State Rankings Highlight Gap Between Illinois/Iowa
U.S. News & World Report recently released its annual ranking of the nation’s best states to live in. Though it’s hardly a call to quit your job, sell your home and move your family to another state, it does provide some general insight as to how each state services its residents.
Most of the state rankings we typically see focus on the economy. They will dissect each state’s economic growth, unemployment rate, corporate and personal tax rates and cost of living among a multitude of other economic indicators. But U.S. News & World Report’s analysis is much more encompassing. They also examine each state’s K-12 education system, the level of health care, the quality of its infrastructure and even the level of crime, among other factors. In effect, the rankings reflect more of a “quality of life” analysis rather than one based purely on economics.
U.S. News & World Report ranks Utah as their top state to live in. Among its many accolades, Utah’s K-12 education system ranks second best, one spot behind No. 1 Florida. Both Utah’s economy and its level of infrastructure each rank third best in the nation. Other strengths are its No. 6 ranking on fiscal stability and its No. 9 ranking on crime. Rounding out the Top 5 states are No. 2 New Hampshire followed by Nebraska, Minnesota and Idaho.
But where do Illinois and Iowa fall in this latest set of rankings? The Hawkeye state ranks a very solid No. 6. Iowa ranks No. 3 in terms of its economic opportunity/affordability driven by a low poverty rate, affordable housing and low cost of living. Iowa also ranks No. 10 in infrastructure, providing a relatively cheap and reliable power grid, good internet access and quality roads and bridges. Its K-12 education system is the eleventh best in the nation. Iowa ranks No. 12 in its fiscal stability. Finally, Iowa’s level of crime ranks fourteenth best.
One area where Iowa has some level of weakness is its economy, which ranks No. 36. To its credit, Iowa has one of the lower unemployment rates in the nation. But it does have less development of new business ventures and new companies.
And then there’s Illinois. Like most Illinois residents, my expectations were set rather low. No, I wasn’t expecting a Top 10 ranking, but maybe a spot in the top half of the nation could be a more reasonable outcome to hope for. Unfortunately, Illinois ranks No. 38.
The highest-rated category for Illinois is its fifteenth best ranking on crime. Now, this may seem a bit of a head-scratcher to many Illinois residents, especially those who live in or travel to Chicago. But much this this No. 15 ranking is driven by Illinois’ low incarceration rate. U.S. News & World Report considers a low incarceration rate a good thing. Others may argue that if criminals aren’t in prison, they’re simply back on the street committing more crimes.
Illinois’ K-12 education system also ranks a very respectably sixteenth best in the nation. But then things quickly fall apart for the state of Illinois. Its natural environment, such as its air/water quality and level of pollution, ranks No. 36. Beset by a very high cost of living, Illinois ranks No. 40 in terms of economic opportunity/affordability. Its economy ranks No. 43 with a high unemployment rate and slow economic growth. Lastly, Illinois’ fiscal stability ranks dead last in the nation at No. 50.
The rivalry between Illinois and Iowa has a long and deep history. But this round, however, goes to the state of Iowa.
Mark M. Grywacheski, Investment Advisor
Quad Cities Investment Group is a Registered Investment Adviser.
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