Legislative Agenda
In this Section
Member Testimony/Position Statements Legislative Bulletin
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Over the years, we have played a critical role at the State Capitol providing a strong, unified voice for a solid, growing economy in Connecticut and the Hartford Region. This agenda’s comprehensive focus clearly reflects the depth of our membership’s concerns about the city and the region. These issues will continue to include: initiatives to counteract the loss of jobs in the Insurance and Financial Services sector, emphasis on economic development and regionalism, the rising costs of healthcare, policies that directly support our manufacturers, investments in our education system and transportation infrastructure, energy transmission and the overall business regulatory climate of the state.
Since the lengthy budget debate in 2003, Connecticut has seen its share of tough financial times. The national recession marked the beginning of a state trend of sagging tax revenues and soaring state spending. In response, the state instituted spending cuts and tax increases to address growing budget deficits which had a tremendously negative impact on individuals, businesses, and municipalities. In turn, policy initiatives at the state level, including “pay or play,” corroborated the growing sense that Connecticut is unfriendly toward business. We recognize that there is a strong need to curtail this implied perception by working closely with Legislative and Executive Branch leadership to promote a more business-friendly environment in Connecticut through meaningful policy and budget initiatives, ultimately making this state more marketable to new and growing businesses.
To that end, the MetroHartford Alliance has established a multi-year strategy for the Hartford Region to compete as one of the country’s premier places for all people to live, work, play and raise a family. The Alliance’s mission is to develop and execute actions that enhance the Region’s economic vitality and quality of life over the balance of the decade.
The following goals are key components of the Alliance’s four-year plan:
• 25,000 more jobs that provide employment opportunities for the Region’s diverse population
• 5,000 of such additional jobs to be in the insurance and financial services sector
• 12% increase (after inflation) in per capita earnings
• 15% more recent college graduates in the Region
• 50% reduction in the projected 13% decline in the 18-34 year old population
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Accordingly, the Alliance has identified the following strategies to achieve those goals:
• Strengthen the Region’s economic base through the expansion of existing businesses, the recruitment of
others, and the creation of new ones.
• Lead the development of a Regional Stewardship model to establish a common agenda for the Region
focused on sustainable economic growth that generates jobs and increases per capita income.
• Design and implement an effective communication and marketing strategy that clearly articulates the
Region’s assets to businesses, residents, visitors, and opinion leaders and that supports the Alliance’s
mission to increase jobs in the Region.
• Work with the Mayor of Hartford and the City Council and with business and civic leaders on actions
that strengthen the economic activity of all of Hartford’s neighborhoods so that Hartford thrives as the
dynamic core of the Region.
Recognizing that we must seize opportunities to alert elected officials, and the public at large, on the history and nature of our advocacy, our mission is to promote the following issues, at various levels of government, in order to help facilitate the achievement of our goals:
Federal
• Transportation - The strength of our local and regional economies depends heavily upon a superior transportation network. To remain successful in a highly competitive climate, we must do a better job of connecting employees with workplaces, products with markets, and executives with one another. Therefore, we urge our Congressional Delegation, as well as the Governor’s Washington, D.C. office, to support an omnibus transportation bill that provides funding for the country’s transportation infrastructure and that the formula be crafted to ensure Connecticut receives the amount necessary to impact a growing transportation crisis. This legislation is also critical to the release of federal funding for the New Britain – Hartford Busway.
Furthermore, as members of the Amtrak Business Coalition, we urge our Congressional Delegation and the Governor’s Washington, D.C. office to support a funding level sufficient to repair Amtrak’s aging power systems and deteriorating tracks and bridges that are the result of years of under funding and deferred maintenance. This is of critical importance, particularly in the Northeast Corridor, where people depend heavily on Amtrak service for intra-regional travel.
• Terrorism Risk Insurance - Although Congress voted to extend the Terrorism Risk Insurance Act for two more years until December 31, 2007, the MetroHartford Alliance continues to support a long-term federal program for terrorism risk insurance. It is critical for our nation's economic security that we have a federal backstop program in place to aid in the event of catastrophic terrorist attack(s). The 2005 extension legislation called for the Presidential Working Group on Financial Markets (PWG) to study by September 30, 2006, the availability and affordability of terrorism risk insurance particularly for nuclear, chemical, biological and radiological coverage and for group life insurance. The Alliance is supportive of efforts to help shape the PWG study and to continue to urge congressional enactment of a long-term terrorism insurance program for the good of the nation and the economy.
State
• State Budget – OPM and OFA, respectively, are projecting a budget surplus of between $300 and $500 million for fiscal year 2006. The State is once again, however, projecting significant structural challenges in fiscal years 2007 and 2008 due to both one-time revenues in FY ’07 and an imbalance between expenditure growth and revenue growth. Expenditures are scheduled to exceed the spending cap in FY ’08 if left unchecked. As the legislature works to negotiate budget adjustments during the upcoming session, it is imperative that the importance and intent of the spending cap be recalled, and that any changes result only in ensuring that the cap be applied in the original spirit of the law.
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• Transportation – Congested highways and inadequate, aging transit systems threaten to undermine our ability to sustain a competitive economic climate. The comprehensive statewide strategy developed by the Transportation Strategy Board and passed by the legislature provides the framework for solving our transportation crisis. To help fund transportation improvements and take a step in the right direction, the Governor and the Legislature have committed to spending $1.3 billion on infrastructure. Consequently, as part of their plan, we urge the State to implement a statewide, multi-modal strategy that emphasizes significant public transit projects such as the New Haven-Hartford-Springfield Rail Line, which can serve to both strengthen the central artery of Connecticut, as well as to provide greater connectivity with New York and Boston.
Furthermore, state support of an intra-city downtown transportation system for the City of Hartford, as well as a shuttle that connects Bradley Airport to Hartford and area hotels is essential to the success of the new convention center. Without adequate funding from the State, and an emphasis on public transit, we will not see significant, measurable improvement in our transportation problems and Connecticut will continue to risk being an economic cul-de-sac.
Additionally important to the Region is a world-class international airport that has reliable, direct service to Europe and expanded domestic routes that provide more direct service throughout the country. This would represent a dramatic step forward for the Region’s ability to compete in a global economy, yet would also require area infrastructure improvements to support greater traffic and use of the airport.
• Insurance and Financial Services – In December 2005, Mayor Perez, Senator Don Williams and Speaker Jim Amann convened an Insurance and Financial Services (IFS) Forum to discuss the startling job loss in this sector and engage business leaders in the development of a strategy to create new jobs and retain the IFS businesses we have in our capital region. We are looking forward to working with government leaders and Connecticut’s Insurance and Financial Services Cluster to pursue public policy solutions. Possible ideas include:
• Speed to Market: Make efforts to help companies get products to the marketplace faster by reducing delays in the approvals process at the Department of Insurance.
• Interstate Compact: Support Connecticut’s participation in the Interstate Compact. Currently, life insurance plans, annuities, disability income insurance, and long-term care insurance must be approved by each state. The compact would provide a single point of filing which would promote greater efficiencies in design and delivery of products by following existing uniform national standards and free up resources at the Department for other issues.
• Flex Rating: Promote passage of flex rating legislation, which would allow insurers to make appropriate adjustments to their rates within a certain percentage without prior approval. This would help streamline the filing process at the Department of Insurance and more effectively allocate resources to create greater efficiencies.
• Business Services: Encourage the Legislature to consider phasing-out the sales and use tax on business analysis and management services. This is nothing more than a tax that displaces Connecticut in a highly competitive marketplace.
• Reduce the Premium Tax: Support a decrease in the premium tax from 1.75% to 1% to encourage the promotion of a better business climate overall. This would level the playing field with competitor states, such as Iowa.
• Financial Services Export Zone: Expand existing legislation to create a more effective Financial Services Export Zone for insurance and financial services companies in Hartford.
• Tax Incentives: Create tax incentives and credits to induce new company formation and investment.
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• Higher Education – Many of the State’s higher education units, including both four-year universities and community colleges, have submitted requests for current service level increases in their respective operating budgets recognizing that to maintain the success of recent years, services must live up to growing expectations. In addition, the University of Connecticut has submitted to the Office of Policy and Management (OPM) a budget option that would fund, in part, a program to augment faculty over the next five years. This initiative was developed in response to dramatic enrollment increases over the last several years, during which the number of faculty members remained essentially flat.
Half of the additional faculty would be in the science and technology disciplines in an effort to coincide with the State’s economic development priorities. Another advantage of this proposal is that the increased faculty will enable more students to access courses required to graduate in four years. State support of our growing and evolving higher education system is critical to the Region’s ability to compete as a favorable place to do business. We urge the state to continue its commitment to creating and retaining a highly educated and trained workforce.
• Healthcare –The state’s inadequate reimbursement of hospitals through the Medicaid program as well as cuts to SAGA are both contributing factors behind the rising cost of healthcare. As a result, businesses pay higher health insurance rates because hospitals seek greater reimbursement from private customers. It is imperative that the state work to reduce the costs of doing business in Connecticut, particularly the rising cost of healthcare. The General Assembly and the Governor can help us meet this goal by aggressively pursuing the concepts outlined below.
ο Pay or Play/Fair Share Health Care – Last year’s Pay or Play legislation would have created a new tax on employers with at least 5,000 employees, requiring them to offer healthcare coverage comparable to the state employee health plan or face a fee based on the cost of the state plan plus 2% for administrative costs. Connecticut employers are already leaders in providing competitive healthcare benefits, despite rising costs. Implementing another tax on business is the opposite policy that the state should be endorsing. Instead, the legislature should explore new methods of containing the rising cost of healthcare overall. This year’s labor proposal may include even lower employee thresholds and higher fees. This is unacceptable to our membership and runs counter to our goal of creating new jobs and expanding business opportunities in the region.
ο Reprioritize state healthcare spending:
Address cuts in State Administered General Assistance – In Hartford alone, Saint Francis and Hartford Hospital will experience a loss of several million dollars as a result of the $10 million cut in the state Uncompensated Care Pool included in the biennial budget for FY ’07.ο Address the nursing shortage:
1) Fund faculty positions for allied health professionals such as nursing. This should be adequate enough to address the current shortage until the number of graduates meets the employment need in our region.
2) Fund scholarship or loan forgiveness programs for nursing students at both public and private colleges and universities, in particular low-income nursing students. One option is to make the loan or scholarship contingent upon the student’s commitment to staying in Connecticut.
ο Medicaid: Realizing that competition for graduating doctors and nurses is critically high, we need to be prepared to compete for their talent. Due to inadequate Medicaid reimbursements from the state, it is difficult for our hospitals to remain competitive in terms of salary and benefits packages. We support legislative action to address concerns with the reimbursement formula and rates.
ο Cost Containment: Address health care costs through adoption of comprehensive health care cost containment package, including a reduction in the number of mandates;
ο Medical Malpractice Reform: To contribute to our goal of retaining talented doctors in our region as well as attracting graduates from other states, we support reform to help keep healthcare costs down and attract more doctors to practice here in Connecticut.
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• Property Tax Reform – While the current property tax system has been universally recognized as regressive for both homeowners and businesses, a consensus has yet to be reached on how to remedy the situation. The Alliance stands ready, willing and able to participate in any serious debate or consideration of fair and balanced proposals for property tax reform. Any such proposals must recognize and consider the potential impact on all owners of property.
• Payment in Lieu of Taxes (PILOT) – We support full funding of the municipal reimbursement for PILOT, which makes our cities and towns more competitive while supporting the mission of our valued non-profit institutions.
• Regionalism – An issue that has different meanings for different people, the Alliance believes that the State must begin to recognize the existence of regional economies and how we can capitalize on our strength as a Region. One key way in which to do so would be for the State to recognize Designated Economic Development Districts as outlined by the federal government. Doing so would grant access for the metro Hartford Region to federal economic development funds that are not currently available. It would also be a logical next step toward the State officially recognizing regional economic development issues and encouraging greater regional cooperation and possibly greater efficiency in government.
• Economic Development – In these challenging economic times, it is vitally important that the State possess and use the most effective tools possible to attract and recruit economic development projects. While many of our current programs have been successful in retaining many Connecticut businesses, we must strive to be on the cutting edge of incentives in order for us to contend for new businesses. Essential to this goal is a review of State economic development programs and incentives to determine best practices so that Connecticut may better compete with new and innovative ideas in place throughout the country and the world.
• Eminent Domain – Eminent domain is an effective economic development tool, particularly when used with appreciation for local government rights and responsibilities. Our municipalities have few tools at their disposal to use to promote economic growth and development, including the tax assessment freeze, tax incremental financing and eminent domain. Specifically, eminent domain is fundamental for the redevelopment of many of our urban communities statewide.
• Energy – We applaud the recent enactment of the Energy Independence Act. This comprehensive legislation directs industry and governmental authorities to seek solutions that will ultimately result in an energy market that is more competitive with our New England neighbors. Optimally, we would like to see the solutions offered in this bill, particularly opportunities for new generation, accelerated to maximize their impact. In conjunction with the active implementation of this legislation, we support each of the four initiatives listed below as a combined package to help address Connecticut’s energy needs:
ο Transmission Improvements: The Federal Energy Regulatory Commission has designated Southwest Connecticut one of the nation’s most severely congested regions. ISO New England has said that the need to upgrade Southwest Connecticut’s transmission system is the most urgent in all of New England. Now is the time to provide the transmission upgrades necessary to support southwestern Connecticut as this issue, if neglected further, will continue to hurt the business climate throughout the entire state.
ο Conservation: Encourage business community participation in cost-saving conservation and load management programs and services available to Connecticut companies. Articulate the continued need for business community representation on the Connecticut Energy Conservation Management Board.
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ο Alternative Fuels: Enhance Connecticut’s growing fuel cell industry while investigating the economic advantages of new liquefied natural gas facilities and emerging clean coal initiatives which may offer opportunities to combat New England’s high cost of fuel. A key component of any successful strategy must include fuel diversity among our future generation facilities along with a growing reliance on available renewable resources.
ο Plant Upgrades: All reasonable forecasts indicate that, even with effective conservation measures, Connecticut needs to replace and add to its aging power plants. Connecticut currently lacks enough “supply” to enable competition among generators. We ought to begin by enhancing “incubator applications” of fuel cell and other emerging “micro” power generation technologies.
• Telecommunications – Spur competition in the communications industry by equalizing regulation among competing providersand stimulate investment in our state's high-tech infrastructure by taking a hands-off approach to new broadband networks and IP services.
• Culture, Arts and Tourism – As the Region continues its renaissance, it is critical to continue to promote our assets and attractions aggressively. These include our rich cultural diversity and history, as well as the convention center and other new developments throughout the City. In order to sustain this energy and momentum, it is imperative that the State, to the extent possible, consistently and adequately provide funds to promote and sustain culture, arts and tourism in the Region.
Local
• Albany Avenue Reconstruction – Upper Albany Avenue is a vibrant business and entertainment district that is well known to visitors, commuters, and destination shoppers from surrounding towns. It is a neighborhood that creates a welcoming ambience, reflecting a unique African/Caribbean-American cultural diversity which in turn represents one of the great strengths of Hartford and the surrounding area. Reconstruction of Albany Avenue is critical to the success of this area. The current plan includes traffic and safety improvements, streetscape projects, traffic calming and transit improvements. We urge the Connecticut Department of Transportation to give final approval and funding to implement this plan.
Another significant investment in the Albany Avenue area that signals further revitalization is the future University of Hartford Performing Arts Center. We believe that the economic benefits resulting from the large amounts of foot traffic that will be generated in the area will spawn rapid growth in neighborhood businesses to serve the people working and studying at the Arts Center. In many ways, it is a key economic development project for the neighborhood, as well as an educational project. Plans are complete but the need exists for both state and federal funds to complete this important effort.
Albany Avenue represents a critical piece of the City as we work to spread positive momentum throughout each and every neighborhood over time. It is our hope that we can build upon the already successful efforts in this area and do our part to help make Albany Avenue a thriving, safe center of cultural diversity.
• Park Street Streetscape: Phase II – Park Street is home to an increasingly competitive commercial district. It complements the diversity of Hartford’s northern border with a uniqueness that has attracted the likes of President Clinton and other dignitaries. The Park Street Streetscape project is a vital component of this neighborhood’s recipe for future success.
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Among the aspects of the project planned for completion in Phase II are:
This neighborhood borders the Convention Center district, making it important to share this community’s strengths with the rest of the city to provide continuity for residents and visitors alike. Each neighborhood’s success relies on its adjacent partners. This fall, the Alliance has offered its support to the Spanish American Merchants Association to help boost the redevelopment of this vital neighborhood. Most recently, in a December 2005 Bond Commission meeting, $1 million of funding was approved to help push Phase II of the Streetscape project forward. We will continue to monitor the progress in this area and offer our support to help make the neighborhood more competitive and economically viable.
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