Connecticut ranks 49th in economic performance during the past decade and the state’s economic outlook ranks 46th among the nation’s 50 states in the latest “Rich States, Poor States” analysis by the American Legislative Exchange Council.
The look-back at the decade 2005-2015 shows Connecticut ranking near the bottom in the three components that make up the ALEC-Laffer State Economic Competitiveness Index performance numbers. The state ranked 47th in state gross domestic product and 44th in non-farm payroll employment, both below the national average, and 43rd in absolute domestic migration, which increased for the third consecutive year.
Connecticut’s overall economic outlook ranking, 49th in the nation, represents a drop from 47th in each of the past two years, and 44th and 34rd in the two previous years. Back in 20120, Connecticut ranked 36th. The economic outlook includes more than a dozen categories. Among them, Connecticut ranks highest in sales tax burden (12th), remaining tax burden (16th), and debt service as a share of tax revenue (20th).
“Each of these factors is influenced directly by state lawmakers through the legislative process,” the report points out. The policy variables “have a proven impact on the migration of capital—both investment and human—into and out of states.”
In the 10th annual edition of the competitive outlook index, the lead states in the ranking are Utah, Indiana, North Carolina, North Dakota, Tennessee, Florida, Wyoming, Arizona, Texas and Idaho. The highest ranking New England states are New Hampshire (number 18) and Massachusetts (number 25). Joining Connecticut towards the bottom of the list are Rhode Island (number 36) and Vermont (number 49).
The Economic Performance Rankings (2005-2015) placed Texas, North Dakota and Washington State atop the list, followed by Utah, Colorado, Oklahoma, Oregon, South Dakota, North Carolina, and Montana. Massachusetts was the highest ranked New England state, at number 18.
“Generally speaking,” the report indicated, “states that spend less—especially on income transfer programs, and states that tax less—particularly on productive activities such as working or investing—experience higher growth rates than states that tax and spend more.”