Is the bloom off the rose? Texas drops in CNBC’s Top States for Business

Falling oil prices have “stunted” the Texas economy, according to a CNBC study.
Falling oil prices have “stunted” the Texas economy, according to a CNBC study. Courtesy photo

So, is the Texas Miracle over?

For years, state lawmakers and others bragged how the state was THE place to do business.

Now, according to a new study by the CNBC cable news network, the bloom may be off the yellow rose of Texas.

For the first time since CNBC launched the study 11 years ago, Texas finished outside the top two spots in its annual America’s Top States for Business Rankings. The Lone Star State ranked 4th this year, scoring 1,602 out of 2,500 possible points.

Washington state finished No. 1, Georgia was second and Minnesota third.

Falling oil prices are partially to blame for the Texas slip — while the economy has diversified, the energy sector still plays a larger-than-life role — pushing unemployment above the national average. As a result, the state dropped in the economy category from No. 1 to 25, the study shows.

Texas ranked 37 in quality of life — a measure of such things as crime rates, inclusiveness and anti-discrimination protections, reflecting efforts to enact a so-called bathroom bill. It also ranked 34th in education, a measure of test scores, class size and spending.

Don’t worry too much, though. Texas remains a “juggernaut,” the network said. The state got some No. 1 rankings in areas such as infrastructure and workforce, which measures the number of available employees and the states’ demonstrated ability to retain college-educated workers.

It also ranked in the top 10 for capital and cost of living.

Max B. Baker: 817-390-7714, @MaxbakerBB