Government Affairs REPORT

Time for 'homework'

Connecticut's Report Card, 2006

A Earnings and Job Quality
A Human Resources (Education)
C Infrastructure Resources
D Employment (Short- and Long-term Trends)

If your child came home with a report card like this, which grades would you praise? Which ‘subjects’ would require harder work from your child? Based on the national report card by the Corporation for Enterprise Development (CFED), here’s a look at where CBIA believes Connecticut is excelling and where it needs to work harder.

EARNINGS AND JOB QUALITY

CFED Grade A: “Connecticut is an excellent state in which to work due in part to its well-paying jobs, [and] high rate of employer provided-health coverage ...” (CFED)

CBIA synopsis: Employees in Connecticut earn among the best wages and benefits in the United States. They also are protected by some of the best and most generous workers' comp and unemployment comp systems in the nation.

CBIA believes that because these are significant strengths, state lawmakers must:
• Reduce the skyrocketing costs of health care that are eroding wage gains and making it harder for businesses to afford providing good benefit packages.
• Protect workers' compensation and unemployment compensation reforms and find additional ways to reduce these business costs.
• Avoid proposals that cast serious doubts in the minds of employers about whether Connecticut is a place for them to invest and create jobs — such as “captive audience” or “pay or play” measures.

HUMAN RESOURCES (EDUCATION)

CFED Grade: A “Connecticut invests strongly in education and innovation ...” (CFED)

CBIA synopsis: Businesses routinely praise Connecticut's skilled workforce as one of the state's leading competitive advantages. Our educational system has traditionally turned out top-flight graduates and contributors to the workforce.

To keep Connecticut competitive in the global economy, CBIA believes lawmakers should:
• Improve science, technology, engineering and mathematics (STEM) education throughout the public school system.
• Upgrade the state's technical high school system and expand apprenticeship job training programs.
• Expand successful initiatives that improve the performance of schools and the performance and opportunities of students, such as the Vanguard Schools initiative, Connecticut State Scholars program, and charter schools.
• Promote the development of early-education and after-school programs so that all students are ready to learn when entering the system, and have a safe place to go after school hours.

INFRASTRUCTURE RESOURCES

CFED Grade: C

“In periods of slow job growth, you have to pay attention to infrastructure in order to maintain competitiveness.” (Rae Rosen, senior economist and v.p., Fed. Reserve Bank of New York)

CBIA synopsis: Connecticut must improve its connectivity to the national and global marketplaces or risk being marginalized in the 21st century. We should maximize Connecticut's asset of being located along Long Island Sound and in close proximity to Boston and New York. People, products and services need to be able to move easily and quickly through the state to markets.

Because Connecticut needs top-grade connectivity, CBIA believes state legislators should:
• Provide additional funding, in part through a portion of fiscal year 2006 surplus funds, to transportation infrastructure improvements that implement recommendations of the Transportation Strategy Board.
• Reduce Connecticut’s high energy costs and ensure reliability by expanding electricity generation and transmission capabilities; and increasing our natural gas pipeline capacity, or liquefied natural gas import capabilities.
• Help the Transportation Strategy Board and Board of Directors of Bradley International Airport to define a new vision for Connecticut’s transportation future to ensure the state’s connectivity to existing and emerging markets.

EMPLOYMENT

CFED Grade: D Connecticut “ ... is less successful in new business creation and growth, and has experienced weak job growth both recently and over the past 10 years.” (CFED)

CBIA synopsis: Recently, Connecticut has begun to add jobs at a faster rate. But it still lags the job-creation performance of most of the nation. Residents and businesses alike are worried about the economy and jobs. The high costs of doing business here and the promotion of anti-business measures in the legislature have created a crisis of confidence within the business community that could inhibit further job growth.

Because a healthy economy grows jobs, CBIA believes lawmakers should:
• Reduce business costs, sixth-highest in the United States, to bring them in line with those of competitor states.
• Facilitate the continual upgrading of our transportation, energy and telecommunications economic-support networks.
• Equip our young people for the workforce and upgrade the skills of existing employees; make Connecticut an affordable place in which to live.
• Avoid proposals that cast serious doubts in the minds of employers about whether Connecticut is a place for them to invest and create jobs.