Using sweeping tax hikes to balance Connecticut”™s budget, Gov. Dannel P. Malloy is offering businesses more than $500 million in incentives to expand here ”“ those that seek out and qualify for the incentives, anyway.
Malloy said he has support from Connecticut Republicans for a jobs bill that includes a “small-business express” package totaling $180 million over two years, including $50 million annually for a revolving loan fund and hiring incentives.
Amid myriad other proposals, Malloy”™s bill would also cut the $250 business entity tax in half ”“ but not eliminating it ”“ that many see as a neon sign flashing the message that Connecticut is hostile to small business.
Hoping to reverse that image, Malloy is introducing a small-business legislative package that rivals those introduced by any other Northeast state this year. The Connecticut Business and Industry Association expressed support, with CBIA having 10,000 members statewide. Malloy scheduled a Westport meeting last week as well with members of the Business Council of Fairfield County to discuss the legislation, which does not include broad-based tax cuts that many in the business community would rather see, but which Malloy has not offered as a option as he attempts to balance state revenue with spending and future commitments.
“The state”™s involvement in economic development is critically important,” said Joe McGee, vice president of public policy for the Business Council of Fairfield County, who co-chaired the Malloy administration”™s transition team focused on economic development. “It doesn”™t mean everything has to go to big companies ”¦ The building blocks of economic development (are) education and infrastructure. If you”™re not doing those two things, everything else falls apart ”¦ The lowest tax jurisdiction is not getting all the jobs ”“ but your tax system has to be equitable and competitive.”
For many reasons ”“ including the cost of energy ”“ Connecticut is the most expensive place to do business in the nation, according to Tom Santa, CEO of Bridgeport-based Santa Energy Corp.
“In order for us to survive, our workforce must be highly productive, our products high value added and our government highly efficient,” Santa said. “I have several job openings in my company today that require educated, experienced, motivated people ”“ and I can”™t find them. Connecticut is a great place to live but young upwardly mobile people can”™t afford it and are going elsewhere.”
To that end, Malloy wants the state to set aside $50 million to better train workers, including $40 million over two years to expand a curriculum in advanced manufacturing at Enfield”™s Asnuntuck Community College to three community colleges and three vocational schools.
And Malloy hopes to reinvigorate the manufacturing sector with $340 million in replenished funding under Connecticut”™s Manufacturing Assistance Act.
Until now, Malloy”™s biggest headlines have come from his First Five program that gives incentives to companies adding at least 200 jobs, with CIGNA Corp., ESPN and TicketNetwork the first to take the offer ”“ and from a pair of other big potential new arrivals in Jackson Labs and NBC Sports.
Speaking in Stamford in October, Malloy said two-dozen companies have inquired about the First Five program. His legislative package authorizes an additional five companies for the perks.
