It considers factors like education, health, family, and economic well-being, and Nevada took some major hits in that last category.
The report shows 24% of Nevada's kids lived in poverty in 2012 way up from 15% in 2005.
That comes as no surprise to the people who work with these kids firsthand.
"In Washoe County, poverty is a great issue. We have 41 of our schools are Title 1 schools. We serve about 22,000 students in our Title 1 schools that are living in poverty,” says Lynn Rauh, Washoe County School District Title I Director
Washoe County reports nearly 3,400 students last year are considered homeless.
District officials tell us, either there are more kids in the district without permanent homes, or their staff has just gotten better at identifying them, but either way, those numbers are going up.
They offer programs to help those children in transition like providing clothes, food and school supplies.
But ultimately, Nevada's per-pupil spending is lower than most states putting many programs at a disadvantage.
However, they do believe that we will see improvements.
"I don't think we are going to be stuck at all, I do see that we are going to improve. I think we have a state department that is working hard, extremely hard, to clarify what are the issues."
New Mexico came in 49th in the rankings followed by Mississippi in last place.