Latest News

Kicking the Can?

More dire budget news this week.

Governor Malloy has been quoted as saying he does not think a budget resolution between Democrats and Republicans can be reached by October 1. If true, missing the October deadline could put the state and its cities and towns in further jeopardy.

On top of that, the ideas that have been put forward so far appear to fall short, according to Keith Phaneuf of CTMirror.org. Phaneuf, considered an expert on the state budget, writes that plans put forward by both parties would still leave large budget shortfalls at the end of the current two-year budget cycle.

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Bi-partisan Talks?

Governor Malloy joined the call Monday for bi-partisan budget talks while promising to veto the budget approved by lawmakers over the weekend.

So far, there have been no new negotiations.

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Budget Situation

Three months into the new fiscal year the legislature finally voted on and passed a budget Friday, but it is believed Governor Malloy plans to veto the spending plan. Democrats and Republicans are already working on their next budget in anticipation of the veto.

The budget that passed Friday night was described as a "Republican" budget, but it passed both Houses with a handful of Democratic votes.

What may be more important is the damage the continued delay does to cities and towns waiting for budget clarity, the city of Hartford which is essentially waiting for a state bailout to avoid filing for bankruptcy, and the state's national reputation as a stable place to do business.

Fair to Ask

With news from Alexion and a stalled budget process at the state capitol, it is fair to ask, what is Connecticut doing wrong? That's the question Governing magazine asked in its latest issue. The resulting article is being widely circulated in Connecticut's leadership community.

At the same time, it is important to recognize that there are ways forward and there are ideas that could put the state on the right track if implemented. CT21 has been providing those ideas and that pathway since its inception and many of our recommendations are highly relevant in the current policy debate.

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Alexion Moving Out

Reports indicate Alexion has decided to move its headquarters from New Haven to Boston. It is the latest high profile move out of Connecticut by a major company as the legislature and governor continue to battle over the state budget. The correlation between fiscal chaos and the Alexion decision is unknown, but other private sector leaders have cited the effect of poor long-term planning by state government on the business climate.

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A Vehicle for Tolls

Perhaps tucked into the proposed budget scheduled to be voted on later this week is a provision to create a new quasi-public state agency responsible for raising revenue for transportation projects. It is possible this new authority would be the first step toward implementation of electronic tolls in Connecticut.

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Budget Deal?

Democrats say they are getting close to a budget deal as a self-imposed Thursday deadline approaches.

After a weekend of meetings, Democratic leaders now say they are leaning away from an across the board increase in the sales tax but still have plans to expand the base of items subject to the tax.

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Job Recovery

Economist Don Klepper-Smith says Connecticut is on track to recover all the jobs lost following the 2008-09 recession, but not until 2019.

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Effort to Deal

Governor Malloy has put forward a new offer to compromise in an effort to end the state's budget gridlock.

Malloy says he is now willing to revise one of his key budget demands.

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Help Please

The word coming out of the state capitol now pushes back plans to vote on a budget on September 11th to September 14th.

Most observers believe even if the House passes a budget on that date, the Senate will not accept the plan without changes - which puts the state close to October without a budget in place.

Meanwhile, local elected leaders are sounding the alarm.

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Real Estate Sector Hopeful

This analysis was originally published by the Connecticut Economic Resource Center.

By Kristi Sullivan

The latest semi-annual online survey of Connecticut commercial real estate conditions, conducted by the Connecticut Economic Resource Center, Inc. (CERC), indicates that respondents are generally optimistic about the real estate market, but not all sectors of it. They are especially pessimistic about conditions in the office and retail markets both in their own geographic areas and across the state as a whole.

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Day Calls for Fiscal Reform

The following opinion piece was published by the editorial board of the Day of New London.

Restructuring of Connecticut's finances isn't waiting any longer for tax reform plans or large-scale fiscal policy change that never materializes. It has been zigzagging forward regardless, in the ungainliest way, like duct-taped Apollo 13 lurching back to Earth.

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