Categories: 2014 Best & Worst States

How CEOs Grade the Best/Worst States: 2012

	RATINGS¹			DEVELOPMENT TREND INDICATOR
STATE	TAXATION AND REGULATION	WORKFORCE QUALITY	LIVING	DIRECTION	COMMENT
Alabama	6.59	6.06	6.41	↑	Change in political control unleashes efforts to tackle businesses’ concerns.
Alaska	6.65	5.30	4.85	↔	Light tax burden struggles to overcome other impediments to competitiveness.
Arizona	6.91	6.72	7.13	↑	Entrepreneurial activity surges as companies hope for personal-property tax relief.
Arkansas	6.63	6.05	6.75	↔	Agreeable environment on taxes and other business concerns continues.
California	1.74	5.82	6.73	↓	Sucking sound continues as frustrated businesses leave state for friendlier climes.

Colorado	6.48	7.74	8.55	↔	Business has backed health-insurance exchange; entrepreneurs still like the mountains.
Connecticut	2.61	6.76	6.24	↔	Businesses in high-tax state bracing for possible boost in minimum wage.
Delaware	7.81	7.39	7.36	↔	Entrepreneurs buck economy but companies fret about push to raise minimum wage.
Florida	7.27	6.73	8.07	↑	New tax relief—and boosterish Gov. Scott—excite owners and executives.
Georgia	6.61	7.31	7.55	↑	More conservative statehouse holds line on taxes; workforce becomes major plus.

Hawaii	2.92	4.26	8.66	↔	Tax-and-regulate approach to business also stifles entrepreneurial gains.
Idaho	7.18	7.69	8.28	↔	Keeps entrepreneurs happy with fewest health mandates of any state.
Illinois	2.31	5.84	5.11	↓	New tax burdens drive business-unfriendliness to new lows.
Indiana	7.40	7.73	7.27	↑	Becoming right-to-work state already making it a bigger magnet for business.
Iowa	6.42	7.70	7.19	↑	Does better job of harnessing locational possibilities for food technology.

Kansas	6.75	7.55	6.80	↔	Inches up in several new measures of business friendliness.
Kentucky	5.84	6.68	6.61	↓	State focus on gambling issue robs attention from needed business reforms.
Louisiana	7.03	6.83	7.21	↑	Surge in business-friendliness continues with reforms in education and public pensions.
Maine	3.75	6.33	7.25	↑	New governor’s tax cuts gain business favor and spur some job growth.
Maryland	3.63	6.34	6.08	↓	Income-tax increases on “middle class” nick and frustrate business owners.

Massachusetts	2.33	6.39	5.43	↔	Entrepreneurs leveraging brainpower, but new family-leave law bites companies.
Michigan	3.44	5.19	4.56	↑	Tax cuts and simplification bode well for future under new Gov. Snyder.
Minnesota	3.82	7.14	6.57	↓	Divided statehouse stalls progress on tort reform and other business concerns.
Mississippi	5.81	5.10	5.14	↑	Business-friendly politics are newly in the air, encouraging companies and owners.
Missouri	5.71	6.42	6.57	↔	Surges in entrepreneurial activity and holds its own in tax climate for business.

Montana	7.35	6.85	7.85	↑	Politicians address effects of dangerous jobs in boosting worker’s comp rates.
Nebraska	7.47	7.82	7.24	↓	Tax-friendliness can’t overcome other stresses on business and job creation.
Nevada	8.03	6.33	6.53	↑	New Gov. Sandoval whacks regulations to try to jump-start moribund economy.
New Hampshire	6.91	7.17	7.52	↔	Statehouse continues tax-friendly ways and nurtures entrepreneurial spark.
New Jersey	2.95	6.00	5.04	↑	Gov. Christie’s boldness rallies business, but possible minimage-wage boost looms.

New Mexico	4.75	4.90	6.35	↔	Businesses would like to see more progress on regulatory morass.
New York	2.12	6.11	5.09	↔	Gov. Cuomo has pleasantly surprised business but plenty of problems remain.
North Carolina	7.09	7.95	8.41	↓	Stalled recently on issues including tort reform, school funding and taxes.
North Dakota	8.65	7.61	5.87	↑	Drilling makes frothy economy ever better, creating growth and opportunity.
Ohio	4.25	6.38	5.89	↑	Public-pension ploy didn’t work, but bellwether state is going business-friendly.

Oklahoma	7.31	7.14	6.74	↔	Business-friendliness keeps bringing influx of workers and companies.
Oregon	3.50	5.73	6.95	↓	Slips in a year when battle over health-insurance exchange dominates.
Pennsylvania	3.97	6.44	6.10	↑	While fracking ignites economy, statehouse helps with badly needed tort reform.
Rhode Island	2.55	5.79	5.89	↓	Puts big burdens on business as state struggles to escape fiscal hole.
South Carolina	7.02	7.04	7.79	↔	Is now tackling reform of taxes, worker’s comp and unemployment insurance.

South Dakota	8.71	7.42	6.75	↓	Suffers with middling company-friendliness and sti! competition to north.
Tennessee	7.78	7.37	7.94	↔	Business community awaits substantial unemployment-insurance reform.
Texas	8.58	8.05	7.94	↔	Still a leading jobs magnet, but persistent drought pinches many businesses.
Utah	7.95	8.73	8.43	↔	Ground-breaking health-insurance exchange is big new risk in business-friendly state.
Vermont	2.35	5.35	5.85	↔	Nation’s sole single-payer health-reform law awaits Obamacare decision.

Virginia	7.07	7.98	8.07	↑	Has focused on entrepreneur-friendliness and leveraging higher-ed advantages.
Washington	4.34	6.68	6.70	↔	Lack of income tax strains to hide other financial and regulatory snares for business.
West Virginia	5.36	5.28	5.12	↔	Excitement over business potential of Marcellus Shale isn’t yet realized.
Wisconsin	5.56	7.48	7.27	↑	New conservative statehouse is shaking things up, drawing business favor.
Wyoming	8.89	7.50	7.51	↔	Feather-light tax burden can only get so much done; awaiting more gas drilling.

	STATE GDP²		UNEMPLOYMENT³
STATE	% GROWTH 2007-2010	% 2007–2010 GROWTH vs. NAT’L AVERAGE (-0.33)	UNEMPLOYMENT RATE % DEC. 2011	COMPARISON WITH NATIONAL UNEMPLOYMENT RATE % (8.50%)
Alabama	-1.10%	-0.76%	8.10	0.40
Alaska	10.53%	10.86%	7.30	-1.20
Arizona	-6.70%	-6.37%	8.70	0.20
Arkansas	0.69%	1.03%	7.70	-0.80
California	-2.08%	-1.74%	11.10	2.60

Colorado	2.84%	3.17%	7.90	-0.60
Connecticut	0.51%	0.85%	8.20	-0.30
Delaware	-1.54%	-1.21%	7.40	-1.10
Florida	-5.70%	-5.36%	9.90	1.40
Georgia	-4.42%	-4.08%	9.70	1.20

Hawaii	-0.56%	-0.23%	6.60	-1.90
Idaho	-1.57%	-1.23%	8.40	-0.10
Illinois	-1.74%	-1.40%	9.80	1.30
Indiana	-1.41%	-1.08%	9.00	0.50
Iowa	0.30%	0.64%	5.60	-2.90

Kansas	0.00%	0.34%	6.30	-2.20
Kentucky	1.66%	1.99%	9.10	0.60
Louisiana	5.29%	5.62%	6.80	-1.70
Maine	-0.81%	-0.48%	7.00	-1.50
Maryland	3.06%	3.39%	6.70	-1.80

Massachusetts	2.35%	2.69%	6.80	-1.70
Michigan	-6.37%	-6.03%	9.30	0.80
Minnesota	1.56%	1.89%	5.70	-2.80
Mississippi	0.06%	0.39%	10.40	1.90
Missouri	-1.05%	-0.72%	8.00	-0.50

Montana	-1.22%	-0.88%	6.80	-1.70
Nebraska	3.39%	3.73%	4.10	-4.40
Nevada	-10.04%	-9.70%	12.60	4.10
New Hampshire	-0.47%	-0.13%	5.10	-3.40
New Jersey	-1.33%	-1.00%	9.00	0.50

New Mexico	4.42%	4.76%	6.60	-1.90
New York	1.55%	1.88%	8.00	-0.50
North Carolina	0.12%	0.46%	9.90	1.40
North Dakota	18.24%	18.57%	3.30	-5.20
Ohio	-3.73%	-3.39%	8.10	-0.40

Oklahoma	2.87%	3.20%	6.10	-2.40
Oregon	2.44%	2.78%	8.90	0.40
Pennsylvania	1.44%	1.77%	7.60	-0.90
Rhode Island	-1.14%	-0.80%	10.80	2.30
South Carolina	-2.18%	-1.84%	9.50	1.00

South Dakota	9.84%	10.17%	4.20	-4.30
Tennessee	-0.91%	-0.58%	8.70	0.20
Texas	3.13%	3.46%	7.80	-0.70
Utah	1.10%	1.43%	6.00	-2.50
Vermont	1.17%	1.50%	5.10	-3.40

Virginia	3.70%	4.04%	6.20	-2.3
Washington	0.21%	0.54%	8.50	0.00
West Virginia	6.90%	7.23%	7.90	-0.60
Wisconsin	-1.45%	-1.11%	7.10	-1.40
Wyoming	15.44%	15.77%	5.80	-2.70

	DOMESTIC MIGRATION⁴		STATE GOVERNMENT⁵		STATE-LOCAL TAX BURDEN⁶
STATE	DOMESTIC NET MIGRATION (2000-2009)	RANK	DEBT PER CAPITA FISCAL YEAR 2010	STATE & LOCAL GOV’T EMPLOYEES PER 10,000 RESIDENTS	RATE	COMPARED TO NATIONAL AVERAGE (9.8%)
Alabama	87,199	14	1,841	615.31	8.50%	-1.30%
Alaska	-7,630	29	9,032	766.00	6.35%	-3.45%
Arizona	696,793	3	2,188	473.07	8.67%	-1.13%
Arkansas	75,163	16	1,464	585.28	9.87%	0.07%
California	-1,490,105	49	4,008	504.56	10.59%	0.79%

Colorado	202,735	10	3,335	541.89	8.59%	-1.21%
Connecticut	-94,376	41	8,465	537.40	12.03%	2.23%
Delaware	45,424	18	6,157	598.78	9.58%	-0.22%
Florida	1,154,213	1	2,155	489.48	9.25%	-0.55%
Georgia	550,369	5	1,426	545.70	9.12%	-0.68%

Hawaii	-29,022	33	5,682	559.77	9.62%	-0.18%
Idaho	110,279	13	2,478	538.62	9.37%	-0.43%
Illinois	-614,616	48	4,790	503.13	9.97%	0.17%
Indiana	-21,467	32	3,650	536.29	9.49%	-0.31%
Iowa	-49,589	39	1,690	611.24	9.53%	-0.27%

Kansas	-67,762	40	2,276	676.73	9.71%	-0.09%
Kentucky	81,711	15	3,323	582.67	9.28%	-0.52%
Louisiana	-311,368	44	3,861	605.08	8.18%	-1.62%
Maine	29,260	23	4,542	580.68	10.13%	0.33%
Maryland	-95,775	42	4,250	535.20	10.01%	0.21%

Massachussets	-274,772	43	11,310	517.50	10.02%	0.22%
Michigan	-537,471	47	3,251	491.02	9.67%	-0.13%
Minnesota	-46,635	38	2,206	541.81	10.29%	0.49%
Mississippi	-36,061	35	2,182	647.68	8.73%	-1.07%
Missouri	41,278	20	3,416	557.33	9.05%	-0.75%

Montana	39,853	21	4,430	585.20	8.74%	-1.06%
Nebraska	-39,275	36	1,279	642.00	9.81%	0.01%
Nevada	361,512	6	1,646	431.88	7.48%	-2.32%
New Hampshire	32,588	22	6,341	550.01	8.04%	-1.76%
New Jersey	-451,407	46	6,944	592.98	12.21%	2.41%

New Mexico	26,383	24	4,261	680.41	8.38%	-1.42%
New York	-1,649,644	50	6,694	634.48	12.06%	2.26%
North Carolina	663,892	4	1,983	599.65	9.78%	-0.02%
North Dakota	-18,071	31	3,282	649.49	9.47%	-0.33%
Ohio	-361,038	45	2,703	534.59	9.71%	-0.09%

Oklahoma	42,284	19	2,664	597.88	8.70%	-1.10%
Oregon	177,375	11	3,533	509.15	9.76%	-0.04%
Pennsylvania	-33,119	34	3,526	478.44	10.05%	0.25%
Rhode Island	-45,159	37	9,018	510.84	10.72%	0.92%
South Carolina	306,045	7	3,419	577.25	8.07%	-1.73%

South Dakota	7,182	27	4,291	545.70	7.59%	-2.21%
Tennessee	259,711	8	922	527.75	7.61%	-2.19%
Texas	838,126	2	1,679	563.86	7.89%	-1.91%
Utah	53,390	17	2,356	494.85	9.68%	-0.12%
Vermont	-1,505	28	5,585	641.03	10.18%	0.38%

Virginia	164,930	12	3,131	574.02	9.11%	-0.69%
Washington	239,037	9	4,098	527.25	9.31	-0.49%
West Virginia	17,727	26	3,860	558.46	9.39%	-0.41%
Wisconsin	-11,981	30	3,929	503.04	10.98%	1.18%
Wyoming	22,883	25	2,694	918.30	7.80%	-2.00%

Sources: Sources: ¹Chief Executive Magazine, ²Bureau of Economic Analysis, ³Bureau of Labor Statistics, ⁴NewGeography.com, ^5,6The Tax Foundation

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