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Virginia topped CNBC inaugural study in 2007, with Texas coming in at number two. In 2008, they switched positions and Texas took the title. In 2009, it was Virginia/Texas. In 2010, Texas/Virginia.

This year (see full rankings), Texas slips back to number two with a respectable 1,578 points. Virginia powers back to the top spot with the best overall score in the history of our study: 1,660 out of 2,500 points.

So what happened to Texas, which was gunning for a repeat as America’s Top State for Business?

While the state improved or stayed the same in seven out of 10 categories, it stumbled in three important ones: cost of doing business (33rd this year versus 30th in 2010), quality of life (32nd, down from 29th) and, most notably, economy. Texas’ top-ranked economy four years in a row plunged to 14th this year on the weight of a nagging budget crisis.