HARTFORD, Conn. _ The Connecticut General Assembly gave bipartisan backing Wednesday to a $220 million deal to keep Sikorsky Aircraft building a new line of helicopters in the state until at least 2032, but it came with election year criticism by Republicans of fiscal and economic development policies of the Democratic-run Legislature and Gov. Dannel P. Malloy.
The House voted 136-6 to approve a package of tax credits and grants to Sikorsky in exchange for a commitment by the helicopter-maker to manufacture U.S. Navy helicopters in the state.
Hours earlier, the Senate backed the agreement, 35-1. The bill, called the Connecticut Strategic Investment Act, now heads to Malloy for his signature.
Republican critics, even while voting for the bill, rapped the governor and Legislature for tax increases in 2011 and 2015 that the GOP says is driving out business. Republicans cited the decision by General Electric Co. to move its headquarters to Boston from Fairfield as an example of failed state economic development policies.
"We're chasing businesses out of Connecticut, only to chase them back in with financial incentives," said House Republican Leader Rep. Themis Klarides.
Fellow Republican Rep. John Shaban called the Sikorsky package a bribe to keep business from leaving Connecticut.
"We need to create a stable tax and regulatory structure," said Shaban, who is challenging Democratic U.S. Rep. Jim Himes for the 4th congressional district seat.
Sen. Joe Markley, a Republican who cast the only Senate vote against the deal, called it "crony capitalism" and "corporate welfare" for large businesses with powerful connections in the General Assembly.
"We have created a terrible business climate in Connecticut," he said. "Companies are now coming to us and say, 'You have to pay us to keep us in your state.'"
Sen. Ed Gomes, a Democrat, defended the Malloy administration. Others may call the Sikorsky package corporate welfare, "but I call it a pretty good deal," he said.
In exchange for state aid of up to $220 million over 16 years, Connecticut is receiving billions in investments by Sikorsky, he said.
Senate President Pro Tem Martin Looney, a Democrat, said the deal is expected to pump an estimated $69.2 billion in the state's economy and would spend about $21.1 billion on Connecticut-based employee wages and benefits.
It also is expected to generate $384.4 million a year in tax revenue.
"This represents a landmark agreement," Looney said. "This is an extraordinary coup."
In the deal announced last week, Sikorsky, which is owned by Lockheed Martin Corp., agreed to increase its full-time employment in Connecticut, now at about 7,600, to more than 8,000 by the end of the 14th year of the agreement. That will make up for expected declines in employment as Black Hawk helicopter manufacturing winds down and job levels are expected to dip occasionally.
Sikorsky also is required to double its $350 million in annual spending on the state's aerospace supply chain.
Malloy said the deal was necessary to compete with other states vying for Sikorsky's high-value helicopter manufacturing.
As many as 302 Sikorsky suppliers do business in Connecticut, according to Malloy's office detailing the number of suppliers by town.
Sen. Len Fasano, a Republican and minority leader of the Senate, said the deal is a good package, but demonstrates that Connecticut is costly for business.
"It still speaks to the fact that if we weren't one of the most expensive states in which to do business, we wouldn't have to make this package," he said.
Lockheed Martin representatives told lawmakers the financial incentives are needed to help offset $400 million in additional costs to manufacture the heavy lift CH-53K helicopters in Connecticut.
Sikorsky workers also are being asked to help cut costs. Teamsters Local 1150, which includes about 3,300 workers in Connecticut, has scheduled a vote Oct. 9 on whether to accept or reject a recommendation to replace a company pension with improved 401(k) retirement plan contributions for employees hired after July 2017.
Sen. Kevin Kelly, a Republican, said making helicopters in Connecticut will provide high-salary jobs "that can pay a mortgage and educate our kids."
But he said a "permanent fiscal crisis" is prompting corporate executives to think twice before locating in the state.
