State Budget: Progress, More Aggressive Action Needed

CBIA released the following statement from president and CEO Joe Brennan today following House passage of the Fiscal Year 2017 state budget deficit mitigation package.
“This budget deficit mitigation package is a first step in the long process of addressing Connecticut’s fiscal challenges,” Brennan said.
“While the plan does not contain as many structural reforms as we would like, the spending reductions are recurring and will significantly reduce the size of the projected shortfalls in future budgets.
“The cuts are real, and they are difficult, but necessary. They are necessary because we are still paying the price for last year’s tax increases that cost us much-needed investment and jobs.
“This package contains no tax or fee hikes. It is essential that the state continue down the path of fiscal discipline, because resorting to past practices will only lead to further erosion of our tax base.
“Make no mistake–tax increases next year will be as harmful and ill-advised as they would have been this year.
“The next step is to aggressively pursue additional structural reforms to state government and to adopt effective measures that ensure Connecticut has a workable spending cap that helps avoid future fiscal crises.
“If Connecticut’s economy is to reach its full potential, we must take the best ideas from Republicans and Democrats and have a legislature committed to fiscal discipline, economic competitiveness, and growth.
“We look forward to working with those policymakers who share our goals for Connecticut as we take on the challenges before us.”

CBIA is Connecticut’s largest business organization, with thousands of member companies, small and large, representing a diverse range of industries from every part of the state. For more information, please email or call Meaghan MacDonald (860.244.1957).