2008 in review:
Lawmakers losing sight of need for healthy business climate

(May 20, 2008) With the nation’s economy faltering, many state lawmakers began the 2008 General Assembly in February by saying that they wanted to make sure to “do no harm” to Connecticut’s economy. It was a good idea backed by several proposals — from potential tax reform to regulatory relief and worker-training programs — that would have strengthened Connecticut’s business climate.

Unfortunately, the national downturn also slowed state tax revenues and nullified many positive proposals that would have affected the state budget. That was understandable; hard to understand, however, was why some lawmakers kept pushing measures that would in fact “do harm” to Connecticut’s economy and business climate.

There was a growing legislative drift away from promoting a healthy business climate, one that produces competitive employers. Nearly lost was the fact that only a vibrant economy can produce good jobs and a better quality of life — and the tax revenue the state needs to provide much-needed services to the people of the state.

Less business experience
With each session, fewer lawmakers bring real-world business experience to the legislature. Many don’t understand how good-sounding ideas can produce some very bad economic consequences. Public-sector labor unions are becoming increasingly influential, fueling a growing anti-business sentiment in the legislature.

The Labor Committee once again took a strong anti-business slant and promoted measures that would increase business costs, penalize employers and make it harder for companies to compete and succeed.
It’s troubling that the committee’s actions don’t match the concerns and views of the people of Connecticut.

What the people say
According to a survey by the impartial national pollster Zogby International, nearly 90% of Connecticut workers are satisfied with their jobs. Just about everyone (98%) believes it’s important for businesses to succeed and earn a profit. Residents consider economic growth and job creation the two most important issues facing Connecticut.

It shouldn’t be surprising that families in Connecticut, who benefit from good jobs with competitive pay and benefits, trust their employers and want them not to not only succeed, but thrive.

Remarkably, however, businesses found themselves fighting a rash of legislative proposals that would have harmed their state’s economy and their ability to compete. Some of the most harmful proposals are discussed in this week’s edition of the Government Affairs Report; it’s almost certain they will return in the 2009 session.

These trends point up the need for Connecticut’s business community to become more involved in helping state legislators draw up proposals that will allow employers to compete, grow and add jobs. Employers also need to explain to legislators the negative impact certain proposals would have on their ability to compete.