Iowa One Of Nation's Best-Run States In 2017: Study

DES MOINES, IA — Low unemployment and a fiscally responsible state government are among the factors that led to Iowa being named the third best-run state in the nation in a 24/7 Wall Street analysis, according to a study released this month. The state moved up three spots from its sixth-place ranking in 2016.

The study’s authors have been ranking states for eight years using criteria that include job market, pension fund rating, poverty level and bond rating. Iowa's AAA stable bond rating helped the state achieve high marks, along with 3.7 percent unemployment rate (10th lowest in the country), pension fund ratio of 85.1 percent (13th highest), and poverty rate of 11.8 percent (18th lowest).

The study found that Iowa had one of the healthiest job markets in the country.

"For the small share of residents looking for a job, Iowa has one of the most generous unemployment insurance systems of any state," the study's authors said. "Some 40 percent of unemployed residents in the state receive unemployment benefits, far more than the 27 percent national rate. Also, the average weekly unemployment insurance benefit is $398, or 45 percent of Iowa’s average weekly wage — the fifth highest replacement rate of any state."

The study ranked Minnesota as the best-run state, followed by Utah. The rest of the top ten, in order, were Oregon, Washington, Nebraska, North Dakota, Idaho, Colorado and Hawaii.

“Iowa is also one of the most fiscally responsible states in the country," the study noted. "While across all states, average state government debt amounts to 52.2 percent of total state tax revenue, Iowa’s debt load amounts to just 26.1 percent — one of the smallest shares in the country. Additionally, Iowa’s rainy day funds could cover about 10 percent of the state’s 2018 fiscal year budget, slightly better than the average across all states.”

Photo: A view of the Iowa State Capitol building from the 33rd floor of the Ruan Center in downtown Des Moines, Feb. 1, 2016./(Photo by Stephen Maturen/Getty News/Getty Images)