Q&A talks about what small businesses want from the state legislature this session with Andy Markowski, state director of the National Federation of Independent Business in Connecticut.
Q: With the General Assembly back in session what are some of the major issues the National Federation of Independent Business is going to make a priority?
A: The No. 1 issue on small business owners’ minds is the overall state fiscal situation, specifically, the state budget and taxes. Economic uncertainty is one of the leading concerns of our members because without a solid basis to form a budget for the future, small business owners cannot make sweeping changes for staffing or benefits if they don’t know how much they’re going to pay in taxes from one year to the next.
It is imperative to owners that spending at the state level stabilize first so the General Assembly can then turn their focus in the long term to reforming taxes and making Connecticut an environment conducive to growth for the small-business sector. But before we get to the long term, we all have to focus on the short term. And for small businesses in Connecticut, that means a new state budget that is balanced, fiscally responsible without undue borrowing, and most importantly, does not contain new or increased taxes.
Q: The jobs numbers for Connecticut have been improving lately, but what do you think the state legislature needs to do to get employment numbers back to pre-recession levels?
A: If the legislature would like to see our employment numbers mirror pre-recession levels, the best way to achieve that, and quickly, is to stop enacting new mandates on employers so that they can properly plan for the future and make well-informed hiring decisions. Furthermore, anything the legislature can do to free up more money for consumer and business-to-business spending (i.e. lowering costs of health care, energy, etc.) would be very welcome.
Q: Speaking of unemployment, what should be done to improve unemployment insurance costs in Connecticut? They’re the highest in the nation as of Jan. 1. What could fix that from your perspective?
A: Overall economic conditions help drive unemployment insurance costs, but Connecticut needs to look at reforming and restructuring benefit payouts as well. While the state Department of Labor has made some headway in rooting out fraud and overpayments, it’s incumbent upon the legislature to pass loftier reform. Simple changes like mandating those collecting unemployment to indicate where they are applying for jobs will help cut down fraud and costs, which will result in small businesses feeling some relief. And while it is fiscally responsible for the state to pay down the unemployment fund debt, this cannot come on the backs of small employers through additional surcharges and higher taxes.
Q: How does the state go about fixing its transportation infrastructure without burdensome gas tax increases and other new levies?
A: Thankfully, the price of gas has decreased, which has been a help to small business owners across the state. In order to improve our infrastructure, the state must start by budgeting responsibly. If funds are dedicated for transportation, the opportunity should not exist to divert them away from improving our roads and bridges.
In the past, we have heard from our members that they are against reinstating tolls and we anticipate that if a toll hike is attempted in the near future, support will be mixed, at best.
Q: There’s a perception, rightly or wrongly, that Connecticut is a difficult environment for business because of its regulatory climate. How can the state become more business friendly? Are there changes NFIB will push for?
A: It would truly be a change if the legislature could, at the very least, leave things the way they are. We hear over and over from small businesses that the uncertainty and changing mandates are the most frustrating part of doing business in Connecticut. That being said, if the legislature wants to begin somewhere, NFIB would certainly support a complete repeal of the business entity tax. In the past, NFIB has also been supportive of legislation that would allow for first time remediation of fines and the creation of a regulatory fairness board, similar to a model that exists at the federal level administered by the Small Business Administration. Additionally, soaring energy costs are burdensome on our members. Lowering the cost of energy, specifically electricity, and providing alternative energy in Connecticut are fundamental ways to improve the business climate here.
Q: There’s a general consumer perception that they personally are recovering but the economy isn’t in general. Is that same perception true among business owners?
A: Unfortunately, the sentiment among small business owners almost universally is that they are not feeling the recovery or revival. Many are not taking paychecks, and haven’t for a long time, in an attempt to keep their business afloat and provide as much as possible for their employees. They are trying to be resilient, flexible, and entrepreneurial just to survive. And I intentionally use the word survive because for many small business owners I hear from, that is the word they use. They feel they are just trying to get by day to day and keep their business running. And we are not talking about risky or startup businesses; We are talking about well-established companies that are cornerstones of their communities. Unfortunately, as the saying goes, perception is reality. Fortunately though, the entrepreneurial spirit lives on among small business owners, who are hopeful for improving conditions and a better year ahead in 2015. But the fate of much of that continues to remain in the hands of state government.
