Texas ranks No. 1 in economic performance among the 50 states, and Utah has the strongest economic outlook for 2014, according to the seventh annual Rich States, Poor States analysis by the conservative state policy group American Legislative Exchange Council.

In this Feb. 25, 2010 file photo, a sea of stacks, pipes and storage tanks are amassed along the Houston ship channel in Houston. (AP Photo/Pat Sullivan, File

Michigan ranked as the worst-performing state in the nation, while New York had the worst economic outlook for 2014, according to the report. While New York did better on the economic performance, coming in at No. 35, Michigan actually had a brighter outlook for 2014, ranking No. 12.

The report was co-authored by former Reagan economic adviser Arthur Laffer and Heritage Foundation chief economist Stephen Moore.

“The big story in our report this year is that fundamental tax and fiscal policy reforms significantly improved the economic competitiveness rankings of North Carolina, Indiana, and Michigan. These states are now better poised to realize real economic growth,” American Legislative Exchange Commission Director Jonathan Williams said in a statement.

The analysis used 15 variables to measure trends in economic growth, including tax rates, regulation, labor policies and employment figures.

The Top 10 Best Economic Performance

1. Texas
2. Utah
3. Wyoming
4. North Dakota
5. Montana
6. Washington
7. Nevada
8. Arizona
9. Oklahoma
10. Idaho

Bottom 10 Worst Economic Performance

41. Massachusetts
42. Maine
43. California
44. Wisconsin
45. Connecticut
46. Illinois
47. Rhode Island
48. New Jersey
49. Ohio
50. Michigan

Top 10 Best Economic Outlook for 2014

1. Utah
2. South Dakota
3. Indiana
4. North Dakota
5. Idaho
6. North Carolina
7. Arizona
8. Nevada
9. Georgia
10. Wyoming

Bottom 10 Worst Economic Outlook for 2014

41. Rhode Island
42. Oregon
43. Montana
44. Connecticut
45. New Jersey
46. Minnesota
47. California
48. Illinois
49. Vermont
50. New York