Where Does Connecticut Rank among Nation's Best-Run States?

Connecticut ranks 40th among the nation's best-run states, according to a new report by the financial web 24/7 Wall St., dragged down primarily by its inability to meet more than half of its pension obligations.

"The state failed to save cash for its pension from 1930 to 1980, which in turn hindered the government’s ability to capitalize on the stock boom of the 1990s that helped most state pensions reach full funding," writes authors Michael B. Sauter, Evan Comen, Samuel Stebbins and Thomas C. Frohlich. "Connecticut has since reduced many of the pension benefits for future retirees and has also increased taxes to help cover the budgeting shortfall."

Additionally, Connecticut also suffers under the weight of enormous debt. "It is one of just four states in which total debt has surpassed annual revenue," according to 24/7 Wall St. "It also has one of the smallest rainy day funds of all states."

To come up with its ranking, 24/7 Wall St. measured a state's "financial health and fiscal responsibility, as well as socioeconomic outcomes such as unemployment, poverty, and crime — conditions state governments are tasked with managing and improving."

The website built "an index of numerous measures from a variety of sources," including net migration data from the U.S. Census Bureau; the state’s financial picture for the 2014 fiscal year; and unemployment information for 2015 from the federal Bureau of Labor Statistics.

Additional criteria from other sources was also reviewed, click here to read 24/7 Wall St.'s full methodology.

North Dakota is the nation's best-run state, followed by Minnesota, Nebraska, Wyoming and Utah, according to 24/7 Wall St.

"Like most of the nation’s best-run states, North Dakota has low debt levels," writes 24/7 Wall St., adding that at 2.7 percent, North Dakota also had the lowest unemployment rate in the country. "The state’s total debt was equal to just 18.9% of its 2014 revenue, the fourth lowest percentage of all states. This helps explain the state’s Aa1 rating from Moody’s and its AA+ rating from S&P."

On the opposite end, the worst run state in the country is New Mexico, followed by Illinois, Rhode Island, Mississippi and Alabama.

Click here to read the full report, "The Best and Worst Run States in America: A Survey of All 50," on the 24/7 Wall St. website.

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