Illinoisans don't need a report or survey or scholarly article to know the Land of Lincoln is poorly managed. But apparently it's no longer the nation's worst-run state, according to a new survey from 24/7 Wall Street.
Last year, Illinois earned the abject accolade of worst-run state. The good news for 2015 is that title has been bequeathed to New Mexico. The bad news is Illinois only moved up one spot, so we're now the second worst-run state in the U.S.
And since 24/7 Wall Street mostly looked at key financial, social and economic indicators from 2014, the survey doesn't take into consideration that Illinois has been operating without a budget for five months and counting.
Here's 24/7 Wall Street's depressing description of why Illinois is the second worst-run state:
Illinois collects more than $3,000 per capita in state and local taxes each year, one of the highest per capita tax revenues. Yet, the state's fiscal management system does not appear to be operating optimally, which is the main reason it ranks as the second worst-run state. For example, Illinois has one of the smallest rainy day funds compared to other states, at 1% of its general annual budget -- an indication the state may not be able to satisfy its short-term obligations. Illinois' debt is equal to more than three-fourths of its annual revenue, also one of the highest shares in the nation. Similarly, the state's pension fund is not financially healthy. The state only has assets on hand to meet 39% of its pension obligations, the lowest ratio of any state. Perhaps as a result of the state's finances, Illinois has the worst credit rating and outlook from S&P and Moody's of any state.
The housing market in Illinois is also struggling. One in every 73 housing units is in some state of the foreclosure process, nearly the highest foreclosure rate in the country. As is often the case in states with particularly high foreclosure rates, home prices in Illinois have dropped by more than 10% from 2010 through last year. This decline was the worst in the country during that time.
Take a look at this infographic and the list that follows to see how Illinois compares to its neighboring states and the rest of the U.S.