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    Tuesday, May 07, 2024

    Chamber joins group calling for economic growth, budget efficiency

    The Chamber of Commerce of Eastern Connecticut has joined eight other business organizations statewide to outline a plan to Gov. Dannel P. Malloy that they say will accelerate economic growth and cut Connecticut's budget deficit.

    The four key points of the plan are to retain young talent, make urban settings more livable, boost the state's transportation system and encourage more growth in personal incomes.

    "We must demonstrate steady progress toward achieving these critical objectives in order to regain the confidence of the private sector that generates the tax revenues that support both services and infrastructure investments," said the letter dated Feb. 1. "Such revenues, services, and investments drive and sustain meaningful economic and employment growth and ensure a premier quality of life for all residents."

    The letter was signed by top officials from eight chambers of commerce or business councils in the state as well as the 10,000-member Business & Industry Association of Connecticut. Tony Sheridan, president of the Eastern chamber, and Gail Weber, chairwoman of the local chamber's board, were among those signing.

    Specifically, the business groups are calling on Malloy to back two constitutional amendments that they say would ensure more control over spending and could create greater economic growth. The amendments – one to cap state spending and the other to keep a "lockbox" on transportation funds - would have to be approved by voters in November.

    The spending cap would reduce state spending increases to either the rate of personal-income growth or inflation. The lockbox would make it impossible for the legislature to dip into transportation-tax funds to pay for other programs.

    "Business as usual at the state level is not sustainable," Sheridan said in an email supporting the plan.

    One new proposal the groups offered was the institution of a biennial planning series that would include business associations, the state Department of Economic and Community Development, the state Office of Policy and Management as well as other agencies to discuss economic and employment issues. The idea, based on similar efforts in Michigan and Minnesota, would be to develop a multi-year, nonpartisan plan for economic and quality-of-life improvements starting in 2017.

    Other ideas outlined by the business groups included more engagement with the private sector to help solve government problems and get the economy on track; more spending discipline and greater tax-policy predictability, as well as improving government efficiencies.

    "Replacing the historical and often rigid approaches to economic growth and the delivery of public services with innovative strategies and processes will save money, increase meaningful employment opportunities, and enhance residents' quality of life," the letter stated.

    l.howard@theday.com

    Twitter: @KingstonLeeHow

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