Three things are certain about Connecticut”™s economy ”“ it is going to change, it will either grow or contract, and we can do something about it. Connecticut is at risk, however, if we don”™t make the right decisions.
Economic growth means creating opportunity and prosperity; contraction means fewer jobs and a lower standard of living. It”™s up to all of us to determine the direction Connecticut takes.
More than 100,000 of our family members, friends and neighbors have lost their jobs, and tens of thousands more are underemployed. Personal wealth has declined significantly, driving down both consumer spending and revenue from the state sales and income taxes.
Connecticut”™s $3.5 billion structural budget gap and $60 billion in unfunded liabilities are eroding confidence in our state as a place where businesses can invest, grow and create jobs. Without that confidence, there is little chance for complete economic recovery.
Policymakers must understand that private-sector investment is the key to job creation and economic growth. Getting people back to work and moving our economy forward will provide the resources needed to solve Connecticut”™s fiscal problems and allow the state to continue to provide critical services.
As the world grows more competitive, productive and innovative, so must Connecticut. Entrepreneurs, small businesses and large corporations all need to know that they are welcome here and that their concerns about the state fiscal policy, business costs and regulatory burdens will be addressed.
Most candidates for state office ran on promises to pursue a pro-jobs, pro-economic-growth agenda. CBIA stands ready to help move that agenda forward and, when necessary, point out when our elected officials”™ policy decisions run counter to the goal of promoting business investment and job creation in Connecticut.
Policymakers must be accountable to the people of Connecticut. The success of the new administration and legislature should be measured by the performance of the Connecticut economy relative to the national and regional economies over the next several years. The recommendations that follow will provide policymakers with ideas and guidance as we work to advance our economy and put people back to work.
We encourage lawmakers to work with the business community to pursue this path to the future.
Priorities
- Create a two-year state budget that reduces the size and cost of state government and increases accountability while improving the delivery of services.
- Promote tax policy that encourages business investment, innovation and productivity.
- Support the recommendations of the Connecticut Commission on Educational Achievement to help close the state”™s achievement gap.
- Reduce healthcare costs, improve quality and increase access while maintaining a strong private-sector marketplace.
- Encourage employers to maintain or create jobs in Connecticut by avoiding new workplace mandates or higher personnel costs.
- Continue to improve Connecticut”™s transportation infrastructure to relieve congestion within the state and better connect with regional, national and international markets.
The decisions won”™t be easy, but policymakers need to take the right steps necessary to get people back to work. They need to put the welcome mat out for small businesses and large corporations to let them know they are wanted and needed in the state, and that their concerns about the state”™s fiscal policy, business costs and regulatory burdens ”“ that make it harder to do business in Connecticut ”“ will be addressed.
John R. Rathgeber is president and CEO of the Connecticut Business & Industry Association. He can be reached at John.Rathgeber@cbia.com
