APPENDIX A
STATE OF THE COMMONWEALTH INDEX

 The Kentucky State of the Commonwealth Index incorporates 26 long-term indicators covering 1990 to 2001, in the areas of vibrant, nurturing communities; lifelong, quality educational opportunities; a sustainable, prosperous economy; a clean, beautiful environment; and an honest, participatory government at all levels.

What indicators were used? (weights are in parentheses)

Communities (20%)

 ·         Crime Index––the number of serious crimes reported to law enforcement per 100,000 persons. The crime index consists of selected offenses: murder, nonnegligent manslaughter, forcible rape, robbery, aggravated assault, burglary, larceny-theft, motor vehicle theft, and arson.
         Source: U.S. Department of Justice, Uniform Crime Reports, “Table 4. Index of Crime by Region, Geographic Division, and State, [selected years].”

 ·         Employee Rates for Persons with Disabilities––the percent of noninstitutionalized civilians with disabilities age 25 through 61 who were employed. Disability is defined using a single question in the March CPS. Persons with a disability are defined as those who report having (or are reported by the household’s respondent as having) “a health problem or disability which prevents them from working or which limits the kind or amount of work they can do.” This definition puts disability in the social context of work and is commonly used in the economics literature.
        Source: Employment estimates were calculated by Andrew Houtenville, Ph.D., of the Rehabilitation Research and Training Center for economic Research on Employment Policy for People with Disabilities, Cornell University, using date from the March Current Population Survey (CPS) for the years shown.

 ·         Homeownership Rates––the percent of the total number of occupied households that were owner-occupied households.
        Source: U.S. Census Bureau, Housing Vacancy Survey: Annual 2000, “Table 13: Homeownership Rates by State: 1984 to 2000,” www.census.gov/hhes/www/housing/hvs/annual00/ann00t13.html August 7, 2001.

 ·         Health Insurance Coverage––the percent of all people covered by private or government health insurance.
        Source: U.S. Census Bureau, Historical Health Insurance Tables, “Table HI-4. Health Insurance Coverage Status and Type of Coverage by State, All People: 1987 to 2001,” www.census.gov/hhes/hlthins/historic/hihistt4.html.       

·         Teen Birth Rates––the number of births to girls age 15 to 17 years old per 1,000 girls age 15 to 17 years old.
        Source: U.S. Department of Health and Human Services, Centers for Disease Control and Prevention, National Center for Health Statistics, National Vital Statistics Report, “Table 1. Birth rates for teenagers aged 15-19 years, by age group and state and territory, and percent change by age: United States, 1991 and 2000,” (Atlanta, GA: Author, May 30, 2002) 50:9 and “Table 4. Birth rates for teenagers 15-19 years by age of mother: United States and each state, 1990-1999,” (Atlanta, GA: Author, September 25, 2001) 49:10.

·         Smoking Rate––the percent of the population 18 years old and older who are current smokers. A “current smoker” is one who has ever smoked 100 cigarettes in his or her lifetime and reported smoking every day or some days.
        Source: The Behavioral Risk Factor Surveillance System, http://apps.nccd.cdc.gov/brfss/Trends/TrendData.asp.

·         Charitable Contributions––the annual average amount of contributions deductions per total number of tax returns filed.
        Source: Internal Revenue Service, Statistics of Income Bulletin (Washington, DC: Author, selected years).

 Education (20%)

·         High School Attainment Rate––the percent of adults 25 to 64 years old who have at least a high school diploma or equivalent.
        Source: Author’s calculations using data from the March Current Population Survey, from the U.S. Census Bureau.

·         College Attainment Rate––the percent of adults 25 to 64 years old who have at least a four-year college degree.
        Source: Author’s calculations using data from the March Current Population Survey, from the U.S. Census Bureau.       

·         ACT Average Composite Scores––the state-level ACT average composite score.
      Source: ACT, Inc. Scores for 1994 to 2001 provided online at www.act.org. Scores for 1990 to 1993 provided by the Kentucky Council on Postsecondary Education.       

·         Grade 8 NAEP Math Results––the percent of eighth graders who scored at or above basic level on the National Assessment and Educational Progress Mathematics Exam.
        Source: The National Center for Education Statistics, The Nation’s Report Card, “State Profiles,” available online at http://nces.ed.gov/nationsreportcard/states/profile.asp.

 Economy (20%)

·         Per Capita Income––total income divided by total state population.
      Source: Bureau of Economic Analysis, Regional Economic Accounts, http://www.bea.gov/bea/regional/spi.       

·         Poverty Rate––the percent of people living below the poverty level, three-year moving average.
        Source:  U.S. Census Bureau, Historical Poverty Tables, “Table 21. Number of Poor and Poverty Rate, by State, 1980 to 2001,” last revised September 30, 2002, http://www.census.gov/hhes/poverty/histpov/hstpov21.html.

·         Per Capita Gross State Product––total gross state product divided by total state population.
        Source: Bureau of Economic Analysis, Regional Economic Accounts, http://www.bea.gov/bea/regional/spi.

·         Business Formation––the number of establishments per 100 people. 
       
Source: The U.S. Census Bureau, County Business Patterns. The data are extracted from the Census Bureau’s file of all known single and multiestablishment companies.

·         U.S. Patents––average annual number of U.S. patents issued per 10,000 business establishments.
       
Source: U.S. Patent and Trademark Office, Office of Electronic Information Products/TAF Branch, Patent Counts by Country/State and Year, All Patents, All Types, January 1, 1977-December 31, 2001 (Washington, DC: Author, 2001) and U.S. Census Bureau, County Business Patterns.

·         Home Computer Access––the percent of people who have access to a computer in their home.
       Source: Kentucky Long-Term Policy Research Center calculations using U.S. Census Bureau data from the October, Computer Usage Supplement to the Current Population Survey. The survey asks a variation of the following question in each of the years shown here: Is there a computer in this household?.

·         Internet Access––the percent of people with access to network services anywhere.
         Source: Kentucky Long-Term Policy Research Center calculations using U.S. Census Bureau data from the October, Computer Usage Supplement to the Current Population Survey.

Environment (20%)

·         Per Capita Air Emissions––total air emissions divided by total state population. These are toxic release inventory data of total on- and off-site reported air emissions, in pounds, for facilities in Original Industries (SIC Codes 20-39(1)) and for 1988 Core Chemicals.
        TRI data do have certain limitations. TRI data reflect releases and other waste management of chemicals, and not exposures of the public to those chemicals. TRI data alone are not sufficient to determine exposure or to calculate potential adverse effects on human health and the environment.
        Source: The Environmental Protection Agency, Toxic Release Inventory, TRI Explorer, www.epa.gov/triexplorer.

 ·         Per Capita Surface Water Discharges––total surface water discharges divided by total state population. These are toxic release inventory data of total on- and off-site reported surface water discharges, in pounds, for facilities in Original Industries (SIC Codes 20-39) and for 1988 Core Chemicals.
        Source: The Environmental Protection Agency, Toxic Release Inventory, TRI Explorer, www.epa.gov/triexplorer.

 ·         Per Capita Land Releases––total land releases divided by total state population. These are toxic release inventory data of total on- and off-site reported land releases, in pounds, for facilities in Original Industries (SIC Codes 20-39) and for 1988 Core Chemicals.
        Source: The Environmental Protection Agency, Toxic Release Inventory, TRI Explorer, www.epa.gov/triexplorer.

·         Air Quality––percentage of people who live in counties that meet standards for air pollutants. Note that the nonattainment records show that either part of a county was in violation or the whole county. Since we are intent on capturing broad trends only, we considered a violation for a part of or the whole county as affecting the whole population of the county, whether directly or indirectly.
        Source:  Office of Air and Radiation, Environmental Protection Agency, (2002). The Greenbook: Nonattainment Areas for Criteria Pollutants.

·         Water Quality––percentage of population served by community water systems that have no health-based violations.
       Source: Office of Water, Environmental Protection Agency (2002). SIDWIS/FED (Safe Drinking Water Information System/Federal version) database.

Government (20%)

·         State and Local Government Efficiency––the number of state residents served per state and local government employee, excluding education employees. As the number of residents served by state government workers increases, then so does the efficiency with which state government services are provided. In principle, states with a more entrepreneurial and innovative public sector should be increasing the number of residents served per government worker over time even as the workers take on more responsibilities.
        Source: U.S. Census Bureau, Population Estimates Program, Population Division, “ST-99-3 State Population Estimates: Annual Time Series, July 1, 1990, to July 1, 1999,” (Washington, DC: Author, December 1999) and U.S. Census Bureau, Governments Division, State and Local Government Employment and Payroll Data, www.census.gov/govs/www/apesstl.html.         

·         Women in State Legislature––the percent of the total state legislature offices held by women. An inclusive political process that is open to all participants, regardless of gender, is a reliable indicator of the equity of representation.
        Source: Center for American Women and Politics, October 13, 2003, http://www.rci.rutgers.edu/~cawp/Facts4.html.         

·         Voting Participation Rates––the percent of the citizen voting-age population that voted in the most recent presidential election.
        Source: U.S. Census Bureau, “Table A-3. Reported Voting and Registration for Total and Citizen Voting-Age Population, by State for Presidential Elections: 1972-2000.”

How were the indexes calculated? 

1.        To arrive at the index score comparing Kentucky to the rest of the states, we calculated the mean and standard deviations for each of the 26 indicators across the 50 states and the 17 peer states, for each year between the period of 1990 and 2001.

 2.        These estimates were then used to construct Z-scores. The Z-score for a standard normal distribution is:

zi = (xi-mi)/si

where

zi =the distance from the mean, measured in standard deviation units
xi = the indicator value for a state in year i
mi= the indicator sample mean over all the states in year i
si = the indicator sample standard deviation over all the states in year i.

In the case of an inverted indicator, one where increases in value reflect worsening performance (for example, the crime index or adult smoking rates), the Z-score was calculated by subtracting the indicator value for the state from the mean for that year.

3.        The associated probability values were derived directly from the Z-scores using a cumulative standard normal distribution. The probability values range in value from 0, indicating the worst performance among the states, to 1.0, indicating the best relative performance among the states. These values were then multiplied by 1000. The new range of scores was 0 to 1000, in theory. In practice, since no state performs perfectly in all indicators at the same time, the actual range was approximately 200 to 800, with many scores clustering around the mean of 500.

4.       The indicators fell within one of the following five themes: communities, education, the economy, the environment, and government and there were unequal numbers of indicators in each category. To avoid weighting one theme more heavily than the others, each theme was weighted equally at 20 percent. To avoid further subjective judgement in the importance of a particular indicator, each indicator was weighted equally within its theme. Since the themes had different numbers of indicators, the indicator weights varied between themes. The final index score is an average of the subindex scores.

5.        A second State of the Commonwealth Index (Index II) was developed similarly, using only the following 16 peer states: Alabama, Arkansas, Florida, Georgia, Illinois, Indiana, Louisiana, Michigan, Mississippi, Missouri, North Carolina, Ohio, South Carolina, Tennessee, Virginia, and West Virginia. These states were identified in 1995 and 1999 as “competitor” states for Kentucky by two tax structure studies that were done in those years and are demographically, geographically, and economically similar in makeup to Kentucky.

6.        There were several indicators for which data were available for every state in every year. These include home computer access, access to network services, the grade 8 math NAEP results, and voter participation rates. Interpolation of data for the years in which the data were unavailable consisted of a linear approximation using the years for which data were available. In the case of the grade 8 math NAEP results, some states did not participate in all the years in which the exam was available. In these cases those states were given the average results from the states for which data were available and then linear interpolation for the “off” years proceeded as usual.

 What does the Index Tell Us?

The Index tells us that while Kentucky remains well below the average quality of life found throughout the United States and falls slightly short of the average found among its peer states, tremendous progress has been made toward closing those gaps in a relatively short amount of time. Kentucky’s index score increased 15 percent over this period relative to the nation and 14 percent relative to its peers. In addition, although Kentucky fell back slightly from its 1998 peak scores, the state has begun to increase in more recent years, ending the period just shy of those high scores and well above the low status of the early 1990s. 

Figure A.1: Kentucky's State of the Commonwealth Index Relative to the US, 1990-2001

Figure A.2: Kentucky's State of the Commonwealth Index Relative to Its Peer States, 1990-2001

TABLE A.1

Index Scores and Ranks by Index Score by State, United States, 1990-2001

 

Index Score (Rank)

State Name

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

Alabama

299

(48)

298

(48)

284

(48)

302

(48)

290

(48)

277

(48)

300

(47)

286

(46)

281

(47)

288

(46)

259

(47)

247

(48)

Alaska

496

(29)

505

(29)

534

(25)

539

(25)

550

(24)

561

(22)

547

(23)

506

(30)

503

(31)

529

(27)

533

(26)

540

(27)

Arizona

473

(32)

460

(33)

503

(32)

511

(30)

473

(33)

430

(36)

407

(37)

426

(37)

421

(37)

449

(36)

466

(35)

436

(37)

Arkansas

339

(44)

342

(44)

342

(45)

339

(44)

316

(45)

319

(46)

307

(46)

265

(48)

295

(46)

281

(47)

286

(46)

282

(46)

California

453

(36)

455

(34)

439

(35)

455

(35)

471

(34)

453

(35)

469

(34)

480

(34)

471

(34)

494

(32)

488

(33)

511

(33)

Colorado

634

(7)

634

(6)

659

(6)

670

(5)

682

(5)

678

(6)

651

(6)

650

(7)

655

(6)

661

(5)

665

(5)

638

(9)

Connecticut

689

(3)

651

(5)

694

(3)

709

(2)

684

(4)

686

(5)

684

(5)

699

(3)

693

(3)

690

(4)

729

(3)

739

(2)

Delaware

513

(26)

482

(31)

511

(30)

505

(31)

531

(27)

505

(32)

531

(29)

515

(29)

524

(28)

505

(31)

502

(29)

526

(29)

Florida

401

(37)

412

(37)

419

(37)

399

(38)

397

(38)

409

(37)

421

(36)

427

(36)

438

(36)

447

(37)

452

(36)

449

(36)

Georgia

357

(42)

364

(42)

371

(41)

374

(41)

410

(37)

381

(40)

380

(41)

371

(41)

356

(43)

356

(42)

378

(41)

380

(41)

Hawaii

577

(19)

599

(15)

580

(17)

566

(20)

561

(20)

529

(26)

511

(32)

495

(32)

485

(32)

494

(32)

491

(32)

521

(30)

Idaho

583

(17)

591

(17)

572

(19)

589

(16)

619

(10)

586

(17)

572

(19)

555

(23)

527

(27)

516

(28)

488

(33)

528

(28)

Illinois

493

(30)

505

(29)

505

(31)

512

(29)

529

(28)

543

(24)

536

(27)

559

(22)

566

(22)

545

(25)

530

(28)

547

(25)

Indiana

469

(33)

475

(32)

478

(33)

502

(32)

485

(32)

519

(29)

517

(31)

490

(33)

519

(29)

506

(30)

499

(30)

517

(31)

Iowa

644

(6)

634

(6)

633

(9)

636

(9)

629

(9)

633

(8)

643

(7)

650

(7)

632

(9)

624

(9)

607

(13)

634

(10)

Kansas

617

(11)

621

(10)

640

(8)

628

(11)

599

(15)

615

(11)

629

(10)

656

(6)

640

(8)

644

(6)

624

(8)

614

(12)

Kentucky

330

(46)

328

(46)

339

(46)

353

(43)

342

(44)

359

(43)

346

(44)

351

(44)

385

(39)

376

(41)

377

(42)

381

(40)

Louisiana

264

(50)

272

(50)

269

(49)

256

(49)

243

(50)

266

(49)

265

(49)

258

(49)

249

(49)

258

(49)

234

(50)

216

(50)

Maine

599

(15)

580

(20)

579

(18)

582

(17)

610

(13)

609

(12)

600

(15)

615

(12)

609

(11)

623

(10)

593

(16)

583

(18)

Maryland

580

(18)

568

(21)

560

(21)

595

(15)

582

(17)

594

(14)

619

(12)

635

(10)

607

(14)

611

(13)

613

(12)

647

(7)

Massachusetts

606

(14)

631

(9)

614

(12)

637

(8)

640

(8)

624

(9)

631

(9)

642

(9)

646

(7)

644

(6)

647

(6)

651

(6)

Michigan

531

(24)

526

(26)

546

(22)

572

(19)

580

(19)

594

(14)

597

(16)

611

(14)

609

(11)

620

(11)

644

(7)

647

(7)

Minnesota

688

(4)

687

(3)

711

(2)

733

(1)

758

(1)

758

(1)

763

(1)

777

(1)

790

(1)

790

(1)

805

(1)

801

(1)

Mississippi

298

(49)

286

(49)

267

(50)

255

(50)

275

(49)

257

(50)

249

(50)

255

(50)

239

(50)

240

(50)

244

(49)

221

(49)

Missouri

519

(25)

533

(25)

536

(24)

526

(27)

540

(25)

575

(20)

557

(22)

522

(27)

534

(26)

538

(26)

573

(20)

563

(22)

 

TABLE A.1 (CONTINUED)

 

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

Montana

565

(21)

591

(17)

540

(23)

556

(22)

559

(21)

543

(24)

542

(26)

533

(26)

508

(30)

512

(29)

532

(27)

513

(32)

Nebraska

584

(16)

616

(12)

618

(11)

578

(18)

601

(14)

622

(10)

636

(8)

614

(13)

602

(17)

580

(19)

585

(18)

561

(23)

Nevada

459

(34)

451

(35)

441

(34)

473

(34)

471

(34)

481

(33)

481

(33)

506

(30)

481

(33)

452

(35)

442

(37)

482

(35)

New Hampshire

698

(2)

691

(2)

713

(1)

693

(4)

711

(3)

717

(3)

690

(4)

692

(4)

690

(4)

698

(3)

712

(4)

728

(3)

New Jersey

568

(20)

563

(22)

561

(20)

553

(23)

554

(22)

549

(23)

543

(25)

568

(17)

601

(18)

601

(16)

568

(23)

574

(21)

New Mexico

353

(43)

353

(43)

359

(42)

360

(42)

370

(42)

340

(45)

317

(45)

367

(42)

363

(42)

352

(44)

363

(43)

361

(43)

New York

454

(35)

444

(36)

436

(36)

445

(36)

462

(36)

461

(34)

462

(35)

455

(35)

461

(35)

467

(34)

496

(31)

499

(34)

North Carolina

373

(40)

365

(41)

355

(43)

377

(40)

372

(41)

388

(39)

394

(39)

405

(38)

404

(38)

395

(38)

398

(38)

396

(38)

North Dakota

624

(9)

605

(14)

582

(16)

623

(13)

588

(16)

604

(13)

571

(20)

555

(23)

604

(15)

583

(18)

594

(15)

587

(17)

Ohio

507

(27)

513

(28)

516

(29)

523

(28)

512

(29)

520

(28)

559

(21)

561

(21)

560

(23)

567

(23)

560

(24)

543

(26)

Oklahoma

389

(38)

398

(38)

413

(38)

414

(37)

389

(39)

405

(38)

399

(38)

391

(39)

383

(40)

390

(39)

398

(38)

378

(42)

Oregon

620

(10)

618

(11)

602

(14)

624

(12)

617

(11)

570

(21)

583

(18)

562

(20)

608

(13)

591

(17)

622

(10)

597

(15)

Pennsylvania

497

(28)

543

(23)

532

(26)

529

(26)

506

(30)

507

(31)

532

(28)

545

(25)

546

(25)

567

(23)

569

(22)

580

(19)

Rhode Island

490

(31)

516

(27)

528

(28)

500

(33)

499

(31)

513

(30)

546

(24)

563

(19)

604

(15)

575

(20)

540

(25)

551

(24)

South Carolina

320

(47)

332

(45)

308

(47)

307

(47)

306

(47)

278

(47)

281

(48)

283

(47)

268

(48)

266

(48)

258

(48)

270

(47)

South Dakota

563

(22)

584

(19)

599

(15)

565

(21)

552

(23)

579

(19)

607

(14)

572

(16)

579

(21)

615

(12)

618

(11)

623

(11)

Tennessee

331

(45)

317

(47)

347

(44)

339

(44)

357

(43)

366

(42)

388

(40)

351

(44)

338

(44)

345

(45)

331

(45)

312

(45)

Texas

385

(39)

384

(40)

376

(40)

388

(39)

379

(40)

371

(41)

378

(42)

385

(40)

378

(41)

377

(40)

379

(40)

383

(39)

Utah

631

(8)

633

(8)

644

(7)

653

(7)

649

(7)

647

(7)

623

(11)

616

(11)

600

(19)

606

(14)

571

(21)

575

(20)

Vermont

707

(1)

695

(1)

687

(4)

699

(3)

732

(2)

735

(2)

720

(2)

725

(2)

735

(2)

735

(2)

734

(2)

708

(4)

Virginia

550

(23)

536

(24)

531

(27)

550

(24)

540

(25)

529

(26)

521

(30)

522

(27)

557

(24)

575

(20)

599

(14)

600

(14)

Washington

617

(11)

612

(13)

622

(10)

633

(10)

617

(11)

587

(16)

585

(17)

594

(15)

625

(10)

606

(14)

589

(17)

614

(12)

West Virginia

367

(41)

390

(39)

377

(39)

337

(46)

314

(46)

350

(44)

358

(43)

362

(43)

335

(45)

353

(43)

356

(44)

345

(44)

Wisconsin

685

(5)

669

(4)

670

(5)

670

(5)

681

(6)

686

(4)

696

(3)

675

(5)

660

(5)

632

(8)

624

(8)

673

(5)

Wyoming

609

(13)

593

(16)

611

(13)

607

(14)

581

(18)

582

(18)

615

(13)

565

(18)

580

(20)

572

(22)

578

(19)

588

(16)

 

TABLE A.2

Index Scores and Ranks by Index Score by Peer State, United States, 1990-2001

 

Index Score (Rank)

State Name

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

Alabama

350

(15)

344

(16)

362

(15)

362

(15)

359

(15)

316

(15)

348

(14)

357

(14)

341

(14)

355

(13)

308

(15)

297

(15)

Arkansas

426

(11)

428

(11)

439

(11)

425

(11)

387

(13)

378

(13)

362

(13)

324

(15)

364

(13)

337

(14)

332

(13)

338

(13)

Florida

554

(7)

566

(7)

556

(7)

546

(7)

534

(7)

553

(7)

567

(7)

568

(7)

577

(7)

581

(7)

587

(7)

582

(7)

Georgia

479

(9)

489

(8)

480

(8)

503

(8)

524

(8)

494

(9)

494

(9)

485

(9)

471

(10)

459

(10)

486

(9)

495

(9)

Illinois

669

(5)

664

(4)

651

(4)

666

(4)

661

(4)

674

(3)

659

(4)

681

(2)

689

(2)

668

(4)

651

(5)

673

(4)

Indiana

600

(6

604

(6)

585

(6)

622

(6)

634

(6)

652

(5)

623

(6)

596

(6)

634

(6)

612

(6)

593

(6)

647

(6)

Kentucky

420

(12)

394

(13)

435

(12)

449

(10)

430

( 11)

454

(11)

431

(12)

438

(12)

482

(9)

460

(9)

473

(10)

479

(10)

Louisiana

319

(17)

346

(15)

338

(16)

300

(16)

282

(17)

306

(16)

297

(16)

304

(16)

282

(16)

301

(16)

288

(16)

259

(16)

Michigan

724

(1)

699

(1)

714

(1)

752

(1)

754

(1)

763

(1)

762

(1)

760

(1)

770

(1)

786

(1)

818

(1)

822

(1)

Mississippi

329

(16)

331

(17)

301

(17)

280

(17)

317

(16)

283

(17)

257