| Updated: 9/25/2009 11:33 pm |
Published: 9/25/2009 9:54 pm |
A new report from the Census Bureau ranks Arkansas among the lowest paying states in the country.
College student Christopher Smith has big plans. "After I receive my bachelors I would like to attend law school,” he said.
He’s working hard now so that he won't be disappointed later, especially after we told him Arkansas is now ranked as one of the lowest paying states. "That is very surprising,” he said.
The Census Bureau calculates Arkansas' median income slightly over $38,800. The state of Maryland's median income is $70,500 but before you pack your bags to head to a better paying state. Think about this. Your hard earned pay check could go a lot further right here than somewhere else.
"Your income may go up 25 percent but your cost of living may also go up 30 percent,” says Economics Researcher Dr. Greg Hamilton.
He says cost of living plays a major role in your take home pay.
"To live in NYC you need a high household income to be able to afford apartments,” he points out.
Then there's geographic location. "Insurance costs vary by state. So if you’re in a high risk area, a big city (means) higher auto insurance. On the coast, you have hurricane possibilities, so your risk factors are higher there,” he explains.
Lt. Governor Bill Halter says education still remains a determining factor.
"We're currently 49th out of 50 states in the percentage of our adult population who has a college degree. I hope 5, 10, 15 years from now we will move up those rankings from 49th and if we do that I’m very confident we'll also move up the income rankings,” Halter said.
It’s news that may put Smith at ease.
"I don't see anything that will deter me from Arkansas. I just have to continue to work hard and manage my money well,” Smith said.
Aside from Maryland, the other top paying states in the country are New Jersey, Connecticut, Alaska and Hawaii those are also states with higher costs of living.
Coming in at the bottom of the list are Mississippi, West Virginia, Kentucky, Alabama, and Arkansas.
