Illinois: Rich State or Poor State?
7 Comments Published by danproft on Friday, April 4 at 12:14 PM.
It should be required reading for every member of the Illinois General Assembly, particularly as they contemplate new and exciting ways to fleece the state's producers.
At the end of 2007, the bipartisan American Legislative Exchange Council (ALEC) published a study done by noted economists Art Laffer and Steve Moore entitled "Rich States, Poor States".
The study did two things. First, it provided an economic performance ranking over the past 10 years (1996-2006) state-by-state. Second, it provided an economic outlook ranking, again state-by-state, based on a comparative review of 16 separate economic indicators.
Am I boring you yet? Well, here's where the information gets more stimulating:
The upshot for Illinois is that, over the past decade, we would have been better off with MC Hammer setting the state's fiscal policy.
Illinois' ranked 48th out of 50, ahead of only Michigan and Ohio, in economic performance over that time.
There were 727,150 people who got hip to this reality well before the ALEC report. That is net number of individuals who moved out of Illinois between the years 1996-2006. Only New York and California lost more population.
Besides contributing to Illinois' incredible shrinking tax base, that population loss has Illinois slated to lose at least one congressional seat after the 2010 census. It is so bad here that not even waning political clout can motivate our Honorables.
As important as who and how many are leaving is who and how many are not coming in the first place. Illinois ranked 45th in the nation when it came to attracting college graduates to locate here (Federal Reserve Bank of New York - August 2007 study). The good news is we are poised to shoot past West Virginia, a state whose senior U.S. Senator is a former member of the Ku Klux Klan, for 44th place. Look out, West Virginia, we're coming for ya!
Add to this that in our state's largest public school system only 6 of every 100 high school freshman will go on to earn a bachelor's degree (Consortium on Chicago Public School Research).
Thus, Illinois neither produces college graduates nor does it attract them. How's that working out for us in the hyper-competitive, digital, global economy of the 21st century?
Just about how you think it might: Illinois is 44th in the nation in per capita personal income growth and 47th in job growth over the decade that was studied.
The bad news for Illinois is compounded with our high property tax burden (41st), an unfriendly legal liability system (46th), and a high minimum wage (44th).
Tally up those dismal numbers and Illinois' 16-variable composite score gives it an economic outlook ranking of 42nd. In other words, the outlook is depressing or, perhaps more accurately, a Depression.
Edwin Moses could not clear all of the hurdles to economic prosperity state lawmakers have put in front of Illinois families and Illinois small businesses and therefore, the exodus.
Sans a crash course in Econ 101, this study is a message to Illinois lawmakers to identify their gut instincts when it comes to thinking about state economic policies and then do the opposite.
At the end of 2007, the bipartisan American Legislative Exchange Council (ALEC) published a study done by noted economists Art Laffer and Steve Moore entitled "Rich States, Poor States".
The study did two things. First, it provided an economic performance ranking over the past 10 years (1996-2006) state-by-state. Second, it provided an economic outlook ranking, again state-by-state, based on a comparative review of 16 separate economic indicators.
Am I boring you yet? Well, here's where the information gets more stimulating:
The upshot for Illinois is that, over the past decade, we would have been better off with MC Hammer setting the state's fiscal policy.
Illinois' ranked 48th out of 50, ahead of only Michigan and Ohio, in economic performance over that time.
There were 727,150 people who got hip to this reality well before the ALEC report. That is net number of individuals who moved out of Illinois between the years 1996-2006. Only New York and California lost more population.
Besides contributing to Illinois' incredible shrinking tax base, that population loss has Illinois slated to lose at least one congressional seat after the 2010 census. It is so bad here that not even waning political clout can motivate our Honorables.
As important as who and how many are leaving is who and how many are not coming in the first place. Illinois ranked 45th in the nation when it came to attracting college graduates to locate here (Federal Reserve Bank of New York - August 2007 study). The good news is we are poised to shoot past West Virginia, a state whose senior U.S. Senator is a former member of the Ku Klux Klan, for 44th place. Look out, West Virginia, we're coming for ya!
Add to this that in our state's largest public school system only 6 of every 100 high school freshman will go on to earn a bachelor's degree (Consortium on Chicago Public School Research).
Thus, Illinois neither produces college graduates nor does it attract them. How's that working out for us in the hyper-competitive, digital, global economy of the 21st century?
Just about how you think it might: Illinois is 44th in the nation in per capita personal income growth and 47th in job growth over the decade that was studied.
The bad news for Illinois is compounded with our high property tax burden (41st), an unfriendly legal liability system (46th), and a high minimum wage (44th).
Tally up those dismal numbers and Illinois' 16-variable composite score gives it an economic outlook ranking of 42nd. In other words, the outlook is depressing or, perhaps more accurately, a Depression.
Edwin Moses could not clear all of the hurdles to economic prosperity state lawmakers have put in front of Illinois families and Illinois small businesses and therefore, the exodus.
Sans a crash course in Econ 101, this study is a message to Illinois lawmakers to identify their gut instincts when it comes to thinking about state economic policies and then do the opposite.
Everyone I talk to who works in Springfield says the same thing- Illinois politics is a game of its own. You have to understand it to be a player. The rules are simple: if you don't have Blago or Emil on your side, you won't get things done. It's amazing how this has become a fact of life in this state, even after the system has repeatedly proven ineffective.
As a follow up from my March 11 post, here are some more embarrassing stats for IL (from the recently released "State of the States" 2008 report):
Out of 50 states and DC, we are ranked 40th in total spending on disability services, 51st in providing care for people with disabilities in small settings,
47th in community-based Medicaid waiver spending, and 9th in institutional spending.
Katie, is that per disabled person in the state? If not, where does IL rank in terms of number of disabled people living in the state. Also, is there a break down available based on the severity of the disability or by age range of the disabled persons? For example, if old people who require care qualify as disabled persons then a state like Florida may be leading the charge in spending but most of the money may be for providing bussing for Grandpa to go to the track.
The State of the States is only about people with developmental disabilities, meaning disabilities that were manifested at birth or before age 22 and prevent or impair daily functioning in several areas. This term does not generally apply to the elderly.
The rank of 40 is for total spending, not per person spending.
Most experts say that 1.5% of individuals in western countries have a DD. In Illinois, that would come out to about 190,000 people. Illinois claims to have almost 2 million citizens (age 5+) with all types of disabilities (beyond just developmental).
I love loser states. Home is in Michigan and I lived in Ohio for a year. Who is above Illinois? Gotta plan for my next ass-ignment. >;p
Most experts say that 1.5% of individuals in western countries have a DD. In Illinois, that would come out to about 190,000 people.
This stat doesn't help anyone determine the number of people with a DD relative to other states in the United States.
Kofi- Sorry, I should have been more clear, but there really is no direct answer to your question. Illinois has something called the PUNS database. People with DD are supposed to register with it in order to receive Medicaid benefits and become eligible for services, but there is no way to know what percentage of people with DD are actually registered. Most other states have the same problem, making it very difficult to compare numbers. We have totals for specific services, but not much beyond that.
Katie,
That's fine. If the data isn't available then it isn't available. But it also makes the rankings you give completely worthless.