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Miami is among the richest cities in the world. But it is also one of the leaders in income disparity in the U.S.
By Michael Sauter, Charles Stockdale and Ashley Allen, 24/7 Wall St.
Many qualities separate the best-run and worst-run cities. But perhaps the most important is access to jobs. The economies of the best-run cities fall into two categories. They either have a booming industry or are near other major urban areas that create employment opportunities. The worst-run cities simply do not have the same access to jobs. 24/7 Wall St.’s analysis of the best-run and worst-run cities demonstrates that encouraging businesses to prosper and create jobs is the most important function of local government.
24/7 Wall St. has completed its first annual ranking of the best-run and worst-run cities in America. We reviewed the local economies, fiscal discipline and standard of living of the 100 largest cities by population to determine how well each is managed. Based on these data, 24/7 Wall St. ranked the 100 cities from the best- to worst-run. The best-run city is Virginia Beach, Va. The worst-run city is Miami, Fla.
Four of the 10 best-run cities are the economic centers of their regions. Madison, Wis., is one of the best-run cities on our list, and its businesses employ the most people in the area. Six of the best-run cities serve as residential communities for larger metropolitan areas that are the economic centers. Scottsdale, Ariz., is a large city in its own right, but is often referred to as a suburb of Phoenix.
Frequently, these so-called “edge cities” have also developed their own vibrant economies. Plano, Texas, is part of the Dallas-Fort Worth metropolitan area. However, the city has a booming tech community and large offices of major corporations such as HP and Dell.
Nine out of the 10 worst-run cities on this list rely on older industries that are shrinking. Hialeah, Fla., was an important textile hub in the 1960s through the 1980s. Cleveland, Ohio, was one of the nation’s leaders in steel production. Detroit, Mich., of course, manufactured cars. Since their booms, all of these cities have shed tens of thousands of jobs.
Many of the worst-run cities have been in bad shape for years. While residents who were able to moved away, those without resources remained. As a result, the cities’ expenses remained high while their tax bases shrunk. The populations of four of the worst-run cities decreased between 2000 and 2010. Detroit lost just under 240,000 residents. On the other hand, the populations of all the best-run cities increased.
24/7 Wall St.: Best- and worst-run states in America
While there is a strong relationship between high median income and high ranking, there is an even stronger relationship to poverty. While a majority of the best-run cities have more households making over $200,000 per year than the national average, none of the top 10 cities have high poverty rates. For example, Lincoln, Neb., has only the 33rd highest median income among the largest cities, but the 11th lowest percentage of households making less than $10,000 per year.
For the most part, the best-run cities manage their debt and resources well. The worst-run cities do not. Moody’s provided credit ratings and analysis for 16 of the 20 cities on our list. The two cities that are the best-run and that do not have credit ratings, Fremont and Irvine, Calif., do not have a need to finance government projects through debt. Their wealthy and large tax base would suggest that is the case. Hialeah, Fla., one of the worst-run cities according to our ranking, told 24/7 Wall St. that it did not issue city debt because it had other debt instruments to raise money for government projects. San Bernadino, Calif., the other worst-run city without a credit rating, did not return 24/7 Wall St.’s calls.
These are the best- and worst-run cities in America.
The best
1. Virginia Beach, Va.
- Violent crime per 1,000 people: 1.88 (8th lowest)
- Poverty rate: 7.5 percent (3rd lowest)
- Adult population graduated from high school: 93.1 percent (5th highest)
- Credit rating: Aaa (negative outlook)
- Population: 439,172
Virginia Beach is, by our measurement, the best-run city in the U.S. Located on the eastern shore of Virginia, the city is one of the most prosperous in the country. Out of the 100 largest cities, it has among the 10 lowest violent crime, unemployment, and poverty rates, as well as among the 10 best for median income, high school graduation and health insurance coverage. Moody’s listed Virginia Beach’s three main strengths as a “large and diverse tax base stabilized by the presence of military bases,” the city’s “strong and carefully managed financial position,” and “comprehensive financial policies and conservative budgeting approach.” The city’s credit rating is a perfect Aaa.
24/7 Wall St.: Worst product flops of 2011
2. Irvine, Calif.
- Violent crime per 1,000 people: 0.55 (5th lowest)
- Poverty rate: 12.3 percent (9th lowest)
- Adult population graduated from high school: 95.7 percent (2nd highest)
- Credit rating: not rated
- Population: 212,982
Irvine has a violent crime rate of just 0.55 per 1,000 people, the fifth lowest among the major cities on our list. The city is also among the best 10 for home vacancy, unemployment, median income and high school graduation rates. In 2008, CNN Money rated it the fourth-best place to live in the U.S. According to Craig Reem, director of public affairs and communications, “We are seeing a gradual improvement in our local economy that allows us to move from recession ready, to recovery ready. The City Council plans conservatively: This past fiscal year (2010-2011), we outperformed our budget expectations by nearly $14 million.”
3. Madison, Wis.
- Violent crime per 1,000 people: 3.92 (21st lowest)
- Poverty rate: 18.7 percent (40th lowest)
- Adult population graduated from high school: 95.1 percent (3rd highest)
- Credit rating: Aaa (stable outlook)
- Population: 233,777
Madison, the other capital city on our list, was incorporated in the mid 1800s, and exists today as one of the most well-run cities in the Midwest. Madison is not a particularly wealthy city, with a median household income of just over $50,000. Nevertheless, the capital has a perfect Aaa (stable) credit rating, as well as extremely low unemployment and home vacancy rates. According to Madison city administrative analyst Tim Fruit, “Over the past few years, we have really made a significant effort toward more carefully planning our six-year capital improvement program. In the past, the out years were not well scrutinized. Now, we try to analyze and balance the out years much more carefully.”
The worst
3. Newark, N.J.
- Violent crime per 1,000 people: 10.29 (21st highest)
- Poverty rate: 30.2 percent (10th highest)
- Adult population graduated from high school: 69.2 percent (6th lowest)
- Credit rating: A3 (negative outlook)
- Population: 277,232
Newark has a very high rate of poverty, reaching 30.2 percent in 2010. Its median household income is $32,043 — the ninth lowest among the 100 largest cities. Less than 70 percent of the adult population has a high school diploma or more — the sixth lowest rate. Meanwhile, Newark’s violent crime rate has been increasing. In late November 2010, the city laid off nearly 15 percent of its police force. By May 2011, the annual murder rate had increased a stunning 65 percent. Robberies, burglaries and thefts increased as well.
2. Detroit, Mich.
- Violent crime per 1,000 people: 18.87 (the highest)
- Poverty rate: 37.6 percent (the highest)
- Adult population graduated from high school: 77.4 percent (18th lowest)
- Credit rating: Ba3 (on review)
- Population: 711,910
Despite being more notorious for its troubles than any other major U.S. city, Detroit managed to avoid the title of worst-run city in the country. The city has been in a tough spot for decades, but continued problems with corruption and poor management have not helped matters. Detroit already sports the worst credit rating awarded by Moody’s and is the only one of the 100 largest cities in the U.S. to have a rating below investment grade. Worse still, the rating agency is currently reviewing the Ba3 rating — which already had a negative outlook — after the state of Michigan announced it was evaluating whether the city’s troubles constituted an economic crisis. Of the 100 largest cities, Detroit has the highest home vacancy rate, the highest unemployment rate, the highest poverty rate, the worst violent crime rate and the lowest median household income.
1. Miami, Fla.
- Violent crime per 1,000 people: 11.08 (13th highest)
- Poverty rate: 32.4 percent (5th highest)
- Adult population graduated from high school: 68.2 percent (4th lowest)
- Credit rating: A2 (stable outlook)
- Population: 400,892
According to a 2011 UBS study, Miami is the richest city in the country and the fourth richest city in the world by domestic purchasing power. However, a 2011 study by the Census Bureau found the Miami metropolitan area also had the second-highest income inequality rate in the nation — probably due to the incredibly high percentage of households living below the poverty line. Despite the city’s wealth, Miami’s median household income of $27,291 is the third smallest among the 100 biggest cities. Its poverty rate of 32.4 percent is the fifth highest. The city faces a handful of other problems. Only 68.2 percent of adults have a high school diploma or more — the fourth lowest rate. Also, 22.5 percent of housing units are vacant, which is the fifth highest percentage. A 2011 Brookings Institute report put Miami among the 20 weakest-performing metropolitan statistical areas in the country with regards to recovering from the recession, due in large part to the crash of its housing market.
Click here to read all of 24/7's best- and worst- run cities.
Leave a Comment:
Need to throw Atlanta in with the worst. Corruption up the ying-yang...just start with Hartsfield Airport's history of sleazy/under-the-table deals made with contractors...vendors. Inner city crime, homeless coming out of the woodwork, B&E run rampart, public school cheating, a dangerous/filthy transit system...and there is one underlying theme/reason for all this... I'll let YOU fill in the blanks.
I agree with you 100%. I work for a large corporation based in Atlanta, but luckily I don't have to live there. The under the table dealings filter into the corporations too. It is a way of life in Atlanta. Filling in the blanks is easy, just look at the worst cities on the list.
Gee, I thought all of Atlanta's problems was related to TN not moving the border north a mile!
I'd live anywhere in the country before I'd live in Detroit and that includes Miami.
Don't forget to toss in California and Washington.
No racism here, no sirree bob...
SF...yup. But heaven forbid we call it as we see it. The truth hurts.
Hmmm....what do all the worst cities have in common....I wonder?
That they are mostly run by democrats, just like most of the best cities; according to this list.
Best-
Virginia Beach, Va.
Will Sessoms (R)
Irvine, Calif.
Sukhee Kang (D)
Madison, Wis.
Paul Soglin (D)
Worst-
Newark, N.J.
Cory Booker (D)
Detroit, Mich.
Dave Bing (D)
Miami, Fla.
Tomas Regalado (R)
Lots of stupid people in a big crowd always yields trouble. They're also more expensive to control, so taxpayers flee.
Best cities have high levels of education and low population numbers, with tax money going for libraries and schools and parks.
Unfortunately, the birth rate is with the stupid people, so all we're buying is time.
A 3rd list of great cities that went bad ought reveal the problem, just not the answer. We can't handle the truth.
This is an ignorant article.
yep...all the cities...are MILITARY BASE cities...I smell propaganda here...
DC will use this bullsheet article to convince
peoplesheeple we need a military base in every city, and armed soldiers on every corner, asking for your papers under threat of being shot.Jen-
I believe the 3 cities are the most major league entitlement, democrat run disasters...oh yeah, major, major public sector unions. I've worked with the Miami, Detroit and Newak public utilities departments. If rate payers saw what the paid for, they would be ripped. But, people put way too much blind faith in government...
BTW, I live in VA Beach. Major military town....we like our republicans and small government folks...even though it's still not as small as some of us would like....
VA Beach was a great place to live in 1970 and I'm sure it still is but republicans and small government has nothing to do with it. The money in VA Beach comes from the government and tourism, period. In 1970 when I lived there money came from tourism and building for the government. Take away taxpayer money and then count what's left. Republicans know how to enjoy taxpayer's money also.
Paul...So tell us, how do like your government job???? Ever worked in the private sector, signed the front of a paycheck? Ya I know, it's the damned union's fault...What say we pull all that gubment military spending from your state and put you in the real world.
Cities that are liberal welfare and public union magnets are the worst and Scott Walker's Madison is one of the best? Who would of known? And now the freakin' liberals want to recall Walker and ruin that city too? Sheesh
Republicans=Liberals, I repeat, Republicans=Liberals
Once that concept is understood by people, then we can discuss the maxims appropriately.
Are you aware that Scott Walker is the governor of Wisconsin, and not the mayor of Madison?
LOL! I was going to say the same thing, Morton. :) I'd also add that Madison is the most liberal city in Wisconsin, and one of the most liberal in the country.
Applying the same logic, with regards to Newark, NJ, one can just imagine the nightmare that awaits us if Chris Christy were to run POTUS.
Good point, tjohn. But since when to Fox News viewers apply logic or consider facts?
and it was Walker that reigned in the public unions and saved Wisconsins economy which includes Madison. You need to research before making such an obvious statement. Homer Simpson voice: D'oh!
Wrong, in 2008, Newark needed $45 million from the state to balance its budget. In 2009 it needed $12 million. In 2011, the city got a $32 million shot in the arm from state taxpayers, in the form of transitional aid, to help with its $615 million budget. For at least half of Mayor Cory Booker's tenure, city finances have been or will be under state control and Gov. Chris Christie promises that Newark will be held accountable and will pay back these loans and that oversight will be exhaustive. Christie has changed a lot of things within New Jersey despite the freakin' unions, exspecially the teachers union, fighting him every inch of the way.
"For at least half of Mayor Cory Booker’s tenure, city finances have been or will be under state control and Gov. Chris Christie promises to be exhaustive. Christie has changed a lot of things..." And still Newark makes the list of one of the worst-run cities.
For those who have not been following this thread, here's the deal: If a city's mayor is a Democrat and the state's governor is a Republican, then if the city wound up on the "worst run" list (e.g., Newark), then it's the mayor's fault. But if the city wound up in the "best run" list (e.g., Madison), then the governor somehow gets the credit. Hey, that's the Fox News way!
Scott Walker didn't save anything - other than his rich PAC controlling friend's money. The state of WI is not Mecca for jobs and his attitude towards unions such as the public school teachers union is criminal and wildly misguided. I'm not sure a democrat could save things either, but in fact what needs to change is the system itself.
Comments such as yours really show exactly why we need to do a better job educating the population.
Scott Walker doesn't "run" Madison.
These bastions of liberalism the worst run? It can't be.... Have they mowed down half of Detroit yet?
They are! Believe it or not, there is a new concept for these run-down neighborhoods, bulldozing them down and turning them into "urban farms"! These small plots of land are being used to grow crops locally, allowing restaurants to ship in fruits and vegetables (seasonally), cutting the carbon footprint, while allowing for an ag exemption for the land.
Of course this means that tax revenues may be much less than before, but it should make Detroit look like it did in the 50's, and not a broken down crack house.
Fake News: Walker cannot claim even a tiddle of Madison's good governance because (a) Walker is governor, not mayor (as Willing so accurately pointed out...). However his union-busting policies have had a negative influence on Madison services.... And (b) Walker's only been governor for a year or so..... his influence other than inserting the most divisive politics in the area has been small. Oh=.... and Madison city politics? Decidedly liberal. Go figure. Or in your case, go finger.....
Is that the same paul soglin that was mayor 40 years ago?
Right on, Jersey Bob!
What's more, although there are actually both good and bad Democrat and Republican mayors, the Republican economic agenda has increased the number and complexity of problems that any American city faces today.
"Miami metropolitan area also had the second-highest income inequality rate in the nation — probably due to the incredibly high percentage of households living below the poverty line. Despite the city's wealth, Miami's median household income of $27,291 is the third smallest among the 100 biggest cities. Its poverty rate of 32.4 percent is the fifth highest. The city faces a handful of other problems. Only 68.2 percent of adults have a high school diploma or more — the fourth lowest rate. Also, 22.5 percent of housing units are vacant, which is the fifth highest percentage."
The Republican agenda of gutting the public sector, of directing public funds into corporatist pockets, of busting unions and skewering the middle class, of promoting social and economic inequity -- that certainly exacerbates Miami's problems. The mayor may be a Democrat, but I'm willing to bet that most of Miami's wealthiest citizens are not.
I don't know about Newark -- it is not a wealthy city like Miami -- and Cory Booker has received some rave reviews and also some thumbs-down. He has a tough job. I wonder if he has ever seriously asked public school teachers about the educational challenges they address every day.
Poverty is the number one problem in our country -- it's behind pretty much all of the other problems that are mentioned. And it appears that few people -- Democrats or Republicans -- want to address that.
Actually, the current mayor of Miami is a Republican. The one before that was an independent, and the one before that a Republican. I'm not sure when Miami last had a Democratic mayor, but it's been a very long time.
Let's not forget Phoenix, Flint, Camden, Baltimore, Washington, Philadelphia, Trenton, Norwalk, Los Angeles...
There are a lot of crappy places in this country, and there are a lot of people that will disagree with me no matter how many people have been shot outside their front porch. Some people will say a place has "gone downhill" simply because they see "too many minorities." These best-and-worst articles are the least insightful pieces of garbage I've ever seen since CNN, Fox News, CNBC, The Huffington Post, CSPAN 2, ESPN 6, Turner Classic Movies, Cinemax, Cracker Barrel, Shoney's, IHOP, TJ Maxx, TGI Friday's, Chili's, Internet Explorer, Safari, Microsoft, HP, Toyota, Radio Shack, gluten-free pastries, fudge, brussel sprouts...
Tim--Turner Classic Movies often has fine films that are worth seeing again and again... :)
Actually, half of DC is great, except when the other half comes to visit.
How Orlando, FL consistently dodges the #1 position on lists like this one I'll never understand. Maybe Orlando isn't the top in any one category, but I bet with all factors combined it would be the worst all-around!
Virginia Beach isn't on the Eastern Shore, idiots. Guess you didn't really do your research.
Read the article; small "e" and small "s." Va. Beach is, indeed, eastern and on the Atlantic shore.
Only a prig looking to pick a fight would see an inference to Accomack or Northampton, i.e. Virginia's Eastern Shore.
Considering VA doesn't have a northern, southern or western shore, I think you are the one trying to pick a fight.
The grass is always greener on the other side of the street.
Look at the case of Detroit. We all know why there's such high unemployment. The auto industry has fallen apart. But this has nothing to do with how the city is run. It has to do with how the CEOs ran their companies. This article makes the wrong assumption that unemployment is a direct indicator of how a city is run (politically, etc.) I therefore consider the entire article to be suspect.
What is Running a City have to do with access to Jobs???
To run a city have to do with providing services to the residents not to provide jobs.
Now said that, City can definitely be more or less friendly to business or having stronger Economic Development Department.
It's called a "tax base." If access to jobs is low, then those who can't find jobs, and the non-existent companies that would provide them, pay no taxes. No tax income, no city services. In Newark's case, that 15% cop layoff has definitely hurt that city.
It's interesting to me how people turn this into a political argument so quickly.
The "best" and "worst" characteristics of a region are influenced far more by factors outside the control of the political figures. How much did the Detriot administration have to do with the collapse of the auto industry, for example? And the survey reflects the biases of the survey authors too. In this case, the selection seems to be overwhelmed by the credit rating.
I found the "best and worst states" to be more reflective of actual conditions, but even then it didn't tell you much. For example, here's Utah -- sixth best on the list:
6. Utah
> State debt per capita: $2,274 (15th lowest)
> Pct. without health insurance: 15.3% (20th highest)
> Pct. below poverty line: 11.5% (12th lowest)
> Unemployment: 7.4% (17th lowest)
Utah kept the same rank it had in our last survey. The state has the fifth-lowest violent crime rate in the country, as well as the seventh-highest graduation rate in the country. However, Utah had one of the higher foreclosure rates in the country in October, and 15.3% of the population — an above-average rate — is without health insurance.
---------------
Utah was run by the Tea Party long before it had that name, so you can see the actual results of that kind of thinking. As the summary shows, if you're planning on investing your wealth, Utah is a great place to put it. ROI is guaranteed. But if you just want to live here, the social safety net has huge holes in it unless you are part of the "predominant religion". (And then there is a 10% tax on gross earnings that other people don't pay.) And they don't mention that air quality for all of the major cities sucks! Big time! And although the local culture emphasizes individual achievement, reflected in the graduation rate, public funding for education is dead last in the nation. We rank well below states in the deep south. And the results show it. utaheducationfacts.com reports that the state is well below average in math, reading and science scores. How to reconcile the graduation rate with the low scores? This culture is deep into denial. People graduate whether they deserve to or not and we produce lots of "art appreciation" majors.
So ... if I had to put together a "best and worst surveys", this one would be on the worst list.
I disagree with those who would walk away from their promised obligations. At 72 we still have a small mortgage. And for those pukes who blame liberals I will have you know I am one. Greed personal and corporate was the motivating factor is where the blame lies. But when you sign a promisory note, you owe what you borrowed and the fact that your purchase did not retain it's value is no one fault except yourself.
I pay for Medicare and stop gap insurances for my health insurance, I pay more out of my pocket today than I did to Blue Cross and Blue Shield when I worked. FYI Medicare is not an entitlement it is a bought and paid for Insurance, just like my life insurance is. Only the organization collects the premium, and who writes the check is different. That was my agreement with them when I paid and it is what I have a right to expect when the time comes to pay me back.
As a bleeding heart liberal that is what I think what does the Conservative side think since so many have made it a right/left issue.
What does this have to do with cities being ranked "best" and "worst"? Wrong article, perhaps?
Sully--I am conservative, yet you and I are in agreement. If you sign an obligation, it is your responsibility to fulfil that obligation.
As for the folks that say that the lender should take on some of the loss, I would ask...if you made money on the house, should the lender be entitled to some of the profit?
No, the lender is not entitled to any of the profit because he/she has already made their profit from the first five years of house payments that are mostly interest. Why do you think so many people want in on the mortgage business?
Mike...they have made profit in exchange for allowing you to use their money to purchase the house. That was the agreed upon transaction and the service that the individual who takes out the loan is paying for.
My question goes to the home value...if the bank should take a hit when the value goes down should it get a share if the value goes up?
Corporations run this country, lock, stock and barrel. Corporations are not people even though the US Supreme Court says they are. They exist to minimize taxes, maximize management pay and hopefully benefit stockholders. They want government to give them tax abatements to locate their business there and when the abatements are done they will blackmail the governments to give them preferential treatment to keep their business there. They don't have a soul and they don't bleed or have children. The point is that cities that depend on large corporations for jobs and a tax base can find themselves in a deep hole when the corporation declares bankruptcy because of bad management and poor planning. Why do Republicans hate people with middle class jobs and blindly support businesses that downsize, export jobs overseas and do nothing to protect domestic companies from unfair trade policies. Look at Germany in that they have social policies that support people and try to create a society that has a heart. When a nation will spend all its resources on war and not at home we get internal rot throughout. This will be moving to a city near you as the US continues down the path of preserving the Empire and letting the country deteriorate. Will there be anything left to protect at home except churches and Walmarts?
I was born in Miami at a time when it was a smaller city. Since the 1960's the city has been inundated with refugees from Latin America and Cuba and, as a result ,the "culture" of Miami is no longer uniquely "American". Miami has become a Latin American City with all of the faults, politics and myriad cultures but, with the added problems associated with the importation of political and cultural problems usually part of "Banana Republics". Just look at the politicians and how they operate. The "Cuadillo" attitude and the sheer ignorance of some of the elected polticians continues to add to the problems Miami faces in the future.
Miami has never been perfect but recently, due to corruption and professional ineptness, this city has real problems.....
As long as big unions run cities and strangle them with unaffordable contracts, don't expect this to improve anytime soon.
This is a genuine surprise. Detroit is only the second-worst city in America.
And here, I thought it was worst by a country mile.
From this small sample education looks like the important factor. The three top cities have high school graduation rates greater than 90 percent. The lesson here is to finish at least high school and you get to live somewhere nice.
You can't live somewhere that parents believe 'it takes a village' to raise children.
Irvine is quite lovely. Especially today when it is 75 degrees.
I have no desire to live in a big city or even near one. I like living in a smaller community. Slower paced, nice, nice people. Makes a difference. We may not have more than one mall or lots of theaters, etc., but we have a great hospital, good schools, and enough things to do --- cost of housing is reasonable as well...
Who writes this stuff? "Best-run" and "worst-run" are the most simpleminded and inaccurate descriptors one could apply to these metrics that reflect some very complex challenges for certain cities and some very fortunate circumstances for others.