For Immediate Release
May 8, 2008

 

TROUBLING TRENDS IN LEGISLATIVE SESSION COULD HURT BUSINESSES AND THE STATE'S ECONOMIC VITALITY

 

Despite a state budget deficit and a slowing economy, troubling trends emerged from the legislative session that could put additional economic pressures on state businesses and risk their ability to continue to provide and create good jobs for Connecticut residents.

"Businesses are worried about the direction of the General Assembly. They are losing confidence in the state legislature's ability and desire to help them through the financial turmoil facing the economy. 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,” said John R. Rathgeber, CBIA president and CEO.

Although many of the bills that would have raised business costs or added new mandates on employers were rejected, the bill to raise the minimum wage passed. On a positive note, legislators and the governor worked to pass an identity theft bill, which protects consumers without placing undue burdens on employers.

But businesses are concerned about the growing anti-business tone and two troubling trends at the Capitol.

First, when addressing business concerns, some lawmakers are responding to initiatives put forward by state employee unions and other groups that do not represent the best interests of Connecticut businesses. The state 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 Governor Rell to veto the health care bill because it does not address the key issue of rising health care costs. Real health care reform must focus on reducing cost drivers, improving the quality of care and providing the uninsured access to health care. Businesses and state residents alike believe the health care system should remain primarily in the private sector.

"Building on the strengths of our current employer-sponsored health care system and focusing on health care cost-drivers, rather than adopting a new state-run system, is the best way to make health care more affordable and accessible to everyone in Connecticut,” said Rathgeber.

Outside interest groups pushed a bill that would have made Connecticut the first state in the nation to mandate paid sick time. They touted it as helping business — by improving productivity — but in reality it would have been costly and made them uncompetitive.

Second, many harmful anti-business bills introduced year after year by the Labor Committee keep advancing through the legislature only to die due to inaction and time constraints on the last night of the session. Keeping these bills alive sends a clear message that Connecticut is an unfriendly state for business development and growth.

"During these tough economic times, we all need to help strengthen the economy, not weaken it. We applaud the governor, Republican leaders, the House Speaker and those legislators who voiced their opposition to bills that would discourage investment, economic growth and job creation in Connecticut . They understand the consequences that these types of legislation would have on business competitiveness and the state's long-term economic vitality,” said Rathgeber.

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CBIA is the state's largest business organization, with 10,000 members.

 

For more information contact Nancy Andrews, CBIA media relations manager, at 860-244-1957 or andrewsn@cbia.com.

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