New research from IHS Global Insight has some bad news for the State. Perhaps the Governor ought to switch course yet again, and go back to the no-tax-increase pledge. Because it appears we will need all the positive differentiating factors we can find. According to this data, it will take the various states a varying amount of time to recover the jobs lost since 2007. Some, such as Texas, will recover by next year. But some will take longer. Exactly five are expected to not recover until after 2015. These five are Michigan, Ohio, Indiana (the usual Midwestern suspects), Rhode Island ( a victim of the housing bust), and… Connecticut.
I don’t know what the data is based upon, but if this is accurate, our tax receipts will not recover for years with the existing labor pool. The only way for the State to get solvent is to grow jobs, and the only way to grow jobs is to make business feel welcome.
It appears to be time for Hartford to start thinking of less spending, less taxes, and less regulation, and to stay in that mindset for a period of years. If not, the relocation business is going to be the only growth industry from Greenwich to Stafford Springs.