🔒CT’s good, bad and ugly 2015

This is Hartford Business Journal's last regular issue in 2015, so it's a good time to reflect on the year and assess the good, bad and ugly events that impacted our economy and business community.

The good

Connecticut continued to gain ground in its economic recovery in 2015, even if the pace of growth wasn't robust. Through November, the private sector added about 26,700 jobs and the state's unemployment rate stood at 5.1 percent, the lowest it's been since early 2008. Home sales are up about 14.2 percent this year, although prices continue to lag. Meantime, the state's gross domestic product grew 4.8 percent in the second quarter, putting Connecticut ahead of the nation's 3.8 percent growth.

Downtown Hartford's resurgence also gained steam in 2015 as hundreds of new apartments came online, many of them filling quickly with Millennials and aging empty-nesters exercising their desires to live in urban environments. Construction of a minor league baseball stadium and UConn's new downtown campus also got underway as did plans for a broader redevelopment of the city's Downtown North corridor, which last week landed a Hard Rock hotel and cafe as a major tenant.

Next year will be another important stepping stone for Hartford's renaissance as more apartments come online and the Hartford Yard Goats kick off their inaugural season. The true test in Hartford's progress will be whether or not the city attracts more activity and visitors outside the workday and on weekends.

The bad

Connecticut's fiscal crisis dominated the headlines in 2015, as budget deficits opened and closed the year, with more troubled waters brewing in 2016 and beyond. Despite job gains, Connecticut's slow economic recovery has stalled growth in income and other tax receipts, forcing Gov. Dannel P. Malloy and state lawmakers to pass tax increases and spending cuts throughout 2015 to rectify budget deficits.

State lawmakers have still failed to come up with ideas that confront Connecticut's structural deficit problems, and further red ink is projected for the next two fiscal years.

An inability to navigate Connecticut's choppy fiscal waters poses one of the biggest threats to the state's economy. The only way Connecticut gets out of its fiscal morass is through more robust economic growth, but before that happens the business community needs a more reliable tax and regulatory environment.

The ugly

The $1 billion in tax increases passed by state lawmakers in June created a new wave of animosity from the business community that still hasn't been totally reconciled.

Very rarely, if ever, do major corporations speak out publicly against state policies, but it happened in 2015 when General Electric, Aetna and Travelers issued public statements condemning the General Assembly's biennial budget passed in June. A new unitary reporting system for corporate taxes, reductions to research and development tax credits, and restrictions on carried-forward losses were among the changes that drew the ire of CT Inc.

Hospitals too waged a verbal war, largely with Gov. Dannel P. Malloy after the Democrat proposed $60 million in funding cuts to care providers, and then accused top hospital executives of being paid excessively.

Make no mistake, Connecticut's tenuous business climate took another hit in 2015. Yes, lawmakers smartly rolled back some of the tax hikes they passed in June, but the idea that the business community can rely on the legislature to create a fair and reliable business environment went out the window. And with the threat of further deficits in the years ahead, there are no signs that more tax increases won't be on the table. 

Read more

Seeking accord - Lawmakers push for budget pact; biz frets over mandates

Agwunobi pairs smart business with better health

Malloy’s budget offers Republicans chance to lead