Texas falls out of top 5 in CNBC's top states for business list

AUSTIN (KXAN) – A study of America's top states for business placed Texas out of its top 5 for the first time since it was started in 2007.

CNBC’s America’s Top States for Business study ranked Texas No. 1 in 2008, 2010, 2012 and 2018. According to CNBC, Texas placed sixth overall in 2023.

Here's the breakdown:

CNBC said Texas ties for No. 1 with California in Access to Capital with abundant financing for small businesses.

Texas trails only North Carolina in Workforce and Florida when it comes to Economy. Jobs grew by 4% year-over-year through May, more than any other state.

Texas ranked No. 8 in the nation in Technology and Innovation.

Due to high wages and rising rents, the state fell to No. 16 in Cost of Doing Business, according to CNBC.

Higher housing costs placed the state at No. 22 for Cost of Living.

The CNBC study said Texas fell to No. 24 in the infrastructure category. Texans spend nearly 20 hours without electricity per year. CNBC said that is the third-worst in the nation, according to Energy Department data. The state’s water utilities need more than $61 billion in repairs over the next 20 years, according to the EPA. That is second only to California.

Texas ranked No. 35 for Education. Per-pupil spending was among the nation’s lowest, according to the National Education Association. K-12 test scores are lagging, according to U.S. Department of Education data.

Texas finished in Life, Health & Inclusion, dropping from No. 49 in 2022.

The United Health Foundation ranks the state No. 50 for clinical care and No. 47 for access to primary care physicians. CNBC reported no state has a greater percentage of residents without health insurance.

Violent crime jumped roughly 10% between 2018 and 2021, according to FBI statistics.

Governor Greg Abbott's office responded to the survey results by pointing out the population and job growth in the state.

"People and businesses vote with their feet, and continually they are choosing to move to Texas more than any other state in the country. Texas is the economic engine of the nation, leading the nation in job creation with more Texans working today than 46 other states have in population," said Governor Abbott's office.