The U.S Chamber of Commerce has released its second Enterprising States report. As usual, South Dakota gets top marks for its business tax climate (i.e., its general resistance to imposing taxes on the businesses that profit from our services) and the ability of small businesses to survive (the calculation of which apparently did not include a survey of retail in downtown Madison).
Here's a list of the rankings in all categories:
- 1st Business Tax Climate
- 1st Small Business Survival Index
- 2nd Productivity Growth
- 2nd Transportation Infrastructure Performance
- 3rd Gross State Product Growth
- 3rd State and Local Tax Burden
- 5th Short-term Job Growth
- 6th College Affordability
- 7th Higher-ed Efficiency
- 8th Long-term Job Growth
- 8th Per Capita Income Growth
- 8th Export Growth
- 8th Small Business Lending
- 15th STEM Job Growth
- 18th Export Intensity Growth
- 18th High Speed Broadband Intensity
- 19th Educational Attainment
- 20th Business Birth Rate
- 23rd Academic R&D Intensity
- 23rd Entrepreneurial Activity
- 24th Budget Gap
- 24th Job Placement Efficiency
We're in the top half of every category the Chamber looked at. Wow: with scores like that what more incentives do you companies need to move here?
Yet just this weekend, I ran into a fellow MHS graduate who brought his kids back home for some grandparent time. He told me that he loves spending time here, but the income opportunities just aren't available here that he has found in places like Connecticut and Tennessee.
So is my friend blind to the metaphorical milk and honey flowing from our prairie? Or do the Chamber of Commerce metrics (and all those Fortune 500 companies that still haven't moved here) miss something about the true state of economic opportunity in South Dakota?
I think that there is a perception from outsiders or even those that moved away that their 150k job that pays 95k here is a loss of wages. They fail to take into account taxes and general cost of living.
A professor friend of mine increased his earnings here by 1/4 as opposed to North Carolina. That is substantial. The 135k they put on a house in the historic district of Yankton couldn't have gotten them in a 1970's mold house on the outskirts of Chapel Hill and EVERYTHING cost more in North Carolina.
Actually, in Quarter 4 of 2010, the cost of living in North Carolina was 96.15% of the national average. South Dakota's 2010Q4 COLI: 98.53%.
http://www.missourieconomy.org/indicators/cost_of_living/index.stm
Cost of living indexes often completely overlook state and local taxes! I wonder if the site that Cory mentions includes that factor? It would make a difference, because North Carolina has an income tax, and South Dakota does not.
Statistics say one thing. Real people say another. In this case (statistics versus Shane) the distinction is stark.
As far survivability of small businesses, I guess downtown Lead got overlooked. Yet Deadwood continues to thrive. It's the gambling, I guess. Here in Lead, we don't really want to start up with that. For a business to survive in Deadwood or Lead or New York City, one must first draw in the customers! The rest, taxes or no, cost of living high or low, pretty much takes care of itself, I guess.
I'm just going by what my friend, a Doctor of Education, is telling me. Have no idea about the cost of living percentages and what they entail. I just know what he told me.
His house here would cost him 750k in North Carolina for comparable neighborhood (college, church, schools, park) and square footage. The reason they left NC (even though he flew back for dissertation meetings, graduation and the finish of a collaborating book) was they could not afford to live the life they live here in North Carolina despite being a college teacher (not yet a Doctor) and a Department Store Manager.
(just looked today gas is 20 cents cheaper there than here)
From city-data.com
Mean prices in 2009: All housing units: $396,769; Detached houses: $447,987; Townhouses or other attached units: $204,619; In 2-unit structures: $278,365; In 3-to-4-unit structures: $227,536; In 5-or-more-unit structures: $154,738; Mobile homes: $24,384
Median gross rent in 2009: $824.
Estimated median house or condo value in 2009: $120,505 (it was $77,400 in 2000)
57078: $120,505
South Dakota: $126,200
Lower value quartile - upper value quartile: $64,904 - $123,510
Mean price in 2009:
Detached houses: $164,195
Here: $164,195
State: $158,814
Townhouses or other attached units: $313,276
Here: $313,276
State: $180,371
In 5-or-more-unit structures: $92,882
Here: $92,882
State: $126,685
Mobile homes: $22,382
Here:$22,382
State: $34,151
Jan. 2011 cost of living index in zip code 57078: 81.2 (low, U.S. average is 100)
Jan. 2011 cost of living index in Chapel Hill: 98.3 (near average, U.S. average is 100)
Read more: http://www.city-data.com/city/Chapel-Hill-North-Carolina.html#ixzz1QVSLBtni
Just a quick look
[CAH: Interesting difference in cost of living data! Shane, does CityData say where it gets its COLI numbers?]
You can count in the cost of having to travel an hour to Sioux Falls to do serious shopping; the extremely high price of groceries at Sunshine Foods; the lack of any public transportation system for any town outside of Sioux Falls and the limited bus system there, requiring a LOT of driving; the fact that rent for a decent place is about the same in Madison as in Sioux Falls, and in Sioux Falls as Atlanta. (Do not try to compare it to New York - nobody has rent as high as New York.) That utilities cost a LOT of money up here. And, finally, most jobs in South Dakota pay under $12 an hour. Sad but true.
Maybe revisit this piece from David Newquist. South Dakota isn't enjoying growth because it has a reputation outside the state of being the center of race hatred and of stolen lands.
White retirees don't bring anything to the state but down.
As of May, 2011, average apartment rent within 10 miles of Sioux Falls, SD is $765.
One bedroom apartments in Sioux Falls rent for $688 a month on average and two bedroom apartment rents average $787.
As of May, 2011, average apartment rent within 10 miles of Madison, WI is $859.
One bedroom apartments in Madison rent for $703 a month on average and two bedroom apartment rents average $923.
As of May, 2011, average apartment rent within 10 miles of Atlanta, GA is $915.
One bedroom apartments in Atlanta rent for $786 a month on average and two bedroom apartment rents average $932.
As of May, 2011, average apartment rent within 10 miles of Minneapolis, MN is $947.
One bedroom apartments in Minneapolis rent for $760 a month on average and two bedroom apartment rents average $991.
As of May, 2011, average apartment rent within 10 miles of Omaha, NE is $762.
One bedroom apartments in Omaha rent for $605 a month on average and two bedroom apartment rents average $727.
Shane! Now that's the kind of statistical legwork I appreciate! Keep those numbers coming (and don't let me forget that next time I trot out my cost-of-living index!).
City-data.com does not guarantee the accuracy or timeliness of any information on this site. Use at your own risk.
Some parts © 2009 Advameg, Inc.
It does not cite but gives that warning at the end. It does seem to hold up to local numbers here. As with anything the numbers constantly change, but this site has always seemed very accurate.
Here's where the rubber meets the road, dudes: http://southdakota.municipalbonds.com/bonds/moodys_reports