Gov. Dannel Malloy addressed nearly 600 business leaders at the CBIA/MetroHartford Alliance Economic Summit and Outlook 2011 Jan. 7. I was encouraged by his desire to begin a “new relationship” between the business community and state government.
He has, in fact, been forging that relationship over the last year by meeting with employers across the state to learn about their concerns and share new ideas for restoring business confidence in Connecticut. I also applaud his support for a more transparent state budget process and a long-term plan to solve the state”™s enormous fiscal problems.
Pratt & Whitney President David Hess also spoke to summit attendees about long-term planning ”“ in particular the need for a stable, predictable tax system in Connecticut to enable “long-cycle” businesses to more confidently plan for expansion and make smart locational decisions.
In a stark example of what can happen when state government constantly changes the rules, he explained that Pratt”™s decision to move its military engine business from Florida to Connecticut was heavily influenced by the state”™s R&D tax credit. A few years later, however, when the state decided to limit companies”™ use of tax credits, Pratt took a “30 percent hit on multimillion-dollar, long-term R&D programs.”
Hess argued convincingly that our elected officials can help offset the state”™s impediments to business investment ”“ high housing and energy costs, for example ”“by creating a stable tax system, streamlining environmental regulations and better preparing students for work in the high-skill, high-knowledge industries Connecticut”™s economy depends on.
Connecticut can become, as Hess suggested, “a competitive advantage” for businesses, but only if legislators get the message. CBIA”™s new public awareness television and radio campaign, “Connecticut Speaks,” is designed to get that message out. It features regular folks expressing their concerns that our elected officials must be accountable for the economic and fiscal policy needs of the state. The campaign also gives everyone an opportunity to speak out in an online forum at cbia.com. We hope you will join in and make sure the voice of Connecticut business is heard in Hartford this year.
John R. Rathgeber is president and CEO of the Connecticut Business & Industry Association. He can be reached at John.Rathgeber@cbia.com.
