Hartford Business Journal

20 Hartford Business Journal • April 16, 2018 • www.HartfordBusiness.com Opinion & Commentary EDITOR'S TAKE Indecision on gaming policy exemplifies need for full-time legislature A s lawmakers head into the final weeks of this short legislative session, House Speaker Joe Aresimowicz said he was skeptical that his chamber would be able to pass any gaming legislation this year. That's despite the fact that bills that could have a significant impact on Con- necticut's economy and fiscal health hang in the balance. Whether it's expanded casino gaming or legalizing sports betting and online lottery sales, you're talking about multimil- lion dollar industries that will continue to remain in limbo. The main reason for the delay? Aresimowicz says the state needs a comprehensive plan for gambling. If that's the case, the bigger question is why don't we already have that plan? All three gaming issues have been raised and debated at the legislature for years, so forward- looking legislative leaders should have already mapped out a blueprint — or ordered an economic analysis — for the role gaming ought to play in Connecticut's economy. The stakes are particularly high as MGM Grand casino prepares to open this year in Springfield, Mass., which is expected to sap significant revenues from our Connecticut casinos. The truth is, we shouldn't be surprised that lawmakers lack a roadmap for most controversial issues. We've seen plenty of past evidence that our state's part-time legislature is incapable of grasping the most complicated policy deci- sions. The state's long-standing fiscal crisis is the most glaring example. Unfortunately, we've set up our legislature for failure. The part-time legisla- ture model no longer fits the needs of the state. I've advocated for it before, but we need a smaller, full-time, more professional legislative body that can really sink its teeth into issues and come up with smart and fair policies in a more timely manner. Our state legislators earn a base salary of $28,000 annually, so most have real jobs to supplement their incomes. As a result, lawmaking in Connecticut is re- ally a part-time labor of love, although some legislators, especially in leadership, work full-time hours. Under those conditions, what type of talent do you expect to draw into elected office? To be fair, the gaming issue is a complicated one, and adding more casinos or legalizing sports betting will not be the answer to our state's fiscal woes. Also, there are some decisions out of the legislature's control. For example, the East Windsor casino project — a joint venture between Foxwoods Resorts Casino and Mohegan Sun — remains in legal limbo because the U.S. Interior Department has refused to accept or reject amendments to the tribe's longstanding revenue-sharing agreements with the state. Many believe politics has delayed the federal government's response. At the same time, sports betting remains illegal in most of the United States, although the U.S. Supreme Court is now weighing whether to lift that prohibition. The fact that it's an election year further complicates the legislature's ability to make decisions on controversial issues. Regardless, these gaming issues have been before the legislature for years and the potential legal pitfalls have been known for some time. A forward-looking legislature should have contingency plans in place and be ready to act as soon as those issues are cleared up. Unfortunately, they remain flat-footed. Of course, that leadership must come from the top, including the governor's office. Most of our state lawmakers are well-meaning people and we should thank them for their service. But imagine in addition to your day job, you had to help run a state with a $20 billion annual budget and more than 3 million residents. Is that an attractive proposition? To most it's not, and as a result we get what we pay for. Greg Bordonaro Editor OTHER VOICES Charitable giving under threat with new tax law By David J. Obedzinski O urs is a generous nation when it comes to philanthropy. When we give our time and gifts to a nonprofit organization on behalf of a worthy cause, we shine. Giving USA reported that in 2016 charitable giving rose to an all-time high of $10.53 billion. That's impactful. But just how generous will Ameri- cans remain in the coming months and years given recent changes in tax law? That is the question of the moment. In December, President Trump signed into law the Tax Cuts and Jobs Act. Among other changes it lowered top marginal tax rates and in- creased stan- dard deductions. In the wake of these major changes, seri- ous questions abound as to the impact this legisla- tion will have on individuals, families, corporations and nonprofits. In its Feb. 7, 2018 analysis of the new law, the Joint Committee on Taxation, a nonpartisan committee of the U.S. Congress, estimated that the number of taxpayers who itemize will decrease from 31 percent in 2017 to just 13 per- cent this year and that those claiming charitable deductions will decrease by more than half. The con- sensus among many in the nonprofit world is that chari- table giving will be impacted negatively. But to what degree? Apprehen- sion is growing among donors and would-be contributors, in nonprofit organizations, and within town and city halls across the land, where reliance is heavy on nonprofits for the myriad ways they lift up communities. Previous research has noted that tax benefits are an important part of the motivation for charitable giving in many people. The nonprofit in- dustry, recognizing this, has shined a spotlight on those benefits as a key marketing strategy. With uncertainty the order of the day, here's a new focus for consid- eration. We need to consciously rise above the apprehension at hand and focus on mission and impact for the good of our communities. The younger generations are to be applauded for taking the lead in ask- ing the tough questions: What im- pact will my gift of time or treasure make? Will you be a good steward of my investment? How will you keep me informed and involved? Awesome questions, indeed. As nonprofits we need to share our mission in new and creative ways. We must show how we will lift our com- munities effectively and efficiently and in partnership with our contributors. As donors and prospective donors we must do what we can with our time and money as more and more people rely on nonprofit support amidst shrinking federal, state and local budgets. There are many reasons for giving beyond the tax benefit. In Stephen Post and Jill Neimack's book "Why Good Things Happen to Good People," it was reported that multiple studies show that giving results in greater happiness and health. You have to take special no- tice when it is proven that giving and getting can actually reduce mortality in one's later years. Let's be creative together, not just when disaster strikes, but every day, when we tend to take things for granted. Volunteer with your local non- profit organiza- tion. Fall in love with their mission. Build a fund or scholarship at your local community foundation. Spread the word and bring others to the table. Let's work together to shift the focus to what's best for our commu- nity without leaning on a potential tax deduction as a motivator. Let's do it for the right reasons, together, as one generous nation, indivisible and with care for all. David J. Obedzinski is president of the Community Foundation of Greater New Britain. As nonprofits we need to share our mission in new and creative ways. We must show how we will lift our communities effectively and efficiently and in partnership with our contributors. David J. Obedzinski

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