PIERRE — South Dakota’s state government might be in relatively better shape financially than most states throughout the nation, but a new national report indicates South Dakota is in worse shape than all but one of its neighbors.

The financial-health report distributed earlier this month by the Pew Center on the States gave South Dakota a rating of 12, on a scale of 0 to 30 with 30 the worst. The ratings were based on state governments’ financial conditions as of July 31.

By comparison, five of the six states around South Dakota received better ratings: North Dakota 9, Montana 9, Wyoming 6, Nebraska 7, Iowa 7 and Minnesota 15.

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Texas with a rating of 9 was the only other state in single digits.

Worst was California at 30. Others in the twenties were Arizona 28, Rhode Island 28, Michigan 27, Oregon 26, Nevada 26, Florida 25, New Jersey 23, Wisconsin 22, Illinois 22, Colorado 21, Georgia 21, Kentucky 21, Washington 20, Mississippi 20, Maine 20 and New York 20.

The ratings were based on percentage change in revenue; percentage of budget gap, change in unemployment rate, foreclosure rate, whether a supermajority (two-thirds or larger) is necessary in the Legislature for tax increases, and what’s called the GPP money grade.

South Dakota’s statistics in those categories as of July 31 were a 6.2 percent drop in revenue, a 2.9 percent budget gap, an additional 2.1 percent of unemployment, a 0.52 percent foreclosure rate, a two-third majority necessary in each legislative chamber, and a B-plus grade in the GPP.

The GPP is a rating system developed by Pew through the years that gauges money-management performance in state government. The most recent grades were handed out by Pew in 2008.

An updated snapshot of South Dakota’s financial condition will come Dec. 8 when Gov. Mike Rounds delivers his budget recommendations to the Legislature.

In recent weeks Rounds has spoken publicly about a budget gap of $150 million to $200 million ahead, with Medicaid costs rising by an estimated $40 million for state government while the state’s five largest sources of tax revenue were down $33 million collectively during the July through September first quarter of the current 2010 budget year.

Rounds issued a statement Tuesday drawing attention to the Pew report.

In his statement Rounds said South Dakota ranked ninth nationally, tied with New Mexico and West Virginia.

“I believe state lawmakers are willing to work with me again in adopting a new budget that will preserve essential services,” Rounds said in a news release.

“The recession should be a powerful reminder that we can’t make promises for additional services unless we have the ongoing revenues to pay for them.”

Lawmakers and the governor tapped into state reserves in recent years to balance the budget.