A recent national report by a non-partisan economic think-tank finds that Maine is improving its business climate and becoming a less expensive state to in which to do business. The Milken Institute report shows Maine is outpacing its New England neighbors, ranking as the lowest-cost state to do business in all of New England.

Maine earned the 19th place ranking in the Institute’s annual Cost-of-Doing-Business Index, and was one of only three states in the nation to jump three notches in the rating, improving on last year’s 16th place ranking. Neighboring states New Hampshire and Vermont, ranked 16th and 11th respectively, while Massachusetts placed near the top of the list for most expensive states, coming in fifth overall.

The report finds that those states with a low-cost of doing business have, on average, greater job growth than those with high costs.

According to House Majority Leader Glenn Cummings, the report is a good sign that Maine’s economy is growing stronger and that the state is on the right track.

“This is what we are working for; to create more jobs and to make sure that we build a solid reputation as a business-friendly state. This and the several other positive rankings we have recently earned make a real difference in how businesses view our state,” said Cummings. “Maine has a tremendous amount to offer with its skilled workers, superior schools and fantastic quality of life. Lowering the cost of doing business has been a priority, and it is being noticed.”

The Cost-of-Doing-Business Index evaluates each state’s comparative advantages or disadvantages in attracting and retaining businesses. The Index measures wage costs, taxes, electricity costs and real estate costs for industrial and office space.

Cummings says the positive ranking will help to promote Maine and attract new businesses and jobs to the state.

The Milken report is the latest in a trend of nationally renowned organizations ranking Maine highly for quality of living and potential for economic growth. Foreign Direct Investment Magazine ranked Maine’s quality of life as “best in the nation” in June. Portland was ranked the Top Market in Small Business Vitality by American City Business Journals in January, and #32 out of more than 200 on the list of best cities to do business in America by Inc. Magazine in June.

For the Milken Institute’s complete state by state rankings, click here: www.milkeninstitute.org/pdf/cost_of_doing_business_2005.pdf.