Business leaders speak out at Capitol: More attention needed to health of state's economy

CBIA and chamber leaders urge legislators to avoid negative impact of health care, homestead exemption, 401(k), sick leave and workers' comp bills

(April 30, 2008) With just days left to the 2008 General Assembly and amid a dwindling state budget surplus and slowing Connecticut economy, CBIA and eight chambers of commerce this week called on legislators to pay more attention to the state's economy.

They urged lawmakers to exercise fiscal restraint and avoid imposing new mandates and costs that would further hurt the ability of businesses in the state to retain jobs, make investments and spur an economic recovery.

• "With the state budget surplus estimates shrinking and the national economic slowdown affecting Connecticut, it is critical that legislators don't take actions that would worsen our present situation or impede our economic recovery,” said John R. Rathgeber, CBIA president and CEO.

• "Business leaders must have confidence in the state government's ability and desire to help us through the financial turmoil facing the economy and encourage investments needed for a robust recovery,” said Christopher P. Bruhl, president and CEO of the Business Council of Fairfield County.

Health care and 401(k) proposals

Lawmakers in the House and Senate are considering bills that would raise business taxes at the local level and make it more costly to do business here. They are even considering measures that would put the state in direct competition with the private sector in the areas of health care and 401(k) retirement benefits — two sectors of our economy that provide tens of thousands of good jobs for our residents.

• "We ask our elected leaders to continue their focus on investing in higher education and in our transportation, energy, and communications infrastructure and to let the private sector continue to offer innovative and competitively priced employee benefit products and services to small businesses and municipalities,” said Oz Griebel, president and CEO of the MetroHartford Alliance.

• "By opening the state's health care benefits plan to small businesses and municipalities, the state could jeopardize potential savings in its health care contracts. Losing those savings and expanding the state bureaucracy will drive up costs for taxpayers,” said Rathgeber.

'Homestead exemption'

Connecticut 's business tax climate is ranked 38th in the U.S. by the Tax Foundation, and many legislative proposals, including the “homestead exemption,” would shift the tax burdens onto small businesses that are already struggling to survive.

• "This is not property tax reform but a tax increase on businesses that can't afford further increases, especially during difficult economic times,” said Tony Rescigno, president of the Greater New Haven Chamber of Commerce.

Workplace mandates

Lawmakers are also considering measures that would impose strict mandates on businesses that take away their flexibility in managing their workplaces. These include the paid sick leave and workers' compensation bills, which would significantly increase business costs, make Connecticut companies less competitive and cause workplace disruptions that could hurt employees, not help them.

• “Connecticut businesses are national leaders in providing good wages and benefits and safe workplaces for their employees. They don't need government dictating what their employee benefit packages should look like,” said Lawrence D. McHugh, president of the Middlesex County Chamber of Commerce.

Helping or hurting?

"We urge legislators to ask themselves if they are helping or hurting Connecticut businesses and residents before passing any new legislation. Legislators should be working to make our state a more attractive place for investment so that we can grow our economy and create more and better opportunities for the state's citizens,” said Rathgeber.

At the beginning of the session, many legislators said they would “do no harm.” There's still time for them to keep their promise.

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Business leaders from CBIA, the Business Council of Fairfield County, the MetroHartford Alliance, the Middlesex County Chamber of Commerce, the Greater New Haven Chamber of Commerce, the Greater Bristol Chamber of Commerce, the Bridgeport Regional Business Council, the Waterbury Regional Chamber of Commerce and the Chamber of Commerce of Eastern Connecticut attended the news conference.