For years, business lobbyists have been trying to get state lawmakers to think about the impact their legislation has on private industry, the same way it estimates the impact on state government.
This year on the campaign trail almost every lawmaker pledged to put jobs and the economy at the forefront of their legislative agendas and last week the Commerce Committee took the first step toward making that goal a reality.
The Commerce Committee raised a concept bill which will ask the nonpartisan Office of Fiscal Analysis evaluate the impact legislation has on private industry.
House Minority Leader Lawrence Cafero, R-Norwalk, said his caucus has been asking for this type of analysis for a long time. He said even if they can analyze 10 bills that come out of the Finance Committee this year it will be a victory.
“We pass so many bills and we think we’re doing a good thing, but then we find out we didn’t succeed,” Cafero said last week.
Sen. Gary LeBeau, who co-chairs the Commerce Committee, said there is an additional cost if the legislature determines it wants to ask its budget office to take a look at the impact on private industry. But LeBeau thinks they can do it cheaper than initially estimated by soliciting the help of the University of Connecticut.
The Office of Fiscal Analysis estimated that it writes about 600 to 900 fiscal notes per year and in order to complete the additional work it will need a license for the Regional Economic Models, Inc. (REMI) software program and it will need to hire two additional analysts at a cost of $246,800 in the first year and $152,100 in the second year.
The cost of estimating 10 bills could be done with existing OFA staff, but it would still cost $123,000 in the first year and $26,000 in the second year for the cost of the software.
LeBeau argues the state already owns a license for the software program. He said the trick is getting OFA to work with the University of Connecticut to bring the cost down. But getting OFA to give up some of its autonomy may be a tough sell.
“To preserve OFA’s independence and objectivity, it would be best for OFA to perform the entire analysis,“ OFA Executive Director Alan Calandro wrote regarding the suggestion it could work with the Department of Economic and Community Development on the REMI model. “Having another agency perform part of a nonpartisan office’s analysis, could have the effect of weakening the credibility of the product.”
Regardless of exactly how the bill is drafted the business community which has been asking lawmakers to take business and industry into consideration for years is expressing caution about the proposal.
“We think it’s great lawmakers are taking a look at the impact on various industries,” Bonnie Stewart, vice president of government affairs for the Connecticut Business and Industry Association, said last week.
But “There’s a lot more to look at than the number of jobs created or retained,” Stewart said. “Increasing employability skills, and opportunities are also important.”
Stewart said she’s cautiously optimistic that the proposal will be beneficial, but it could also create confusion or even harm.
Support authentic, locally owned and operated public service journalism!
“The financial services industry may be impacted one way, while manufacturers are impacted in another way,” Stewart said.
She said she’s concerned about the REMI model because it estimated the high cost of business doesn’t have an impact on the Connecticut because its workers are more productive. She said productivity doesn’t offset the high cost of doing business.
“We need to be cautious,” Stewart said. “We need to focus on both the trees and the forest.”
More Labor News

Lamont Inks New Employment Law Backed By Unions
In a victory for state labor unions, Gov. Ned Lamont ignored a lobbying effort by business organizations and signed a bill Tuesday prohibiting employers from holding “captive audience” meetings to potentially discourage workers from unionizing.
Keep reading
States With The Largest Unionized Workforces
Where does Connecticut stand in the list of states with the most unionized employees?
Keep reading
Business Leaders Make Push To Veto Captive Audience Bill
Connecticut business leaders are leaning on Gov. Ned Lamont to veto a bill that would restrict what employers can say in the workplace. The bill, which has been a priority of labor unions for years, is being described by business owners as an unconstitutional attempt to restrict workplace communications and an infringement on employer free…
Keep reading
ANALYSIS | It’s A Wrap: The Winners and Losers of the 2022 Session
It was a short legislative session, but the House and the Senate were able to move a lot of business this year, including the passage of a $24-billion budget with around $600 million in tax cuts.
Keep reading
‘Captive Audience’ Bill Headed To Governor’s Desk
Legislation prohibiting Connecticut employers from holding “captive audience” meetings to discourage workers from organizing received final approval in the House late Friday despite Republican arguments it was preempted by federal law. The bill passed in a 88 to 56 vote, generally along party lines. Eight Democrats joined all but one Republican in voting against it.…
Keep reading
Health Care Workers Call for New Hires
After a record number of health care workers are expected to retire this year, health care staff called on Gov. Ned Lamont to commit to filling 1,000 vacant positions by August 1 of this year. A record 1,137 state workers who notified the state that they will retire this year comes at a moment of…
Keep reading