The opening of the 2010 session of the Connecticut General Assembly is right around the corner, and the return of legislators to Hartford usually means a great deal of trepidation within the business community. This session, which will run from Feb. 3 through May 5 and likely be dominated by the state budget and the politics of the November elections, is no exception.
However, there is a window of opportunity for those who are dissatisfied with the direction the General Assembly has taken over the last few years. Concern over the economy, coupled with greater attention being paid by the electorate ”“ partially fueled by Scott Brown”™s upset victory in Massachusetts ”“ could mean that legislators will be held more accountable this year. Here”™s hoping that accountability will lead to action on the things most voters care about: the economy and fiscal responsibility.
Against that backdrop, CBIA has released its agenda for 2010, titled “Saving Connecticut Jobs: How to Restore Business Confidence and Economic Growth.” In it, we outline for lawmakers the policy choices that will restore confidence and encourage employers to invest in Connecticut, the first steps to job creation and retention in the state.
Why is business confidence so important? Over the last several sessions, the Democratic majorities in the state”™s House and Senate have sponsored a raft of proposals that, if passed, would have hurt the competitiveness of Connecticut employers and made the state a much less desirable place to locate a business. Fortunately, coalitions of Republicans and moderate Democrats, along with Gov. Rell, worked to stop the most onerous legislation. But the fact that these ideas are proposed every year has a chilling effect on business investment and job creation here.
First and foremost, policymakers have to deal with the state”™s fiscal condition and find ways to deliver needed services in a less expensive way. While this year”™s deficit of approximately $550 million may be manageable, next year”™s $3 billion to $4 billion shortfall isn”™t. And with long-term unfunded obligations now approaching $60 billion, Connecticut could soon be on the verge of fiscal collapse if lawmakers don”™t get serious about reforming the way the state spends money.
At a minimum, agency consolidations, eliminations of outdated programs and a “leaning-out” of agency operations is required. In addition, as new state employee contracts come up for negotiation, wages and benefits must be brought more in line with the ability of taxpayers to pay. Not only will these measures bring fiscal responsibility to state government, but they will also be a strong signal to employers all over Connecticut that business as usual will no longer be tolerated.
Everyone in Connecticut ”“ employers, employees, retirees, students, those out of work ”“ should make their voices heard this session. Both fiscally and economically, the stakes couldn”™t be much higher than they are now; so if people care about our state, now is the time to speak up. We need moderate, sensible, responsible lawmakers to take charge of the legislative agenda and direct it in ways that will benefit all of Connecticut, and they need to know that we have their backs.
Joseph F. Brennan is senior vice president of public policy with the Connecticut Business & Industry Association.
