State Bonding Process Needs Radical Restructuring
To The Editor:
A new state law calls for the development of a long-term economic development strategy for Connecticut. The timing is right for us to take a close look at the state bonding process. Sound fiscal policies must be an integral part of any development strategy.
Governing Magazine annually assesses state government performance, and in 2005, Connecticut received a C+ for infrastructure development. The report had this to say about our capital planning process; “The planning process does not appear either transparent or open to public input. Observers talk about projects that were not in any plan frequently showing up in the capital budget and about bonding being approved without a great deal of planning.”
At a recent research and policy conference held by CERC and the Connecticut Regional Institute for the 21st Century, the 120 participants concluded that our capital spending plan needs to be “radically restructured” and that we need to create standards and criteria by which all state investments can be judged. Our political leaders’ attention to this matter is long overdue, and their focus should be on reforming the process — both for what gets on the Bond Commission agenda and how we set priorities for state capital expenditures.
Seven regions of the state already have Comprehensive Economic Development Strategies (CEDS) that identify their top capital projects. Why not require that all projects submitted to the state for bonding be included in such a plan before being considered? We also should establish standards for judging projects. For example, we should look at issues like: economic impact (jobs, income generation), infrastructure development (sustainable, infill development, synergies with other projects), compliance with other regional and state plans … and what about feasibility (site control, commitment of funds, legal, zoning or other approvals, local political support, organizational capacity, etc.)?
Connecticut needs to create a strategic approach to its capital spending that is fiscally sound and includes public input. The strategy must transcend administrations and incorporate priorities that are critical to the state’s long-term economic competitiveness. Bonding expenditures must be shown to be fiscally prudent with a high return to the state and its regions. CERC would welcome the opportunity to work with our state leadership on crafting a strategic approach that fits Connecticut.
Robert W. Santy
President and CEO
Connecticut Economic Resource Center
WBJ Web Partners
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