This week Barry Sternlicht announced that he is no longer a Greenwich resident, having moved to Florida in July. Mr. Sternlicht joins a growing and disturbing trend of outward migration.
On the one hand, we can certainly understand his desire to live in a state that has a less onerous tax structure. As one of Greenwich’s most successful businessmen—he is the founder, chairman and CEO of Starwood Capital Group—his departure will certainly affect the state budget this year, because the state will not be able to count on his personal income or sales and use taxes. On the other hand, if residents keep giving up on Connecticut and leave, who will be left to fix our state?
The Democratic majority in Hartford can longer claim that the outward migration is something made up by the Republicans. There is just too much fact to show that it is no longer a claim but a reality, and a dangerous one at that. In light of this new reality, it is time for us as citizens to stand up and say to our government, “No more.” You can no longer attempt to tax us to a balanced budget. The deficit in our current budget will grow with Mr. Sternlicht’s departure. The Governor and legislature need to immediately address why people are leaving before there is no one left to turn out the lights and lock the door.
There are several things that need to happen if we want Connecticut to be a place where the Sternlichts of Greenwich no longer run away from. First (we’ve said it before, we’ll say it again), we need to get our financial house in order. We cannot spend more than we take in. We must balance our budget. We must cut spending. The unions are going to have to give concessions on their benefits. Their deal was bad when it was conceived, and it has only gotten worse.
Second, we must make our state attractive, so that businesses want to move here. We don’t mean by offering large tax incentives to move from another state. That is a limited, short-term fix. We need to create a business climate that is attractive to large corporations and small Mom and Pop stores alike. We need to look at the taxes and regulations that businesses must comply with and become competitive with New York and Rhode Island. We need to be open for business.
Third, we need to use our state’s resources to support economic development. Did you know we have a major port in our state that we are letting languish and become unnavigable? Bridgeport, just 30 miles down the road, used to import the majority of bananas sold on the East Coast. Today it sits mostly idle. In fact, if you visit the Bridgeport Port Authority’s website to see what is happening, you end up on a Chinese website. When called, the Port Authority said it had been like that for “some time.” How can we promote economic development if one of our three deep-water ports is literally not open for business?
But the most important action that each of us can take is two-fold. We need to say loudly and clearly that we are not going to accept business as usual as our plan for the future. We need a groundswell not just in Greenwich, but across our state, to demand fiscal accountability and a balanced budget. No gimmicks. No games. Straight up Accounting 101. We cannot allow our state to spend its self into insolvency.
The second part is, we need to not leave. This is our state and we need to fight for it. Leaving only compounds the problem and makes the situation worse. We challenge the Barry Sternlichts of Greenwich be part of the voice, a loud part, that demands change. You are successful business people, natural leaders.
Help us all by helping lead our state back to economic solvency and greatness.
