Categories: 2014 Best & Worst States

How CEOs Grade the Best/Worst States: 2013

	RATINGS¹			DEVELOPMENT TREND INDICATOR
STATE	TAXATION AND REGULATION	WORKFORCE QUALITY	LIVING	DIRECTION	COMMENT
Alabama	6.47	5.85	6.06	↔	Pro-growth efforts overcome drag from federal cutbacks and Gulf oil spill.
Alaska	6.07	5.52	3.78	↔	New business-friendly state senate curbed proposed tax and regulation boosts.
Arizona	6.95	7.10	7.94	↑	This year sales tax expires and corporate income and property taxes fall.
Arkansas	6.31	5.72	5.86	↔	Lots of pro-business talk but there’s not enough action in legislature.
California	1.58	6.02	7.00	↓	Major income-tax hike in November hastens self-imposed economic decline.

Colorado	5.97	7.42	8.61	↓	Anti-business forces won 2012 elections and are delivering on promises.
Connecticut	2.52	6.35	5.89	↔	Trying to hold line on taxes and spending but solid-blue state lacks growth.
Delaware	7.27	6.82	7.45	↓	Advancing regulatory reform but suffering perceptual hit from Dems’ control.
Florida	7.62	6.88	8.20	↓	Business now assessing blow of Gov. Scott’s turnabout on Obamacare.
Georgia	6.83	7.24	7.60	↓	Must still address deficiencies in infrastructure and education system.

Hawaii	2.49	4.07	7.63	↔	Court struck down costly sick-leave law but replacement measure is unclear.
Idaho	7.57	7.53	8.55	↔	Legislature finally appears moving toward eliminating personal-property tax.
Illinois	2.06	5.52	5.08	↓	Keeps adding to toxic environment with new effort to boost minimum wage.
Indiana	7.53	7.67	7.46	↔	Now trying to monetize friendlier profile resulting from right to work.
Iowa	6.17	7.34	6.80	↓	Public-employee unions fight Gov. Branstad’s huge proposed property-tax cut.

Kansas	6.88	7.34	7.22	↑	Slashed income taxes as part of Gov. Brownback’s strong pro-business push.
Kentucky	5.97	5.94	6.41	↓	Blue-ribbon panel recommended service taxes and other business disincentives.
Louisiana	7.25	7.03	7.72	↑	Beefing up workforce development to finally escape Katrina’s shadow.
Maine	3.14	4.86	6.05	↓	Economically challenged state struggles to hold line on business penalties.
Maryland	3.45	5.89	5.93	↓	Passed major tax increases, now may boost minimum wage and sick leave.

Massachusetts	2.65	6.54	5.57	↓	Appears ready to boost income taxes and add services to sales tax.
Michigan	3.85	5.14	4.99	↑	Leap to right-to-work follows business-tax overhaul, with more reforms likely.
Minnesota	3.97	7.76	7.15	↔	Looking better to execs despite Gov. Dayton’s idea of big tax boosts.
Mississippi	5.70	4.54	4.76	↓	Quality-of-workforce issues remain drag on economically sluggish state.
Missouri	5.80	6.52	6.40	↓	Hasn’t done enough to spiff up for business, but considering right-to-work.

Montana	7.35	7.05	7.55	↑	Success of worker’s-comp reforms leads to help on business-equipment taxes.
Nebraska	7.25	7.90	7.20	↑	New budget surplus segues into push for comprehensive tax reform.
Nevada	7.69	6.33	6.44	↔	Economic slack offers business opportunities, but legislature is hostile.
New Hampshire	6.68	6.92	7.28	↔	Protecting status as overall tax haven of Northeast but seeking gas-tax rise.
New Jersey	2.81	5.82	4.54	↑	At least now the debate is over which tax to cut rather than to cut or raise taxes.

New Mexico	4.63	5.05	6.94	↑	Smiles at business by thwarting unions on bill regarding organizing drives.
New York	2.01	5.95	5.01	↔	Gov. Cuomo seems to be less concerned now about business-friendliness.
North Carolina	7.08	7.76	8.26	↔	Still needs to fix tax and regulatory issues that have been holding it back.
North Dakota	8.48	7.48	5.93	↔	State stays out of way of booms in energy production and agriculture.
Ohio	5.31	6.74	6.25	↑	Business appreciates Gov. Kasich’s help despite lots of legacy obstacles.

Oklahoma	7.32	7.27	6.93	↑	Finally addressing worker’s-comp woes to add to business-friendly setting.
Oregon	3.48	6.46	7.02	↔	Looks to tax and fee increases to finance yawning budget hole, but favors Nike.
Pennsylvania	3.43	5.91	5.83	↑	Gov. Corbett has resisted tax hikes and instituted some regulatory reforms.
Rhode Island	2.69	4.62	5.31	↔	Sky-high unemployment rate bespeaks continuing terrible business climate.
South Carolina	7.54	7.01	8.22	↔	Remains business-friendly but must close its unemployment-fund deficit.

South Dakota	8.52	7.89	6.30	↔	Resolute legislature has to keep knocking down efforts to boost sales taxes.
Tennessee	8.20	7.36	7.85	↑	Prospect of worker’s compensation reform makes it shine even brighter.
Texas	8.72	8.06	7.82	↑	Amazingly, the Lone Star State hasn’t let up and keeps building on its lead.
Utah	7.87	8.40	8.19	↔	Consolidating pro-business rep with more cuts in taxes and regulations.
Vermont	2.53	4.76	5.71	↔	Business fears new payroll tax to finance state’s outré single-payer health system.

Virginia	7.11	7.68	8.01	↔	Business hails new infrastructure spending but not resulting tax increases.
Washington	4.38	6.63	6.84	↔	Standoff between houses of legislature leaves financial reforms in the lurch.
West Virginia	5.43	5.33	5.11	↔	Maintains pro-business stance as it seeks to solve fracking dilemma.
Wisconsin	5.59	7.41	7.24	↑	Gov. Walker’s reelection was positive signal business leaders were seeking.
Wyoming	8.81	7.49	7.49	↓	10-cents-a-gallon fuel-tax hike wasn’t good sign in basically pro-business state.

	STATE GDP²		UNEMPLOYMENT³
STATE	% GROWTH 2010-2011	% 2010–2011 GROWTH vs. NAT’L AVERAGE (1.5%)	UNEMPLOYMENT RATE % DEC. 2012	COMPARISON WITH NATIONAL UNEMPLOYMENT RATE % (7.8)
Alabama	-1.8%	-2.3%	6.8	-1.0
Alaska	2.5%	1.0%	6.6	-1.2
Arizona	1.5%	0.0%	7.9	0.1
Arkansas	0.3%	-1.2%	7.1	-0.7
California	2.0%	0.5%	9.8	2.0

Colorado	1.9%	0.4%	7.5	-0.3
Connecticut	2.0%	0.5%	8.2	0.4
Delaware	1.6%	0.1%	7.1	-0.7
Florida	0.5%	-1.0%	7.9	0.1
Georgia	1.7%	0.2%	8.7	0.9

Hawaii	-0.2%	-1.7%	5.1	-2.7
Idaho	0.6%	-0.9%	6.3	-1.5
Illinois	1.3%	-0.2%	8.6	0.8
Indiana	1.1%	-0.4%	8.3	0.5
Iowa	1.9%	0.4%	5	-2.8

Kansas	0.5%	-1.0%	5.5	-2.3
Kentucky	0.5%	-1.0%	8	0.2
Louisiana	0.5%	-1.0%	5.6	-2.2
Maine	-0.4%	-1.9%	7.2	-0.6
Maryland	0.9%	-0.6%	6.7	-1.1

Massachusetts	2.2%	0.7%	6.7	-1.1
Michigan	2.3%	0.8%	8.9	1.1
Minnesota	1.2%	-0.3%	5.4	-2.4
Mississippi	-0.8%	-2.3%	8.9	1.1
Missouri	0.0%	-1.5%	6.6	-1.2

Montana	0.0%	-1.5%	5.6	-2.2
Nebraska	0.1%	-1.4%	3.8	-4.0
Nevada	1.2%	-0.3%	9.8	2.0
New Hampshire	1.5%	0.0%	5.7	-2.1
New Jersey	-0.5%	-2.0%	9.5	1.7

New Mexico	0.2%	-1.3%	6.6	-1.2
New York	1.1%	-0.4%	8.2	0.4
North Carolina	1.8%	0.3%	9.4	1.6
North Dakota	7.6%	6.1%	3.2	-4.6
Ohio	1.1%	-0.4%	6.7	-1.1

Oklahoma	1.0%	-0.5%	5.1	-2.7
Oregon	4.7%	3.2%	8.3	0.5
Pennsylvania	1.2%	-0.3%	7.9	0.1
Rhode Island	0.8%	-0.7%	9.9	2.1
South Carolina	1.2%	-0.3%	8.6	0.8

South Dakota	0.8%	-0.7%	4.3	-3.5
Tennessee	1.9%	0.4%	7.6	-0.2
Texas	3.3%	1.8%	6.2	-1.6
Utah	2.0%	0.5%	5.4	-2.4
Vermont	0.5%	-1.0%	4.9	-2.9

Virginia	0.3%	-1.2%	5.6	-2.2
Washington	2.0%	0.5%	7.5	-0.3
West Virginia	4.5%	3.0%	7.4	-0.4
Wisconsin	1.1%	-0.4%	6.7	-1.1
Wyoming	-1.2%	-2.7%	4.9	-2.9

	DOMESTIC MIGRATION⁴		STATE GOVERNMENT⁵		STATE-LOCAL TAX BURDEN⁶
STATE	DOMESTIC NET MIGRATION (2001-2009)	RANK	DEBT PER CAPITA FISCAL YEAR 2010	STATE & LOCAL GOV’T EMPLOYEES PER 10,000 RESIDENTS	RATE	COMPARED TO NATIONAL AVERAGE (9.9%)
Alabama	87,199	14	1,841	615.3	8.33%	-1.68%
Alaska	-7,360	29	9,032	766.00	1.77%	-2.89%
Arizona	696,793	3	2,188	473.07	9.12%	-1.45%
Arkansas	75,163	16	1,464	585.3	8.58%	0.16%
California	-1,490,105	50	4,008	504.6	8.11%	1.37%

Colorado	202,735	10	3,335	541.9	7.44%	-0.77%
Connecticut	-94,376	42	8,465	537.4	6.35%	2.41%
Delaware	45,424	18	6,157	598.8	0%	-0.66%
Florida	1,154,213	1	2,155	489.5	6.62%	-0.55%
Georgia	550,369	5	1,426	545.7	6.84%	-0.9%

Hawaii	-29,022	33	5,682	559.8	4.35%	0.24%
Idaho	110,279	13	2,478	538.6	6.02%	-0.49%
Illinois	-614,616	49	4,790	503.1	8.2%	0.34%
Indiana	-21,467	32	3,650	536.3	7%	-0.27%
Iowa	-49,589	40	1,690	611.2	6.81%	-0.28%

Kansas	-67,762	41	2,276	676.7	8.26%	-0.21%
Kentucky	81,711	15	3,323	582.7	6%	-0.51%
Louisiana	-311,368	45	3,861	605.1	8.85%	-2.11%
Maine	29,260	23	4,542	580.7	5%	0.4%
Maryland	-95,775	43	4,250	535.2	6%	0.33%

Massachussets	-274,772	44	11,310	517.5	6.25%	0.57%
Michigan	-537,471	48	3,251	491.0	6%	-0.02%
Minnesota	-46,635	39	2,206	541.8	7.18%	0.93%
Mississippi	-36,061	35	2,182	647.7	7%	-1.17%
Missouri	41,278	20	3,416	557.3	7.49%	-0.91%

Montana	39,853	21	4,430	585.2	0%	-1.25%
Nebraska	-39,275	36	1,279	642.0	6.77%	-0.17%
Nevada	361,512	6	1,646	431.9	7.93%	-1.63%
New Hampshire	32,588	22	6,341	550.0	0%	-1.76%
New Jersey	-451,407	47	6,944	593.0	6.97%	2.56%

New Mexico	26,383	24	4,261	680.4	7.24%	-1.42%
New York	-1,649,644	51	6,694	634.5	8.48%	2.9%
North Carolina	663,892	4	1,983	599.7	6.85%	-0.05%
North Dakota	-18,071	31	3,282	649.5	6.39%	-0.96%
Ohio	-361,038	46	2,703	534.6	6.75%	-0.15%

Oklahoma	42,284	19	2,664	597.9	8.66%	-1.13%
Oregon	177,375	11	3,533	509.2	0%	0.1%
Pennsylvania	-33,119	34	3,526	478.4	6.34%	0.38%
Rhode Island	-45,159	38	9,018	510.8	7%	0.99%
South Carolina	306,045	7	3,419	577.2	7.13%	-1.49%

South Dakota	7,182	27	4,291	545.7	5.39%	-2.28%
Tennessee	259,711	8	922	527.8	9.45%	-2.15%
Texas	838,126	2	1,679	563.9	8.14%	-1.93%
Utah	53,390	17	2,356	494.9	6.68%	-0.58%
Vermont	-1,505	28	5,585	641.0	6.14%	0.25%

Virginia	164,930	12	3,131	574.0	5%	-0.61%
Washington	239,037	9	4,098	527.3	8.8	-0.57%
West Virginia	17,727	26	3,860	558.5	6%	-0.15%
Wisconsin	-11,981	30	3,929	503.0	5.43%	1.21%
Wyoming	22,883	25	2,694	918.3	5.34%	-2.09%

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

2013 Best & Worst States for Business Links

2013 Best & Worst States for Business – Homepage
States More Aggressive in Competing With One Another
California Dreaming
Playing the Incentives Game
8 State Advocate CEOs
How CEOs Grade the States
Click here to see a slideshow of the 10 Best States for Business in 2013
Click here to see a slideshow of the 10 Worst States for Business in 2013

Chief Executive

Chief Executive magazine (published since 1977) is the definitive source that CEOs turn to for insight and ideas that help increase their effectiveness and grow their business. Chief Executive Group also produces e-newsletters and online content at chiefexecutive.net and manages Chief Executive Network and other executive peer groups, as well as conferences and roundtables that enable top corporate officers to discuss key subjects and share their experiences within a community of peers. Chief Executive facilitates the annual “CEO of the Year,” a prestigious honor bestowed upon an outstanding corporate leader, nominated and selected by a group of peers, and is known throughout the U.S. and elsewhere for its annual ranking of Best & Worst States for Business. Visit www.chiefexecutive.net for more information.