The American Legislative Exchange Council (ALEC) has released the 18th edition of its annual report, "Rich States, Poor States: ALEC-Laffer State Economic Competitiveness Index." This report ranks each state's economic outlook for the coming year and is co-authored by Dr. Arthur B. Laffer, Stephen Moore, and Jonathan Williams.
The report uses 15 policy variables to assess economic outlooks and highlights the impact of free-market reforms on economic growth. It also evaluates states' economic performance from 2013 to 2023 based on GDP growth, domestic migration, and employment growth.
Jonathan Williams said, "As Washington attempts to tackle debt and bureaucracy, the states remain America’s last line of defense for fiscal responsibility and economic growth." He emphasized that states with low taxes and balanced budgets are thriving.
New Mexico's economic outlook improved by five spots due to recent tax cuts. However, Williams noted that more work is needed for New Mexico to compete with neighboring states like Colorado and Texas.
Utah maintained its top position in the economic outlook ranking for the 18th consecutive year. The state has seen consistent job and GDP growth due to pro-taxpayer reforms.
Carla Sonntag of the New Mexico Business Coalition expressed optimism about New Mexico's improvement, attributing it to good policy decisions by legislators.
The report also highlighted Louisiana's significant rise in rankings after a tax overhaul and Arkansas achieving its best finish at number 10. Conversely, New York remains last in economic outlook due to high taxes.
Sonntag remarked on New Mexico's potential: "New Mexico is rich with human and natural resources and should be a leader in the United States."
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