RALEIGH, N.C. — North Carolina is no longer No. 1, and that applies to more than just college basketball.

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magazine had named North Carolina the top state in the nation to do business for three years in a row. In the 2004 rankings in the magazine's November issue, North Carolina fell to fifth place. Texas is Number One, based in part on its $295 million recruitment fund designed to help close business deals.

Site Selection's ranking is based on a survey of 150 corporate real estate executives conducted during the middle of the year, as well as data submitted by each state on new and expanded businesses.

Governor Easley cited the ranking repeatedly in his re-election campaign, and at new job announcements in the months leading up to the campaign.

This year's rankings don't take into account the General Assembly's decision last month to offer $242 million in incentives to Dell to build a plant in the Triad.