In its 2013 “Best States for Business” list, Forbes had the following to say about Connecticut, which ranked 39th:
“There is huge income disparity in the state between the wealthy towns of southern Connecticut like New Canaan and Greenwich and the state capital Hartford. Business costs are 14 percent higher than the national average, partly due to energy costs that are 79 percent higher. The Nutmeg State rates third overall in quality of life thanks to low crime and poverty, a healthy populous and strong schools.”
Contributing to the lower-tier ranking, Forbes ranked Connecticut 47th out of 50 in the cost of doing business, 23rd in the quality of its labor supply, 37th in its regulatory environment, 35th in its economic climate and 31st in its growth prospects.
At least we ranked third in the overall quality of life enjoyed by residents.
Notably, Connecticut saw its standing with Forbes drop after ranking 35th overall in the 2012 “Best States” list.
The culprit, in part, is the recession, which struck heavily at the financial services and manufacturing industries ”” two of the state”™s and the county”™s largest employers and foremost economic drivers.
The lion”™s share of the blame, however, falls on state government, which is presently led by Gov. Dannel P. Malloy and a Democratic majority in both houses of the General Assembly.
With the fiscal cliff out of the way (sort of) and state legislature set to begin working on the 2014-2015 budget later this winter, the focus now moves to Hartford.
Readers might observe that this page devotes much of its time to critiquing government, at the local, state and federal levels.
Far and away the largest problem facing both Fairfield County and the state of Connecticut are the high levels of unemployment and long-term unemployment.
Government, to be fair, does not create jobs. But it can and does affect the conditions that either facilitate or impede the creation of jobs by the private sector.
The high costs of energy and of health care, other burdensome labor mandates facing employers, and persistently high tax rates all qualify as impediments. The Malloy administration and the current members of the General Assembly are certainly not solely responsible for enacting those mandates and allowing the current situation to develop, but right now, they are the ones responsible for working with businesses to ensure that the state”™s business climate improves.
Initiatives such as the Small Business Express program have the state moving in the right direction.
The program, founded two years ago and administered by the Department of Economic and Community Development, provides loans and matching grants to Connecticut companies with 100 or fewer employees that need capital for expansion and job creation.
The state”™s initial investment in the program has helped about 500 companies to create or retain more than 6,300 jobs and has helped to leverage more than $40 million in private investment, according to figures from the governor”™s office.
The administration last week met with more than 30 participants in the program, discussing the impact of the program on the business community and the statewide economy as a whole.
As the state moves into its biennial budget process, it is critical for the Malloy administration and state legislators to continue to meet with and hear out business owners to see where there are opportunities for investment, where red tape can be cut and where lines of communication need to be established.
