The website 24/7 Wall St. has ranked Illinois as the 2nd worst run state in 2015, which is actually an improvement of one spot from last year.
New Mexico fell behind Illinois this year according to their analysis of state finances and issues such as poverty and crime. You can read the entire article here.
The website appearing to be genuinely bewildered that a state which taxes so much can have so little money.
“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.”
Note that $3000 per capita represents an average of $12,000 in state and local taxes for an average family of four each year, primarily through high property tax rates. That’s having a negative impact on home values. As the website notes, “… 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.”