Conntact.com - CT Business News Journal

Devil in the Details

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At first pass, Gov. M. Jodi Rell's proposed budget plan, which tidies up state government through the elimination of several commissions, and consolidates some agencies, appears to represent a major transformation of state government. However, the budget proposal depends on more than $2 billion of federal stimulus money, as well as all of the state's Rainy Day Fund, to address what the administration believes is a potential $6 billion budget shortfall. Rell said in her bloated government."

Her proposals include eliminating some 900 jobs and negotiating $570 million in "concessions" from state workers. While no new taxes are proposed, the governor is expecting to raise $260 million in new fees from everything from fishing to drivers' licenses.

If Rell's projections are correct, the state will skate through the next two years of the financial crisis with marginal real change to government. That said, the governor is using this budget process much like congressional Democrats to put forward changes in government that have only a marginal impact on the state's budget, but support long-held political goals.

The governor had previously tried to reshape arts funding, for example, and in this budget the International Festival of Arts & Ideas, Arts Council of Greater New Haven and the Amistad School will have to compete for funds that previously were awarded directly to them.

Rell has increased a pool of funds for arts grants from $6 million to $9 million but doesn't want them earmarked. While we agree in principal with the governor, we can't see any reason to spread crisis around when no "real money" is at stake.

Practicality and not ideology should be the driving force in any budget considerations now.

Likewise, Rell is proposing that Connecticut Innovations Inc. (CII), a quasi-public venture-capital group, and the Connecticut Development Authority be folded into the Department of Economic & Community Development. We think the savings here would be marginal but the impacts potentially harmful.

DECD needs to ramp up its game considerably in the face of this busted economy. In spite of a stalwart effort by staff to address day-to-day issues, we haven't seen much dynamic leadership at the DECD since the early 1990s.

CII, along with the Connecticut Technology Council and the Connecticut Venture Group have been doing the real work of creating and supporting a growing culture of innovation in Connecticut. We need that energy and innovation now more than ever.

 
"Mitchell Young is the publisher of Business New Ha..."

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Posted on Thursday, 01 December 2011

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