Hartford Business Journal

May 23, 2016

Issue link: https://nebusinessmedia.uberflip.com/i/682023

Contents of this Issue

Navigation

Page 27 of 31

28 Hartford Business Journal • May 23, 2016 www.HartfordBusiness.com OPINION & COMMENTARY EDITORIAL Weary legislators depart, leaving behind flawed system C onnecticut's fiscal crisis is taking its toll on our elected leaders, with nearly two dozen state legislators publicly announcing their retirement this year. The most surprising and high-profile departure will be House Speaker Bren- dan Sharkey, who just a year ago proclaimed his intentions to remain in his leadership post for a third term. That was before this year's legislative session, in which a nearly $1 billion deficit put him at odds with Gov. Dannel P. Malloy and forced Sharkey to oversee hundreds of millions of dollars in state budget cuts — tough medicine, particularly for a Democrat. What should we conclude from these Golden-Dome departures? We don't want to over-generalize — the CT Mirror recently talked to a cadre of departing lawmakers who gave personal and professional reasons for fleeing — but it's a good indication that our state's fiscal crisis is nowhere near over and lawmakers are simply tired of dealing with the mess (projected budget forecasts already confirmed we are facing more billion-dollar deficits in fiscals 2018 and 2019). If legislators passed a budget this year that truly reformed government and paved a road to fiscal stability, there would certainly be less incentive to leave and most likely fewer departures from the General Assembly. That's particularly the case for Sharkey, who previously lobbied his House Democratic colleagues to keep him on as speaker for a third two-year term, starting next year. Sharkey certainly had a tough go as speaker, faced with continual steep budget deficits that required difficult decision after difficult decision. He helped oversee a big tax increase as well as major spending reductions, but he also ran a House that failed to produce budgets in a timely manner, leading to the passage of last-minute and some- times ill-advised spending plans. Sharkey's biggest faux pas came last year, when he publicly admitted he and his fellow legislators made a mistake passing certain unvetted business tax increases in the waning moments of the 2015 legislative session. That, of course, led some of Connecticut's largest corporate citizens — General Electric, Aetna, Travelers — to rebuke the state legislature and threaten to leave if changes weren't made. Policymak- ers responded by rolling back tax hikes on data processing and delaying the unitary reporting requirement on corporations. To be fair, being a state legislator in Connecticut is a thankless job. It's a part-time posi- tion that is increasingly demanding full-time attention all for a whopping $28,000 salary, plus benefits (lawmakers in leadership positions do make slightly more). Many lawmakers must balance a career while trying to oversee an increasingly complex state government that has a $20 billion operating budget, and tens of billions more on its balance sheet. Some retiring lawmakers said they could no longer balance their jobs, personal life and legislative duties, according to the CT Mirror. With such a system in place, is there any wonder why Connecticut faces the fiscal crisis it does? Would a company overseen by 187 part-time vice presidents or decision makers be an efficiently run organization? Yes, the Great Recession negatively shifted our state's economic trajectory, but our legislature has largely responded with patchwork solutions that temporarily mask prob- lems, rather than solve them. This is the key reason why the state needs to seriously consider adopting a profes- sional, full-time legislature with fewer members better equipped to handle the complex issues of a 21st-century global economy and society. That may be the only way to attract a higher-caliber legislative body. n OTHER VOICES Government reforms can't stop now By Scott Bates G ov. Dannel P. Malloy and legislators deserve credit for addressing the state's budget deficit during this year's legisla- tive session. As important as the work that was accomplished, is the way in which it was done. At a time when res- idents and business leaders are demand- ing greater account- ability and value from state government, leaders balanced the budget primarily by cutting spending and without increasing taxes. The tone was set early by the gover- nor, and lawmakers did their best to follow his lead. But as everyone knows, there is still lots of work to do. Government leaders in Hartford have pub- licly acknowledged that when the legislature returns in January, after the November elections, Connecti- cut will face a project- ed deficit of approxi- mately $1 billion. There is no reason to think our state's economic situation will have improved significantly to erase that shortfall through a sudden increase in revenue. That being the case, there will contin- ue to be public demand for further reductions in spending and a resistance to new tax increases. This expectation from Connecticut tax- payers is not unreasonable and it is in line with Malloy's argument that the economy of Connecticut has fundamentally changed since the Great Recession, and state gov- ernment must adjust its past spending pat- terns accordingly. Fortunately, the work of this session proves it is possible to deliver government services at a lower cost to taxpayers. It is also true that there is a wealth of policy ideas on the table that can lead to higher efficiency at lower cost. Many of these policy options have been studied and shared with state gov- ernment by the Connecticut Institute for the 21st Century (CT21). In March of this year, the Office of Policy and Management (also known as the governor's budget office) conducted a review of six years of policy recommenda- tions presented by CT21 and concluded that where the institute's ideas have been applied, the result has been better value for Connecticut taxpayers. CT21 policy proposals have touched on the areas of long-term care, transpor- tation, corrections and information tech- nology. The OPM report acknowledges that it is difficult for state government to adopt many policy ideas in total because of operational issues related to existing con- tracts, political realities and other compli- cating factors. In the current economic and state bud- get environment, however, it is becoming increasingly clear that some obstacles to change will need to be addressed directly in the months ahead. There are few other rea- sonable choices available. We suggest that the next six months are crucial to future suc- cess and it would be helpful to adopt a strategy suggested previously as a result of this year's bud- get debate. Elected leaders, policymak- ers and concerned citizens have an opportunity, prior to the next session, to determine the top policy priorities for state government based on realistic revenue estimates. Working together, we can follow Malloy's lead and commit to ensuring Connecticut gov- ernment spends no more than revenue allows. This requires us to set priorities, invest in those priorities and set aside spending in areas we sim- ply can no longer afford. CT21 is committed to continue helping in this process and we look forward to helping Connecticut take the next big step in govern- ment reform made necessary by the fiscal realities we will continue to face over the next several years. n Scott Bates is the executive director of the Connecticut Institute for 21st Century, a non-partisan, data-driven organization advancing public-policy solutions. HARTFORDBUSINESS.COM POLL As Memorial Day approaches, do you plan to travel more or less this summer? ● More ● Less ● Same as last year To vote, go online to HartfordBusiness.com. Last week's poll results: Will Democrats' $19.7B budget hurt or help CT's economy? 19.1% Hurt 48.5% Help 32.4% Negligible impact Scott Bates ▶ ▶ Fortunately, the work of this session proves it is possible to deliver government services at a lower cost to taxpayers. 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.

Articles in this issue

Links on this page

Archives of this issue

view archives of Hartford Business Journal - May 23, 2016