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PARKERSBURG — Although West Virginia remains at the bottom of the list in per capita income nationwide, there are still a number of benefits with the state’s low cost of living.

While West Virginia’s per capita income grew by more than $1,300 from 2006 to 2007, it still remained 49th in the country.

A U.S. Department of Commerce Bureau of Economic Analysis report released Wednesday showed West Virginia’s per capita income was $29,537 last year. That was trailed only by Mississippi’s figure of $28,845.

Both states also ranked 49th and 50th in 2006.

Connecticut hung onto its No. 1 spot in the rankings with a 2007 per capita income of $54,117, followed closely by New Jersey, Massachusetts and New York.

The national per capita personal income in 2007 was $38,611, a 5.2 percent increase from 2006.

Keith Burdette, director of the Wood County Economic Development Authority, said the average per capita income in West Virginia always has room to grow.

‘‘As someone who lives and works here, I would like to see it higher,’’ he said.

With the lower per capita income, the state has a lower cost of living.

West Virginia has the seventh lowest cost of living rate in the U.S., according to the American Chamber of Commerce Researchers Association and the West Virginia Development Office.

The state’s low cost of living is a positive when marketing the area to potential developers, Burdette said.

‘‘People are able to buy more with what they make here,’’ he said.

Sy Sarkarat, economics professor at West Virginia University at Parkersburg, said a lower cost of living leads to a relatively higher purchasing power per household.

The lower cost of living also allows residents the possibility of saving more on other expenses areas with higher per capita incomes have to deal with.

Sarkarat said people here don’t have to drive too many miles to go to work and they don’t have to pay regular parking fees at work sites.

‘‘I was in Chicago recently and it was expensive to park,’’ he said.

A number of factors can lead to higher incomes, Sarkarat said.

One of the most important is a state tax system that is simple and fair, he said, adding it can provide significant growth in the economy.

‘‘States with low taxes have experienced growth in the labor force compared to those with poor business tax climates,’’ Sarkarat said.

States can improve competition and economic growth and create a surge in their revenues by cutting taxes, he said.

In the long term, states can work to improve funding for education, road repairs and other infrastructure projects which can eventually help the economy as people tend to invest more in an area with good services.

‘‘These can take awhile,’’ Sarkarat said. ‘‘However, modest improvements can produce growth in per capita income.’’

Higher paying jobs can lead to more high paying jobs in some areas.

Companies look for areas with a well-trained labor force and where they can manage their costs.

‘‘They look for places where there are opportunities for higher profit,’’ Sarkarat said.

The Associated Press contributed to this story.

 

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