Connecticut’s continuing fiscal crisis has provided the opportunity for the state’s leading business advocacy group to submit its wish list for the legislature.
The underlying premise for Connecticut Business & Industry Association (CBIA) Public Policy Vice President Joe Brennan’s proposals [“Tough Decisions Must Focus On Economy, Jobs,” Hartford Business Journal, Dec. 7] is slashing more services for the small businesses and working families that have already been hurt by the downturn.
As someone who has worked for state taxpayers for over 20 years and has served as a local elected representative, allow me to offer some perspective he may be lacking as an outsider looking in.
It is true that Connecticut’s budget deficit requires tough decisions — choices that will impact the state’s economy and jobs now and in the future.
Gov. M. Jodi Rell has repeated countless times over the past year that the state’s budget is like a household checkbook and that balance is really quite simple to achieve.
It’s Complicated
But putting our collective heads in the sand and oversimplifying the crisis does not help the people of Connecticut. A half billion-dollar deficit is a complicated matter.
While Gov. Rell compares the state to an average household, Mr. Brennan compares it to an $18 billion corporation. Which is it?
Actually, while it is tempting to draw these parallels, they are inaccurate and potentially dangerous comparisons. If state government were a business, the volume of services would increase as the demand increases. The need for services is certainly rising during these tough economic times; families are in need of more support and assistance than ever before. But CBIA advocates cutting these services just as the demand rises.
State government exists to serve the people of Connecticut, not to turn a profit. What workers and business owners alike need is for our public officials to help them weather the storm so they can feel safe and secure in their jobs, in their communities, and in their homes.
Any budget deficit plan must include a way of helping small businesses and municipalities recover from cuts in services and funding. A good example of sound public policy is health care “pooling,” which reduces labor costs and provides much needed relief to businesses struggling to provide insurance coverage for their employees.
And we know that outsourcing public services simply doesn’t save dollars in the long run and hasn’t proven to ensure quality performance for taxpayers.
Budget Cuts Cost Jobs
We learned this firsthand when the Rowland administration directed the state Department of Correction to send inmates to prisons in Virginia on the premise of saving money. We are still paying for that decision in court-ordered damages awarded to inmates’ families for the facilities’ unconstitutional conditions.
While it might look good on paper, outsourcing ends up costing more at the end of the day, and the lack of oversight often results in fraud and corruption.
Finally, a deficit of this magnitude cannot be solved with cuts alone. An increase in the tax rate on the state’s top earners is a key component to getting us out of the red.
Economists agree that spending reductions are much more harmful during a recession than tax increases. For every $400 million in state funding cuts, 5,000 jobs are lost. Connecticut has already lost some 80,000 jobs and more cuts will only exacerbate the problem.
Property tax reform is also vitally needed to rectify Connecticut’s antiquated tax structure and alleviate the stress placed on the state’s cities and towns — financial stress that then gets transferred right to the people living there.
Gov. Rell recently spoke to a local chamber of commerce and she delivered her annual “holiday wish list” for the state’s political leaders. I’d like to offer my wish list for the people of the state of Connecticut.
I wish for a state in which the citizens can rely on quality services from their government. When they wake up each morning, they will know that their streets are safe, their roads are clear, their sick will be cared for, their children will be educated and their economy will be strong.
It is not out of reach — it requires a will to tackle the difficult choices and the strength of perspective.
Catherine Osten, president, CSEA/SEIU Local 2001
