As Gov. Malloy”™s adjusted state budget makes its way through the legislative process, it”™s vital that the themes of job growth and Connecticut”™s economic competitiveness guide the debate.
Meeting Connecticut”™s budget priorities and keeping state spending under control are critical issues. It”™s time for fiscal vigilance and careful and calculated investments that enhance recovery.
Some of the areas of the recommended revised budget (HB 5014) that can help achieve both of those goals include:
Ӣ initiatives to improve educational achievement and reform the stateӪs public education system;
Ӣ ongoing support of the special Jobs Session initiatives;
Ӣ continued reforms in the stateӪs corrections system and for long-term health care; and
Ӣ measures to improve the efficiency of state government and consolidate agencies.
Measures that increase state efficiencies and effectiveness are particularly important to increasing employers”™ confidence in Connecticut as a place to create more jobs and expand their investments and operations.
State Republican lawmakers recently shared some of their priorities for the 2012 session, including fiscal responsibility, reforming public schools, improving government transparency and making more progress on job creation.
Referring to the legislature”™s charge to focus on budget matters in this year”™s short session, Republican leaders set goals for the revised state budget, including:
Ӣ strict adherence to the stateӪs constitutional spending cap;
Ӣ no new taxes; and
Ӣ no spending increases.
While GOP lawmakers share several of Malloy”™s education priorities, such as teacher tenure reform and increasing school choice through the support of charter schools, they believe the reforms must be accomplished within existing state appropriations.
And while the state should also focus on state employee pension reform and paying down state debt faster, Republicans do not believe the state should exceed the spending cap limit to do so.
The business community encourages the legislature to take more steps to improve the state”™s fiscal climate and help our economy grow. There are a number of cost-saving opportunities across several areas, including:
”¢ insisting on millions of dollars in savings from state employee unions”™ suggestions ”“ counted on in the budget but yet to be seen;
Ӣ additional initiatives to increase the use of home care versus institutional care where appropriate, such as those recommended by the Connecticut Regional Institute for the 21st century;
Ӣ continued efforts to enhance and support the efforts in prison reform and the reduction of recidivism; and
Ӣ more widespread application of lean management techniques in state government to improve effectiveness, increase efficiency and realize cost savings. The governorӪs proposal to merge more state agencies is also helpful to achieving a more effective state government.
Pete Gioia is a Hartford-based economist with the Connecticut Business & Industry Association. He can be reached at pete.gioia@cbia.com.