|
February 2010— Vol. 88, No. 1
2010 LEGISLATIVE SESSION OPENS
General Assembly must focus on the economy
Private-sector growth and controlling state spending
are keys to Connecticut’s recovery
On Feb. 3, state senators and representatives return to the Capitol for the opening of the 2010 General Assembly session amid deep concern among their constituents about the future of Connecticut and its economy. The session’s opening also comes on the heels of Republican Scott Brown’s election to the late Edward Kennedy’s Senate seat in Massachusetts—a stunning outcome fueled, in part, by voters’ concerns about the economy and jobs and elected officials who appear to be out of touch with those concerns.
Here in Connecticut, the business community has similar worries. Fully 70% of the nearly 1,000 business owners, managers, and executives who responded to CBIA’s 2009 Annual Membership Survey indicated that they think the state is going in the wrong direction. (See Page 5 for more survey results.)
The roots of that sentiment lie in the rising state budget deficit and continued high unemployment, as well as a trend in recent years toward bigger, more expensive state government and mounting pressure on businesses and families to pay for it.
“Over the past several years, we’ve seen a growing tendency on the part of many in our legislature to try to solve Connecticut’s problems with more government—by expanding state government into private markets, overregulating businesses, and restructuring our tax code,” says Joe Brennan, CBIA senior vice president of public policy. “It’s as if some of our elected officials view business and the free-enterprise system as an enemy. The reality, however, is that private enterprise is the lifeblood of our economy; it has lifted our state out of economic difficulty before, and it can do it again. What the business community contributes to our state is unquestionably positive, but some at the Capitol seem to have lost sight of that fact.”
Brennan adds that the sheer number of legislative proposals that impose greater costs and more mandates on the private sector—even if they are not enacted—have given Connecticut a reputation for being antagonistic to business. “While there may be good intentions behind some of those proposals,” he points out, “they erode confidence in Connecticut as a place where businesses can succeed.”
CBIA’s Annual Membership Survey clearly shows that a lack of confidence has already taken hold among businesspeople here, with 68% of respondents saying that if they were to expand or relocate their business, they would do so outside of Connecticut.
“That should be a resounding wake-up call for the General Assembly,” says John Rathgeber, CBIA president and CEO. “When business owners and entrepreneurs lose trust in Connecticut as a good place to operate their companies or begin new ventures, that translates into less business investment in the state, which means fewer jobs, a weaker economy, and a diminished quality of life for all our citizens. Legislative proposals raised during the 2010 session should be evaluated on whether they will help or hurt our economy. Those that would hurt our economy should be rejected.”
The formula for economic recovery and sustained growth in Connecticut is not that complicated, adds Brennan. “A healthy private sector equals a healthy economy—and if our elected officials have the political will, they can play an important role in cultivating both.”
The private sector’s vital role
The business investment and jobs that will bring our economy back to life and keep it strong over the long term will be generated by the private sector, not state government.
“An efficient, focused state government plays an important role in delivering key public services,” says Rathgeber. “But only the private sector can produce the goods and services that can create wealth and opportunity in Connecticut. Our employers must be able to compete successfully in a very competitive global economy.
“There really is no choice if we want to regain the jobs we have lost and create the new jobs we will need to sustain our quality of life. Only profitable businesses will be able to provide the jobs, wages, and benefits that people want—and the tax revenues and support that our state and local communities need.”
Peter Kent agrees. Kent is the newly elected chair of CBIA’s Board of Directors and chairman and CEO of Bicron Electronics in Canaan. A leading designer and manufacturer of electromagnetic and electromechanical products, Bicron has been in operation since 1964 and has about 70 employees in Connecticut.
“When it comes to getting the economy back on track, the private sector is far better equipped than the state to get the job done efficiently and effectively,” says Kent.
“What state government can do,” he argues, “is help create a positive business climate in Connecticut that gives companies every opportunity to succeed. That includes not burdening them with more taxes, regulations, and mandates that drive up the cost of doing business and drive investment and jobs out of the state. No one is saying that businesses should not be taxed or subject to regulatory oversight. What we are saying is that the state has to do these things in a balanced, reasonable way, in a way that allows businesses to be profitable enough to reinvest in their companies and expand their workforces. If that happens, you’ll see Connecticut’s economy take off.
“Although the state is implementing some improvements,” adds Kent, “what we need policymakers to do is view the taxpayer—businesses and individuals—as the customer and seek ways of improving the processes, responsiveness, and flexibility that will assist the customer in complying with established regulations. If the state does that, businesses will be able to invest more and sooner, which will lead to job growth and an improved tax revenue stream for the state—a win-win for everyone.”
next
|
