NewHavenBIZ

30 n e w h a v e n B I Z | M a y 2 0 2 3 | n e w h a v e n b i z . c o m O t h e r V o i c e s By Stephen K. Henn T he solutions are simple; the poli- tics are hard. Two months ago, I criticized the happy talk from Hartford because it obscures the financial challenges our state faces. Under nearly every objective analysis, Connecticut's fiscal condition is deteriorating and to pretend things are fine does not serve the residents of this great state. According to Truth in Accounting, Connecticut is part of the Bottom Five "Sinkhole States" for taxpayer burden ranking 49th out of the 50 states. (anks, New Jersey!) e good news is that solutions to our problems are simple and easy to under- stand. e bad news is that it will take political will that few of our representa- tives have shown they can muster. ere are three areas I would suggest we target for rethinking: 1. Public Pensions 2. Tax Structure 3. Spending Priorities Our public employee pension crisis Our public employee pensions are bankrupt by any responsible measure. Our political class has over-promised and has hidden the real cost of our obligation for years. While some mild reforms have been passed by the State, the current eco- nomic conditions in the U.S.—which are unlikely to change any time soon—have more than eliminat- ed any possible benefit from reforms. is is by far the biggest fiscal challenge we face. is crisis will be solved in one of two ways. e first is bankruptcy. e money is not running out; it has run out. It is simply a matter of time before financial reality wins. If that happens, then a lot of hard-working state em- ployees will see their retirement plans destroyed. (But at least the politicians can blame someone else.) e second way is through the union members. Any union or former union member under 55 years old will not see the retirement benefits they have been promised. It is not fair, but it is the truth. e smart approach would be to get the state to "convert" the defined benefit plan to a plan that provides each member with a lump sum today and future contributions. e time to negotiate the best deal for our public sector employees is now, before the question is before a bankruptcy judge. Our tax burden According to the Tax Foundation, Connecticut has the second-largest state and local tax burden in the country. (anks, New York!) It is very difficult to attract or retain residents with a tax burden that high. Unfortunately, our fiscal condition prevents a quick, sharp reduction in that burden. at said, the state needs to both commit to a reduc- tion in the tax burden of its citizens and rethink what taxes it collects. One thing we need to consider is reducing the personal income tax rate and replacing this revenue with tolls collected on our highways. Tolls are a use tax. at is, you pay only if you use the roads. Collecting revenue from out-of-state vehicles using Connecti- cut highways seems fair and matches what nearby states are doing. Further, toll rates can be customized by making toll collection near the borders higher than in the interior. Automated toll collection, such as Massachusetts and New York's EZPass, is becoming ubiquitous and needs consideration as a long-term replacement for personal income taxes. Our future priorities Connecticut is headed in the wrong direction. If we are truly interested in growing the state and offering good jobs and a wonderful lifestyle for our residents, we need to start implement- ing policies that have been proven time and again to achieve those goals: fiscal responsibility and a business-friendly environment. e first step is to stop the growth of spending in the state. at means freezing "mandatory" spending. To those who protest that mandatory spending is required by law, I say change the law. Mandatory spend- ing laws are designed to give politicians an excuse to continue to ratchet up spending. ese laws can be changed by those very same politicians. Finally, the Blue State model—prac- ticed in Connecticut by Democrats and Republicans alike—does not work. Connecticut needs to reduce the regulatory and fiscal burden to attract businesses and residents. Connecticut has historically been very attractive to Fortune 500 companies, but the business environment has changed, and we have not. Ask yourself, if you were a CEO of a Fortune 500 company, would you want to relocate to Connecticut? e current answer is "no" and, until we change that, we will continue to head in the wrong direction. n Stephen K. Henn is a professor of finance and economics at Sacred Heart University in Fairfield. Reducing regulatory and fiscal burdens key to attracting businesses Steve Henn Coordinated Transportation Solutions names new president and CEO Trumbull-based Coordinated Transportation Solutions recently appointed Miguel McInnis as its new president and CEO. McInnis took over in the position on March 31, replacing David White, the nonprofit organization's founder and longtime president and CEO, who retired aer 25 years. McInnis has more than 30 years of healthcare and management consulting experience. He most recently served as the CEO of MetroHealth, a nonprofit health clinic in Washington, D.C. Coordinated Transportation Solutions provides transportation in eight states, including Connecticut, Delaware, Maine, Massachusetts, New Hampshire, New York, Rhode Island and Vermont. Biohaven picks physician for leadership team New Haven-based biopharmaceutical company Biohaven Ltd. recently added Dr. Nick Kozauer to its executive leadership team. Kozauer's new role will be as senior vice president for clinical development and regulatory strategy. Kozauer previously worked for the U.S. Food and Drug Administration, where he served in multiple roles, most recently as director of the Division of Neurology 2 in the Office of New Drugs. Quinnipiac professor garners national award Hamden resident Kimberly DiGiovanni, an associate teaching professor of civil engineering at Quinnipiac University, recently received the Emerging Leader Award from the American Council on Education Women's Network in Connecticut. DiGiovanni joined the Quinnipiac faculty in 2015. e award recognizes a woman with at least five years of professional experience in higher education. Recipients must have demonstrated leadership in the development and/ or operation of an office, program or service that has significantly advanced women's learning and development in Connecticut. Quinnipiac professor named president-elect of educator association An associate professor of diagnostic imaging at Quinnipiac University, Guilford resident Kori Stewart, has been named president- elect of the Association of Educators in Imaging and Radiologic Sciences (AEIRS). Stewart will take office in July at AEIRS' annual meeting in Madison, Wis. Stewart has been a member of AEIRS since 2015. She is currently the board's secretary/treasurer. She will hold a three-year term, serving as president-elect for 2023-24, president for 2024-2025, and chair of the board for 2025-26. Stewart joined the university as a full-time professor in 2022 aer serving as an adjunct faculty member since 2010. Barclay Damon appoints new diversity leader Attorney Sharon Brown has been appointed diversity partner at the law firm Barclay Damon. Brown is now chair of the firm's Diversity Partner Committee. In this role, she leads the firm's Diversity, Equity & Inclusion (DEI) program and oversees all of its diversity initiatives and groups. at includes the firm's Women's Forum, Black Employee Affinity Network and LGBTQIA+ Employee Affinity Network. Brown replaces Sheila Gaddis in the role. Gaddis was originally appointed to the position, which was new at the time, in 2009. e firm has nearly 300 attorneys, with offices in New Haven, Washington, D.C., Toronto, Boston and multiple locations in New York state. n C - S u i t e Miguel McInnis Dr. Nick Kozauer Kimberly DiGiovanni Kori Stewart Sharon Brown

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