Connecticut is facing the twin challenges of fiscal shortfalls and a rapidly changing economy that is making it harder for working families to make ends meet.
Get Instant Access to This Article
Subscribe to Hartford Business Journal and get immediate access to all of our subscriber-only content and much more.
- Critical Hartford and Connecticut business news updated daily.
- Immediate access to all subscriber-only content on our website.
- Bi-weekly print or digital editions of our award-winning publication.
- Special bonus issues like the Hartford Book of Lists.
- Exclusive ticket prize draws for our in-person events.
Click here to purchase a paywall bypass link for this article.
We have reached an important point in the history of our state.
Connecticut is facing the twin challenges of fiscal shortfalls and a rapidly changing economy that is making it harder for working families to make ends meet. Yet every crisis provides an opportunity to change direction and it appears some Connecticut policymakers are looking past the crisis of the moment to plan meaningfully for the future.
The Connecticut Institute for the 21st Century believes priority-based budgeting is the best way forward. That means state leaders must decide policy priorities first, followed by a discussion of how the programs should be funded.
Ideally, Connecticut would ultimately match its public spending to levels that fit within existing revenues. This approach to budgeting would also lead to a reassessment of the state's tax structure.
The work of the Commission on Economic Competitiveness is heading down a similar path in its early work. Its first findings reveal a declining working-age population, a growing or steady population of older residents, a greater demand for social services and a declining tax base to pay for it all.
Taken together, the commission's work speaks to the need for policymakers to decide how best state government can partner with the private sector to steer our economy in the right direction.
An honest assessment of strengths and weaknesses can help the governor and legislators make thoughtful decisions on policies and programs designed to maximize Connecticut's strengths and correct weaknesses.
A highlight of the last session may also be the policy thinking behind an initiative put forward by Sen. John Fonfara (D-Hartford), the co-chair of the Finance, Revenue and Bonding Committee. The goal of the plan is to create 500,000 new jobs and 500,000 new Connecticut residents over the next 25 years. To get there, the legislation promotes entrepreneurship, innovation, private investment and a greater economic engagement with Connecticut colleges and universities.
If state government is truly committed to this approach as a partner with the private sector, this legislation could mark a turning point in the effort to create a more modern economy based on business sectors that are expected to grow over the next several decades. It does not set up state government as a referee over the marketplace, but instead asks government to do what it can to create the conditions for growth.
The look toward the future is a positive trend for Connecticut. Our state's elected leaders know they face many short-term challenges. The budget is still projected to be out of balance by substantial margins over the next two years.
The good news is a growing number of the state's elected leaders are now looking to solve Connecticut's problems on a two-track basis; one short-term and one long-term.
Given the nature of the political process through which we govern ourselves, this is probably the best path to take to ensure sound fiscal policy and spark economic growth.
Scott Bates is the executive director of the Connecticut Institute for 21st Century, a non-partisan, data-driven organization advancing public-policy solutions.
