Opinion

Jim Fagan op-ed: You can’t save your way to greatness

Jim Fagan, senior managing director in the Stamford office of Cushman & Wakefield. Jim Fagan, senior managing director in the Stamford office of Cushman & Wakefield. Photo: Contributed Photo Photo: Contributed Photo Image 1 of / 1 Caption Close Jim Fagan op-ed: You can’t save your way to greatness 1 / 1 Back to Gallery

Connecticut is hurting. We must seize the opportunity to reconfigure its future by taking bold steps to attract jobs and people to create a culture and environment fit for the lifestyle and workplace of the future. We need to position the state as the locale of choice for businesses and, more importantly, for the millennial population as they enter their next phase of life.

In the 1980s, Connecticut’s economy was the envy of the country. It was a magnet for employers and the workforce alike, and in 1986, home to more than 40 Fortune 500 companies, the second-highest concentration in America.

While still sporting one of the wealthiest per capita states in the country, Connecticut’s economic fortunes have significantly declined. Employment in the state and its population have grown by 4 percent and 9 percent, respectively, over the last 27 years; far below the national average of 33.7 percent and 30.5 percent. It’s losing out to Boston, New York and other urban centers with better value propositions for their residents. Since 1986, we have only attracted a small percentage of companies in the TAMI (Technology, Advertising, Media and Information) sector of the economy, which has buoyed other states’ economies around the nation.

Conversations of how Connecticut has lost its way are being had all around the state. Some of the blame is falling on high taxes, high cost of living, terrible traffic, a derailed infrastructure strategy, and a burgeoning pension liability. Though these are serious issues that must be addressed in a non-partisan manner, they are not the core explanations of why Connecticut suffers — it is lack of population and job growth that fuels the state’s decline.

There are three actions the state could take that would have an immediate impact on growth and, if executed effectively, would allow for a bright future.

1. Announce a 15-year plan for the University of Connecticut to merge with the University of Bridgeport and house 30,000 students on Bridgeport’s Southern Peninsula. The University of Connecticut is currently housed remotely in Storrs. Unlike Palo Alto, New York, Boston or Austin, students do not stay in Storrs upon graduation. A University of Connecticut in Bridgeport would allow companies, students, and the community to form partnerships that would ignite growth in the state. Announcing this move would have an immediate positive economic impact on private investment in Bridgeport, turning it from an economic drag to a bustling economy.

2. Announce a plan to revitalize Sikorsky Airport, and turn it into an airport that would cater to commercial (passenger) and freight traffic. Expand the runways out into Long Island Sound from their existing length of under 5,000 feet to more than 7,000 feet to accommodate all air traffic. Sikorsky would be able to compete with Westchester County Airport in White Plains, N.Y., and serve as an industrial services airport to support UPS, Amazon and other delivery services.

3. Provide a marketable state tax credit to recent graduates from accredited universities who live and work in the State of Connecticut. This program could ease the student loan burden. Options include:

For recent graduates with a four-year degree

A $4,000 per-year tax credit for the first five years after graduation

An $8,000 per-year tax credit for the second five years after graduation.

For recent graduates with a two-year degree

A $2,000 per year tax credit for the first five years after graduation

A $4,000 per year tax credit for the second five years after graduation.

Connecticut has built a reputation as an idyllic environment for raising a family. We must alter our value proposition to become a state for all slices of the demographics pie, from young families to vibrant retirees. We are far behind and have missed out on attracting the young millennial generation; we must work hard to fix that.

The outlined plan will be expensive and force us to write-off large past investments, which could be viewed as folly. This is a fight for survival. We must act today and take the opportunity to capitalize on all of Connecticut’s advantages to create a workplace and lifestyle of the future.