Report says Louisiana was worst-run government in America through 2016
NEW ORLEANS – Louisiana is said to be the worst-run state government in America, according to a new report from 24-7 Wall Street, which looked at statistics through 2016.
For the past eight years, the financial website has reviewed economic indicators, budget allocations and balance sheets, along with other factors, to come up with its list that puts Louisiana at the bottom.
The website says Louisiana’s 6.1 percent unemployment rate during fiscal year 2015 and throughout 2016 ranks as the third highest in the country, and the poverty rate is the second highest during that time period.
The state’s unemployment rate dropped to 4.8 percent in the latest numbers, which came out in October 2017, putting the current unemployment rate in Louisiana at the lowest since 2008.
Our credit rating is also not fantastic. Here’s more from the report:
Many of the worst managed states have relatively little revenue to work with. Louisiana is no exception. The state collects the equivalent of only $2,071 per person in tax revenue a year compared to $2,821 per capita states states collect on average. With low revenue, the state struggles to save for unexpected budget shortfalls and fund its pension system. Louisiana’s rainy day fund is only worth about 3.0% of it annual budget and only 63.3% of the state’s pension system is funded, each among the smallest such shares among states.
Joblessness is also a major problem in Louisiana, and the state offers little assistance to its out-of-work residents. Some 6.1% of Louisiana’s labor force was unemployed in 2016, the third highest unemployment rate in the country after only Alaska and New Mexico. Additionally, the average unemployment insurance payout covers less than a quarter of the typical weekly wage. Nationwide, unemployment insurance payouts cover over a third of the average weekly wage.
So, what’s the best state government, according to the report? That would be Minnesota.