🔒Business lobby plots more aggressive stance with lawmakers

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Central Connecticut chambers of commerce and trade associations are banding together to take a more aggressive and proactive stance during the upcoming 2016 legislative session, hoping to lay the groundwork to create a more business-friendly state.

At the behest of the Connecticut Business & Industry Association, area chambers and trade associations representing various key industries — health care, energy, retail, among others — met Sept. 21 to discuss their goals for next year's legislative session, marking the first time in nearly a decade various pro-business lobbying groups gathered in advance of a General Assembly session.

Their meeting was not open to the media, but various attendees say their mission is to increase the state's overall economic competitiveness by preventing lawmakers from adopting detrimental tax and regulatory changes, urging updates to the state's fiscal structure through changes like pension reform, and hopefully rolling back tax hikes so more companies feel they can do business in Connecticut.

“Everybody agreed that this is what we need to do. We need to have a more aggressive stance in the legislature,” said James Albert, president and CEO of the Central Connecticut Chambers of Commerce. “This is more of an offensive approach than we have seen in many, many years.”

The gathering came after this year's legislative session ended with a $1 billion tax increase — including a new unitary reporting tax, stricter limits on tax credits, higher sales taxes on computer services and an increase in the hospital provider tax — that left the business community crying foul and warning of significant repercussions to the state's economic competitiveness. Even though Gov. Dannel P. Malloy rolled back the tax increases by $178 million during a special session, damage was done with major companies like Fairfield conglomerate General Electric warning they were going to move out of the state. GE is expected to announce its new headquarters in December.

Business lobbying groups plan to be more explicit with lawmakers on the implications of any tax or fee increases and other regulatory changes, said Timothy Stewart, president of the Greater New Britain Chamber of Commerce. A firmer, more public stance seemed to work at the end of the most recent legislative session, as sharp criticisms and threats to leave the state by GE, Aetna and other Connecticut employers caused Malloy to re-think some tax increases.

“It was a more defensive approach this year, unfortunately, and we want to be more proactive next year instead of reactive,” Stewart said. “We are trying to get on offense.”

Subtle shifts

The shift in lobbying strategy started when the CBIA took a noticeably more standoffish position in February after Malloy revealed his initial budget proposals that included several business tax hikes. CBIA's change in tone came in Joe Brennan's first year as the president and CEO of the association. It also came in the midst of CBIA's 20X17 marketing campaign, which urged lawmakers to adopt policy that would help Connecticut be ranked among the top 20 states in the nation for economic competitiveness.

The legislature responded by passing one of the largest tax hikes in state history.

Prior to the CBIA's more hard-charging attitude this year, the business lobby used a more cordial, obliging tone with the governor and legislative leaders, Albert said, which didn't necessarily get business' voice heard when it came time to dictating policy.

“[Brennan] is being more aggressive about raising the voice of the business community in the legislative process,” Albert said.

State Sen. Minority Leader Len Fasano (R-North Haven) said the attitude change and joint chorus of boos from various trade groups and chambers got the business lobby a seat at the proverbial negotiating table.

“In our building, we have a saying, 'If you are not at the table, you become the meal,'” Fasano said.

However, because the hard-charging approach didn't come until the end of the session, not much could be done except for the small rollback in tax increases, Fasano said.

Looking ahead

To be proactive in 2016, the business groups decided to meet in September to develop a legislative agenda, which will include a list of what the various groups collectively want along with tactics and research on issues to strengthen their negotiating position with lawmakers, Albert said.

The overall message will be economic competitiveness, Brennan said. The details of that message will include many of the recommendations from the Connecticut Institute for the 21st Century — an organization of government and business officials — including pension reform and shifting more social services onto lower-cost nonprofits.

Even though the legislature won't pass a new state budget until 2017, Brennan said it is important the business lobby remains on top of the state's fiscal condition, since there is already a $900 million deficit projected for the current two-year budget and businesses don't want further tax increases.

“Hopefully, we can get them to roll back taxes,” Brennan said.

By pushing for incremental improvements, especially during off-budget legislative sessions, the business lobby wants to build a stronger fiscal foundation for the state, which will eliminate the need for the constantly shifting tax policy and other government revenue grabs, Brennan said.

“If we don't see greater growth in our economy, we are all going to be in trouble,” Brennan said.

The last time the chambers and various trade associations got together before a legislative session was near the end of the 2000s, said Oz Griebel, president and CEO of the MetroHartford Alliance.

It makes for a much stronger message when these groups can compare thoughts beforehand and come up with a common set of goals, Griebel said.

One surprise at the Sept. 21 meeting was the attendance of several nonprofits, Albert said.

Nonprofits and the business lobby sometimes are at odds during the legislative session as nonprofits urge lawmakers to maintain or increase social service funding while businesses push the state to restrain spending and reduce taxes.

“But the nonprofits understand that if the business community suffers in any way, they tend to see that reflected in the amount of philanthropic donations they receive,” Albert said. “Economic development and community development go hand-in-hand, and you really can't have one without the other.”

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