Actually, the state with the largest number of people living below the poverty line is California. California also has the largest state debt and the most cities to have declared bankruptcy. They are rated 49th for financial stability.
The other state that is in bad financial difficulty is Illinois. It has the lowest S&P rating of all states. Illinois debt is rated junk. I believe both are blue states. BTW, Connecticut is also in financial trouble, they were downrated by S&P as well, another blue state.
In fact, the bottom five states are all blue.
California, Mass., Maryland, Connecticut, and Penn. Though Pennsylvania could be considered purple.
https://www.mercatus.org/system/files/norcross-fiscalrankings-2017-mercatus-v1.pdf