Hartford Business Journal

24 Hartford Business Journal • October 16, 2017 • www.HartfordBusiness.com EDITOR'S TAKE Budget gridlock a necessary recentering of fiscal policy C onnecticut remains the only state in America without an enacted budget, leaving outside observers and many residents to believe the General Assembly is as dysfunctional as Congress. But while both systems of government are paralyzed by gridlock, it can be argued that Connecticut's inability to pass a state budget on time is actually a necessary, even healthy, recentering of fiscal policy, whereas the federal government's inability to get just about anything done is symptomatic of a dysfunctional political party (the GOP controls both the legislative and executive branches) led by a president who has increasingly shown himself to be unfit for office. Since 2011, one-party rule in Connecticut has failed to produce some of the long-term fixes that would help solve our state's fiscal crisis, including stricter spending and borrowing caps and giving the legislature more power to vote on union contracts. Now that Republicans share power in the Senate and have nar- rowed Democrats' majority in the House, the tide has begun to shift, giving the GOP its first chance at governing since Gov. M. Jodi Rell left office earlier this decade. The shifting political headwinds were bound to create disruption, and in September the House and Senate sent shockwaves throughout the State Capitol by approving a Republican-proposed budget. Malloy has since vetoed the measure, leaving the state in political gridlock. But while many have criticized lawmakers for not coming to- gether on a spending plan, Connecticut is actually going through a healthy realignment of its budgeting priorities. No longer can flag bearers for higher taxes dominate the conversation; a more fiscally conservative approach is a breath of fresh air in a state known for overspending and overtaxing. The sea change has led to a messy, drawn-out process, but one that must occur if Connecti- cut is going to adopt pro-growth policies that encourage business investment and growth. That's not to say an unending budget stalemate is a good idea. We need a spend- ing plan so municipalities can get their own fiscal houses in order. The budget delays are also hurting countless nonprof- its and businesses that service government contracts. Democrat and GOP leaders were still ne- gotiating a bipartisan deal as of press time Oct. 12. Malloy also must sign on. The Republican budget that passed in September wasn't perfect. It relied on ques- tionable long-term pension savings and $260 million in undefined administrative savings, which, if not achieved, would leave the budget out of balance. It also called for deep cuts to higher education and ignored addressing the city of Hartford's impend- ing insolvency. Meantime, any negotiated deal won't fully solve our state's problems. That's because lawmakers tied their hands earlier this year by agreeing to an ill-advised concessions package with state employees that will purportedly save taxpayers $1.6 billion over two years, but also give unions layoff exemptions and an extension of their current generous benefits contract until 2027. Such employee safeguards should not be granted during these tumultuous fiscal and economic times. If Connecticut is truly going to restructure government, the General As- sembly needs more control over the state's personnel costs; lawmakers should be given the ability to vote on state employee benefits so those perks can be brought more in line with what private-sector workers receive. Such structural changes likely won't happen this year, but at least Republicans have changed the conversation at the State Capitol. The journey toward fiscal stability won't be paved with a yellow brick road. On the bright side, the political discourse in the state, while tense at times, has largely been civil, as Democrats and Republicans focus on policy differences rather than personal attacks that have become the norm in Washington D.C. OTHER VOICES Natural gas supply critical to keeping CT manufacturers competitive By Frank DiCristina I f you picked up a magazine, reached into your kitchen cabinet, jumped in your car for a ride, or had soda or water from a beverage can today, you likely used a product manufactured right here in Connecticut. At allnex, our Wallingford plant has been producing coating resins used in a range of consumer products for more than 75 years. As a manufacturer, we are constantly in- novating in order to stay competitive, which means developing a range of resins for use as wood coatings in kitchen cabinets, automo- tive coatings, magazine cover coatings, and beverage can interior and exterior coatings. We're proud of our long history in Con- necticut and of the rewarding careers we provide for our 120 employees. Another key to staying competi- tive as a man- ufacturer here in Connecticut has been reducing our emissions while also addressing our state's high cost of commercial energy. That's why in 2001 we transitioned our Wallingford plant from oil to natural gas. This switch has significantly reduced our environmental footprint, reduced opera- tional costs, and provided us with a more efficient and reliable energy source. Put simply, natural gas has been critical to our success while also allowing us to be a more environmentally sustainable business. While we have unquestionably benefited from our transition to natural gas, the fact remains that Connecticut manufactur- ers pay among the highest commercial energy costs in the nation. Allnex operates multiple manufacturing centers across the country, and our Wallingford plant's energy costs are far higher than those of our facilities in other states. Among the main reasons Connecticut manufacturers like allnex pay such high energy costs is a lack of pipeline capacity to deliver more natural gas to our state. While there is an abundance of inex- pensive natural gas being produced in Pennsylvania and West Virginia, without new interstate pipeline capacity to bring this resource to the New England market, we will likely continue to pay extremely high costs. This will put us at a disadvan- tage as we compete with facilities in other states, and with competitors located in less expensive energy markets. As one of the largest commercial users of natural gas in the state, addressing issues related to high costs and the lack of pipe- line capacity is critical to our future suc- cess. Fortunately, Connecticut's first-ever Comprehensive Energy Strategy, adopted in 2013, prioritized the need for increased capacity, and several pipeline expansion projects have extended natural gas avail- ability to more than 30,000 home users and thousands of businesses across the state. As the Department of Energy and Envi- ronment Protection updates the Compre- hensive Energy Strategy, allnex would like to urge a continued focus on policies that will help expand natural gas supply to address our state's high energy costs and keep Con- necticut's manufacturers competitive. Frank DiCristina is the site manager at allnex's coating resins plant in Wallingford. Frank DiCristina Greg Bordonaro Editor No longer can flag bearers for higher taxes dominate the conversation; a more fiscally conservative approach is a breath of fresh air in a state known for overspending and overtaxing. Opinion & Commentary LETTER TO THE EDITOR Tackling the truck-driver shortage While the state grapples with worker shortages, most notably in transporta- tion, as reported by the Hartford Business Journal ["Driver shortage forces haulers to lift pay, perks to woo workers"], efforts are ongoing to create supply. The CBIA Education & Workforce Part- nership, with funding from the Workforce Solutions Collaborative of Metro Hartford, serves as the transportation, distribution, and logistics sector intermediary, provid- ing links to employers, workforce training, and education to address the growing demand for workers in those fields. After program participants receive training to obtain their commercial drivers' licenses through the New England Tractor Trailer Training School (NETTTS), the part- nership provides on-the-job training dollars for employers who hire them. The partner- ship also convenes a quarterly roundtable — co-chaired by FedEx — of transportation employers to discuss legislative and opera- tional challenges to push for systems change. Among the initiatives that emerged from those quarterly conversations was the pro- duction of a video to encourage women to pursue transportation careers, highlight- ing how the industry provides great wages, flexibility, and a strong career pathway. The driver shortage is urgent, to be sure. But employers are working with us to identify solutions, and develop the tal- ent they need. Andrea Comer ,vice president of workforce strategies, CBIA Education & Workforce Partnership

• Cover