New 2015 State Economic Competitiveness Rankings Reveal Which States Are Poised for Growth

New 2015 State Economic Competitiveness Rankings Reveal
Which States Are Poised for Growth

For the Eighth Year in a Row, Utah Takes Top Rank
for Best Economic Outlook

Utah, North Dakota, Indiana and North Carolina among top states;
New York, Vermont, Minnesota and Connecticut rank last

Arlington, VA (April 8, 2015)—Utah again earns the top spot for states with the best economic outlook, followed by North Dakota, Indiana, North Carolina and Arizona, according to the newest edition of Rich States, Poor States released today by the American Legislative Exchange Council (ALEC).

The report also revealed many states significantly improved or fell in the rankings. Kentucky was the biggest winner in the rankings this year and improved by nine spots. Illinois came in second for largest improvements by climbing eight spots, while Oklahoma improved by five spots and Wisconsin by four spots. On the other hand, Michigan was the biggest loser this year and fell in the rankings by 12 spots. Delaware fell 11 spots, Pennsylvania fell eight spots, and South Dakota fell seven spots.

The 15 economic policy variables used by the authors to rank the economic outlook of states have shown over time to be among the most influential variables for state growth. The top ten and bottom ten states for 2015 are:

Overall Economic Outlook for 2015

Top Ten	Bottom Ten
1. Utah 2. North Dakota 3. Indiana 4. North Carolina       _ 5. Arizona 6. Idaho 7. Georgia 8. Wyoming 9. South Dakota 10. Nevada	41. Pennsylvania 42. Maine 43. Montana 44. California 45. Oregon 46. New Jersey 47. Connecticut 48. Minnesota 49. Vermont 50. New York

 

“The big story this year is the bipartisan embrace of state tax cuts,” said Jonathan Williams, Vice President of the ALEC Center for State Fiscal Reform and co-author of Rich States, Poor States: ALEC-Laffer State Economic Competitiveness Index. “States are increasingly realizing the need to become more competitive through fiscal responsibility and free market economic reforms. We anticipate 2015 will be a record year for pro-growth tax reform.”

Rich States, Poor States examines the latest trends in state economic growth. The data ranks the 2015 economic outlook of states using 15 equally weighted policy variables, including various tax rates, regulatory burdens and labor policies. The eighth edition examines trends over the last few decades that have helped or hurt states’ economies.

Used by state lawmakers across America since 2008, Rich States, Poor States: ALEC-Laffer State Economic Competitiveness Index, is authored by economist Dr. Arthur B. Laffer, Heritage Foundation Chief Economist Stephen Moore, and Jonathan Williams, Vice President of the American Legislative Exchange Council Center for State Fiscal Reform.

To download a copy of Rich States, Poor States and to see individual state data, visit www.alec.org/rsps.