2017’s Best State Capitals to Live in

3:50 AM

Posted by: Richie Bernardo

Often perceived as socially drab lawmaking centers, many state capitals actually are thriving hubs of activity and thus some of the most livable places in America. But not all state capitals are created equal. And though 17 of them are the largest cities in their states, the biggest population doesn’t always represent the best quality of life.

So in order to determine what state capitals are worth, WalletHub’s data team compared all 50 across 42 key indicators of affordability, economic strength, quality of education and health, and overall living standards. Our data set ranges from “cost of living” to “K–12 school-system quality” to “number of attractions.” Read on for our findings, expert insight from a panel of researchers and a full description of our methodology.

  1. Main Findings
  2. Ask the Experts
  3. Methodology

Main Findings

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Best State Capitals

Overall Rank

City

State Capital Index

‘Affordability’ Rank

‘Economic Well-Being’ Rank

‘Quality of Education & Health’ Rank

‘Quality of Life’ Rank

1 Austin, TX 64.89 9 2 7 16
2 Boise, ID 64.54 8 14 6 2
3 Bismarck, ND 64.50 3 1 10 23
4 Lincoln, NE 63.79 7 9 3 20
5 Madison, WI 62.99 27 16 2 8
6 Montpelier, VT 60.86 24 22 5 5
7 Concord, NH 60.11 5 10 19 25
8 Raleigh, NC 59.92 6 8 17 34
9 Salt Lake City, UT 58.97 22 13 11 15
10 Cheyenne, WY 58.34 1 6 37 37
11 Denver, CO 58.24 38 5 24 7
12 Juneau and, AK 58.18 14 7 14 36
13 Olympia, WA 58.08 26 35 13 4
14 Pierre, SD 57.88 15 42 1 38
15 Columbus, OH 57.83 13 20 15 22
16 Des Moines, IA 57.07 11 34 8 29
17 Helena, MT 57.07 21 17 23 19
18 Nashville, TN 55.65 18 3 34 33
19 St. Paul, MN 55.64 33 15 9 27
20 Springfield, IL 55.11 4 30 31 39
21 Atlanta, GA 55.06 29 27 28 14
22 Annapolis, MD 54.96 32 31 26 9
23 Jefferson City, MO 54.83 10 21 36 32
24 Oklahoma City, OK 54.61 2 11 40 45
25 Topeka, KS 53.52 17 23 27 42
26 Phoenix, AZ 52.62 23 24 33 28
27 Salem, OR 52.60 40 19 21 26
28 Santa Fe, NM 52.23 31 18 43 10
29 Sacramento, CA 52.16 43 32 18 17
30 Albany, NY 51.25 45 37 16 12
31 Boston, MA 51.17 48 12 4 11
32 Honolulu, HI 50.68 50 4 12 1
33 Augusta, ME 50.52 42 25 29 31
34 Lansing, MI 49.93 28 40 32 44
35 Frankfort, KY 49.43 16 28 46 30
36 Columbia, SC 49.40 34 47 35 13
37 Tallahassee, FL 49.12 39 48 22 21
38 Harrisburg, PA 49.02 41 46 39 3
39 Richmond, VA 48.76 35 36 48 6
40 Charleston, WV 48.72 12 29 45 47
41 Indianapolis, IN 47.15 25 38 38 48
42 Dover, DE 45.84 30 41 41 46
43 Little Rock, AR 45.74 19 26 44 50
44 Providence, RI 45.34 47 43 25 18
45 Baton Rouge, LA 44.81 36 33 49 35
46 Carson City, NV 44.64 44 39 42 24
47 Montgomery, AL 42.89 20 44 50 43
48 Trenton, NJ 42.13 46 50 30 41
49 Hartford, CT 40.02 49 45 20 40
50 Jackson, MS 39.99 37 49 47 49

 2016's Best and Worst State Capitals v2.

Ask the Experts

Living in a state capital offers many perks, but there are tradeoffs as well. For additional insight, we asked a panel of experts to weigh in with their thoughts on the following key questions:

  1. What are the benefits and drawbacks to living in a state’s capital city?
  2. What are the pros and cons of the state’s largest city also serving as its state capital?
  3. In evaluating the best state capitals to live in, what are the top five indicators?
  4. How does exempting government buildings from local property taxes affect the fiscal well-being of capital cities?
  5. Are residents of capital cities more likely to be politically engaged, all else equal?
< > Carlos Balsas Assistant Professor in the Department of Geography & Planning at the University at Albany Carlos Balsas What are the benefits and drawbacks to living in a state’s capital city? There are many opportunities for political engagement with a wide panoply of exciting issues to get individuals passionate about. To get a person excited about complicated issues is not easy, when it goes against entrenched interests and requires perseverance to accomplishing goals. Quite often those goals are likely to be common to many members of a community, but also possibly uniquely opposed by another faction within the same jurisdiction or electoral district. In terms of drawbacks, I believe that there is a sense that one already lives in the state’s capital city and benefits from the state apparatus, individually defined perhaps as proximate access to state level institutions, law makers, legislators and lobbyist, and quite often, other cities throughout the state are seen as more in need or more deserving than one’s own capital city. What are the pros and cons of the state’s largest city also serving as its state capital? Political issues may get too much attention in detriment of other equally important but less contentious matters. When the house is in session, elected officials are haphazardly busy doing their best to represent their own constituents. Representatives may help bolster a city’s local economy by regularly staying at their rented homes or favorite hotels, visiting a nearby restaurant, engaging with local constituents, talking to the media, fighting hard to have their proposals funded, all within transparent, ethical and ideologically fair and balanced perspectives. In terms of urban planning and as a consequence of outdated zoning regulations, governmental districts may become one-stop-shopping destinations for state level affairs. Their mono-functional character may lead to desolated and deserted public spaces, especially in the evening and on weekends. This can be obviated through place making, integrated land use and urban design strategies. How does exempting government buildings from local property taxes affect the fiscal well-being of capital cities? In my opinion, it is like having the fame but not being able to pay for all the services needed in the city and metropolitan area. Capital cities benefit from hosting state offices, laboratories, and other institutional, academic, archival and legal facilities, including a whole array of not-for-profit organizations, but their administrations may have a tough time dealing with rush hour congestion caused by a high number of state workers living in near-by communities, maintaining road pavements and transit systems, installing and running schools, museums, parking garages and power-plant facilities, emergency and safety services, etc. It is highly adequate for cities with high concentrations of tax exempt entities to obtain payments in lieu of taxes (PILOTs) as a substitute for property taxes and to offset any budgetary shortfalls. Are residents of capital cities more likely to be politically engaged, all else equal? They are more likely to be politically engaged if they grew up in an environment where politics was a regular enterprise. Politically motivated individuals can be found in all sorts of urban and rural environments. The closer one is to a disputable issue and the more one has vested interests in the outcome of a specific resolution, the more likely one is of taking part in political campaigns, organizing, running for office, staying in office through re-elections, and positively resolving the issues on one’s political agenda. One should not forget that many political issues are so contentious that they go on for a long time without having a definitive solution. Avoiding burnout in political disputes through adequate mediation of conflictual issues is highly recommendable. Ellen Dunham-Jones Professor of Architecture and Urban Design in the School of Architecture at Georgia Institute of Technology Ellen Dunham-Jones What are the benefits and drawbacks to living in a state’s capital city? State capitol buildings tend to be grand monuments atop the hill, often with attractive parks and good urban office buildings nearby. They tend to have been built at a time when walkable urbanism was understood and they are well-designed. They set a good aspirational model for their host city and the rest of their state. They ”taught” citizens, and, more importantly, legislators from more rural areas, how a good city invests in sustainable infrastructure. However, in order to accommodate all the legislators driving in from long distances, many (such as Atlanta) have become surrounded by parking decks and highway access ramps. The capitol complexes have been increasingly literally cut off from the city and have become models of the worst kind of urbanism – isolated campuses surrounded by bloated highway spending that in turn make walking unattractive and unsafe, and further escalate reliance on cars, in a vicious spiral. They now teach the rural legislators that cities are awful places. Atlanta has torn down one parking garage and is trying to restore some of the grander public spaces – but a lot of damage has been done. What are the pros and cons of the state’s largest city also serving as its state capital? Pros: legislators and top business leaders can engage, innovate, and collaborate. It’s useful for rural legislators to see for themselves the generational changes that aren’t happening in their districts and which they can’t imagine being popular choices (millennials flocking to urban apartments and choosing not to have cars). At the same time, they tend to build up resentment against the city, assume is fine on its own and spend most of their time trying to steer pork to their own districts. Cons: legislators and top business leaders can corrupt each other. How does exempting government buildings from local property taxes affect the fiscal well-being of capital cities? My focus is on location. The feds require that new federal buildings in DC be located at transit stations outside of the central district. This has been extremely helpful at seeding suburban redevelopment, reducing congestion in the core, and reversing rush hour transit flows – making the whole city work better. So, even if they don’t pay taxes, those buildings and their workers are helping the local economy tremendously. Are residents of capital cities more likely to be politically engaged, all else equal? They certainly have more opportunities to engage in rallies – but fatigue sets in so I’m guessing it equals out. Yonn Dierwechter Professor of Urban Studies at the University of Washington, Tacoma Yonn Dierwechter What are the benefits and drawbacks to living in a state’s capital city? This is an interesting but also pretty tough question because capitals are quite diverse kinds of “cities” (and some are not even that). They don’t necessarily form a comparable group in many respects, particularly when defined as functional metropolitan areas (commuter-labor markets) rather than “municipalities" per se. Large state capitals include, for example, Phoenix, Indianapolis, Columbus, Austin, Nashville, Boston, Denver, Oklahoma City, Sacramento and Atlanta. The state sector/culture is important, sure, but varies in terms of relative economic impact and even cultural feeling. On this list, for example, Austin and Denver are often better compared with Seattle (not Olympia) as high-tech cities. Boston is very dense, old, highly urbane and full of diverse universities, as well as political-administration jobs, creating a nice mix; Atlanta per se is the “smallest" of the large capitals (technically smaller than Columbus)— unless we define “Atlanta" as the entire functional metro region, which then makes it the largest (unless you include D.C., which I wouldn’t). At the other end, places like Montpellier, Pierre, Augusta, Frankfort, and Helena are really very small town-like cities, probably far more defined by their political-administrative role in the state. From an economic perspective, the comparatively small capital cities — e.g. Olympia, Montpellier, Pierre, and so on — are arguably more stable and less susceptible to large swings; their “industrial structure,” if you will, is more inelastic than, say, cities subject to stronger globalized competitiveness pressures. What are the pros and cons of the state’s largest city also serving as its state capital? London, Paris, Budapest etc., are all the political and economic centers of their respective countries and all utterly dominate their respective urban systems — arguably to an unhealthy extent. Most US capitals are not the main economic centers of their states. That's probably a good thing overall, especially in large states with geographic-economic variety. Are residents of capital cities more likely to be politically engaged, all else equal? Some research suggests that voting in cities at the local level is influenced more by the type of institution, e.g. a strong mayor system. But it is also clear that Federal workers in northern Virginia carried that “Southern” state for Obama. Northern Virginia is simply metropolitan DC. DC is politically engaged because so many people are associated with political services for their actual livelihoods. Larry Keating Professor Emeritus in the School of City and Regional Planning at Georgia Institute of Technology Larry Keating What are the benefits and drawbacks to living in a state’s capital city? Watching and having to deal with a reactionary, frequently racist legislature is better than not having to deal with a legislature at all, but not much. Unfortunately, as several political scientists have pointed out, when business or a sports team wants to spend public dollars, they are able to go to the state legislature and extract local revenues without the local, African American governments having anything to say about it. What are the pros and cons of the state’s largest city also serving as its state capital? In the case of Georgia, having several million other people around, means that there are some civilized, intelligent folks in town. I'd hate to be trapped in a smaller place with the Georgia legislature and Governor. Some of the State bureaucrats are decent souls trying hard against long odds. How does exempting government buildings from local property taxes affect the fiscal well-being of capital cities? It doesn't make much difference because the State Government doesn't allow municipalities to tax enough to fully fund necessary services. Are residents of capital cities more likely to be politically engaged, all else equal? Doubt that there is a difference. Jeff Horner Senior Lecturer in the Department of Urban Studies and Planning and Director of the Urban Studies Program at the Wayne State University, College of Liberal Arts & Studies Jeff Horner What are the benefits and drawbacks to living in a state’s capital city? Generally, the main benefits are proximity to a highly-educated and recession-proof industry, government, and institutions of higher education. In addition, with a few exceptions, state capitals are located near the geographic center of the state, serving to minimize travel times there for residents statewide. Drawbacks generally include (in smaller population states) an undiversified local economy, and long commuting distances for state residents (including legislators) who have regular business in the capital but don't reside there. What are the pros and cons of the state’s largest city also serving as its state capital? The advantages include having the capital and all attendant governmental activities in the center of the state's largest center of population for ease of access for citizens, and a diversified economy. Disadvantages include having little or no geographic separation between financial capital and state politicians, leading to a higher likelihood of corruption than if the largest city and the state capital were separate. How does exempting government buildings from local property taxes affect the fiscal well-being of capital cities? Many state-owned tax exempt properties pay a payment in lieu of taxes (PILOT) to local governing units to assist with provision of quality local services to governmental buildings, just as the federal government does with federally-owned, tax-exempt buildings and facilities. While the PILOTs probably do not rise to the level of revenue that could be collected if the government-owned property was taxed as a private use, it is likely that the effect on the fiscal well-being on the local unit of government is negligible. A bigger foregone-revenue problem for capital cities are non-profit, private organizations, who don't pay property taxes or PILOTs, as capital cities generally have a higher proportion of such organizations. Are residents of capital cities more likely to be politically engaged, all else equal? At the risk of overthinking this, and with many exceptions, the average resident of a state capital city is probably not measurably different in any sound metric of political engagement. This is because the average state government employee, who is more likely to be politically engaged, is not likely a resident of the capital city, but of a bedroom community beyond it. Deborah G. Martin Professor in the Graduate School of Geography, and Coordinator of the Urban Development and Social Change Program at Clark University Deborah G. Martin What are the pros and cons of the state’s largest city also serving as its state capital? The pro is that the biggest business drivers and major citizen base will be located there. It gives the legislators and their major constituencies easy access to one another. The drawback is that the rest of the state might feel or actually be neglected because so much of the focus will be on the state capital. This problem might be amplified by the fact that the major media outlets will also be based there, because of the population and business base, and thus the news orientation and major focus will remain on that city, to the neglect of other places. How does exempting government buildings from local property taxes affect the fiscal well-being of capital cities? This is not really only an issue for capital cities. Sure, more government buildings will be exempt, but there will also be ancillary businesses that relate to the state government, and employment opportunities, that enhance the economy. So it isn’t accurate to view the question of exempt properties narrowly; you have to look at what is going on in the rest of the economy. Furthermore, the question of exemption from local property taxes is far bigger than just for government buildings. For example Worcester, Massachusetts, where I live, has a number of colleges and universities including the University of Massachusetts Medical School and U Mass Memorial Health System. According to an article that cites the Worcester Research Bureau, Worcester has about 21% property exempt from local taxes –these are non-profits, especially the “Ed-Med” (education and medical) areas of high wage, high skill jobs that cities often seek, but which are non-profit for the most part. Thus, the tax exemptions can skew the local tax demand to other land uses, such as other for profit and residential (the latter of which rarely pays for itself because of high service needs, namely police, fire and education). So it’s probably not accurate to conceptualize the tax base problem as one that’s especially high in capital cities. Indeed, if it’s a capital city that also happens to dominate its state in other ways, such as population and business base (such as Boston in Massachusetts), then it probably is less of a problem there than in a smaller city like Worcester. It’s not fair either to view non-profits as a problem in this regard; they just contribute to the economy in a different way. Jennifer Evans-Cowley Vice Provost for Capital Planning and Regional Campuses, and Professor of City and Regional Planning in the Knowlton School of Architecture at Ohio State University Jennifer Evans-Cowley What are the benefits and drawbacks to living in a state’s capital city? Living in a state capital is wonderful. In my case, Columbus, Ohio is both a state capital and home to The Ohio State University. This means that people move to this community from all over Ohio and beyond. The result is a vibrant community with a diversity of ideas. What are the pros and cons of the state’s largest city also serving as its state capital? It’s a pro having access to the state capital and state offices. It is easier to stay in tune to the latest policy decisions, attend meetings and trainings on topics of interest. Are residents of capital cities more likely to be politically engaged, all else equal? Given that state government is constantly in the media given the capital location, I believe it supports a more civically engaged citizenry. You can find people conversing online on Columbus Underground, in coffee shops, and at public meetings. Shawn M. Snow Tours and Lectures Director at History Colorado Shawn M. Snow What are the pros and cons of the state’s largest city also serving as its state capital? About one third of our nation's state capital cities are also the largest city in that state. Speaking from experience living in Denver, I can say that living in the capital and largest city is not really any different from living in any large city. There are certainly more opportunities to visit the capitol building, rub elbows with politicians and legislators more easily, and attend civic events related to legislation that is being considered, etc. But unless you are inclined to seek those opportunities out, I don't believe most people even notice unless they see a political or interest-group rally taking place as they drive by the capitol building. For states where the capital city is not also the largest city, I believe this may be different. Take Illinois for example. In that state, Chicago dominates everything. The capital at Springfield is primarily known for two things: the capitol building area with all of the state legislation, governing and interpretation of laws as well as a robust industry for Abraham Lincoln tourism. Any large city will have a diversity of businesses but when the capitals are smaller, I have noticed that their primary reason for being surrounds the political processes of governing. Take that away, such as what happened in Milledgeville, Georgia, when the capitol moved to Atlanta, and the original capital will many times become a sleepy or smaller town once again. Vallejo or Benicia, California are not as well-known as Sacramento and they were original capital cities. So being a state capital, whether big or small in population, does come with a certain panache and notoriety for sure. This is sometimes only localized, however. How many folks forget that Portland, Oregon is not the capital but Salem is? Same goes for Portland, Maine, where Augusta is the capital. Outside of these states, the largest city continues to dominate in people's minds. Within the state though, folks definitely know what Salem and Augusta are known for. I think the benefits of living in a place like Denver have more to do with its progressive-minded citizens rather than the fact that it's also the state capital. A century ago, citizens wrested control of Denver away from the state so today, Denver is a very autonomous large capital city. Its strict adherence to the rule of law at the local level as well as its willingness to tax its citizens more heavily than the average city in the country has allowed it to build some great infrastructure, public buildings and implement other forward-thinking programs such as universal preschool and growing programs for recycling and composting. How does exempting government buildings from local property taxes affect the fiscal well-being of capital cities? I would say that in large cities like Denver, it's not really an issue. For smaller capitals that rely more on property taxes or where the sales tax may be too low, they may have a more difficult fiscal outlook each year. Denver has a strong central government and its economy is doing well right now. I've never heard a peep out of city government about the lack of property taxes coming from any government buildings or schools, etc. Are residents of capital cities more likely to be politically engaged, all else equal? I do not believe one's location within the capital or not will affect political engagement. In Colorado, the politically active folks in Colorado Springs and Boulder are very much politically engaged. They are at polar opposites on the political spectrum and make their voices heard in Denver for sure. At a federal level, I do believe that politicians tend to gravitate toward the largest cities in each state, whether the capital or not, since that is where the bulk of the population will live and where the biggest media markets are located. This works for most states not named CA, TX, FL, PA, OH, and NY (where there are multiple large population centers and only a couple are large capital cities). For example, Denver is the capital and largest TV market, so those running for US Senate in Colorado and for President, visit the Denver area market first to get their information to voters the most efficiently.

Methodology

In order to identify the best state capitals to live in, WalletHub’s analysts compared all 50 across four key dimensions: 1) Affordability, 2) Economic Well-Being, 3) Quality of Education & Health and 4) Quality of Life.

We evaluated those dimensions using compiled 42 relevant metrics, which are listed below with their corresponding weights. Each metric was graded on a 100-point scale, with a score of 100 representing the most livable state capital.

We then calculated a “State Capital Index” for each state capital based on its weighted average across all metrics and used the resulting indexes to construct our final ranking.

Affordability – Total Points: 25
  • Cost of Living: Double Weight (~10.00 Points)
  • Median Household Income: Double Weight (~10.00 Points)Note: This metric was adjusted for the cost of living.
  • Housing Costs: Full Weight (~5.00 Points)Note: This metric was adjusted for the cost of living.
Economic Well-Being – Total Points: 25
  • Population Growth: Full Weight (~2.50 Points)
  • Income Growth: Full Weight (~2.50 Points)
  • Average Credit Score: Full Weight (~1.25 Points)
  • Income Inequality: Full Weight (~2.50 Points)
  • Debt as a Share of Median Income: Full Weight (~2.50 Points)
  • Share of Population Living Below Poverty Level: Full Weight (~2.50 Points)
  • Unemployment Rate: Full Weight (~2.50 Points)
  • Underemployment Rate: Full Weight (~1.25 Points)
  • Foreclosure Rate: Full Weight (~2.50 Points)
  • Building-Permit Activity: Full Weight (~2.50 Points)Note: This metric measures the number of new unit permits pulled per Capita.
  • Share of State & Local Government Employees: Full Weight (~2.50 Points)
Quality of Education & Health – Total Points: 25
  • K–12 School-System Quality: Full Weight (~1.79 Points)Note: This metric is based on data from GreatSchools.org.
  • Average University Score: Full Weight (~1.79 Points)Note: This metric is based on data from U.S. News & World Report.
  • Number of Universities in Top 200: Full Weight (~1.79 Points)Note: This metric is based on data from U.S. News & World Report.
  • Share of Adults with at Least a Bachelor’s Degree: Full Weight (~1.79 Points)Note: “Adults” include the population aged 25 and older.
  • Share of Population with Health-Insurance Coverage: Full Weight (~1.79 Points)Note: “Population” includes ages 16 and older.
  • Quality of Public Hospital System: Full* Weight (~1.79 Points)Note: This metric is based on data from Centers for Medicare & Medicaid Services.
  • Hospital Beds per 1,000 Residents: Full Weight (~1.79 Points)
  • Premature-Death Rate: Double Weight (~3.57 Points)Note: This metric measures average years of potential life lost.
  • Infant-Mortality Rate: Full Weight (~1.79 Points)
  • Share of Adults in Good Health: Double Weight (~3.57 Points)Note: This metric is based on a health survey conducted by the Centers for Disease Control and Prevention. “Good Health” includes responses of “good,” “very good” and “excellent” health. “Adults” include respondents aged 18 and older.
  • Share of Live Births with Low Birth Weight: Double Weight (~3.57 Points)
Quality of Life – Total Points: 24
  • Share of Millennial Newcomers: Full Weight (~1.25 Points)
  • Number of Attractions: Full Weight (~1.25 Points)Note: “Attractions” include, for instance, zoos, museums and theaters.
  • Nightlife Options per Capita: Full Weight (~1.25 Points)
  • Restaurants per Capita: Full Weight (~1.25 Points)
  • Bars per Capita: Full Weight (~1.25 Points)
  • Coffee Shops per Capita: Full Weight (~1.25 Points)
  • Fitness Centers per Capita: Full Weight (~1.25 Points)
  • Walkability: Full Weight (~1.25 Points)Note: This metric is based on data from Walk Score.
  • Average Commute Time: Full Weight (~1.25 Points)
  • Traffic Congestion: Full Weight (~1.25 Points)Note: This metric measures average annual hours of traffic delays.
  • Likelihood of Traffic Accidents: Full Weight (~1.25 Points)Note: This metric measures the likelihood of traffic accidents compared with the U.S. average.
  • Driving Fatalities per Capita: Full Weight (~1.25 Points)
  • Average Weekly Work Hours: Full Weight (~1.25 Points)
  • Mildness of Weather: Full Weight (~1.25 Points)Note: This metric is based on WalletHub’s Cities with the Best & Worst Weather ranking.
  • Sports Fan-Friendliness: Full Weight (~1.25 Points)Note: This metric is based on WalletHub’s Best Sports Cities ranking.
  • Violent-Crime Rate: Double Weight (~2.50 Points)
  • Property-Crime Rate: Double Weight (~2.50 Points)

 

Sources: Data used to create this ranking were collected from the U.S. Census Bureau, Bureau of Labor Statistics, Department of Housing and Urban Development, Federal Bureau of Investigation, Council for Community and Economic Research, Chmura Economics & Analytics, ATTOM Data Solutions (RealtyTrac), TransUnion, GreatSchools.org, U.S. News & World Report, Centers for Medicare & Medicaid Services, Health Resources & Services Administration, Centers for Disease Control and Prevention, County Health Rankings, Walk Score, Texas A&M Transportation Institute, National Highway Traffic Safety Administration, Allstate, Yelp, TripAdvisor and WalletHub research.



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