Why Connecticut’s Fiscal Issues Matter for Economic Growth

Business leaders and politicians have different timelines.
A long-term strategy for a politician often looks out until the next election.

Businesspeople, on the other hand, have planning horizons that span 10 to 20 years. For them, a short-term strategy looks at the next three to five years.
Industries that rely heavily on R&D–pharmaceuticals, for example—have product design and development cycles that could stretch out over 30 years.
When business executives consider where and when to invest, their time horizon far exceeds that of most policymakers.
That’s why businesses are really sensitive to how well policymakers manage public finances.
Solid state fiscal policy gives business leaders assurance that they can predict tax liability over the span of their investments. Poor or uncertain fiscal policy leaves them guessing.
How will government pay for fiscal shortfalls?
Will they hit up our company by raising taxes? Adding new ones?
Are other states where we have facilities (or could have operations) more fiscally prudent and predictable?
Connecticut's ongoing fiscal fiasco, including tens of billions of dollars in unfunded liabilities that the state is ultimately obligated to pay—with our tax dollars—is everyone’s problem.
It affects not only businesses and the local economy but also workers and families.
If we want to see jobs and growth in our state’s economy, policymakers need to demonstrate that they have the state's finances, including unfunded liabilities, under control.
This second special session is a step in the right direction, but the road ahead is long.