There’s a lot to like flowing from Governor Malloy’s Economic Summit.
Putting an emphasis on entrepreneurship and helping start-ups get a foothold is smart business. So is partnering with Startup America. Connecticut needs to be seen as among the innovators in entrepreneurship and that’s what joining this national collaboration accomplishes.
Creating additional loan and investment opportunities using public and quasi-public agencies also is a sound strategy … up to a point.
Clearly this summit was one act in a drama that will unfold over the month, culminating in the special session of the legislature.
But so far the emphasis has been on throwing money at the problems. That was the focus of the ‘First Five’ initiative; it was the focus of the investment in UConn’s Farmington health/bioscience center and it’s the focus of the deal adding Jackson Laboratory to that cluster.
The math on all this is scary, as Chris Powell details in a column on the adjacent page. We can prime the pump but this can’t be the heart of our effort.
Faced with a range of states offering Startup America-infused programs, what’s going to set Connecticut apart? As long as we have a business climate that’s known for high taxes, heavy regulation and a pro-labor bias, any comparison is going to be dicey. Sure, a subsidy can tip the balance. But the subsidy well isn’t bottomless.
The Malloy Administration has made a point of reaching out to the business community and its consistent message is ‘hey, we get it, trust us.’ That’s a message that’s important if true.
So far Team Malloy has only shown it ‘gets’ that throwing money at business problems has some appeal. He has made strides in reorganizing, repowering and refocusing the state’s economic development effort. He also has embraced the workforce development component of the problem and seems poised to make good progress in that sphere.
What we really need to see in the next three weeks is that Team Malloy also ‘gets’ that the underlying business climate needs an overhaul. Easing the regulatory and tax burden long term may well be a tougher nut for a true blue, tax-and-spend liberal like Malloy, but that’s what’s needed.
Malloy gets high marks for moving in the right direction. But fixing half the problem isn’t enough. Not on state spending. Not on tax credits. Not on workforce development. Not on economic development.
Keep going governor. Be bold in your recommendations and move us closer to getting it all right. That’s what will drive investments and job creation.
Not-so-friendly advice
When Governor Malloy told the state Conference of Municipalities that he fully expected to deliver the funding he’d promised cities and towns, he drew a rousing ovation. It’s always nice to please your friends and Malloy the Politician knows that.
But Malloy the Governor also must know that the relatively free ride can’t continue for municipalities. In these times of ‘shared sacrifice,’ the state government has so far shielded the local level from any meaningful reality therapy. To be fair, the federal government has also contributed by rushing in with last-minute aid to avert layoffs in a level of government that is by many estimates the most bloated and deficit-ridden.
A real friend would urge a friend to seek help for an unsustainable lifestyle. Both Governor Malloy and President Obama have chosen not to do so in the hope of avoiding any ballot box blowback from unhappy municipal workers.
That’s a short-sighted view and not in anyone’s best interest.
The clouds have been gathering for several years and soon municipalities will feel the new economic reality that has engulfed us all. Real friends would offer help in preparing for that day, not in avoiding it.
