A path out of state’s fiscal quagmire

By now, just about everyone knows someone who has left Connecticut for a state with no income tax — or say they want to leave.

That is an anecdotal indication of a state of 3.6 million people that is perceived to be in trouble. More solid evidence is the misery over the state’s finances.

Last year, the General Assembly, stalled by huge deficits, was five months overdue in passing a budget, which quickly went into the red as revenues fell short of projections. In the next decade, deficits will balloon to over more than $1 billion a year.

Connecticut isn’t on life support — yet — but if nothing changes it certainly will be.

Therefore, the governor, members of the General Assembly, local municipal leaders and the general public (before they go) need to pay attention to the comprehensive recommendations delivered Thursday by the Commission on Fiscal Stability and Economic Growth.

With only four months to do its task, the 14 private citizens on the commission worked quickly, but thoroughly, to chart a path for Connecticut to achieve “government fiscal stability and promote economic growth and competitiveness within the state.”

The mostly business leaders were appointed when the General Assembly created the commission when after finally adopting a budget on Halloween; it expired with the presentation of the final report March 1. But the state is obligated to hold hearings and consider legislation this session, not later, and resist temptation to relegate the report to a shelf with others.

With more than 30 proposals in the 68-page report, buttressed with volumes of research and analysis, there is much to consider. As commission members note, not everyone will like everything — but there is something for everyone.

Business may shirk from the idea to raise the minimum wage from $10.10 to $15 an hour in stages over four years, for example, and labor already is howling about the recommendation to remove fringe benefits from collective bargaining of new contracts.

Every recommendation deserves careful consideration. Among them:

Reducing income taxes in every bracket, a revenue-neutral move coupled with raising the sales tax less than 1 percent and selective taxes on business.

Creating a Joint Budget Committee in the Legislature to set limits on revenues and expenses.

Encouraging economic growth in the cities and incentives for municipalities that promote regional services.

There’s much more, and as the commission noted, the recommendations together form a path to stability and won’t be as effective if cherry picked.

The recommendations are “based on a sober recognition that Connecticut is in quiet crisis by every measure: consistent budget imbalances, growing unfunded liabilities, falling bond ratings, stagnant economic growth, competitive disadvantages compared to neighbors, the report states.

The report offers Connecticut’s elected leaders an opportunity to show some statesmanship and take bold action toward economic stability. It is a harsh look in the mirror, but it is not too late to change the picture.

Connecticut isn’t on life support — yet — but if nothing changes it certainly will be.