Yes. It is true that having economic advantages lead to different policy choices. That's a perfectly good argument.
Otoh the interesting thing is that those economic advantages led to certain differentials in the 1970s. Something has happened since then to turbocharge the differentials. It is pretty likely that public policy itself is making a difference. Starting in the Reagan administration states were "liberated" to pursue a much wider set of practices because Congress started allocating more aid to states in the form of block grants with fewer strings attached. So we had more policy experimentation at the state level since 1980. This coincided with these increasing divergences in outcomes.
I don't think it is a bad thing that different states pursue different policies. It is a way of experimenting and learning what works best. As long as everyone has enough humility to be able to learn from others.