Hartford Business Journal

20 Hartford Business Journal • January 7, 2019 • www.HartfordBusiness.com Opinion & Commentary EDITOR'S TAKE Progressives pose early challenge for Lamont A s Gov.-elect Ned Lamont prepares to take office Jan. 9, it would appear he has the political winds at his back. Yes, the Democrat has to deal with a structural budget deficit with no easy fixes, but his party controls both chambers of the legislature, which means he could face little resistance implementing his agenda. But I'd argue Democrats' stranglehold over state government will actually turn out to be one of Lamont's biggest challenges early on, especially with the growing influence of the progressive caucus, whose support for a minimum- wage increase, paid family medical leave, and tax increases on the wealthy all pose threats to Connecticut's already tenuous business climate and economy. Lamont's success, like his predecessor's, will largely be measured by his ability to balance the state's budget on a long-term basis, while also promoting an environment fertile for economic growth. He will need support from the business community to make that happen. Democrats, of course, made big gains during the recent election, riding an anti-Trump wave to a renewed majority in the Senate and more power in the House. Democrats added 12 seats in the House giving them a 92- 59 majority over Republicans. In the Senate, they gained five seats, which turns last year's 18-18 tie into a 23-13 advantage. The bigger headline in my mind is the growth of the fledgling progressive caucus, which will have 45 members in House, meaning they will occupy half of Democrats' seats in that chamber, according to a recent report by the Connecticut Post. That could translate into a very strong voting bloc that poses challenges for Lamont, who has talked about implementing a pro-business agenda, while also sticking to his progressive instincts. That will require a delicate dance. In reality, Lamont supports many of the items on progressives' policy wishlist, and in some ways he may be a more liberal governor than Dannel P. Malloy, who, in his second term, began to realize that legislation that increases the cost of do- ing business in Connecticut — or raises taxes on the wealthy — is not in the state's best long-term interests. Lamont, for example, repeatedly said on the campaign trail that he'd sup- port gradually raising the minimum wage to $15 an hour and implement- ing paid family medical leave. We'll see if he changes his tone once he gets pushback from the business community. To be clear, these are noble policy endeavors. Most employers would like to give their workers higher pay and added benefits, but a one-size-fits-all, government- mandated model will hurt Connecticut, which is already ranked as one of the worst places to do business in the U.S. by several publications. It is true that some large employers in this state have already moved toward a $15 minimum wage and adopted paid family medical leave. But that shouldn't give us a false sense that such perks should become mainstream. In fact, large employ- ers, which are competing for global talent, are in the best position to afford such benefits. It's the small and mid-size companies that will be hurt most. I'm not saying Connecticut should never adopt these policies. Someday, there will be a time and place, but the state's economy is still underperforming the rest of the nation. Continuing to raise taxes on the wealthy, something Malloy did twice, has also proven to be an ineffective cure to the state's fiscal problems. The state Democratic party should not equate its November victories with an open-ended mandate to implement an ultra-progressive agenda. If it weren't for Trump and another weak GOP gubernatorial candidate, the makeup of our legislature would likely look very different right now. What residents want most is a vibrant economy that provides job- and wage- growth opportunities. Greg Bordonaro Editor OTHER VOICES Hartford is a great city. So why don't you know it? By Greg Andrews D ramatic changes in Hartford are transforming the core of Greater Hartford. The city, however, remains shackled with a negative image that exagger- ates its problems, ignores its many strengths and seriously affects the re- gion's ability to build on its momentum. Let's examine those negative perceptions and get some fact-based perspectives. Hartford's reputation as one of the poorest and most violent cities in America distorts reality. The list of the 20 poorest American cities with populations of 65,000 or more includes Detroit, Cleveland and Philadelphia, among others, but not Hart- ford. Among the 100 most violent American cities, Hartford ranks 57th — safer, for example, than ad- mired cities like Minneapolis, Atlanta and Washington, D.C. Greater Hartford is the eighth rich- est metropolitan statistical area in America, just behind icons Boston and Minneapolis and ahead of Atlanta and New York. The wealth and resources of this region are real, but historical anomalies have largely placed them outside the core city, whose postage- stamp size of 18 square miles greatly exaggerates its negative statistics. Hartford's precarious finances are another source of negative stereotypes. The reality: Approximately half of Hartford's land is comprised of non- taxable government and nonprofit entities such as hospitals, colleges and museums. Growth of taxable properties has occurred primarily outside of land- locked Hartford. The region's social services are concentrated in Hartford, which must also provide for and main- tain the urban infrastructure for more than 100,000 daily commuters. Connecticut's antiquated and inequi- table taxing structure is a major source of Hartford's fiscal woes; Hartford's municipal leaders cannot fix that. The sense that Hartford is a shad- ow of the glorious, trendsetting city of the past haunts us today. Many see Hartford's historic achievements as evidence that the city is a "has been." Historic milestones like the first written constitution, the nation's oldest continuously published news- paper, the first public art museum, the first public park, the first public rose garden are well-known. But later firsts, like the first coin- operated telephone, the first automo- bile ride by a U.S. president and the first jump using nylon parachutes, il- lustrate that innovation did not end in the 18th century. Inventors and busi- ness leaders from Hartford changed the world in the 19th century. It would not be a distortion to dub Hartford as the epicenter of the "Silicon Valley of the American Industrial Revolution." This positive self-image, two cen- turies in the making, collapsed in the mid-20th century. Hartford, like many cities, fell victim to changing eco- nomic fortunes, outward migration, and rising levels of inner-city social and economic issues. With lightning speed, a chunk of Hartford's strong commercial and business core, popu- lation and self-identity disappeared. A negative image overcame centu- ries of pride and accomplishment. In "the Land of Steady Habits," negativity and pessimism have become habitual. It's time to break that habit. Hart- ford is once again becoming a center of innovation and economic vitality. Check out just a few recent headlines: Hartford, No. 4 U.S. tech city; seventh for tech-talent growth; top metro for jobs in 12 of 21 professional fields; No. 3 among best American cities for women in business. And Connecticut? No. 3 among America's best states to live in. The Capital City is booming. The evidence? New downtown housing — at full occupancy with more being constructed; the nation's best minor- league baseball stadium sold out for most games; a new professional soccer team; a thriving InsurTech hub; a downtown manufacturing and research center; the restoration and repurposing of the factories where precision manufacturing was born. Ravi Kumar, president of Infosys, a global technology company that recently opened a Hartford tech hub, knows a good thing when he sees it. "I am convinced Hartford's best days are still ahead … and Hartford has the potential to become a desti- nation for companies of the future," he said recently. With a robust image of Hartford at its core, a bright long-term future is within our grasp. Greg Andrews is the director of Leadership Greater Hartford's Executive Orientation Program and Hartford Encounters, tours highlighting Hartford's assets. Greg Andrews The Democratic party should not equate its November victories with an open-ended mandate to implement a progressive agenda.

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