Hartford Business Journal

20 Hartford Business Journal • February 22, 2016 www.HartfordBusiness.com EDITORIAL Malloy's budget offers Republicans chance to lead R epublican leadership has long been at odds with Gov. Dannel P. Malloy's han- dling of state finances, but Connecticut's minority party would be wise to unite with the Democratic governor on his $19.8 billion fiscal 2016 budget proposal that reduces spending by $570 million. Instead of complaining or gloating that Malloy stole some of their budget-cutting ideas, which have been proposed for years to deal with state's chronic deficits, Repub- lican legislative leaders would be smarter to declare victory, embrace the governor's austere budget (potentially with some minor changes), and try to gain enough Demo- cratic votes to make it reality. Indeed, Malloy's budget embraces a new economic reality — that Republicans have said existed for years — in which state tax revenues and economic growth rates are no longer keeping pace with government spending. Although a minority in both the House and Senate, Republicans have, according to one political observer, enough legislative seats to sustain any Democratic veto override of Malloy's budget plan. That means Malloy could use Republican support to continually veto Democratic budgets until he gets one that he wants. Republican support would put pressure on Democratic legislators to pass something close to Malloy's budget, and pressure Malloy to stick to his original plan. Malloy's veto power and the GOP's ability to sustain it create potentially a powerful coalition that could pass a budget that begins to transform government. It may be the most leverage Republicans have had on the budgeting process since M. Jodi Rell was governor. Election-year politics often bring gridlock to the State Capitol, as lawmakers try to sidestep controversial bills and policies to preserve their November electability. Unfortunately, Connecticut's fiscal woes are so grave that lawmakers are being forced to consider major spending cuts or tax increases to balance future year budgets; failing to implement changes risks drawing even greater ire from the electorate. It's not yet clear how Democratic legislators will ultimately respond to Malloy's budget proposal. But with the governor embracing a new economic reality, the time is now for the state GOP to help build a majority coalition behind it. That would only strengthen their chances at the ballot box in November. Let's see if Malloy and Republican leaders can put politics aside and pass a budget they largely agree on. n Municipalities must take a haircut Connecticut's cities and towns are decrying $50 million in state budget cuts to discretion- ary municipal aid they say will lead to increased property taxes for businesses and residents. While we're sensitive to the notion of higher property taxes and the restraints munic- ipalities have in raising new revenues, it's time for cities and towns to share in Con- necticut's lean-budget era. Indeed, municipalities have largely been spared from state budget cuts the past six fiscal years, while state lawmakers have enacted widespread tax increases and spending cuts to various parts of state government. Gov. Dannel P. Malloy is asking municipalities to take a $50 million haircut, while promising to maintain local education spending. That doesn't seem completely unfair and shifts the onus on cities and towns to tighten their belts. This also provides an opportunity for the state to continue to pressure municipali- ties to regionalize their services. We aren't accusing towns and cities of being financially irresponsible, but they must share in the pain. And they shouldn't resort to property tax increases as their first line of defense against funding cuts. n OTHER VOICES The 'skinny' behind those thin mints By Mary Barneby I t won't be long before you will see a Girl Scout Troop at your local supermarket asking you to sup- port her troop and the Girl Scouts by buying Girl Scout cookies. In recent years during cookie sales, popular flavors like thin mints have out-performed top national cook- ies including Oreos. These tasty indul- gences have delighted us since 1936, and Girl Scouts all over the U.S. are responsible for sell- ing nearly 200 million boxes by going door to door, person to person, and now, even online through their Digital Cookie app. As you are buying your cookies you may not realize all the deep, social good they are doing. Let's start with the girls. Ask any woman who has been a Girl Scout and she will tell you that selling Girl Scout cookies was not only fun, but helped build her courage and con- fidence. She will tell you that it encour- aged goal setting, decision making, han- dling money respon- sibly, helped her learn to deal with the public, and also how to embrace fair busi- ness practices (e.g., how do you handle the unhappy custom- er who returns a half- eaten box of crushed Trefoils?). Many suc- cessful women busi- ness owners will tell you they got their entrepreneurial spark selling Girl Scout cookies. What she may not have shared with you is all the good that selling cookies did for her troop and the community. Each year, an esti- mated $100 million to $140 million goes back to the Girl Scouts all over the U.S. who sold cook- ies. In Connecticut, the number that is earned and returned is just under $2 million. Our girls use these funds for community service proj- ects, to save for fun and educational troop experiences and outings, and to provide fund- ing for other girls who otherwise can't afford to be Girl Scouts. And for those Connecticut customers who so choose, more than 125,000 boxes of cookies every year are donated to our service men and women overseas and at home through our Cookies for Heroes Program. Consider Eliana, a Cadette Girl Scout in Madison. Eliana has been saving her cookie earnings for a few years to host a free special movie event at a local cinema for girls in her surrounding communities. Modest donations will be suggested at the event and the proceeds will go to help buy pajamas for residents at a homeless shelter in New Haven. With 35,000 Girl Scouts in Connecticut and almost $2 mil- lion in cookie proceeds earned by the girls — that's large-scale social enterprise. For adult Girl Scout volunteers, the cookie program helps them to develop and build impor- tant skills. I remember my then stay-at-home mom served as our "Cookie Mom" for my troop in Bay Ridge, Brooklyn decades ago. Mom had to develop business, sales leadership, and organiza- tional skills handling a myriad of order cards and balancing the "books." When we were older, she went on to be a successful floor supervisor in a large retail store. And finally, the cookies do a world of good for the Girl Scout organization itself. The proceeds provide us the ability to work and live our mission. In addition to our iconic and con- fidence-building out- door programming for girls, we offer rel- evant programs that address key issues confronting today's girls — physical and emotional health, financial literacy, anti-bullying, and STEM. So, the next time you see a girl outside the Stop and Shop selling Girl Scout cook- ies, stop and ask her why she is motivated to sell cookies. Help her to live her dream and reach her goals. And while you are at it, enjoy indulging. You've earned it. n Mary Barneby is the CEO of the Girl Scouts of Connecticut. HARTFORDBUSINESS.COM POLL Should CT establish a state-run 401(k) plan? ● Yes ● No To vote, go online to HartfordBusiness.com. Last week's poll results: Should the state outsource more services to the private, nonprofit sectors? 80% Yes 20% No Mary Barneby OPINION & COMMENTARY ▶ ▶ Each year, an estimated $100 million to $140 million goes back to the Girl Scouts all over the U.S. who sold cookies. In Connecticut, the number that is earned and returned is just under $2 million. Send Us Your Letters The Hartford Business Journal welcomes letters to the editor and guest commentaries for our opinion pages. Electronic submissions are preferred and welcome at: editor@HartfordBusiness.com. Or you may fax submissions to Editor, Hartford Business Journal, at (860) 570-2493.

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