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February 2, 2015 Editorial

Onus on legislature to maintain CT’s economic momentum

Connecticut's economy had its best year in over a decade in 2014, as the state added 26,700 net new jobs.

We haven't seen that type of job growth since 1998, a good sign particularly with the private sector leading the way.

Now, the onus is on the state legislature not to screw up Connecticut's momentum. But there are plenty of speed bumps ahead.

The 800-pound gorilla roaming the halls of the State Capitol remains a budget that faces $1.3 billion in red ink over the next two fiscal years. How the legislature and Gov. Dannel P. Malloy balance the budget will have a significant impact on the state's business climate.

While Malloy and many legislative leaders have opposed the idea of raising taxes, we remain skeptical in their ability to cut spending enough to make ends meet.

Make no mistake, trimming a billion dollars from a $20 billion or so budget is no easy task, particularly for a legislature known for its spending habits.

Don't be surprised to see some stealth tax increases like higher permit fees or caps on certain business tax credits.

Beyond the budget, lawmakers must also be cautious about legislative proposals that could handcuff hiring. Adding tolls to state highways has the business community on edge. Meantime, some lawmakers on the Labor and Public Employees Committee have expressed interest in expanding the state's paid sick leave mandate to include small businesses and establishing a new paid-family leave policy for all Connecticut companies.

The Connecticut Business & Industry Association referred to such proposals as a “mandate war being waged on small businesses.” We won't go that far, but such measures won't inspire business confidence.

To be fair, the General Assembly doesn't have full control over the economy. In fact, according to a 2012 analysis by UConn economist Steven Lanza, Connecticut influences only about 15 percent of its economy. The rest of the state's economic fortunes are driven by regional and national economic forces, Lanza's analysis found, which means the U.S.'s strengthening dollar will likely have a more detrimental impact on Connecticut, than anything the state legislature does or proposes.

Still, perception is reality and if the legislature prescribes a bad dose of tax increases or new mandates, it will send a bad message to the business community, both here in Connecticut and abroad.

So as we celebrate 2014's job gains, lawmakers must be conscious about carrying that momentum forward. How they act and vote over the next few months does matter, even if the state doesn't have full control over its own destiny.

CT’s snow response deserves praise

While all of Connecticut didn't feel the full force of last week's blizzard, the snow storm still packed a powerful punch delivering more than two feet of snow in Eastern Connecticut and significant wind speeds across the state.

But Connecticut made it through the storm OK, with only a few thousand power outages (that were quickly rectified), few accidents and injuries, and adequate snow removal in most cities and towns.

Many people deserve credit for the quality response, ranging from Gov. Malloy to city and town leaders and public work employees, and even utility companies.

It appears the 2011 storms that knocked out power to some Connecticut residents for more than a week has taught state and local governments as well as Connecticut Light & Power and United Illuminating how to better prepare and deal with major snow events. Government is often an easy target for criticism, but when state and local leaders get things right they deserve our praise. Let's hope they keep up the good work when the next snow storm hits.

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