Check in Mail States Delay Tax Refunds

Some states may delay paying tax refunds again this year.  Taxpayers should call them the “Check In the Mail” States.

Last year Kansas, North Carolina, California and Missouri delayed tax refunds.  Taxpayers were not happy about it.  Tax refund delays are another sign of government mismanagement.  In response to last years fiasco, Missouri state house legislators this week passed a bill that if enacted will shorten the time period that the state can withhold payment without interest.  Missouri had to use stimulus money to pay its tax refunds.  See: Missouri State House Approves Quicker Refunds .

This year New York, Kansas, Iowa and Hawaii have already announced they may have to delay payments.  Taxpayers, who are entitled to refunds in these states, will unfortunately suffer.

Here are a few of the headlines and links to the state stories.

Hawaii will delay sending out tax refunds to balance budget

Hold It: Unpaid Parking tickets could delay Iowa tax refunds

NY Governor considers delays in paying tax refunds

Forbes recently published its “Special Report: The Global Debt Bomb.”  In one of its pieces,  United States of Debt , it ranks states according to financial health.  The metrics Forbes looked at for each state when building its ranking included unfunded pension liabilities, changes in tax revenue, credit agency ratings, debt as a percentage of Gross State Product, debt per capita, growth expectations for employment and the state economy, net migrations and a moocher ratio that compares government employees, pension burdens and Medicaid enrollees to private-sector employment.

The Worst States for Debt Trouble, according to Forbes, are Illinois, New York, Connecticut, California and New Jersey.

The States with the least Debt Problems are Utah, New Hampshire, Nebraska, Texas and Virginia.  All states have significantly lower debt per capita than the Worst States.  The Best States also have lower unemployment than the U.S. average of 9.7% and lower than the Worst States with Debt Problems.  The Best States for Jobs will typically have better government management of debt.

Forbes also ran an analysis that shows that the states with the Worst Debt and Financial Problems are blue states i.e. states controlled by Democrats.  The piece attributed political unions and big spending by Democrats as the cause of the deepest fiscal holes.
See Political Litmus Test: Bluest States Spilling The Most Red Ink

Best States for Football Championships: Super Bowl Winners by State

Congratulations go to New Orleans Saints for winning their first Super Bowl Championship.

New Orleans and the entire state of Louisiana will celebrate and have bragging rights all year long.  Only 15 states have ever had the honor of being the home state of a Super Bowl Champion.

What States have the most Super Bowl Champions?

California has the honor of being the state with the most football Super Bowl Wins.  Its teams have won 8 of the 44 completed Super Bowls.  Two teams have contributed to California’s rank as the Best State for Football Championships. The San Francisco 49ers have 5 wins and the Oakland Raiders have 3.

Pennsylvania is the second Best State for Football Championships with all 6 wins coming from the Pittsburgh Steelers, the team with the most Super Bowl wins.  Texas is ranked as the third Best State for Football Championships with 5 wins, all by the Dallas Cowboys.

The state list of Super Bowl Winners is below:

Super Bowl Champions by State

 

State Unionism Rankings: Do Highly Unionized States have Higher Unemployment?

Union employment in the U.S. continued to shrink this past year.  Nationwide union participation stands at 12.3% which is a slight decline from 2008.

The BLS 2009 Annual Union Affiliation by Statesurvey was recently published.  It has brought increased attention to the union movement. Union policy will further be in the spotlight this week as the Senate wrestles with the nomination of Craig Becker, a clearly pro-union candidate, to the National Labor Review Board.  See GOP’s Senate Gain Clouds Prospect of Obama’s Labor Board Nominee.  In view of this upcoming debate, we thought it would be helpful to take a deeper look at state unionization and employment.


Let’s take a look at state unionization.

New York is the most unionized state in the nation with 27.2% of its population working for a union.  More than 1 in four workers are represented by a union in New York.  Hawaii at 24.3% is the second most unionized state at 24.3%, followed by Alaska at 23.6%.  Washington, Michigan, and New Jersey are heavily unionized states with about 20% union participation rates.

The least unionized state is North Carolina at 4.4%.  Only one in 23 workers in North Carolina are represented by a union, a sharp difference as compared to New York.  Additional states with low union participation rates are Arkansas at 5.0%, Virginia at 5.4%, South Carolina at 5.4% and Georgia at 5.9%

Twenty seven states had decreased union participation in 2009 as compared with 2008.  States with low union participation rates generally became less so in 2009 and those states with union growth were primarily already highly unionized.  There are 22 states with right to work laws in the U.S.  Right to work laws generally do not require employees to pay fees or join a union even if voted in.

A look at union participation and unemployment shows states with high union participation rates are closely associated with higher unemployment.

The five Worst States for Employment in 2009 were Michigan, Rhode Island, Nevada, California and South Carolina.  All but South Carolina are highly unionized states.  The Worst States for Employment in 2009 generally were highly unionized states.

Worst States for Employment and Union Participation

 

 

The Best States for Employment in 2009 were North Dakota, South Dakota, Nebraska, Iowa, Oklahoma and Kansas. All but Iowa have unionparticipation rates below the U.S. average and would be classified asstates with low unionization.  If you are looking for a job, look at states with low unionization.  They tend to have less unemployment. See  Best and Worst States for Jobs: Will Jobs Improve in 2010 for the rankings of all states by employment.  The list of Best States for Employment and Union Participation follows:

Best States for Employment and Union Participation



The list of Unionism by State follows:

Unionism by State


Union membership has been in a long term decline since 1983 when BLS first started measuring it in a consistent way.  Union participation was 20.1% of the working population in 1983.  It is now approximately 40% lower at 12.3%.  For the first time in 2009, the majority of union members now work for the government and not for private, for profit entities.  These state workers are on average paid significantly more than private industry.  Making it easier for government workers to unionize will only push labor costs higher and cost the taxpayers more.  Political leaders should be trying to keep these costs in check. (The average federal worker’s pay is $71,206 as compared to $40,331 in the private sector and is growing above inflation rates) The Obama administration’s labor policy approach creates a conflict with its responsibilities to protect the taxpayer. Increased unionization will increase our cost of government.  If the Obama administration is serious about job creation and deficit control, it may want to reconsider this approach.  Unions and job creation generally do not have a positive correlation.  Watch the news this week as it relates to Craig Becker.  It will have implications for jobs and deficits.

Best and Worst States for Jobs: Will jobs improve in 2010?

The Bureau of Labor Statistics released state unemployment for December 2009 today.  Every state in the U.S. saw its unemployment rate rise in 2009.

The Best State for Jobs and Employment in 2009 was North Dakota.  It had the lowest unemployment rate in the nation at 4.4%.  Its unemployment rate increased by 1.1% in 2009.  South Dakota, Nebraska, Iowa, Oklahoma and Kansas were also Top States for Jobs and Employment.

The Worst State for Jobs and Employment in 2009 was Michigan.  Its unemployment ended the year at 14.6%, an increase of 4.4% in 2009.  21 states and D.C. saw their unemployment ranks increase by 3% or more in 2009.  2009 was a very bad year for those seeking employment.  Nevada, Rhode Island, South Carolina, California and D.C. all were Worst States for Jobs and Unemployment in 2009.  They all have unemployment rates of 12% or higher.

Minnesota and North Dakota had the smallest unemployment increases in 2009 with increases of only 0.8%. The Worst States for Unemployment Increases were West Virginia and Nevada which had increases of 4.6% in unemployment.  The list of Best and Worst States for Jobs and Employment is below.  It is presented from best to worst based on year over year changes.  Politically, these are very poor numbers for the Obama administration.  With the large health care bill off the table for now, let’s hope businesses will become a little more willing to hire in 2010.

Best and Worst States for Jobs

Source:  Bureau of Labor Statistics

Does Increased Spending on Higher Education lead to Better State University Rankings?

Does Increased Spending on Higher Education lead to Better State University Rankings?

I thought you would find the rankings of state higher education spending and state university rankings useful.  Intuitively one would believe that states that spend more would have better ranked universities. Higher State spending does not mean it is a Best State for Education.  Lower State spending does not mean it is a Worst State for Education.  A closer look is warranted.

Utah spends the most of its state budget on higher education at 15.5%.  Its University of Utah is ranked 126 according to U.S. News 2009 College Ratings. New York spends the least of all states on higher education with only 5.4%  of its budget yet its highest rated public school SUNY-Binghamton is ranked higher than Utah at 80.   North Dakota is a close second in spending at 15.4% and its university’s state ranking in education is Tier III.  Tier III means it is ranked in the 50-75% of all national universities i.e. below average.  7 of the 10 lowest spending states on higher education have higher university rankings than high spending North Dakota.  North Dakota does not get much bang for its buck.

High Spending States on Higher Education and University Rankings


North Carolina is third highest ranked state on higher education spending at 14.2% and has the highest rated public university of the high spending states with a rank of 28.  This appears to be a positive spend to school rank association.  Yet neighboring Georgia with a spend of 7.6% has its Georgia Institute of Technology rated 35.   Georgia Institute of Technology is higher than every high spend state ranking other than North Carolina.

Alaska is the second lowest higher education spending ranked state at 6.1% and appears to get what it pays for. Its school is rated a bottom 25% Tier IV by U.S. News.   Florida is the third lowest state in spend at 6.3% and appears to get very good returns with the University of Florida rated 47, higher than every high spend state other than North Carolina.

States with the lowest spending on higher education
are primarily in the Northeast.  7 of the lowest 10 states are from the Northeast.  They are, in addition to New York, New Jersey, Rhode Island, Massachusetts, Connecticut, Pennsylvania and Maine.  Yet 4 of the states, New Jersey, New York, Pennsylvania and Connecticut have higher ranked schools than every high spend state other than North Carolina.

Low Spending States on Higher Education and University Rankings

Source: Tax Foundation

and US News and World Reports

We have reported previously on education spending and test results.  See Does Spending More on Education Work?

and Graduation Rates, SAT Scores and Educational Spending

A simple thesis that more spending on education leads to better results continues to be elusive.  Be wary of political leaders who say that they are managing your education system better by spending more money.  Check the results.

Best and Worst States for Car Insurance: Does Safety Matter?

Insurance.com publishes a monthly listing of car insurance rates.  We thought you might like to see March results.

We also thought it might be interesting to see if safe drivers as measured by the annual GMAC driver safety study had a measurable benefit in insurance rates.

The Best State for Car Insurance is Vermont with an estimated annual premium of $1,304.  It ranks 18 in the GMAC Safe Driver Study.  The 4 other Best States for Car Insurance, i.e. the lowest premiums, are Ohio, Iowa, Wisconsin and Idaho.  The safest state of the top 5 according to GMAC is Idaho with a safe driver rank of 4.  The safest driver state, Kansas, ranks 22 in car insurance premiums.

The Worst State for Car Insurance,( we put DC in a world of its own), is Louisiana with a premium of $2617 more than double that of Vermont!!!  It also ranks 44 on the GMAC Safe Driver Study.  New Jersey the Worst State for Safe Driving in the US has one of the highest car insurance rates rate just below Louisiana.  Rounding out the Worst States for Car Insurance are Delaware, Rhode Island and Pennsylvania.  All these state rate below average in the GMAC study.

Of the popular retirement states Tennessee is best rated for low premiums at 11.  Arizona at 25 and Florida at 36 are more middle of the pack

Car Insurance rates have dropped over the last 6 months yet are still higher than a year ago.  From a look of the list it appears that drivers who know the rules of the road benefit from safer roads and lower car insurance premiums.  It may be beneficial for insurance companies to offer discounts to drivers who take a car exam annually that demonstrates they know the rules of the road.

State Premium $$ Change % Change Safe Rank
1 VT $1,304 $47 3.70% 18
2 OH $1,320 $1 0.10% 26
3 IA $1,335 ($32) -2.30% 9
4 WI $1,348 ($28) -2.00% 12
5 ID $1,396 $14 1.00% 4
6 ME $1,406 $59 4.30% 31
7 NH $1,504 ($64) -4.10% 30
8 IN $1,528 $25 1.70% 11
9 SD $1,550 $97 6.70% 6
10 IL $1,559 $19 1.20% 32
11 TN $1,563 $1 0.00% 33
12 MT $1,573 ($39) -2.40% 15
13 NC $1,577 ($42) -2.60% 22
14 OR $1,586 ($23) -1.40% 8
15 AL $1,611 $29 1.80% 15
16 CO $1,611 ($28) -1.70% 15
17 NE $1,625 $91 5.90% 3
18 GA $1,626 ($46) -2.70% 47
19 MO $1,629 $5 0.30% 14
20 SC $1,638 ($24) -1.50% 39
21 VA $1,667 ($78) -4.50% 40
22 KS $1,668 $4 0.30% 1
23 ND $1,722 $58 3.50% 21
24 MN $1,728 $97 5.90% 5
25 AZ $1,739 ($93) -5.10% 36
26 CA $1,813 ($15) -0.80% 33
27 NM $1,845 ($16) -0.90% 22
28 UT $1,864 ($35) -1.90% 13
29 WA $1,882 $34 1.80% 9
30 OK $1,900 $54 2.90% 22
31 TX $1,921 ($55) -2.80% 18
32 AR $1,929 $17 0.90% 6
33 WY $1,934 $16 0.90% 2
34 MS $1,953 $19 1.00% 46
35 KY $1,984 ($52) -2.60% 29
36 FL $2,015 $8 0.40% 28
37 MI $2,076 ($49) -2.30% 18
38 CT $2,095 ($56) -2.60% 33
39 WV $2,095 $76 3.80% 43
40 NV $2,142 ($40) -1.90% 36
41 MD $2,144 ($48) -2.20% 42
42 PA $2,248 $65 3.00% 36
43 RI $2,356 ($32) -1.30% 41
44 DE $2,520 $11 0.40% 26
45 NJ $2,556 $14 0.50% 51
46 LA $2,617 $3 0.10% 44
47 DC $2,862 ($18) -0.60% 50
48 NY n/a 49
49 MA n/a 48
50 HI n/a 45
51 AK n/a 6

Source:

Best and Worst States for Happiness?

Mainstreet.com has recently published a ranking of states called the “Happiness index.”

It is a knock off of the famous “misery index” that was so politically influential in the late 70’s and early 80’s.

The Best State for Happiness is NebraskaIowa, Kansas, Hawaii and Louisiana round out the top 5.

The Worst State for Happiness is Oregon Florida, California, Rhode Island and Nevada round out the bottom 5 of the Worst States for Happiness.

While we find the index interesting, it really should be viewed as a simple financial happiness index as it does not factor many other issues that contirbute to the happiness of a population in a state.  For example, for livability Louisiana is rated 46th one of the worst states see our blog Livability Index.   Hawaii is a very high cost of living state and even if you are employed lifestyle may still be challenging.

The index also does not factor in any other factors such as health, weather or rankings of mental happiness so while useful I would suggest you take a much broader look at other factors in a state than this simple “Happiness Index.”  Many of these other factors are discussed in posts on this site.

Happiness Index
www.mainstreet.com

Tax Freedom Day 2009: Pick Your State Carefully

The Tax Foundation recently released their 2009 Tax Freedom Day Study.  It measures how many days the average worker must work to  pay taxes. There is a wide disparity among states. The tax burden you bear can significantly impact your quality of life.

The Best State for Tax Freedom is Alaska where it takes 82 days almost 25% of the year just to pay taxes.  Louisiana, Mississippi, South Dakota, North Dakota and West Virginia are also rated Best States for Tax Freedom.  If you are not retired, these states would be considered as candidates for Best States to Work.

The Worst State for Tax Freedom is Connecticut where it takes 120 days or until April 30 to pay taxes.  If you live in Connecticut 1/3 of your time every year goes to pay taxes to the Federal, State and Local governments.  That is almost 50% more days than Alaska.  New Jersey, New York, California and Maryland are also rated Worst States for Tax Freedom.

According to the Tax Foundation study, five major categories of tax dominate the tax burden. Individual income taxes, both federal and state, require 38 days’ work. Payroll taxes take another 27 days’ work. Sales and excise taxes, mostly state and local, take 15 days to pay off. Corporate income taxes take 6 days, and property taxes take 12. Americans will log 4 more days to pay other miscellaneous taxes, most notably including motor vehicle license taxes and severance taxes, and about 1 day for estate taxes.

What state you live in is very important in determining your lifestyle as higher cost of living states tend to have higher tax burdens.  Lower disposable income is the result.  Many states are also increasing many taxes due to economic conditions which will increase tax burdens.  Noteworthy examples are the proposed increases in New York and California that will make these heavily burdened states more undesirable to live.  If you are not retired, New York and California would have to be considered as 2 of the Worst States to Work.

Tax
State Days Freedom Day
1 Alaska 82 23-Mar
2 Louisiana 87 28-Mar
3 Mississippi 87 28-Mar
4 South Dakota 88 29-Mar
5 North Dakota 91 1-Apr
6 West Virginia 91 1-Apr
7 Alabama 92 2-Apr
8 New Mexico 92 2-Apr
9 Montana 93 3-Apr
10 Kentucky 93 3-Apr
11 Oklahoma 94 4-Apr
12 Iowa 94 4-Apr
13 South Carolina 94 4-Apr
14 Arkansas 94 4-Apr
15 Tennessee 95 5-Apr
16 Wyoming 95 5-Apr
17 Missouri 96 6-Apr
18 Maine 96 6-Apr
19 Texas 96 6-Apr
20 Nebraska 98 8-Apr
21 Kansas 98 8-Apr
22 Nevada 98 8-Apr
23 Indiana 98 8-Apr
24 Florida 99 9-Apr
25 Oregon 99 9-Apr
26 North Carolina 99 9-Apr
27 Michigan 100 10-Apr
28 Arizona 100 10-Apr
29 New Hampshire 100 10-Apr
30 Ohio 101 11-Apr
31 Delaware 101 11-Apr
32 Vermont 102 12-Apr
33 Idaho 102 12-Apr
34 Georgia 102 12-Apr
35 Colorado 102 12-Apr
36 Illinois 103 13-Apr
37 Hawaii 103 13-Apr
38 Utah 103 13-Apr
39 Wisconsin 103 13-Apr
40 Pennsylvania 104 14-Apr
41 Rhode Island 104 14-Apr
42 Minnesota 105 15-Apr
43 Washington 106 16-Apr
44 Massachusetts 106 16-Apr
45 Virginia 106 16-Apr
46 Maryland 109 19-Apr
47 California 110 20-Apr
48 New York 115 25-Apr
49 New Jersey 119 29-Apr
50 Connecticut 120 30-Apr

Source: Tax Foundation, Tax Freedom Day

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State Unemployment Up Everywhere in Feb, Michigan tops 12% Unemployed

The February 2009 State Unemployment numbers were released this past week and they were not pretty. Every state in the U.S. saw its unemployment rate increase.

Bureau of Labor Statistics (BLS)  also released March Unemployment, along with Feb state data, and the nationwide unemployment rate increased again to 8.5% nationwide.  It was 8.1% in February.

Seven States had unemployment above 10% in February.  Michigan was the Worst State for Jobs with a whopping 12% unemployment number.  South Carolina, Oregon, North Carolina, California Rhode Island and Nevada also qualify as Worst States for Employment as the 6 other states with unemployment above 10% .

The Best State for Jobs based on a low 3.9% unemployment is Wyoming. 4 other states qualify as Best States for Employment with rates still below 5%.  They are:  Nebraska, North Dakota, South Dakota and Iowa.

Some of the state year on year changes are quite large.  Unemployment increased by over 100% from last year in Hawaii and Oregon for example.  Of the large states, Texas is holding up the best with unemployment of only 6.2% in February which was below the U.S. Feb average of 8.1%.

State data is released with a one month lag so expect March state unemployment to get even worse as unemployment increased nationwide in March by .4%.

State Feb-08 Feb-09 Change
1 Michigan 7.4 12 4.6
2 South Carolina 5.7 11 5.3
3 Oregon 5.4 10.8 5.4
4 North Carolina 5.2 10.7 5.5
5 California 6.2 10.5 4.3
6 Rhode Island 6.5 10.5 4
7 Nevada 5.5 10.1 4.6
8 District of Columbia 6.1 9.9 3.8
9 Florida 5.2 9.4 4.2
10 Indiana 5 9.4 4.4
11 Ohio 5.9 9.4 3.5
12 Georgia 5.4 9.3 3.9
13 Kentucky 5.6 9.2 3.6
14 Mississippi 5.9 9.1 3.2
15 Tennessee 5.5 9.1 3.6
16 Illinois . 5.9 8.6 2.7
17 Alabama 4.1 8.4 4.3
18 Washington 4.7 8.4 3.7
19 Missouri 5.5 8.3 2.8
20 New Jersey 4.7 8.2 3.5
21 Minnesota 5 8.1 3.1
22 Alaska 6.5 8 1.5
23 Maine 4.9 8 3.1
24 Massachusetts 4.6 7.8 3.2
25 New York 4.6 7.8 3.2
26 Wisconsin 4.5 7.7 3.2
27 Pennsylvania 4.8 7.5 2.7
28 Arizona 4.5 7.4 2.9
29 Connecticut 5.2 7.4 2.2
30 Delaware 4 7.4 3.4
31 Colorado 4.5 7.2 2.7
32 Vermont 4.4 7 2.6
33 Idaho 3.9 6.8 2.9
34 Maryland 3.7 6.7 3
35 Arkansas 4.8 6.6 1.8
36 Virginia 3.5 6.6 3.1
37 Hawaii 3.1 6.5 3.4
38 Texas 4.5 6.5 2
39 Montana 4 6 2
40 West Virginia 4.2 6 1.8
41 Kansas 4 5.9 1.9
42 Louisiana 3.8 5.7 1.9
43 Oklahoma 3.2 5.5 2.3
44 New Mexico 3.8 5.4 1.6
45 New Hampshire 3.7 5.3 1.6
46 Utah 3.3 5.1 1.8
47 Iowa 3.9 4.9 1
48 South Dakota 2.7 4.6 1.9
49 North Dakota 3 4.3 1.3
50 Nebraska 3 4.2 1.2
51 Wyoming 2.8 3.9 1.1
p = preliminary.

Source: Bureau of Labor Statistics

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Best and Worst States for Wind Energy

Where does your state rank on use of Wind Power?

The American Wind Energy Association recently published data on Existing Wind Energy Capacity in Megawatts and
construction underway.

Texas is the Best State for Wind Energy with 7116 megawatts(mw) of existing capacity.  It also has the highest construction with 1,651 mw underway.  Iowa, California, Minnesota and Washington round out the Top 5 Best States for Wind Energy.

There are a number of States on the list for the Worst States for Wind Energy.  The bottom 10 states have no wind energy capacity and none underway according to the AWEA. For a great map of all states go to American Wind Energy Association


Also check out my previous post on Best and Worst States for Electricity RatesWashington which has the 3rd lowest rate in the nation for electric rates is also in the top 5 for Wind Energy.  Connecticut, on the other extreme, has the 49th highest cost of electricity in the country yet has no wind energy capability.  It does not even have any underway.

If you believe oil and gas prices could go up again in the future you might want to consider living in a state that is serious about other forms of power.

Best States for Wind Energy

Rank State Existing Underway
1 Texas 7,116 1,651
2 Iowa 2,790 20
3 California 2,517 275
4 Minnesota 1,752 0
5 Washington 1,375 70
6 Colorado 1,068 0
7 Oregon 1,067 250
8 Illinois 915 201
9 New York 832 464
10 Kansas 815 199
Worst States For Wind Energy
Rank State Existing Underway
50 Louisiana 0 0
49 Kentucky 0 0
48 Georgia 0 0
47 Florida 0 0
46 Delaware 0 0
45 Connecticut 0 0
44 Alabama 0 0
43 North Carolina 0 0
42 Mississippi 0 0
41 South Carolina 0 0

Source: American Wind Energy Association Blog Search Engine