Minnesota topped the list released Thursday for the third straight year, while Mississippi came in last for the fourth year running.
The report's author, William O'Hare, questions why a state like Illinois, which is ranked 14th in median family income, comes in 31st in child well-being.
The 2004 Kids Count report says statistics from 2001 show that eleven percent of Illinois' children didn't have health insurance and 15 percent lived in poverty.
But the report did find some improvements, including a drop in the number of teens giving birth.
Jerry Stermer of Voices for Illinois Children urged the state to set its sights on displacing Minnesota atop the list next year.