Thinking positive

As we write this, the lawmakers are flocking back to Hartford for yet another session.

We hope it won”™t be as inglorious as the last.

The budget is still an ocean of red ink and rising.

State Comptroller Nancy Wyman last week reported that Connecticut”™s budget deficit has hit $515 million. That”™s an increase of $1.7 million over a month”™s time.

We have two words for the members of the General Assembly: create jobs. Consider it an order from the business community.

In order to do that, the state must create an environment that nurtures the existing businesses that are already here.

Throwing millions of dollars in tax incentives to attract businesses to Fairfield County from just across the border in New York without duly compensating the existing businesses here is an outrage. Besides, the 300 workers that would fill the offices won”™t necessarily be changing their addresses to Connecticut if they already have established homes in New York state. The state would eventually be adding to its tax rolls in about 10 years when the incentives sunset. As far as adding workers, it would be more along the lines of adding 300 commuters to the traffic-clogged I-95.

Adding taxes and fees is not the way to fix the state”™s economic health.

 

It needs the jobs, as witnessed by Wyman”™s report. She cited weak income tax collections being the main reason for the budget shortfall. And the main reason for the income tax shortfall is because of job losses.

 

According to state numbers, more than 94,000 jobs have been lost since March 2008, the accepted start of the recession. Since last July, the state lost more than 21,000 jobs.

Sales tax revenue was also down 7.3 percent through December.

And, as reporter Alex Soule points out in a story on COBRA benefits (page 25), while the unemployment rate flattened in the fourth quarter, several local companies announced significant layoffs, including Xerox in Norwalk; Pitney Bowes in Stamford and the Danbury Plaza Hotel & Conference Center. Over in Groton, General Dynamics is cutting some 500 jobs.

No jobs, no discretionary money, no tax collections ”“ no way to shore up a growing deficit.

Kick partisan politics to the side of the road and concentrate on turning this state around.

And do it quickly, before another several million dollars is tacked onto the deficit.