Session’s troubling trends affect businesses and state’s economy

(May 9, 2008) Despite a state budget deficit and a slowing economy, troubling trends in this year’s legislative session could put more pressure on state businesses and risk their ability to continue to provide and create good jobs.

“Businesses are worried about the direction of the General Assembly,” said John Rathgeber, CBIA president and CEO. “They hoped that legislators would take actions to create a pro-growth, pro-jobs business climate that can weather the current downturn and help businesses, residents and the state through the economic recovery.”

Although many proposals to increase business costs or add new mandates — mostly from the Labor Committee on employers were rejected, some of the most burdensome proposals – mostly from the Labor Committee — died only when time ran out on the session. Keeping these bills alive that long sent a clear message that Connecticut is an unfriendly state for business development and growth.

Unfortunately, there is a growing anti-business tone at the Capitol. For example, when addressing business concerns, some lawmakers are turning to state employee unions and other groups that do not represent the best interests of Connecticut businesses. State public-sector unions pushed a bill to open the state health care plan to municipalities and small businesses, paving the way for a state-run, single-payer health care system in Connecticut.

The business community will ask Gov. Rell to veto the health care bill because it doesn’t address the key issue of rising health care costs. Real health care reform will reduce cost drivers, improve the quality of care and provide the uninsured access to health care. Businesses and state residents alike believe the health care system should remain mainly in the private sector.

Outside groups pushed a bill that would have made Connecticut the first state in the nation to mandate paid sick time. They touted the proposal as a help to businesses. But employers responded that the paid sick leave mandate would cost them too much in terms of dollars and competiveness.

In a tough economy, lawmakers should strengthen the economy, not weaken it. CBIA applauds the governor, Republican leaders, House Speaker and those legislators who opposed efforts to discourage investment, slow economic growth and reduce job creation in Connecticut.