highest)
> Credit Rating (S&P/Moody’s): AA/Aa2
> 2013 unemployment rate: 9.5% (2nd highest)
> Median household income: $55,902 (18th highest)
> Poverty rate: 14.3% (24th lowest)
48. Mississippi
> Debt per capita: $2,405 (14th lowest)
> Credit Rating (S&P/Moody’s): AA/Aa2
> 2013 unemployment rate: 8.6% (6th highest)
> Median household income: $37,963 (the lowest)
> Poverty rate: 24.0% (the highest)
49. New Mexico
> Debt per capita: $3,621 (20th highest)
> Credit Rating (S&P/Moody’s): AA+/Aaa
> 2013 unemployment rate: 6.9% (24th highest)
> Median household income: $43,872 (6th lowest)
> Poverty rate: 21.9% (2nd highest)
50. Illinois
> Debt per capita: $4,992 (11th highest)
> Credit Rating (S&P/Moody’s): A-/A3
> 2013 unemployment rate: 9.2% (3rd highest)
> Median household income: $56,210 (17th highest)
> Poverty rate: 14.7% (25th lowest)
Select Western States with Comments:
15. Washington
> Debt per capita: $4,173 (15th highest)
> Credit Rating (S&P/Moody’s): AA+/Aa1
> 2013 unemployment rate: 7.0% (23rd highest)
> Median household income: $58,405 (14th highest)
> Poverty rate: 14.1% (22nd lowest)
This is probably close to the right spot for Washington. It might be a tiny bit overrated based on the authors' fascination with Washington's progressively high minimum wage laws. Many economists would view that as a pitfall rather than a bolstering quality. But all in all, I think 15th is about right.
16. Idaho
> Debt per capita: $2,447 (17th lowest)
> Credit Rating (S&P/Moody’s): AA+/Aa1
> 2013 unemployment rate: 6.2% (15th lowest)
> Median household income: $46,783 (13th lowest)
> Poverty rate: 15.6% (25th highest)
I also agree with this ranking. If I were going to move Idaho I'd slide it up a few spots and maybe slide Washington down a couple. Idaho also has one of the nation's lowest rates of violate crime at 217 incidents per 100,000 people and, according to the study, "the state’s college-attainment rate grew more than in the vast majority of states between 2009 and last year." Idaho is trending in the right direction.
20. Oregon
> Debt per capita: $3,507 (22nd highest)
> Credit Rating (S&P/Moody’s): AA+/Aa1
> 2013 unemployment rate: 7.7% (15th highest)
> Median household income: $50,251 (23rd lowest)
> Poverty rate: 16.7% (18th highest)
Oregon appears to be slightly overrated in this ranking. Nearly 20 percent of Oregon residents was on food stamps last year. That is the highest figure nationwide. I would have expected Oregon to be in the high 20s to low 30s.
30. California
> Debt per capita: $3,987 (17th highest)
> Credit rating (S&P/Moody’s): A/Aa3
> Unemployment rate: 8.9% (4th highest)
> Median household income: $60,190 (10th highest)
> Pct below poverty line: 16.8% (17th highest)
I'm not sure how California pulled off this high of a ranking. It should almost certainly be in the bottom 15 of not the bottom 7 states. Certainly its high median income buoys it, but the cost of living in California is among the highest in the nation so that pure income calculation can be misleading.
38. Nevada
 |
| Reno, Nevada with Mt. Rose in background |
> Debt per capita: $1,397 (5th lowest)
> Credit Rating (S&P/Moody’s): AA/Aa2
> 2013 unemployment rate: 9.8% (the highest)
> Median household income: $51,230 (25th lowest)
> Poverty rate: 15.8% (24th highest)
Nevada's unemployment is what weighs it down. It's outstanding debt ratio, modest poverty rate and a relatively high median income (the cost of living in Nevada is much lower than in California, Oregon or Washington) should probably have this state in the top 20. It would certainly be in the top 10 to 15 for retirees, for whom unemployment is much less of a concern.
45. Arizona
> Debt per capita: $2,140 (11th lowest)
> Credit Rating (S&P/Moody’s): AA-/Aa3
> 2013 unemployment rate: 8.0% (12th highest)
> Median household income: $48,510 (21st lowest)
> Poverty rate: 18.6% (9th highest)
Frankly, this state's relatively low debt per capita rating, recent upgrade in credit rating and middle-of-the pack ranking for median income make me think that Arizona should be rated quite a bit higher than this - at least in the top 25 or 30.
Link to full study here.
Link to USA Today article about the study here.
Link to full study here.
Link to USA Today article about the study here.
