Nearly Two-Thirds of Americans Would Consider Coworking, If Only They Knew What It Was

Good news, bad news. That might be the best way to describe the results of a national survey by CoworkCT into public awareness of, and interest in, coworking. Nearly two-thirds of Americans (63%) said they would consider working in a collaborative work environment once they understood the concept (good news), but 60% said they had never heard of it (bad news). CoworkCT, a network of coworking communities whose members include small businesses, entrepreneurs, freelancers, and contractors who share space, resources, and ideas, conducted the national survey to better understand how familiar Americans are with coworking. Answer:  they're not.

A new website will be launched next week at www.coworkct.org, with more information about coworking in Connecticut.  Additional data, links and information will be added to the current test site, to assist in explaining the coworking concept to what the study suggests will be a receptive public.

According to the survey, the demographic groups most inclined to consider a coworking environment were 18 to 34 year olds (75%) and residents of the Northeast (72%). That is certainly true of ConneCoworkCT-Purple1-513x515cticut, which has seen growth in the concept in recent years, with coworking locations established in communities across the state, including Danbury Hackerspace, reSET (Hartford), the Grove (New Haven), B-Hive (Bridgeport), Stamford Innovation Center and Axis 901 (Manchester).  Each will have a presence on the news website, reflecting their growing community presence.

CoworkCT reports that the average cost of a coworking membership is $200 per month and the average cost of a private desk or office in a coworking facility is $350. The data from the survey showed that on average, people think the monthly cost of an individual coworking membership is $1,300.  Not even close.

Other key findings from the research include:

  • Nearly 40% of respondents said that collaboration with other professionals (not necessarily within their organization) was the most attractive feature of a coworking space, followed by 19% of respondents who chose affordability
  • Forty percent of respondents thought small businesses with fewer than 10 employees were best-suited for coworking, followed by 21% of respondents who said entrepreneurs wctnext-logo-finalould be the best fit
  • More than half of respondents (55%) said they thought it costs more than $500 per person per month for an individual space in a coworking environment

CoworkCT is a network of Connecticut coworking communities where members share space, resources, and ideas. The goal of the network is to educate the public on the benefits of coworking and increase general awareness for the collaborative work style.

CoworkCT is coordinated by CT Next, Connecticut’s innovation ecosystem supporting the success of companies and entrepreneurs by providing guidance, resources and networks to accelerate their growth. The statewide network “connects promising companies to mentors, collaborative work spaces, universities, vendors, suppliers and other like-minded entrepreneurs to help facilitate the growth and scalability of their business.”  CT Next is a program of CT Innovations, the leading source of financing and ongoing support for Connecticut’s innovative, growing companies.

Among the other coworking sites in Connecticut that are expected to be invited to the new CoworkCT website are SoNo Spaces in South Norwalk, Group 88 in Simsbury , and The Soundview, Colodesk and Comradity, all in Stamford.

The national data in the report was based on an ORC International telephone CARVAN® Omnibus survey conducted among a sample of 1,006 adults 18 and older living in the continental U.S. Interviews were completed from April 24 to 27, 2014. coworking

Connecticut Agriculture Growth Gains National Attention

Connecticut may be the third smallest state in the nation, but it has a large agricultural presence - which led to the state being featured recently by the U.S. Department of Agriculture (USDA) on the federal agency’s website. Bucking the national trend, USDA reports, Connecticut farming has been growing for the past two decades. The state - based on the 2012 Census of Agriculture - has nearly 6,000 farms, which is a remarkable 60 percent increase from the 3,754 farms in Connecticut in 1982. At the same time, the state’s farmland acreage remained relatively stable, which means that the size of an average farm has been trending down, to an average of 73 acres.farming in CT

More than 900 Connecticut farms harvested vegetables for sale in 2012, with bell peppers being the most popular crop. To meet the needs of East Coast homeowners and landscapers, in 2012, 880 of Connecticut's nurseries, greenhouses, floriculture and sod farms grew and sold almost $253 million worth of those crops.

In addition, Connecticut’s coastal area has hosted shellfish farms since Colonial times. In 2012, the state’s aquaculture industry sold nearly $20 million worth of seafood, primarily shellfish from Long Island Sound. There is livestock as well, USDA notes, with 774 farms in Connecticut raising cattle and calves. Most of the sales on the livestock end come from milk, however. In 2012, the state’s farms sold nearly $70 million worth of milk from cows.

Contrary to history and stereotype, in 2012 more than 25 percent of all Connecticut farms were operated by women as principal operators. That is an incremental increase from 23 percent in 2007. Overall, the 2012 Census counted more than 3,700 women farmers in the state.

Connecticut farmers have also stepped up their efforts to get agricultural products into consumers’ hands, the USDA report indicated. With the growing “buy local” movement, nearly a quarter of Connecticut farms market human food products directly to consumers. About 10 percent of the farms in the state now market their products directly to retail outlets such as restaurants, stores, and institutions; and at the same time, 218 of our farms participate in community-supported agriculture programs allowing local residents to partake in their harvest.ct_grown_local_flavor

Although the USDA did not specifically mention the longstanding “Connecticut Grows” campaign from the state’s Department of Agriculture, it has served as a lynchpin for intensified efforts using technology.

The CT Grown Program was developed in 1986, during the administration of former Gov. William A. O’Neill, when the now-familiar green and blue logo was created to identify agricultural products grown in the state. During nearly three decades, the CT Grown Program has blossomed into a multifaceted campaign that promotes these products through a diverse array of avenues in local, regional, national and international markets.

It now features CT Grown producer listings and brochures, connections to farmers markets, the CT Seafood Council, CT Farm Wine Development Council, CT Food Policy Council, CT Milk Promotions Board, and other related councils and commissions.

More recently, the website www.buyctgrown.com was established as “a place to connect people who are ready to discover CT Grown foods and experience Connecticut agriculture.” buyCTgrown is a program of the non-profit CitySeed and receives support from our partners including UConn Extension, CT Farm Bureau, CT NOFA, and the CT Department of Agriculture. Logo_Pledge10_Partner

The website’s “CT 10% Campaign” asks people to spend 10 percent of their existing food and gardening dollars on locally grown goods.” Individuals and businesses can sign up to “take the pledge” on the website, and will receive ongoing information about locally grown products.

Nonprofit Governance Has Room for Improvement, Survey Finds

The 4.9% rise in charitable giving in 2013 is the largest gain since 2008, and comes at a time when greater attention is being paid by philanthropic donors and regulators to the governance practices of non-profit organizations. The CohnReznick 2014 Not-for-Profit Governance Survey reflects some progress as well as areas for improvement by nonprofits on a range of governance measures. The members of CohnReznick’s Not-for-Profit and Education Practice specialize in working closely with the boards and management of not-for-profit organizations to assist them in developing and implementing best-practices for their critical financial and operational functions. “Now more than ever,” the report indicates, “our clients are asking us questions about policies and procedures relating to audit committee governance and risk detection and minimization strategies.”

Key findings in the national survey included:

  • 58% of respondent organizations stated that they have an audit committee that is separate and apart from their finance topics coveredcommittee
  • 54% of respondents stated that their audit committees have between four and six members
  • 27% of the respondents stated that their organizations have a whistleblower hotline
  • 68% of respondents stated that their annual board meetings contain an educational component
  • 82% of responding organizations have a whistleblower policy in place.
  • 42%, stated that they do not have an audit committee that’s separate and apart from a finance committee.

When identifying conflicts of interest, the survey found that 77% of the respondent organizations have an annual disclosure statement in place.

The survey also found that 68% of the nonprofit organizations include an educational component to their board meetings and place a strong emphasis on financial, strategic planning, and governance. Other areas receiving attention at board meetings include industry trends, technology, risk management, regulation and tax issues.

According report coverto the National Center for Charitable Statistics (NCCS), there are more than1.4 million not-for-profit organizations registered in the U.S. This includes almost one million public charities, over 96,000 private foundations, and more than360,000 other types of not-for-profit organizations, including chambers of commerce, fraternal organizations, and civic leagues.

The survey found that less than 50 percent of boards noted that they are “very confident” in their organization’s governance practices. With the addition of new laws and regulations surrounding the industry, “this lack of confidence can give rise to much larger issues hesitation,” the report concluded. According to Forbes, charitable giving rose 4.9% in 2013, the largest increase in five years. This rise indicates “a renewed attention for not-for-profit organizations, which can also lead to renewed scrutiny.”

Knowledge of the intricacies of regulations and the effects that it will have on the governance practices of not-for-profit organizations is crucial to the success of affected organizations, the reported pointed out.

With origins dating back to 1919, CohnReznick LLP is the 10th largest accounting, tax, and advisory firm in the United States. Headquartered in New York City, CohnReznick serves its clients with more than 280 partners, 2,500 employees, and 26 offices – including Farmington, Glastonbury and New London in Connecticut, with plans for newly consolidated offices in downtown Hartford.

The consolidation of the two suburban offices in Glastonbury and Farmington is expected to relocate nearly 200 employees into Hartford later this year. The company plans to lease 50,000 square feet on the top two floors of the Metro Center building on Church Street.

Report Calls for Transition to Livable Communities Across Connecticut

In Connecticut, more than one-third of the population is over the age of 50, and that proportion continues to increase. Connecticut’s Legislative Commission on Aging has issued “Connecticut for Lireport covervable Communities,” a new report to the state legislature which outlines more than 50 recommendations for communities looking to enhance livability. The Commission has also launched a website which includes a list of communities that are responding to the call for more livable communities, and suggests a wide range of actions that communities can take.

Connecticut is undergoing a permanent and historic transformation in its demographics, the report points out. Between 2010 and 2040, Connecticut’s population of people age 65 and older is projected to grow by 57 pelivability chartrcent, with less than 2 percent growth for people age 20 to 64 during the same period.

Livable communities are vibrant, inter-generational places that are easy to get around, according to the report. “They include affordable, appropriate housing options, supportive community features and services, and adequate mobility options. They foster independence, engage residents in civic and social life, and allow people to age in place. Done well, they benefit community residents across the lifespan.”

The 50-page report indicates that residents born in Connecticut today can expect to live to be 80.8 years old - the third highest life expectancy in the nation. A lengthy series of recommendations are highlighted in seven different areas: community engagement, health and well-being, housing, planning and zoning, safety and preparedness, social and support services, and transportation.

The recommendations include promoting opportunities for intergenerational collaboration, promoting in-home programs that improve health outcomes, creating a balanced transportation system that connects residents with health care services, and adopting policies that encourage incorporation of accessible housing features into new construction. The recommendations also include a call for municipal plans of conservation and development that include planning for older adults and individuals with disabilities to remain in their homes and communities, and building compact, mixed-use development “to encourage walking and eyes on the street.”

Creating livability requires “robust partnerships, long-range planning and sustained commitment.” To support those efforts the Legislative Commission on Aging plans to be:

  • Providing educational opportunities on livable communities for community leaders and other partners in Connecticut;
  • Creating partnerships to support the multi-faceted, multi-disciplinary endeavor of creating livable communities;
  • Supporting, inspiring and incentivizing communities to enhance livability; and developing policies to support aging in place

To help communities implement the recommendations over time, the Commission plans to:

  • Recognize localities that have implemented livable communities initiatives, pursuant to Public Act 14-73 (which established the livable communities initiative)
  • Expand partnerships across multiple sectors to advance livability, logo
  • Continue to convene municipal leaders, legislators and other thought leaders for statewide and regional forums on creating livability;
  • Continue to identify funding opportunities for municipal leaders, seeking to implement or sustain livable communities initiatives;
  • Work with partners to conduct asset mapping across all Connecticut communities, with the goal of helping each community understand its facilitators and barriers to developing livable communities;
  • Continue to research models in other states, nationally and internationally;
  • Work with the Connecticut General Assembly to identify and advance policy solutions that incentivize and inspire the creation of livable communities;
  • Provide technical assistance to Connecticut communities seeking to enhance or promote livability; and
  • Create town-specific data profiles to enable towns to enhance livability in a targeted and strategic fashion.

Among the communities listed on the new website as having best practices in place in parts of their towns or cities are Branford, Guilford, Madison, Bridgeport, Danbury, Darien, Enfield, Hartford, Middletown, New Haven, New Canaan, Norwalk, Seymour, and Torrington.  The Commission plans to proceed with "asset mapping across all Connecticut communities" and "continue to identify innovations, ideas, and best practices for implementing livability in the state. "

Efforts to Connect Entrepreneurs Hit the Road Statewide

Some have suggested that the road back for Connecticut’s economy will be built one entrepreneur at a time. If that is the key to an economic rebound, an initiative by New Haven-based company Independent Software is looking to ramp up the process by gathering entrepreneurs in bunches. In fact, New Haven will be the next stop on eight-month Whiteboard Startup Roadshow tour across Connecticut, in the midst of the city’s celebrated International Festival of Arts and Ideas this week. Organizers indicate that cities like New Halogo whiteboardven are “overflowing with impossible ideas and the people who make them happen. We believe connecting to all three -- the place, the thinking, and the people -- can increase the probability of success for others who have impossible ideas.”

On Thursday June 26, from 2-5pm, The Whiteboard is bringing together New Haven area innovators and entrepreneurs for “a little history and to talk about the future.” The “Roadshow” stopped in Hartford last month, with a well-attended program at the reSET co-working space downtown.

Following the Arts and Ideas' "Innovation in the Ninth Square" walking tour of The Grove, SeeClickFix, and MakeHaven, individuals are asked to gather at Luck and Levity for an Open House and Entrepreneur Showcase beginning at 2 PM, followed at 4 PM by perspectives offered by:

  • Margaret Anne Tockarshewsky, New Haven Museum
  • Elon Boms, Launch Capital
  • Jim Gregory, Core Informatics

The Whiteboard - and the The Whiteboard Start-Up Roadshow – is operated by Independent Software, which runs from The Grove co-working space in New Haven, and is supported by CT Next.

Following a kickoff event in New Haven on April 1, the tour moved on to Stamford in April, then to Hartford in May, back to New Haven this week. In eight months’ time, organizers “expect to have a treasure trove of stories from each region and to see a larger, stronger, and more connected startup community state-wide.”  The list of cities to be visited for gatherings of local entrepreneurs is below.  whiteboard_logoheader1

Independent Software works with early-stage entrepreneurs “to develop the products, talent, and community they need to thrive.” The company also provides access to Connecticut’s vast startup community through The Whiteboard, which includes a diverse network of entrepreneurs, investors, and supporters.  The Whiteboard website outlines the Roadshow cities on the calendar:

  • July: Bridgeport-Fairfield: In the context of the city’s own summer arts festival, we’ll shine a light on the amazing progress Bridgeport’s entrepreneurial scene has made in recent years, working closely with the B:Hive, the Business Council of Fairfield County and others.
  • August: New London-Norwich: SECT Tech Center at Avery Point for bioscience startups and a robust arts scene makes the shoreline a unique place to start a business. Along with the New London-Groton area, Norwich is new territory for us so this area will be true exploration.
  • September: Storrs-Windham: From incubators to partnerships with UTC and others, UConn Storrs is a hub of activity for a myriad of innovation startups. Windham’s history, arts and social entrepreneurship adds to the mix for this not-so-quiet corner of the state.
  • October: Danbury-Waterbury: The Danbury Hacker Space is launching this year, and it’s just the beginning of activity for their entrepreneurs. As one of Connecticut’s many factory towns, Waterbury is looking to leverage its buildings to help launch small businesses.
  • November: Middletown-Meriden: As a connection point between the shore and Hartford, this area has pockets of innovation that you wouldn’t suspect. We hear rumblings of a startup culture and look forward to unearthing what’s here.
  • December: Torrington: Litchfield County is known for its organic farming and getaways. Yet, Torrington’s Warner Theater and energetic young politicians are fighting hard to be heard. We look forward to bringing these hidden gems to you.

 

Credit Card Delinquency Rate Places Connecticut At #20 Among States, Better Than U.S. Average

The credit card delinquency rate among Connecticut residents puts the state in the middle of the pack, ranked at #20 nationally, but the percentage has more than doubled compared with 2000 and climbed since 2006, according to data compiled by the financial website bloomberg.com. The credit card delinquency rate among Connecticut residents is slightly better than the U.S. average, and slightly better than the median among the states. credit card rate

The lowest credit card delinquency rates are among residents of North Dakota at 7.4 percent, Alaska at 7.6 percent, Nebraska at 8.3 percent, Wisconsin at 8.6 percent, and South Dakota at 8.7 percent.

Connecticut’s delinquency rate of 11.2 percent falls between Colorado at 11.1 percent and North Carolina at 11.2 percent. At the other end of the spectrum are California (17.7 percent), Florida (20.8 percent) and Nevada (22.4 percent). The U.S. average is 11.7 percent.

Since the beginning of the century, the credit card delinquency rate among Connecticut residents has climbed – from 5.2 percent in January 2000, to 7.8 percent in January 2003, to 11.2 percent in January 2009, where it has remained.

The national comparison is based on 2013 data, and was compiled this year. Credit card debt delinquency is the percent of all credit cards that are delinquent more than 90 days, including revolving accounts for banks, bank card companies, national credit card companies, credit unions, and savings and loan associations, according to Bloomberg.ee6b669580c44f948af5696e4913356f

Among the other New England states, Massachusetts ranks #39, Rhode Island is #44, Vermont is #16 and New Hampshire is #26. In the tri-state region, New York is #43 and New Jersey is #28 in individual credit card delinquencies among state residents.

Data on delinquent debt balances were collected as part of the Federal Reserve Bank of New York Consumer Credit Panel, a quarterly national survey of all individuals with a Social Security number and a credit report (usually aged 19 and over). It draws from a nationally representative 5 percent random sample from a database of about 40 million individuals’ detailed Equifax credit reports. The data is updated annually by the Federal Reserve Bank of New York, according to Bloomberg.

New Haven is Number One - Best Foodie City in America

New Haven is the number one “foodie city” in America, according to a new analysis published on the website Livability.com The site reports that “New Haven residents spend more on eating out than most Americans. Many frequent neighborhood bistros and cafes that get their ingredients from nearby farms. The city's farmers markets make it easy for home cooks to prepare fresh meals.”foodie

The Elm City outpaced cities including Boston in New York in the newly announced top 10 list, with New Haven praised for supporting local farmers, showcasing regional cuisine and providing residents with “bountiful opportunities to discover new flavors, textures, cooking techniques and healthy foods.”

To determine the top 10 “foodie” cities, editors analyzed data from Esri about how frequently families eat at locally owned restaurants and how much the average resident spends eating out. They also examined the accessibility residents of each city have to healthy foods like fruits, vegetables and quality meat with data from the Robert Wood Johnson Foundation.pepes

Also taken into account were cities with established farmers markets and restaurants that use locally grown ingredients, as well as critically acclaimed restaurants, successful chefs and winners of James Beard Foundation Awards.

“There’s a real foodie renaissance going on in U.S. cities,” says Livability.com Editor Matt Carmichael. “You’re seeing that coast to coast, but these cities really stand out as great places to live and eat.”

The site’s write-up of New Haven’s foodie choices noted that “restaurants cover the gamut of food genres. From Louis' Lunch to Frank Pepe Pizzeria Napoletana to Claire's Corner Copia, it’s no wonder New Haven residents spend more on eating out than most Americans.” Also among the New Haven restaurants mentioned in the profile of New Haven’s eateries are Sandra’s Next Generaclaire'stion, Mamoun’s, Prime 16, Skappo, Bella’s Care and Da Legna.

The 2014 list is quite different from a year ago. In 2013, the top city was Decatur, Georgia. Also reaching the top ten were Hoboken, New Jersey; Bloomington, Indiana; Berkeley, California; Madison, Wisconsin; Lafayette, Louisiana; Chapel Hill, North Carolina; Sante Fe, New Mexico; Alexandria, Virginia; and Burlington, Vermont. The only cities to reach the top 10 in both years were Berkeley and Burlington.  The 2014 list is the third annual developed by Livability.com.

Top 10 Foodie Cities, 2014louis lunch 1

  1. New Haven, CT
  2. Scottsdale, AZ
  3. Boston, MA
  4. Asheville, NC
  5. Traverse City, MI
  6. Berkeley, CA
  7. Boulder, CO
  8. Burlington, VT
  9. Omaha, NE
  10. Washington, D.C.

 

Aging Bridges, Considerable Disrepair Are Significant Challenge in CT, Nationwide

It was in 1983 that three people died in Connecticut when a section of the Mianus River Bridge on Interstate-95 collapsed into the water below, and unsuspecting drivers drove off the end of the road in the middle of the Greenwich night. That tragedy launched a multi-million dollar infrastructure investment program in Connecticut, but now, three decades later, the age and condition of the state’s bridges is front and center again, as a poorly functioning, 118-year-old railroad bridge has disrupted commuter service on the nation’s busiest rail corridor by repeatedly refusing to close. Mianus River Bridge I95

The extent of the nation’s bridge-related challenge is daunting, and yet represents only a portion of the overall infrastructure needs. Less than a year ago, a study released by the American Society of Civil Engineers determined that:

  • over two hundred million trips are taken daily across deficient bridges in the nation’s 102 largest metropolitan regions
  • one in nine of the nation’s bridges are rated as structurally deficient,
  • the average age of the nation’s 607,380 bridges is currently 42 years.

The report also pointed out that “it is of growing concern that the bridges in our nation’s metropolitan areas, which are an indispensable link for both millions of commuters and freight on a daily basis, are decaying more rapidly than our rural bridges.”

bridgesCTOnce every four years, America’s civil engineers provide a comprehensive assessment of the nation’s major infrastructure categories in ASCE’s Report Card for America’s Infrastructure (Report Card). The most recent report was issued in 2013.

Connecticut, according to the data, has 406 of the state’s 4,208 bridges classified as structurally deficient and another 1,070 are considered to be functionally obsolete. The report also noted that Connecticut has 21,407 public road miles, and 73 percent of the state’s major roads are considered to be in poor or mediocre condition.

By county, the 406 structurally deficient bridges were: 106 in Fairfield County, 71 in Hartford County, 58 in New Haven County, 45 in New London County and Litchfield County, 27 in Middlesex County, 24 in Windham County and 14 in Tolland County. In addition, the report indicated that Connecticut had 1,023 functionally obsolete bridges in the state.

Structurally deficient bridges “require significant maintenance, rehabilitation, or replacement. These bridges, according to the report, “must be inspected at least every year since critical load-carrying elements were found to be in poor condition due to deterioration or damage.” Functionally obsolete bridges are those that “no longer meet the current standards that are used today. Examples are narrow lanes or low load-carrying capacity.” fairfield bridges

The Federal Highway Administration (FHWA) estimates that to eliminate the nation’s bridge deficient backlog by 2028, an investment of $20.5 billion annually would be needed, according to the report, while only $12.8 billion is being spent currently. The report stated that “the challenge for federal, state, and local governments is to increase bridge investments by $8 billion annually to address the identified $76 billion in needs for deficient bridges across the United States.”

The report indicated that 22 states have a higher percentage of structurally deficient bridges than the national average, while five states have more than 20% of their bridges defined as structurally deficient. Pennsylvania tops the list with 24.4%, while Iowa and Oklahoma are not far behind, each having just over 21% of their bridges classified as structurally deficient.

Overall, the nation’s grade for the condition of its bridges was C+, which was described as “mediocre” and in need of attention. “Some elements exhibit significant deficiencies in conditions and functionality, with increasing vulnerability to risk.” The 32-member Advisory Committee did not include any engineers from Connecticut, but did include two from Massachusetts and one from Maine, among the New England states.

Time magazine reported this week that the I-95 bridge over Delaware’s Christina River was quickly closed to all traffic on May 29, after “an engineer who happened to be working nearby noticed two of the span’s support pillars tilting.“ Officials hope to have the structure stabilized and reopened by Labor Day. The bridge had routinely handled about 90,000 vehicles per day.

The I-35W bridge over the Mississippi in Minneapolis collapsed during rush hour on August 1, 2007, plunging dozens of cars and their occupants into the river, killing 13 people and injuring 145. The bridge was Minnesota's fifth busiest, carrying 140,000 vehicles daily.asce-logo

The American Society of Civil Engineers, founded in 1852, is the country’s oldest national civil engineering organization. It represents more than 140,000 civil engineers in private practice, government, industry, and academia who are dedicated to advancing the science and profession of civil engineering. The first Report Card for America’s Infrastructure was issued in 1988.

Connecticut's Small Business Friendliness Grade Drops to "D"

A new survey of small business friendliness in the nation’s states has dropped Connecticut’s overall grade from D+ to D, and given the state a failing grade in seven of eleven small business friendliness categories.  The grades dropped as compared with last year's survey. Thumbtack.com, in partnership with the Ewing Marion Kauffman Foundation, released the third annual Small Business Friendliness Survey showing that small business owners in Utah, Idaho, Texas, Virginia and Louisiana gave their states the highest rating for friendliness to small business. In contrast, small business owners gave California, Rhode Island and Illinois an "F," while New Jersey joined Connecticut in earning a "D" grade. grade D

More than 12,000 entrepreneurs nationwide participated in this year's survey - the largest of its kind and  the only survey to obtain data from an extensive, nationwide sample of small business owners to determine the most business-friendly locations.

The survey ranked states on specific categories, including: the ease of starting a business, ease of hiring, state and local business regulations, health & safety regulations, employment, labor & hiring regulations, tax code and tax-related regulations, licensing forms, requirements and fees, environmental regulations, zoning and land use regulations, and the availability of training & network programs for small business owners.thumb logos

Connecticut received a B in two categories: ease of hiring and training & network programs, and a D in one: ease of starting a business. In all other categories, Connecticut received an F for small business friendliness.

Some of the key findings for Connecticut, according to the survey of small business owners:

  • Connecticut received a D for its friendliness towards small business, one of the worst grades in the country.
  • Connecticut received the worst grade in the nation for its regulatory friendliness.
  • The state rated in last place for its health and safety, licensing, environmental regulations, and zoning laws.
  • Small businesses in Connecticut had the second worst outlook for the national economy of any state.
  • Female entrepreneurs in Connecticut rated the friendliness of their state government 9 percent higher than their male counterparts.

connecticutIn last year’s survey, Connecticut did not receive a single grade of “F.” The state’s overall grade was D+, and included an A in training & networking,  B in ease of hiring, and  B- in health & safety regulations. Other grades were D+, C- and C. In the first survey conducted, in 2012, Connecticut’s overall grade was D, and the state was not graded F any category.

"Creating a business climate that is welcoming to small, dynamic businesses is more important than ever, but rarely does anyone ask small business owners themselves about what makes for a pro-entrepreneur environment," says Jon Lieber, chief economist of Thumbtack.com. "Thousands of small business owners across the country told us that the keys to a pro-growth environment are ease of compliance with tax and regulatory systems and helpful training programs."

Some of the survey's key findings include:

  • Small businesses in Texas, Utah and Idaho have rated their states in the top five every year this survey has run, while California and Rhode Island have been rated in the bottom five every year.
  • The friendliness of professional licensing requirements was the most important regulatory issue in determining a state's overall friendliness to small businesses. Closely following licensing requirements was the ease of filing taxes.
  • Once again, tax rates were a less important factor than the ease of regulatory compliance in determining the overall friendliness score of a jurisdiction. Two-thirds of respondents said they paid their "fair share" of taxes – that is, they felt like they were neither under-paying nor over-paying.
  • Small business owners who were aware of training programs offered by their government were significantly more likely to say their government was friendly to small business than those who weren't.

 

 

Connecticut’s Taxpayer Burden Among Nation’s Highest, Report Finds

The states with low tax burdens are experiencing net immigration, and states with high tax burdens are experiencing high net outmigration, according to an analysis by Governing magazine of data from the Tax Foundation. Connecticut, which the publication lists as having among the nation’s highest taxpayer burdens, is seeing more residents leaving than arriving, the data indicates. The 15 states with high “Tax Burdens and Taxpayer Burdens” are, ranked from highest to lowest, Connecticut, New Jersey, New York, California, Illinois, Massachusetts, Maryland, Hawaii, Rhode Island, Delaware, Vermont, Kentucky, Michigan, Pennsylvania and West Virginia.

Here’s how Governing described the Tax Foundation’s latest annual study: “Across the 50 states, the share of revenue coming from local and state taxes varies significantly, as does the mix of property, sales and income taxes. When measuring the burden imposed on a given state’s residents by all state and local taxes, one cannot merely look to collections figures for the governments located within state borders. There is a significant amount of tax shifting across state lines, and this shifting is not uniform. Further, this shifting should not be ignored when attempting to understand the burden faced by taxpayers within a state.”tax burden map

That is especially true in Connecticut, where significant numbers of residents work in New York, Massachusetts and Rhode Island. Addressing these issues, the Tax Foundation estimates the total state and local tax burdens arising from all sources as a share of state income. The Tax Foundation calls this statistic the "State-Local Tax Burden." In the Tax Foundation's most recent study, covering fiscal 2011, the "State-Local Tax Burden" ranged from a low of 6.9 percent (Wyoming) to a high of 12.6 percent (New York).

According to the report, “New York residents experienced the highest burden at 12.6 percent of income. Next were New Jersey and Connecticut, where residents paid 12.3 and 11.9 percent, respectively. Rounding out the top ten in highest state-local burdens are California, Wisconsin, Minnesota, Maryland, Rhode Island, Vermont, and Pennsylvania. Connecticut taxpayers’ burden has risen 0.8 percentage points from 11.1 percent in 1977 to 11.9 percent in 2011, putting the state in third place.

New York, New Jersey, and Connecticut have occupied the top three spots on the list since 2005. The report notes that “this may be partially attributed to high levels of expenditures which must be sustained by high levels of revenue. Further, in the case of Connecticut and New Jersey, relatively high tax payments to out-of-state governments add to already high in-state payments. This is likely related to the fact that these are high income states that pay high levels of capital gains. High levels of capital gains will result in residents paying an increased share of other states’ business taxes.”

The report also indicates that “Maine and Vermont have the largest shares of vacation homes in the country, and they collect a sizeable fraction of their property tax revenue on those properties, mostly from residents of Connecticut, Massachusetts, and other New England states.”

The organization Truth in Accounting calculates "Taxpayer Burden" -- the per-taxpayer share of the money needed (or available) to pay bills. In fiscal 2011 (the same year as the latest Tax Foundation results), the "Taxpayer Burden" ranged from a low of minus-$34,100 (a surplus, in Alaska) to a high of $50,900 (in Connecticut).

tax burdenAdded Bill Bergman, the director of research for Truth in Accounting, a Chicago-based nonprofit working to “promote truthful, timely and transparent government financial reporting”: “States that rank high on both Tax Burden and Taxpayer Burden face another challenge. The third whammy is that citizens in these states are leaving for other states, taking their taxable spending, property and income with them. It seems reasonable to suspect that their choice to leave may be directly or indirectly related to state fiscal conditions.”

Nationally, state and local tax burdens dropped in 2011 as compared with 2010, largely attributable to incomes rising that year for the first time since 2008, Governing reported. The study methodology noted that “when Connecticut residents work in New York City and pay income tax to both the state and the city, the Census Bureau will count those amounts as New York tax collections, but we count them as part of the tax burden of Connecticut’s residents.”

Since 1937, the Tax Foundation’s “research, insightful analysis, and engaged experts have informed smarter tax policy at the federal, state, and local levels” the organization’s website explains.