Government Issues and Politics
Insurance and Employee Benefits
Business and Economic Info
Human Resources and Safety
Education Policies and Practicies
Training and Consulting Services
Welcome to CBIA's Training and Consulting site!
Small Business Human Resources Workforce Development Your Questions Answered Success Stories

January 2004 — Vol. 81, No. 11

FROM THE PRESIDENT

State must act quickly to regain business confidence

By Kenneth O. Decko

CBIA President and CEO

 

Every year, CBIA surveys its members to find out, among other things, their level of confidence that Connecticut’s state government will improve our business climate. The results of this year’s survey are ominous and indicate that policy makers have some serious issues to address.

The percentage of business executives expressing confidence has plunged to 29% — even lower than last year’s 43% and far lower than the 68% who said they were confident in state government in 2001.

Not coincidentally, during the past two years, Connecticut businesses have been hit with increased costs just when they were struggling with a poor economy. Especially discouraging was that, in both years, state legislators seriously considered an onslaught of proposals that would have raised business costs. While most of those proposals failed to win approval, some tax increases did pass — two years in a row. Meanwhile, the cost of health benefits has continued to surge at double-digit rates.

When state legislators convene for the 2004 General Assembly in February, restoring business confidence must be their top priority. History has shown that when businesses lack confidence, the economy suffers and jobs are lost. Besides hurting the people who lose their jobs, that worsens the state’s fiscal problems because lost businesses and lost jobs mean less tax revenue.

CBIA will soon publicize our recommendations for how the state can regain flagging business confidence. Those recommendations will include balancing the state budget without additional tax increases, reducing business costs where feasible, and taking steps to help the state’s crucial manufacturing sector. Other needed actions concern improving the state’s transportation, education and job training systems; ensuring a reliable, affordable supply of energy; and supporting economic development efforts, particularly in key industries and urban areas.

Time is short. Legislators must act now to restore business confidence so that Connecticut can fully participate in the national economic recovery.