Hartford Business Journal

2014 | Doing Business in Connecticut 37 and the quality of a state's colleges and universities — areas in which Connecticut has traditionally excelled." Loosening the (Government) Ties That Bind Many state agencies, with input from the business community, have acted to reduce the regulatory burden on the private sector. In October 2013, Connecticut's governor, Dannel Malloy, issued an executive order direct- ing state agencies to conduct an independent review of state regulations to identify any that are outdated, unnecessarily burdensome, insuf- ficient, or ineffective. As a result of this effort, the state was moving to eliminate more than 1,000 pages of regulations as of March 2014. In addition, state agencies have made measurable progress in speeding up pro- cesses, delivering better customer service, and cutting costs. One of the most dramatic examples of improvement has come at the state Department of Energy and Environmen- tal Protection (DEEP), which is making a concerted effort to advance a more busi- ness friendly operational strategy. One key outcome is that DEEP has reduced the time it takes to issue permits by 75%. The Bright Side of Energy in Connecticut As every Connecticut business owner knows, energy is a major factor in the cost of running their companies. There is, however, good news on the horizon. Most important- ly, the passage of a bipartisan energy pack- age last year provides significant opportuni- ties to reduce energy costs going forward. The new energy package looks to make natural gas an energy option for an addi- tional 300,000 business and residential cus- tomers over 10 years; increase investments in energy efficiency; and clarify the roles of DEEP and the state Public Utility Regulatory Authority to ensure that both operate in a manner consistent with the state's goal of cleaner, cheaper, more reliable energy. Progress on the Fiscal Front Business leaders throughout the country know that a state's fiscal condition has a major impact on decisions about where, when, and whether to invest. After all, if a state constantly finds itself in a financial bind, tax increases or unfavorable changes to the tax structure are always a real threat — and a major deterrent to business investment, expansion, and hiring. Most states' finances were hit hard by the Great Recession, and Connecticut was no exception. Today, however, the state's fiscal outlook shows signs of improvement. As of April 1, the Office of the State Comptroller was projecting a budget surplus for Fiscal Year 2014, and the state's long-term debt has been reduced by $11.6 billion, or 15.2%, over the last three years. At Connecticut Business Day 2014 in Hart- ford, an annual event sponsored by CBIA and the Connecticut Association of Chamber of Commerce Executives, the governor pledged that state spending going forward would not be increased more than 2.8%, which mirrors the increase in his budget proposal for the next budget year — Fiscal Year 2015. The state will need to keep to that rate of spending or below to stay within its con- stitutional spending cap and avoid future budget deficits. Maintaining the Momentum To help keep the state on the right track, CBIA and dozens of business organizations from every corner of Connecticut have come together to promote a framework of common- sense policy recommendations designed to boost the state's economic competitiveness. "That framework emphasizes building on our assets — for example, following through on initiatives to keep Connecticut's talent pipeline strong — and continuing to meet our challenges: reducing the regulatory burden and the cost of doing business, adopting fiscal policies that give businesses the confidence they need to invest here, making the tax struc- ture more competitive, and modernizing our transportation infrastructure," says Rathgeber. The collaborative effort has gotten the attention of government leaders, says Tony Rescigno, president of the Greater New Haven Chamber of Commerce. "People up at the Capitol are listening," he says. Rathgeber expects to see broad-based, bipartisan support. "It's an opportunity to have a real conver- sation about what it takes and why it's impor- tant for Connecticut — not just for the business community but for all residents — to be one of the country's best states for business." Bill DeRosa is editor of CBIA News, the journal of the Connecticut Business & Industry Association. Contact him at bill.derosa@cbia.com. SPONSORED REPORT

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