Yesterday, the CBIA released its 2025 policy recommendations, part of its ReimagineCT initiative. A coalition of 72 lawmakers, 10 Senators and 62 Representatives, cosigned the recommendations. 32 of the lawmakers are Democrats, and 40 are Republicans.
“This session, we are calling on lawmakers to prioritize policy solutions that will lower our high cost of living – particularly energy, housing, childcare and healthcare costs – so that Connecticut can retain and attract more residents and grow its workforce,” said Chris DiPentima, President and CEO of CBIA. “Every legislative proposal must be evaluated through this lens: ‘How will this bill make Connecticut more affordable?’”
The report made easily apparent the importance CBIA officials place on increased affordability for state residents and business owners alike. CBIA made 12 policy recommendations under the categories of workforce, economy, and quality of life. For its three workforce recommendations, CBIA said legislators should work to boost manufacturing and trades job growth, change school evaluations to focus more on job readiness and paid internships, and allow greater access to small businesses for affordable, high-quality health insurance.
CBIA’s four economic policy recommendations are the reduction of pass-through entity tax credits back to their previous levels, an increase in research and development tax credits to 100%, a streamlining of state and local permitting processes, and higher fiscal transparency through third-party litigation funding reform. Pass-through tax credits are used for businesses, many of them being small businesses. Third-party litigation funding refers to the payment of a litigant’s legal fees by people or entities with no stake in the case, for a share of settlement proceeds in return.
“Regulatory reform and more careful nurturing of the state’s business retention, recruitment, and attraction strategy, will greatly improve the ease of doing business and increase much-needed investment in the state,” read the report.
CBIA made four recommendations to make the state more affordable, and attractive, for working class residents. These recommendations are the creation of an energy affordability commission, continued support for affordable childcare initiatives, the implementation of first-time homebuyer tax credits, and the consolidation of local services to reduce property taxes.
CBIA cited several statistics in its report to highlight the importance of each issue; Connecticut has seen a 54.6% increase in energy costs in the past decade, the 11th highest increase in housing prices in the country from the start of the pandemic, and the third highest property tax rate in the country. CBIA also noted that state labor statistics reflect a 10% lower participation rate for women in the workforce than men, which could be changed through access to childcare.
“Connecticut is experiencing a concerning decline in the labor force, combined with ever-increasing costs of energy, employee healthcare, and workplace mandates,” Chris Davis, CBIA’s vice president of public policy. “Working together to adopt these policy solutions, we can retain and attract a growing labor force, enhance innovation and productivity, and promote a regulatory environment that encourages growth and sustainability for years to come.”
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