ALEC's 2015 report ranks the economic performance of each state.
The American Legislative Exchange Council released its annual “Rich States, Poor States” report, which measures states’ economic performance and outlook.
For the eighth straight year, Utah tops the report’s rankings for the best 2015 economic outlook. The forecast weighs 15 state policy variables; among the drivers for Utah’s No. 1 ranking is its personal income tax progressivity and low average workers’ compensation costs.
“Each of these factors is influenced directly by state lawmakers through the legislative process,” the report says. “Generally speaking, states that spend less—especially on income transfer programs, and states that tax less—particularly on productive activities such as working or investing—experience higher growth rates than states that tax and spend more.”
North Dakota, Indiana, North Carolina and Arizona round out the top five respectively. The state with the worst 2015 outlook? New York, for the sixth time in eight years.
“Until there is a concerted effort to broadly address fiscal and economic issues, New York is going to continue to languish at the bottom,” said Mike Durant, NFIB/New York state director, in an interview with the New York Daily News about the state’s economic woes.
Meanwhile, Illinois, a state long-marred with pension problems, jumped to 40th this year. That’s the state’s highest-ever rank and comes after three consecutive years ranked 48th.
NFIB/Illinois state director Kim Clarke Maisch spoke with Illinois Watchdog about the improving, yet still less-than-stellar, results.
“When you look at all of the big, bold reforms going on in our neighboring states it isn’t hard to know why we still lag behind,” Maisch said. “But certainly among my members they feel like there is hope now that Illinois will once again thrive with [Bruce] Rauner as governor.”
How does your state rank? Check out the report here.
