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The past decade has witnessed a remarkable transformation of the American party system. The cleavages are as well-documented as they are stark; rural versus urban, high school versus college-educated, religious versus secular, and conservative versus progressive. In this paper, we develop a new measure of partisan sorting at the state level, show how state-level partisan sorting changes over time, and investigate how partisan sorting, independent of state partisanship, affects state elections a policy outcomes. We find that partisan sorting makes it more difficult for state governments to respond to public inputs and improve state outcomes.