According to a new study from 24/7 Wall Street, California is the worst run state in the nation … for the second year in a row. The best run state is North Dakota. What went into the calculation? 24/7 Wall Street explains:
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.
So what made California so terrible? Its budget situation is disastrous; all the best states have fiscally responsible budgets. Its credit rating is problematic; all the best states have a sterling credit rating. California has the lowest Standard & Poor’s credit rating of any state, at A-. California has an undereducated population compared to the rest of the country, and a skyrocketing unemployment rate.