(June 5, 2009) Despite a large state budget deficit, and with residents and businesses struggling to survive the worst economic recession in recent history, state lawmakers ended the 2009 General Assembly session this week without adopting a new state budget or taking any significant actions to improve the economy and spur job creation.

“We’re disappointed that the General Assembly didn’t respond to the concerns of Connecticut residents and employers,” said John Rathgeber, CBIA president and CEO. “Both clearly identify the economy and jobs as their top priorities, but the legislature didn’t pass a budget. Nor did it pass any bills that would help the economy move forward, help businesses create jobs, or secure our economic future.”

Lawmakers immediately went into a special session that will focus on the state budget. With the new fiscal year starting on July 1, the legislature has its hands full trying to resolve a budget deficit of more than $900 million this fiscal year and an anticipated gap of nearly $9 billion for the next two years.

CBIA is urging lawmakers to work together to avoid adopting tax increases that would cause further harm to the state’s economy. They should, however, pass a state budget that will demonstrate a strong commitment to economic growth and jobs. It’s important that lawmakers craft a balanced budget with spending cuts to make state government leaner, less expensive, and more effective.

After all, that’s exactly what Connecticut residents have been asking them to do for months. Several independent surveys by Quinnipiac University and Zogby International this year have revealed that the people of Connecticut want a smaller, more efficient state government. Worried about the recession, they don’t want tax increases that will make it harder for their employers to offer good jobs.

Connecticut has already lost more than 65,600 jobs in the last year because of the recession. Many economists fear the total could approach 100,000 before the downturn reverses.

Prior to the end of the session, both Gov. Rell and Republican lawmakers offered no-tax-increase budget proposals that included spending cuts and a downsized state government, but Democratic leadership rejected them. CBIA applauds the governor and Republican lawmakers for consistently promoting a smaller and more affordable state government.

For more information about the special session, contact CBIA’s Bonnie Stewart at 860-244-1925 or bonnie.stewart@cbia.com.