Illinois’ ‘weak management practices’ land it low on Forbes’ list of best states for business

Forbes released this week its Best States for Business 2013 index. Illinois held onto its 2012 rank of the 38th-best state for business. The study scores all 50 states using 35 data points that are boiled down to six main categories. Illinois’ ranks generally fall in the mid-to high-30s out of the 50 states, with the exception its...

Forbes released this week its Best States for Business 2013 index. Illinois held onto its 2012 rank of the 38th-best state for business.

The study scores all 50 states using 35 data points that are boiled down to six main categories. Illinois’ ranks generally fall in the mid-to high-30s out of the 50 states, with the exception its quality of life rank.

Here is a summary of how Illinois stacks up to the rest of nation:

Overall rank: 38th

• Growth prospects: 38th
• Business costs: 36th
• Regulatory environment: 34th
• Labor supply: 32nd
• Economic climate: 29th
• Quality of life: 14th

The report offers the following explanation for Illinois’ low rankings:

Illinois boasts the fourth-most big companies in the U.S., including Boeing, Abbott Labs, Caterpillar and Kraft Foods. Job growth, however, is projected to be second worst in the country over the next five years, according to Moody’s Analytics. The state’s finances are also in shambles: in 2012, Moody’s downgraded Illinois’ credit rating to A2—lowest in the country among the states. Moody’s cited “weak management practices” for the low rating.

These findings confirm the fact that poor policy decisions continue to sap economic activity and ruin opportunities for businesses operating in Illinois.

Illinois already can’t pay its bills; it also has the worst-funded pension liability in the nation and the nation’s lowest credit rating. The last thing it needs is an unfriendly business environment.