Arkansas gets failing grade on economic opportunity scorecard

Arkansas was one of five states to receive a failing grade on the newly released Assets and Opportunity Scorecard produced by the Corporation for Enterprise Development (CFED).

According to Washington, D.C.-based CFED, the scorecard is a “comprehensive look at wealth, poverty and the financial security of families” in the U.S. The scorecard assesses the 50 states and the District of Columbia on 92 outcome and policy measures, with the measures grouped into five issue areas: Financial Assets & Income, Businesses & Jobs, Housing & Homeownership, Health Care, and Education. (Link here for a detailed methodology report.)

Arizona, Louisiana, Mississippi and South Carolina also received failing grades.

Michelle Stockman, with Little Rock-based Arkansas Capital Corp., said the CFED report is important, but is just one of several state officials use to compare socio-economic progress with other states.

“Arkansas also received an F grade in the 2007-2008 report card. While this does not mean the state as a whole has not taken any steps to further our grade, it does show that progress has been slow and a lot of work remains to be championed,” Stockman explained.

Following is how Arkansas fared in the five main issue areas, with a listing of just one of the several key items within each area.
• Financial Assets & Income
Issue area grade: D
Average net worth: $64,104, rank of 33rd among 50 states

• Businesses & Jobs
Issue area grade: F
Small business ownership rate: 17.6%, rank of 22

• Housing & Home Ownership
Issue area grade: D
Homeownership rate: 63.7%, rank of 40

• Health Care
Issue area grade: C
Employees insured by employer: 53.5%, rank of 47

• Education
Issue area grade: D
Four-year college degree: 21.1%, rank of 49

Recommendations from CFED on how to improve Arkansas’ score included increasing the state’s homeownership rate, increasing the number of college graduates and to encourage savings.

Matt DeCample, spokesman for Gov. Mike Beebe, said those are worthy recommendations, but was quick to note that CFED is funded by Bank of America, Fannie Mae, Wachovia, Citi and other financial institutions with a clear interest in public policies promoted by CFED. DeCample also said some of the groups supporting CFED have not proven in recent years to be smart financial managers.

“It’s just something you have to consider with any of these report cards,” DeCample said of the special interests.

Bentonville-based Wal-Mart Stores Inc. is also a major CFED contributor.

He also noted that California received a C grade, but “they’re broke,” adding that many states are now looking to Arkansas on how to best manage state government.

“This particular report isn’t going to give us a lot of heartburn,” DeCample said.

According to its Web site, CFED works to help Americans start and grow businesses, go to college, own a home, and save for their children’s and own economic futures. A goal of the group is to “bring together community practice, public policy and private markets in new and effective ways to achieve greater economic impact.”

Stockman predicted a better grade for the 2010-2011 report.

“Many of the areas in which we are graded, Arkansas showed signs of being ranked in the middle of the pack. Given the work of Accelerate Arkansas and others, I would expect to see more signs of improvement by the next report card,” Stockman said.