Budget fixes must support economic growth
Gov. Malloy’s proposal to trim state expenses and cut personnel costs provides a good foundation for the General Assembly to build upon.
Clearly he understands that we can’t solve our fiscal crisis without growing our economy and getting people back to work, and that it must be done in a way that makes our state more attractive to private-sector investments and job creation.
It is absolutely critical that the administration achieves its proposed $2 billion reduction over the next two years in state employee compensation costs, and that it works with the state legislature to identify additional spending cuts to reduce the size and scope of the proposed $1.5 billion tax increase.
CBIA urges the legislature to seriously consider recommendations being made in our neighboring states to reduce their budgets and limit tax increases. In addition, the Connecticut Regional Institute for the 21st Century identified cost-cutting options impacting state employee pensions, long-term care and prisons.
Nothing has undermined business confidence more than our budget crisis and less-than-friendly business climate. The governor’s commitment to becoming a better partner to the business community is very encouraging, but we urge his administration to continue working with the legislature to make state government leaner and more affordable.
John R. Rathgeber is president and CEO of the Connecticut Business and Industry Association.