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    Sunday, May 12, 2024

    Connecticut must reverse the exodus

    Connecticut has its problems.

    The taxes are high. The Tax Foundation, which calculates how long it takes a person with an average salary to earn enough money to pay his or her taxes — it calls this Tax Freedom Day — ranks Connecticut last, tied with New Jersey. In both states it takes until May 13 to earn enough to pay the state, federal and local taxes.

    Connecticut is a state with a high cost of living. According to CNBC, the only place where it costs more to live is Hawaii. That state has an excuse. It has to bring most everything in by plane or ship.

    These factors, combined with high energy and high labor costs, also consistently rank Connecticut poorly for attracting and expanding businesses.

    However, the news isn’t all bad.

    The “Opportunity Index,” compiled by the group Measure of America, a social science research group, ranked Connecticut third for “access to opportunity.” Among the factors weighing in the state’s favor is a well-educated populace and high engagement in civic and community life, along with low poverty rates. Keeping Connecticut from ranking higher was a 17th ranking for “jobs and the local economy,” and a poor ranking for the gap between rich and poor, along with high housing costs.

    Another recent evaluation, this one put together by The United Health Foundation, ranked Connecticut as the sixth healthiest state. The group gave Connecticut good scores for the healthy lifestyles of many of its residents, high immunization rates among adolescents, high access to health care for children and quality clinical care.

    As with the Opportunity Index, however, the health foundation faults Connecticut for a wide disparity in health status tied to education and income status.

    Even Forbes' “Best States for Business” index, which gives Connecticut only a 39th ranking among the 50 states, ranks the state fourth in terms of quality of life.

    The good points — quality schools in most communities, ample opportunities for civic engagement, and many entertainment and recreational choices — help keep many in Connecticut despite a discouraging business climate and high taxes.

    In his recent meeting with our Editorial Board, Gov. Dannel P. Malloy expressed frustration with what he sees as too much media focus on the negative.

    “In Connecticut we tend to think of ourselves onto an island and tend to think the worst of ourselves,” he said.

    The state is hardly alone with its budget struggles, said Malloy, noting that most states have not seen tax and other revenues return to pre-Great Recession levels.

    “In 2014, 27 states in the United States had still not recovered, adjusted for inflation, their revenue of 2008,” he told us.

    However, few states are losing residents at the rate of Connecticut. In 2014, the state saw a net loss of 13,285 people, with about 96,000 moving out and 82,000 moving in. That trend has continued for several years.

    More alarming is who is leaving. Disproportionately it is young people, mostly college graduates, moving elsewhere for career opportunities, and the relatively well-off elderly, taking the money they earned in Connecticut and transplanting to states with warmer climates and lower costs of living. The exodus of wealthier seniors is playing a factor in personal income tax revenues falling short of estimates, resulting in state budget deficits.

    It will be difficult to reverse the trend concerning the migration of the elderly. Even with climate change, Connecticut will not suddenly become a warm weather state and the cost of living and of government will not change dramatically.

    State leaders need to focus on policies aimed at keeping more young professionals in Connecticut, which may have the added benefit of persuading some of their parents and grandparents to stay as well. That will involve improving the business climate, creating more affordable housing opportunities, and providing incentives that direct graduates of Connecticut schools to businesses in the state.

    Do that, and all the rankings will improve.

    Paul Choiniere is the editorial page editor.

    p.choiniere@theday.com

    Twitter: @Paul_Choiniere

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