AUGUSTA – Maine is among five states that achieved the biggest reduction in business costs in 2004, according to the Milken Institute’s 2005 Cost-of-Doing-Business Index, released this week.

Gov. John Baldacci said, “When it comes to economic development in Maine, reducing our cost of doing business is priority number one. The fact that Maine posted one of the greatest decreases in business costs last year shows we are successfully moving toward that goal, and the index indicates we are already ahead of the other states on the Northeastern seaboard.”

Maine improved its position to the 19th most expensive state in which to do business, down from its ranking of 16th in 2004. This three-place jump represents the second-largest drop in the United States. Maine shares this distinction with Virginia, Arizona and North Carolina. West Virginia dropped four positions.

The state posted a decrease in its tax burden and reduced its electricity cost by more than 40 percent when compared with the national average. Maine continues to rank well below the national average for wage, industrial rent and office rent costs.

Earlier this year, Inc. magazine identified Portland and Lewiston-Auburn as two of the top U.S. cities for doing business.