The states in these two districts include all of Minnesota, North Dakota, South Dakota, Montana, Wyoming, Colorado, Nebraska and Oklahoma, and parts of Wisconsin, Michigan (Upper Peninsula), New Mexico and Missouri. The region is generally more rural and lower in population density than the nation. Economically, the area is more reliant on agriculture, and in some areas, energy and mining. It is less reliant than the nation on manufacturing, financial services and tourism. Cities in this region are generally smaller than national averages. In their fiscal structure, no personal income tax is imposed in Montana and South Dakota. All these states impose a sales tax. There is substantial variation in municipal revenue sources.

This article is supporting documentation for the Alliance for Innovation Navigating the Fiscal Crisis white paper.