Connecticut Commentary: Red Notes from a Blue State

“The past was erased, the erasure was forgotten, the lie became truth” – George Orwell, 1984 The “constant sniping and cherry-picking bad news from the good” has given Connecticut Speaker of the House of Representatives Brendan Sharkey heart palpitations. In a Hartford Courant column , Mr. Sharkey writes: “Rather than attempt to establish themselves as credible participants in our state's democratic process, the Republicans will say or do anything in an attempt to gain a political advantage, no matter how harsh or misleading, and without regard to the negative effects their behavior has on Connecticut's economy or its future.

In February 2011, Aetna Insurance Company’s CEO, Mark Bertolini told a Middlesex County Chamber of Commerce breakfast group that Connecticut was not a profitable place to do business . “Connecticut,” said Mr. Bertolini, “falls very, very low on the list as an environment to locate employees . . . in large part because of the tax structure, the cost of living, which is now approaching, all in, the cost of locating an employee in New York City.” The Malloy administration quickly moved to shower Aetna with preferments, and Aetna’s honcho offered a weak apology, promising Mr. Malloy on a stack of bibles that his company would not hightail it to another state but continue to maintain its headquarters in Connecticut. He was grateful that Mr. Malloy, agitated by the possible loss of tax revenue, had opened Connecticut’s treasury to Aetna. Mr. Malloy in turn was grateful that Aetna would continue to remain in the spot, here to be plundered by tax starved government officials.

In any tousle between business and government, business usually has the last word, and more often than not the word is, “We’re outta here.” Sikorsky Aircraft, a Connecticut company of long standing, has initiated two rounds of job cuts. Early in 2010, Sikorsky President Jeff Pino, “under marching orders to raise the division's profits,” according to a news story , boasted to stock analysts, “We've nearly tripled the amount of direct production labor hours from 2006 to 2009. And for the first time in the history of our company, more than half of our hours are outside of Connecticut. We're very proud of that because outside of Connecticut, as I told you last year, by definition is low-cost sourcing." Having met his goal of a 10 percent profit margin in 2010, Pino presently is aiming for 14 percent by 2014. Playing its strategy close to its vests, company officials declined to share details of the cost saving cuts with Connecticut’s Democratic congressional delega...