Government Affairs REPORT

At Connecticut Business Day:
Assembly leaders agree: Urgent need to help state’s businesses, economy

(March 3, 2006) Leaders from both sides of the political aisle say the General Assembly must take bold action to help Connecticut’s economy recover — and they urged participants at “Connecticut Business Day” to hold lawmakers’ feet to the fire to make sure the work gets done this year.

About 300 business leaders from across the state attended the event and heard a mainly bipartisan message from policy-makers about how the state can foster an environment that will encourage businesses to invest here and create more jobs.

While that bodes well for the state’s economy, said John Rathgeber, president and CEO of CBIA, “the challenge now is to take the rhetoric and turn it into action.”
Connecticut Business Day is an annual event co-sponsored by CBIA and the Connecticut Association of Chamber of Commerce Executives (CACCE).

Senate:

Senate President Pro Tem Donald Williams (D-Brooklyn) said phasing out the property tax on manufacturing machinery and equipment is “Job No. 1” in helping the economy and job creation in Connecticut. The tax, he said, has had “a direct effect on chasing jobs out of the state.”

Growing the economy, said Williams, also means improving links between education and industry, making major investments in the state’s transportation infrastructure and solving Connecticut’s energy challenges.

According to Senate Republican Leader Lou DeLuca (R-Woodbury), positive steps such as eliminating the tax on manufacturing machinery and equipment and eliminating the corporate tax surcharge will help businesses and the state.

He also cited the need for lawmakers and the business community to “play defense” to stop anti-business legislation such as the “pay or play” health care tax and “captive audience” bill.

House

Because there is “no greater challenge in Connecticut than jobs,” said House Speaker James Amann (D-Milford) business leaders need to come to the Capitol during the session to make sure legislators stay on target to approve proposals that will help restore the economy. He said the elimination of the property tax on manufacturing machinery and equipment, and all of the recommendations of the state’s Transportation Strategy Board, are critically important proposals.

While all of the leaders agreed on the need to improve Connecticut’s economy, “what happens in the next 10 weeks will show if we can meet our promises,” said House Minority Leader Robert Ward (R-Northford). He also called for business tax relief – and for the legislature to require economic impact statements to accompany bills so that lawmakers can see how their proposals might affect job creation before they vote on them.

Business leaders urged the lawmakers to make sure that the business-tax-relief proposals get enacted this year. And they pleaded with the leaders to stop anti-business measures – such as the “pay or play” health care tax and “captive audience” bills — from being discussed.

Budget director

More than just one day is needed to keep the focus on the state’s business climate, said Robert Genuario, secretary of the Office of Policy and Management. “We need Connecticut Business Year and Connecticut Business Decade.”

He said Gov. Rell’s proposals for new business tax credits, to improve the state’s transportation infrastructures and revamp the state’s business-development agencies can begin to get Connecticut’s economy back to where it needs to be.

“Business creates wealth, jobs and a strong economy that fills the coffers of state and local governments,” said Tony Rescigno, president of the Greater New Haven Chamber of Commerce and first vice president of CACCE. n