Insert graphic here:
width: 175px
height: 64px
 |
||||
 |
 |
 |
 |
 |
|
October 2006 — Vol. 84, No. 8 Rell, DeStefano reveal‘What I will do if elected governor’
CBIA invited the major-party candidates for governor, M. Jodi Rell and John DeStefano, to answer several questions of critical importance to Connecticut businesses. Here are their responses. Economic growth and job creation
Economic growth and job creationCBIA: If elected governor of Connecticut, what policies will you pursue over the next four years to promote economic growth and job creation in our state? M. Jodi Rell: My economic policy is multifaceted and multidisciplinary — it goes far beyond simple rhetoric about the need to “grow jobs in Connecticut.” Our state’s economy does not operate in a vacuum and cannot be managed in a vacuum. In education, for example, my administration has made unprecedented investments in early childhood education, increased the state’s contribution to special education by a record percentage, and is now overhauling the Education Cost Sharing Grant formula. That formula, in use since the 1980s, has been changed so often that it no longer bears much resemblance to the original and no longer fairly serves the people of our state. An educated workforce is one of our greatest assets, and we must not only preserve that asset but establish Connecticut as a national leader. On energy issues, I have proposed numerous steps to reduce immediate costs, such as reducing the state utilities consumption tax, temporarily rolling back the gross receipts tax on gasoline, and banning “zone pricing.” At the same time, I have defended our state against shortsighted federal policies such as the proposed two-zone pricing scheme known as LICAP. We will continue to pursue ways to lower energy prices for both businesses and homeowners — but these policies must be coordinated with a strong national energy policy, which I have repeatedly urged federal officials to develop. I am proud to say that I led the state to its first major investments in transportation infrastructure in 20 years while others simply talked about the problem. These investments are continuing and will reap enormous benefits for our workers, our employers and our economy in the years to come. It goes without saying that I have opposed — and will continue to oppose — shortsighted tax policy that treats business and employers as obstacles to be overcome rather than partners in job creation. Connecticut’s economy simply cannot withstand the nearly $1 billion in new taxes suggested by my opponents — and even if that money were raised, our constitutional spending cap would not allow it to be spent. Meanwhile, I have championed smart, targeted investments such as the 10-year, $100 million stem cell research fund, and credits, such as the Displaced Worker Tax Credit for companies that hire employees who lost their previous jobs due to plant closings or relocations, and the Job Creation Tax Credit for companies creating 50 or more new jobs. We are already reaping the rewards of these policy decisions — for example, GlobeOp Financial Services is moving to Hartford, creating 150 new jobs. The tax cuts we passed this most recent session — including the phaseout of the property tax on manufacturing equipment and the early elimination of the corporate income tax surcharge — have been very beneficial to job growth. These cuts were long overdue, and we must ensure that these taxes are not reinstated. Our companies need stability in tax policy, not changes at the whim of a group that is always looking for more money.
John DeStefano: It isn’t government’s job to create jobs, but it should create an environment in which businesses can be successful. Under the current administration, that hasn’t happened for over a decade. Government neglect is not benign if skyrocketing health care premiums, soaring energy costs and persistent gridlock on our roads strangle job growth and put Connecticut’s businesses at a competitive disadvantage. At the top of my to-do list for turning around Connecticut’s economy is implementing universal health care. Tax dollars continue to be spent on emergency-room care rather than on prevention. Small businesses get no help in providing coverage. Businesses look for relief from rising health care costs to compete, yet there is not a single tax incentive for companies to provide health care to their employees. It’s time to lower health care costs for businesses, create a healthier workforce, and start growing jobs again. Connecticut also needs leadership to solve its energy crisis. Electricity rates have soared more than 70% and are now among the highest in the continental U.S. As a result, companies like Franklin Farms in Franklin and Royal Precision in Torrington have been forced to close and lay off hundreds of workers. We must reduce energy costs for businesses by investing in alternative energy sources, increasing conservation efforts and making Connecticut a national leader in new energy technology. As governor, I will also improve Connecticut’s transportation network so that people and goods can move about quickly and efficiently, and ensure that Connecticut doesn’t become an economic cul-de-sac. Incredibly, more than 50% of Connecticut’s roads and interstate highways are either in poor or mediocre condition, and Bradley Airport remains an underutilized asset that is international in name only. For Connecticut’s economy to thrive, freight rail must be developed to take trucks off the roads; commuter rail service improved and expanded along I-95, I-91 and I-84; and a Port of Connecticut created to coordinate and bolster business at the state’s three ports. Connecticut’s historic position as a national leader in producing a skilled workforce is also being undermined by rising tuition and housing costs. We can begin to tackle these problems by offering scholarships for students pursuing in-demand careers in areas such as math, science and nursing. A housing trust fund should also be established to stop the so-called “brain drain” and help first-time home buyers afford a home in Connecticut. As governor I would also address tax policy, calling for the immediate elimination of the property tax on manufacturing equipment and revamping the state’s insane property tax system that hurts businesses and residents alike. State fiscal policiesCBIA: Last year the state reduced some business taxes. What additional tax changes will you call for to help make Connecticut companies better able to Rell: The removal of the surcharge on corporate income taxes and the eventual elimination of the property tax on manufacturing equipment are good examples of the sort of targeted tax relief we need to continue to pursue. In the last session we also passed three key tax credits: incentives for the film industry, the Job Creation Tax Credit (which goes to companies that create 50 or more new jobs) and the Displaced Worker Tax Credit (which goes to companies that hire workers who lost their previous jobs through layoffs or closings). I intend to continue developing and proposing these types of credits, while looking for additional ways to help employers in Connecticut compete more effectively. And, as mentioned above, the tax reductions we have already seen must remain. We need to give businesses the stability to do the long-term planning that they need to create more jobs.
DeStefano: The first two changes I would make to the state tax code would be to immediately eliminate the property tax on manufacturing equipment and to implement tax incentives for businesses to provide health care coverage for their employees as part of my broader plan to control health care costs while making coverage universal. The current administration has failed to identify and act on areas where the tax code is directly or indirectly putting our business community at a severe competitive disadvantage. As the state has hemorrhaged manufacturing jobs, we are one of the only states in the country to tax manufacturing equipment. Health care costs are perhaps the single biggest issue government can impact facing businesses — particularly small businesses — but our state has no meaningful plan to address this crisis. Instead, the current administration puts forward “photo-op” tax policy such as the car tax repeal that is dead on arrival at the legislature and would do nothing to fix the most pressing problems.
CBIA: What issues will be your priorities as you develop your state budget proposal? Rell: Two issues are at the top of my budgeting agenda: Accelerating our forward economic momentum and continuing to strengthen education, especially early childhood education. Our economy is getting stronger every day — in July 2006 there were 32,000 more people employed than in July 2005 — and our gross state product is on course to hit $200 billion for the first time. But I am far from satisfied with our current rate of job creation. And our economy is not as strong as we need it to be — now or for our children. We have made smart, targeted investments in 21st-century economic priorities: our 10-year, $100 million stem cell research fund and our funding to get new technologies and new methodologies out of the research labs at UConn and Yale and onto the factory floors. These must — and will — continue. At the same time, we are making unprecedented investments in the workers of the future: our children. We have invested $21 million in early childhood education, and my Early Childhood Education Cabinet is finalizing a strategic plan to ensure that every child walks through the kindergarten door ready to learn. There are other issues as well: improving access to health care for all, continuing our investment in transportation infrastructure, and enhancing our environment and open space among them.
DeStefano: My budgets will reflect my to-do list: health care, energy, transportation, I have spent the last dozen years turning around New Haven. I’ve built my record in New Haven by identifying and relentlessly attacking my to-do list, and we’ve been able to dramatically improve the quality of life, business climate and service delivery of this city — all while our city workforce has shrunk and our tax levy has declined in real terms. Despite the examples being set by the Bush and Rowland-Rell administrations, it is possible to run government efficiently and control its costs, and that will be manifest in my budgets.
Health care costsCBIA: The rising cost of health care makes it increasingly difficult for businesses and individuals to afford health care coverage. What changes will you promote to help make coverage more affordable, especially for small businesses and their employees? Rell: Since the start of my administration, our goal has been to improve access to health care through a wide range of options, including employer-sponsored insurance, state and federal programs such as HUSKY and Medicare, community health centers, and other means. We have made major enhancements to programs such as HUSKY, expanding enrollments, rolling back premiums, and improving dental and immunization benefits. At the same time, our investment in community health centers has increased substantially, in part by using fees paid to the state by insurers. We are also looking at programs such as “premium wraparound” assistance — state aid that helps working people pay for employer-sponsored insurance rather than use the HUSKY program. There have been discussions in the legislature about a moratorium on new health insurance mandates and on allowing companies to create intermediate, less-expensive health plans. As policy-makers look for ways to reduce costs, these ideas — and others — are likely to be on the table again in the next legislative session. All of us share the goal of improved access to health care. But we cannot afford massive state spending programs or mammoth new taxes that will drive employers out of this state — nor can we afford to simply dismiss the strong system of employer-sponsored insurance that already exists in Connecticut, or fail to consider the effects of our actions on the state’s insurance industry.
DeStefano: I have a comprehensive health care plan that will provide universal coverage. A buying pool for small businesses and individuals, tax incentives for all businesses, and an emphasis on preventive health care will help businesses grapple with this crisis and control costs. Portability and self-employment assistance will encourage a more flexible workforce and enable more entrepreneurial activity. The state needs to step up to the plate and be a partner with business in solving this problem. Small and medium-sized businesses would be exempted from the corporate income tax to provide coverage for their employees and access to a choice of plans from the Connecticut HealthCare Consortium (CHC). Large businesses could have the corporate income tax rate cut in half if they (a) provide coverage under the CHC or (b) contribute 5% of their payroll to health care cost. Businesses participating in the CHC would be expected to pay 80% of premiums for low- and medium-priced plans, with employees picking up all additional costs if they opt into more expensive plans.
CBIA: Some experts say improving the quality of health care will help control soaring costs. What ideas do you have for improving medical outcomes and reducing medical errors? Rell: There are a number of advances that can help reduce costs and improve outcomes, ranging from changes in medical records technology to practical changes such as “evidence-based medicine” — the use of the most up-to-date tests and diagnostic tools. Using the most up-to-date technology, physicians can record their diagnosis on a Palm Pilot or similar hand-held device, send copies of medical records to all of a patient’s other caregivers, and fax an order for a prescription to a pharmacy — all with a few keystrokes and without ever leaving the patient’s side. I recently signed legislation that will standardize the reporting of medical errors in Connecticut and help us begin designing ways to avoid them. Advances in medical records technology are also being furthered by the federal legislation sponsored by U.S. Rep. Nancy Johnson. Her bill would create a secure, standardized computer system for records and update the 30-year-old diagnosis coding system now in use. We must also continue to support efforts to curb smoking and fight heart disease, cancer, diabetes, obesity and other illnesses in both children and adults.
DeStefano: I will focus on two principal areas in improving medical outcomes and reducing medical errors: incentivizing preventive health care and efficiency in health information technology. All CHC plans will offer annual wellness assessments to create personalized plans focused on healthy lifestyles and interventions in chronic and costly illnesses such as diabetes. Companies will receive financial incentives for high rates of participation by their employees in these wellness programs. To further address preventive health care, I will create the Connecticut Prevention Council to focus on those health behaviors, preventable illnesses and preventable injuries that contribute the most to health care costs and lost worker productivity; identify proven, existing methods that each sector can implement to improve the identified health behaviors and prevent or manage the illnesses/injuries; and commit to strategies to effectively and widely implement those strategies. I will fund health information technology initiatives to help Connecticut’s health care providers implement high-quality information technology systems that talk to each other and that will scale up from regional or network-wide coalitions to a statewide system and hopefully to include the region and nation. Overcoming the barriers to effective IT use will allow providers to make huge strides in efficiency and in preventing medical errors. TransportationCBIA: In the past two years, Connecticut has approved spending $3.6 billion to upgrade our transportation infrastructure. What aspects of transportation will you focus on as your administration implements the upgrades? Rell: I am proud to say that under my administration our state is finally making the investments necessary to improve our transportation system. After two decades of talk, we have finally committed to the purchase of new rail cars for Metro-North, comprehensive improvements to every mile of interstate highway in our state, and expansion of bus and commuter rail service along crucial corridors. We are also investing in our ports, Bradley International Airport and our freight transportation network. Ensuring these investments move forward in a timely, cost-effective way will be among my top priorities. With the addition of a dedicated deputy at the Department of Transportation, we will also be focusing on coordinating state actions with municipal plans and regional transportation developments.
DeStefano: With 51% of our local roads in poor or mediocre condition and one-third of our bridges structurally deficient or obsolete, Connecticut faces tremendously disruptive problems if we do not first act to maintain our current infrastructure. We need to prevent both headline-grabbing disasters that clearly cost the state economically, such as closings of I-95 after the Mianus River or recent Bridgeport accident, as well as the potential multitude of smaller infrastructure failures or unaddressed bottlenecks. After looking after our current infrastructure, my administration will prioritize ways of expanding capacity in our transportation system. This includes necessary road projects, but goes beyond that myopic view of transportation. Right now, ConnDOT is incapable of breaking out of their 1950s single-minded focus on road building and has manifestly failed to effectively manage air, rail and ports. I will take authority for these areas away from the broken DOT:
Energy costsCBIA: Skyrocketing costs for electricity, natural gas and gasoline are an increasing burden for businesses, state residents and state government alike. What will be your approach to reducing energy costs? Rell: I am frustrated by the lack of progress toward a national energy policy, and by the fluctuations of a global energy market that is beyond Connecticut’s ability to control. However, there are things that Connecticut can control — and to that end I have proposed a number of steps, among them:
DeStefano: In May I proposed a plan to use a windfall profits tax on profits in excess of 20% from utility companies and use that money to provide rebates that will reduce the average electric bill by $300 million for consumers and $40 million for businesses. In addition, we should invest $3 million in a revolving loan fund that will provide loans for the purchase of energy-efficient equipment by businesses that pay back the money at the rate of energy savings — thus amortizing the up-front cost of more-efficient equipment and allowing businesses to keep the savings once the fund is replenished. Including additional elements of my May proposal, Connecticut consumers and businesses are projected to save $2.157 billion, and the plan should create $175 million in clean-energy investments and over 75,000 new jobs by 2015. Conservation savings should play a major role in controlling energy costs — as a nationally recognized model, the City of New Haven now saves over $4 million annually in avoided costs — but we must also make transmission and generation upgrades. Overcoming local opposition will only be possible if the public has confidence in public officials, the regulators they appoint and the industries covered. This confidence will only develop with strong leadership and a customer-friendly energy policy. EducationCBIA: Improving the quality of education is becoming more critical than ever for Connecticut companies and citizens to prosper in the global economy. Although our students are among the best in the nation, young people in more and more countries are outperforming ours. And the achievement gap between our high-performers and underperformers is widening. How will you tackle the challenge of raising all students’ achievement levels? Rell: From our unprecedented investment in early childhood education, through the hundreds of millions of dollars we have spent on school construction, to the landmark investments at the University of Connecticut, Connecticut State University campuses and community-technical colleges, we have made our priorities clear. In the past two years the state budget has fully funded its annual obligation to the state Teachers Retirement System. This has been a major commitment from my administration. Reducing the achievement gap among students — both the students in school now and those who will be entering school in the years to come — remains our greatest educational challenge. I believe our expansion of early childhood education opportunities will make an enormous difference in the generations of young people yet to enter school. We know that students who are able to make the most of the first few years of school — students who have already “learned how to learn” — are far more likely to succeed, not only in school but financially and socially. Closing the achievement gap among current students is a battle we have been fighting for years. There are some signs of progress as well as disturbing declines in other areas. We have new tools at our disposal — among them the formative assessment tests our state uses. Research has shown these tests — which check a student’s progress in mastering material rather than testing for “grading” purposes — are excellent ways to increase achievement for all students. But it is also true that reducing the achievement gap continues to demand increased involvement by parents and the community. Without these crucial resources, added funding and increased testing will have only limited impact.
DeStefano: As governor, I will prioritize:
The early years of education — particularly pre-K — and the math and science curriculums are where Connecticut has the most work to do in making all of our children globally competitive. Specifically targeted will be our 19 Priority School Districts, where we will work to ensure children who start life without the resources available to some are not left behind — my “Every Child Reads by 3rd Grade” plan will help do that. Connecticut ranks second-to-last under Governor Rell in government spending on education as a share of personal income. We are never going to compete with Mississippi, much less China, on cost alone. Connecticut needs to step up and make necessary investments, particularly by dramatically expanding state commitment to pre-K care and education.
|
|
 |
© Copyright 2003 Connecticut Business & Industry Association, cbia.com. All rights reserved. |
 |