State faces funding shortfalls; local economy holds own
With worldwide markets getting the jitters in late January on fears of a U.S. recession, Connecticut may have to steel itself for tax-revenue shortfalls, with possible implications for the legislative session that starts next week.
The economic performance of Fairfield County, which accounts for a third of the state’s economic activity, may have a significant impact on the overall state budget. Even after stocks swooned in mid-January, market observers said the local economy has demonstrated resilience.
The Democrat-controlled Connecticut General Assembly reconvenes Feb. 6 and is scheduled to adjourn May 7. A budget impasse pushed last year’s session into the summer months; Republican Gov. M. Jodi Rell succeeded in pushing through $3 billion for the state’s school system, in theory giving budget relief to municipalities to induce them to cut property taxes.
In its legislative priorities released earlier this month, the Connecticut Business & Industry Association urged legislators to lower business costs that make Connecticut the fifth most expensive state in the nation in which to do business.
Hartford-based CBIA encouraged legislators to:
• Reject efforts to replace Connecticut’s market-based insurance system with a tax-funded, government-run health care system.
• Use electronic medical records to reduce medical duplication and errors.
• Encourage employers to offer “wellness” incentive programs.
• Raise the state’s Medicaid reimbursement level for providers’ costs.
• Reduce mandates on insurance coverage and allow health plans to create more-flexible health benefit programs.
• Expand electricity transmission lines and natural gas pipelines.
• Provide further incentives for energy conservation.
• Control workers’ compensation costs.
• Improve the academic performance of Connecticut students.
• Improve Interstate 95 in southwest Connecticut.
• Expand Bradley International Airport’s impact on the economy.
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