CBIA Board of Directors Adopts Resolution on State Budget Proposal

Urges bipartisan cooperation in closing deficits

At their March meeting, CBIA’s Board of Directors adopted the following resolution regarding the governor’s 2016-2017 state budget proposal now before the legislature:

The CBIA Board of Directors believes that Connecticut has enormous economic potential: potential that can be reached if our state’s policymakers address the fiscal challenges that are weighing down Connecticut’s ability to thrive.

Connecticut can, and will, spur the necessary growth in our economy if we enact the reforms needed to break the continuous cycle of operating deficits, rising debt, and unfunded liabilities that threatens to undermine our future stability.

The Board recognizes the difficult challenge facing Governor Dannel Malloy and the Connecticut General Assembly in crafting a balanced biennial budget that adheres to the state’s constitutional spending cap, but believes that the Governor’s proposed budget and tax plan will strike a serious blow to business confidence and the state’s economic recovery.

The Board asserts that Connecticut can be a top destination for investment and job creation, but the state needs to encourage: not discourage: the investments that help create jobs; and that the proposed tax increases will threaten investments by the very companies that drive our economy.

Therefore, it is resolved that the CBIA Board of Directors urges the General Assembly to reject proposed reductions to key investment incentives as well as the proposal to make permanent the surcharge on the corporation business tax.

It is further resolved that Gov. Malloy and the General Assembly work together in a bipartisan manner to adopt a new two-year budget that:

• Is balanced without tax increases or borrowing, while continuing to make state government more efficient and effective
• Adheres to the state’s constitutional spending cap
• Encourages increased capital investment through competitive tax policies
• Implements proven spending reforms and best practices as recommended by the Connecticut Institute for the 21st Century and by CBIA

A strong economy helps Connecticut thrive, and there’s room to grow. The Board believes Connecticut can make meaningful and measurable progress to be a better place to work, live, and raise a family.

Resolution adopted March 10, 2015.