New Study Reports RI Is One of Worst Run States in U.S.

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New Study Reports RI Is One of Worst Run States in U.S.

RI ranked as one of worst run states in U.S.
Rhode Island is one of the worst run states in the U.S., according to a report released earlier this month. The report evaluated 20 measures of state finances, economy, job market, and social-economic measures.

According to 24/7 Wall Street’s survey of Best Run States in America, Rhode Island is the worst run state in New England and the tenth worst run state in the country, ranking 40th overall.

About RI, 24/7 Wall Street writes:

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“Rhode Island ranks as the worst-run state in New England and the broader Northeast. Rhode Island has accumulated some of the most debt of any state, and is one of just four states in which total outstanding debt is greater than annual revenue. Partially as a result, Rhode Island allocated 6.1% of its general expenditure to interest payments alone, the largest share of any state."

24/7 adds, "Rhode Island is partially economically hamstrung by relatively high unemployment, a shrinking labor force, and sluggish growth. Last year, 4.5% of workers in the state were unemployed, slightly more than the 4.4% national unemployment rate. Over the last four years, the number of people working or looking for work in the state fell by 0.4%, even as the U.S. labor force grew 3.4%. Rhode Island’s 0.7% GDP growth in 2017 was less than one-third of the 2.2% national growth.”

RI By the Numbers:

  • 2017 unemployment: 4.5% (21st highest)
  • Pension funded ratio: 53.7% (9th lowest)
  • 1 yr. GDP growth: +0.7% (15th lowest)
  • Poverty rate: 11.6% (20th lowest)
  • Moody’s credit rating and outlook: Aa2/Stable

The Rankings

Rhode Island ranks behind Arkansas and Alabama, who rank 38th and 39th respectively.

RI ranks ahead of Kansas and Missouri, who rank 41st and 42nd respectively.

The best-run state in the country is Oregon, while the worst run state in the country is Louisiana.

The Method

To determine how well each state is run, 24/7 Wall St. built an index of 20 measures of state finances, economy, job market, social-economic measures, and more from a variety of sources.

From the U.S. Census Bureau, they looked at net migration to a state from July 2016 to July 2017 as a percentage of the 2016 population.

24/7 reviewed each state’s finances for the 2016 fiscal year, including revenue, per capita tax collection, expenditure, and debt levels, all from the Census.

Also from the Census, they reviewed the per capita value of a state’s exports.


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