The Lone Star State is no longer the best in the country for doing business, according to a report from CNBC.
In the network's study, Texas has fallen to No. 2 in the country thanks to Virginia. Virginia was ranked No. 2 in 2010.
“The Texas economic juggernaut has slowed somewhat, and perhaps that was inevitable. While the economy is still growing, we could not ignore the state budget crisis. The cuts needed to balance the state budget were severe, and it remains to be seen whether Gov. Rick Perry and the state legislature managed to cut fat without hitting muscle or bone," said CNBC Senior Correspondent Scott Cohn.
The Lone Star state dominates in Infrastructure & Transportation, Technology & Innovation and Access to Capital. But Texas lost ground in its point totals for Cost of Doing Business, Quality of Life, and Economy, where a budget crisis led to the state slipping from No. 1 to No. 14 on CNBC’s list.
“Texas’ economy, while formidable, is a little less diverse this year. The state lost several Fortune 500 companies, some through mergers, but others no longer big enough to make the grade," said Cohn. “Texas is a perennial business powerhouse, and while it was unable to repeat last year’s finish as America’s Top State for Business, the state improved on last year’s point total.”
CNBC scored all 50 states on 43 measures of competitiveness developed with input from business groups including the National Association of Manufacturers and the Council on Competitiveness.
States received points based on their rankings in each metric. Then, CNBC separated those metrics into 10 broad categories, weighting the categories based on how frequently they are cited in state economic development marketing materials. That way, the study ranks the states based on the criteria they use to sell themselves.