Best and Worst Run States in America: A Survey of All 50

New Mexico’s ranking as the fifth worst-run state, while certainly not a good outcome, is an improvement from last year, when it ranked last. In small part that was due to the state’s economic growth — between 2018 and 2019, New Mexico reported a one-year GDP growth of 5.2%, the highest of any state.

However, by most measures considered for this index, the state still ranks as one of the worst in the country. For example, the state has an annual unemployment rate of 4.9%, tied for the third highest among states. It also has the second highest violent crime rate in the country, at 832 incidents per 100,000 residents, more than double the national rate of 367 per 100,000.

No other state had a more precipitous decline in ranking over the past decade than Alaska, as the state dropped from sixth best in 2012 to fourth worst this year. The state’s decline partly coincided with the dramatic decline in crude oil prices that began in the summer of 2014. Alaska’s economy relies heavily on oil tax revenue, and the state provides an annual fund to all its citizens based on oil revenue. While not affecting its ranking this year, due to this year’s oil prices drop — caused by oil price wars and the coronavirus pandemic — the state’s oil fund further lost billions of dollars.

The state’s outstanding debt per capita is one of the highest of any state. Currently, Moody’s rates Alaska’s most senior tax backed bond at Aa3 with a negative outlook, one of the worst of any state.

West Virginia’s population is one of the least prosperous in the country. The state has a median household income of $48,850, the second lowest of any state. West Virginia has very low educational attainment at both the high school and collegiate level, including a nation-lowest 21.1% bachelor’s attainment rate among adults. Those with lower educational attainment levels are less likely to hold a higher-paying job or have better job stability, and the state’s 4.9% average unemployment rate in 2019 was tied for third-worst among states.

As is often the case among low-income populations, health outcomes are often relatively poor. West Virginia’s life expectancy at birth of 74.8 years is the worst of any state and more than four years less than the national figure.

In the previous three years, Louisiana has either ranked worst or second worst run state. It has the second highest poverty rate in the country as well as the highest share of households earning less than $10,000 a year, at 10.1%. Louisiana ranks among the five worst states in the country in other socioeconomic indicators, including violent crime, bachelor’s degree and high school attainment among adults, unemployment, and population decline due to out migration.

Mississippi has ranked no better than fourth worst in the last seven years, but this is the first year it has ranked as the worst run state in the country. Like Louisiana, Mississippi’s low ranking is closely tied to the low well-being of its population. Mississippi has the highest poverty rate in the country, at 19.6%, compared to the national rate of 12.3%. The state ranks among the five worst in important socioeconomic and health measures, including health insurance coverage, high school and college attainment, unemployment, home value, and life expectancy at birth.

The state’s GDP per capita of $34,493 is the lowest of any state and $23,671 lower than the national GDP per capita.