North Stonington Selectman Nicholas H. Mullane II, a Republican, will challenge eight-term Democratic incumbent Diana Urban this fall for her 43rd District state representative seat this fall.

Both were endorsed at party conventions this week.

After serving as first selectman for 30 of 32 years, Mullane decided last fall to not run for re-election and instead decided to run for Board of Selectmen.

He said at the time he had been “looking for a way to step down” and found it with fellow Republican Shawn Murphy running successfully for first selectman.

Over his tenure, Mullane had been outspoken on tribal sovereignty issues involving the Mashantucket Pequots and their Foxwoods Resort Casino as well as the Eastern Pequots’ reservation.

Mullane said Thursday he felt that someone had to step forward to challenge Urban and begin to make changes in how state government operates. The 43rd District covers Stonington and North Stonington.

“We can’t keep doing what we’re doing or it’s definitely going to get worse,” he said. “We have a serious problem. Connecticut is not doing well. A lot of seniors and businesses are leaving. The state is not doing a good job retaining and attracting new businesses. Taxes are going up.”

The latter, he said, has made it particularly difficult for border towns such as his to compete for businesses with neighboring states that are more responsive to working with potential new businesses.

Mullane said state unfunded mandates are hurting towns such as his and need to be reduced.

He said the state needs to balance its budget, “cut out the top brass,” including former legislators and others who receive high-paying patronage jobs, and live with an austere budget for a few years so the state can “get its house back in order.”

He said there is not one single change that will address the state budget woes; instead, many small changes and a lot of work are needed.

Mullane said North Stonington, with its healthy fund balance and strong bond rating, is a good business model for the state to follow.

He said his long experience as first selectman and on the regional Council of Governments, his “business mind” and willingness to listen to his constituents, and his ability to acknowledge and learn from mistakes make him qualified for the job.

Mullane declined to evaluate Urban’s performance, saying he’d rather discuss what he can do to help the state.

“Let the people judge,” he said.

Urban, who also lives in North Stonington, said she was a bit surprised by Mullane’s decision to run, as the job is a grueling one during the session.

“I welcome examining the issues with him,” she said. “I hope we have many debates.”

As for why she is seeking a ninth term, Urban said, “If you look at the legislature now, there’s a ton of people leaving because it’s getting rougher. I see that as an opportunity, though," to restructure the budget.

For years, Urban has pressed her colleagues in the General Assembly and in state government to adopt results-based accountability — a budgeting method that requires programs to show data that they are successful in order to get funded.

The idea has been met with resistance, but Urban has been able to implement the method in a pilot program for spending that affects children.

With the legislature now talking about making fundamental budget changes to address growing deficits each year, Urban said she sees an opportunity to press ahead with results-based accountability because the template is in place from the pilot program.

Urban, who co-chairs the legislature’s Children’s Committee, said she has developed a reputation for working on budget accountability, along with issues that affect children and animals.

In the last session, she pressed state officials to investigate the finances of the now-defunct Amistad America, which led to a state audit and the sale of the schooner to a new organization.

During the recent state budget debate, in which both towns faced massive aid cuts, Urban said her experience resulted in the two communities coming out relatively unscathed: Stonington gained $2,000 and North Stonington lost $25,000.

“I was able to mitigate what was originally proposed. I think I did my job and then some," she said.

j.wojtas@theday.com