Economic development

(April 11, 2008) State lawmakers need to fully understand and embrace the reality of the global economy and seek ways to help Connecticut employers compete in it. Our businesses are in fact competing globally and the state itself is home to many foreign-owned businesses that are investing and creating jobs here. Closer to home, lawmakers have the opportunity to make it easier for employers to do business with the state and encourage some of the state’s most promising industries to grow.

Reduces regulations
SB-399 begins to improve Connecticut’s business climate by creating a task force that will study how the state can reduce or streamline state regulations on small businesses to provide those employers some relief. Small businesses are incubators for economic growth in Connecticut and have been unnecessarily burdened with too many regulations that inhibit their ability to grow.

Encourages the emergers
SB-401 commissions a study to determine if a tax credit program could be created to encourage investment in emerging industries that hold the greatest promise of job creation and business growth. While tax credits have been used as incentives for businesses to invest and grow in Connecticut; there are still opportunities like these that lawmakers could recognize and promote.

Not the right solution
SB-652 increases the layers and costs of state government by allowing the state to establish and administer 401(k) plans for small businesses without eliminating the biggest cost barrier facing small businesses that want to offer retirement plans. Small businesses and individuals need to be aware of the need to save for their future and retirement. However, making government bigger is not the way to go about it. This proposal neither addresses the real barrier to more participation nor recognizes the need to better educate people on the need to save for retirement and what opportunities the private sector already has to help them.

Discourages effectiveness
HB-5112 hurts the state’s economy by discouraging companies from sourcing operations where they can be most effective. This proposal requires the governor to review all state contracts where services are being performed outside of Connecticut or U.S., and conduct an economic cost-benefit analysis on each. With more than 1,200 foreign–owned companies sourcing facilities and jobs in Connecticut, however, it’s important for the state to recognize how beneficial the global economy is for the state.