Structural Problems Seen in the Connecticut Economy

In an analysis highlighted by the Connecticut Institute for the 21^st Century, well-known economist Don Klepper-Smith, in a newsletter to clients of economic forecasting consultancy DataCore Partners, is voicing concerns about Connecticut’s economic prospects, short and long-term.  His views come as the legislature grapples with approximately a billion dollars in projected deficit, and the Institute is signaling a heightened profile in the state, with a new director visibly sharing the organization’s economic concerns. Klepper-Smith’s latest findings, headlined “Troubling Trends,” are the result of comparisons between economic activity in different parts of Connecticut and Massachusetts conducted over the last several years, the Institute website reports. Although both states share many of the same characteristics, Klepper-Smith notes the Massachusetts labor market is notably healthier than the Connecticut market and that seems to be a key factor holding back the Connecticut economy.

The job recovery rate in Connecticut since 2006 is 76.6 percent, according to DataCore, compared with the Massachusetts job recovery rate of 240.3 percent. The significantly lagging job recovery rate in Connecticut has “led to negative impacts in other parts of the Connecticut economy.” Examples cited include that the median price for single family homes in Connecticut dropped 3 percent in 2015, while it went up by 3 percent in Massachusetts during the same period.

Similarly, over the last six months, Connecticut’s unemployment rate has edged upwards, while the Massachusetts rate has dropped slightly. Technically, according to DataCore, this is a sign of a growth recession in which the local economy is not strong enough to prevent a rise in the jobless rate, the Institute indicates.

The website goes on to state that “The DataCorp findings, when combined with other recently published reports, provides continuing evidence of a fundamental shift in the basic foundations of the Connecticut economy.”

Scott Bates, a Connecticut native, has recently been named as executive director of the Connecticut Institute for the 21^st Century.  He previously served in the administration of Virginia’s Governor, for the U.S. House Select Committee on Homeland Security, and as president of The Center for National Policy in Washington.

In an article appearing in this week’s Hartford Business Journal, Bates describes Connecticut’s fiscal dilemma as both a spending problem and revenue problem, indicating that “our state will only return to a sustainable fiscal model when incremental changes - taken together – substantially reduce the cost of government.”

Bates adds that “the tax problem is a major issue that may take years to sort out,” suggesting that available savings be pursued immediately.  Among the suggestions, moving to embrace a policy of “aging in place,” a change in approach that could save more than $650 million over the next 20 years according to a recent report from the Institute and the Connecticut Economic Resource Center.

The Connecticut Institute for the 21st Century is a non-partisan non-profit organization of businesses and civic groups dedicated to identifying effective and efficient ways for state and local government to deliver services while reducing cost to the taxpayer and making Connecticut’s economy strong.

The organization researches best practices, publishes reports, and educates policymakers and the public on key spending and policy issues including transportation, public pensions, smart growth and social service spending.

CT Unemployment Rate Highest in New England, Higher Since Year Began

Unemployment in Connecticut nudged upwards in March from a month earlier, but remained slightly below a year ago.  The state’s jobless rate of 5.7 was higher than the national rate of 5.0 percent and the highest in New England. Nationwide, the regional and state unemployment rates were generally little changed in March, according to the U.S. Bureau of Labor Statistics:

• 21 states had unemployment rate decreases from February,
• 15 states including Connecticut had increases, and
• 14 states and the District of Columbia had no change,

Thirty-six states including Connecticut (and the District of Columbia) had unemployment rate decreases from a year earlier, 12 states had increases, and 2 states had no change.

The national jobless rate, 5.0 percent, was little changed from February and was 0.5 percentage point lower than in March 2015. Job growth occurred in retail trade, construction, and health care. Employment fell in manufacturing and mining.

Connecticut’s unemployment rate was 5.9 percent a year ago in March 2015, dropped to 5.5 percent by January and February of 2016, and climbed to 5.7 percent in March.

Overall in New England, the unemployment rate was 4.5 percent in March, compared with 5.2 percent in March 2015.  Across the region, the unemployment rate has steadily declined during the past year.  The rate was 4.6 percent in January and 4.5 percent in February, according to the BLS data.

Last month, the unemployment rate in Rhode Island was 5.4 percent, in Massachusetts was 4.4 percent, in Maine 3.4 percent, in Vermont 3.3 percent and in New Hampshire 2.6 percent.

The highest unemployment rates in the nation last month were in Alaska (6.6%), West Virginia (6.5%), D.C. (6.5%), Illinois (6.5%), Alabama (6.2%), New Mexico (6.2%), and Louisiana (6.1%).

South Dakota and New Hampshire had the lowest jobless rates in March, 2.5 percent and 2.6 percent, respectively, followed by Colorado, 2.9 percent.

“We are still struggling to come to terms with a stubborn new economic reality,” said economist Pete Gioia of the Connecticut Business and Industry Association. “We are adding back low-wage jobs at a much higher rate than high-paying jobs.”

Connecticut has now recovered 77 percent of jobs lost during the recession, CBIA reported, while the U.S. has recovered 161 percent of jobs lost during that same time, according to DataCore Partners.

CT Ranks Behind 33 States as Technology Innovation Adopter, Report Finds

Twelve states and the District of Columbia are now championing innovation-friendly policies at the highest level according to the 2016 Innovation Scorecard, an annual innovation policy performance index developed by the Consumer Technology Association (CTA). Arizona, Kansas, Nebraska, North Dakota and Wisconsin are first-time Innovation Champions – the top designation - joining repeat champion winners Delaware, Indiana, Massachusetts, Michigan, Texas, Utah, Virginia and the District of Columbia.

Connecticut ranked in the third of four tiers, as an Innovation Adopter. The CTA Innovation Scorecard grades every state and the District of Columbia on 10 criteria, ranging from quantitative to qualitative, and ranks them across four categories — Innovation Champions (13 states), Innovation Leaders (20 states), Innovation Adopters (12 states including Connecticut) and Modest Innovators (6 states).

"We hope the Innovation Scorecard will be a guide for states who want to embrace those policies that best drive innovation, create good jobs and fuel economic growth," said Gary Shapiro, president and CEO, Consumer Technology Association. "We've identified and measured some key practices that enable innovators to thrive including drawing entrepreneurs from across the country, welcoming disruptive business models and educating the workers of tomorrow. But unless more state policymakers adopt a light regulatory framework, they risk sending valuable talent and economic growth to a neighboring state - or, far worse, overseas."

The 2016 Innovation Champion states earned high grades for maintaining strong right-to-work legislation, fast Internet access, a robust entrepreneurial climate and an open posture to new business models and technologies. Other Scorecard criteria are tax policy, tech workforce, investment attraction; Science, Technology, Engineering and Mathematics (STEM) degrees; unmanned innovations and sustainability policies. Since the last edition of the Scorecard, six states regressed to a lower tier.

Connecticut’s top grade, a B+, come in the Attracts Investment category.  The state earned a B in four categories:  Fast Internet, Tech Workforce, Welcomes New Business Models and Grants STEM degrees, and a B- in Entrepreneurial Activity.  The state’s lesser grades were in the categories Tax Friendly (C-), Innovation-Friendly Sustainable Policies (D) and Right to Work (F).  The report indicates that “Connecticut’s state-run electronics recycling system overcharges residents and manufacturers of consumer tech products, who pay for recycling at twice the market rate.”

The report also highlights an area of decline in Connecticut:  “Over $100 million of venture capital left Connecticut in 2015, causing the state to lose ground after earning an ‘A-’ in the category in the inaugural 2015 Scorecard. Connecticut should improve its tax code, which is among the least growth-friendly in the country, and reform regulations that stifle innovation.”

Among the findings: Delaware, Massachusetts, Rhode Island, Utah and the District of Columbia have the fastest Internet speeds in the country; Montana, North Dakota and Wyoming are among the leading states - along with the District of Columbia - at creating new jobs and new small businesses; and Arkansas, Maryland, Mississippi and Oregon were the only states earning a top grade for creating a policy environment favorable toward drones.

Consumer Technology Association (CTA)™, formerly the Consumer Electronics Association (CEA)®, is the trade association representing the $287 billion U.S. consumer technology industry.

Indiana Insurance Department to Hold Hearing on Anthem Acquisition of CIGNA on April 29

The Indiana Insurance Department will consider the proposed acquisition of Bloomfield-headquartered CIGNA Health Care by Indianapolis-based Anthem, Inc. at a public hearing on Friday, April 29 in Indianapolis. “Any member of the public interested in the proposed acquisition of control may attend the hearing,” indicates a public notice of the hearing. In addition, “Any policyholder of Cigna HealthCare of Indiana, Inc., or other person whose interests may be affected by the proposed acquisition of control shall have the right to appear and become party to the proceeding.”

Officials indicated that written testimony could be mailed in lieu of an in-person appearance, and would be considered. Members of the public may make written submissions  without appearing in person at the hearing. Length of submissions should not exceed 5 pages, double-spaced. Officials indiated that submissions should be sent to John Murphy, outside counsel to the Commissioner in this matter, by close of business on April 26, 2016. Contact information is: John T. Murphy, ICE MILLER LLP, One American Square, Indianapolis, IN  46282, (317) 236-2292, john.murphy@icemiller.com  [this information was updated on 4/19]

Consumer Groups, State Comptroller Call for Full Review

Among those aligned in opposition to the acquisition is the American Medical Association, noting that the deal would make the combined firm the nation’s largest insurer by membership and also give the company a tremendous amount of leverage when negotiating with providers.  In a press release, AMA President Steven J. Stack, MD, said such proposed mergers threaten to reduce competition and choice. “To give commercial health insurers virtually unlimited power to exert control over an issue as significant and sensitive to patient health care is bad for patients and not good or the nation’s health care system.”

Anthem and CIGNA suggested that the deal will create new efficiencies that will make the healthcare market function more efficiently.  A website, www.betterhealthcaretogether.com, has been established to highlight the companies commitment to “drive health care innovation.”

Last month, a coalition of consumer and medical organizations in Connecticut called for greater public input into the Connecticut Insurance Department’s review of the proposed Anthem-CIGNA  mega-merger, expressing concerns about the potential “negative impact on both the cost and quality of care in Connecticut” of that acquisition and the proposed Aetna-Humana merger. The groups – Universal Health Care Foundation, Connecticut Citizen Action Group and the Connecticut State Medical Society – formed the “Connecticut Campaign for Consumer Choice” coalition and urged state Insurance Commissioner Katherine Wade to “ensure an open, transparent hearing process in Connecticut, where policy holders, physicians and other interested parties are given maximum opportunity to share their views.” The coalition has been conducting public information sessions, including one in Mansfield this week, to provide state residents with information on "what the proposed health care mergers will mean for Connecticut consumers."

A week ago, State Comptroller Kevin Lembo, in a letter to the Department, urged an open and thorough review in order to address significant concerns raised by health care consumers and providers.  Lembo expressed his support for the efforts of the Connecticut Campaign for Consumer Choice, noting that a merger between Anthem and Cigna would increase the Connecticut health insurance concentration over 40 percent.   Lembo indicated that only Georgia is expected to experience a more significant increase in market concentration.

CIGNA Questions Anthem; Feds Question CIGNA

A week ago, Modern Healthcare, a web publication focused on healthcare business news, raised questions about the absence of detail in the year since Anthem disclosed “what was by far the largest data breach in healthcare history.  The cyberattack—in which hackers stole the names, birth dates, Social Security numbers, home addresses and other personal information of 78.8 million current and former members and employees – caused consumers to question “whether Anthem and other healthcare organizations could manage the volumes of data they had,” according to the news report. 

The publication also questioned whether state regulators would consider not only the breach, but CIGNA’s reaction to it at the time:

“Trust with customers and providers is critical in our industry, and Anthem has yet to demonstrate a path towards restoring this trust,” CIGNA CEO David Cordani and former Board Chairman Isaiah Harris Jr. wrote in a June 21, 2015 letter: “We need to understand the litigation and potential liabilities, operational impact and long-term damage to Anthem's franchise as a result of this unprecedented data breach, as well as the governance and controls that resulted in this system failure.”  It was estimated that in Connecticut, about 1.7 million people were affected.

In January, published reports indicated that U.S. regulators temporarily banned CIGNA-HealthSpring from offering certain Medicare plans to new patients after a probe uncovered issues with current offerings, citing that CIGNA’s deficiencies “Create a Serious Threat to Enrollee Health and Safety.”  CIGNA disclosed that the U.S. Centers for Medicare and Medicaid Services (CMS) had suspended the company from enrolling new customers or marketing plans for CIGNA Medicare Advantage and Standalone Prescription Drug Plan Contracts. CIGNA acquired HealthSpring in 2012.

In an enforcement letter, CMS accused CIGNA of "widespread and systemic failures," including the denial of health care coverage and prescription drugs to patients who should have received them. The actions "create a serious threat to enrollee health and safety," said CMS, which required CIGNA to appoint an independent monitor to audit its handling of the matter.

“Cigna has had a longstanding history of non-compliance with CMS requirements. Cigna has received numerous notices of non-compliance, warning letters, and corrective action plans from CMS over the past several years. A number of these notices were for the same violations discovered during the audit, demonstrating that Cigna has not corrected issues of non-compliance,” said the 12-page enforcement letter from the Director of the Medicare Parts C and D Oversight and Enforcement Group.

CIGNA, First in Connecticut

Nearly five years ago, in July 2011, CIGNA announced it was to receive $50 million in economic benefits from the Connecticut Department of Economic and Community Development with the promise of adding at least 200 jobs the following two years, which would increase the company’s employment in the state to more than 4,000.  CIGNA also declared Bloomfield its corporate headquarters in the United States, replacing Philadelphia which had been the company’s corporate headquarters since 1982.

CIGNA was the first company to receive economic incentives under Governor Dannel Malloy’s “First Five” program, which was designed to spur job growth and support Connecticut businesses in becoming more competitive in the global marketplace. “CIGNA is proof that these tools work and that Connecticut is open for business,” Malloy said at the time.

“Through this partnership with the Governor and the state, we are building upon our long history in Connecticut,” added CIGNA Chief Executive Officer David Cordani.

Anthem's application states it has "no current plans or proposals to reduce in any material respect the number of employees employed by the Cigna companies."  The $54 billion merger would increase Anthem's membership from 38 million to 53 million members nationwide.

Approval in Florida, Concerns in California

“There are no meaningful adverse impacts resulting from the acquisition,” Florida’s Insurance Commissioner said last week in approving the acquisition in his state. “The companies, individually or in combination, are an important part of, but not a dominant factor in, the Florida market, and their combination does not noticeably increase the market concentration across the broadly measured market on a statewide basis.”

In California, the combined membership of Anthem Blue Cross and Cigna would make it the largest insurer in the state with more than 8 million members.  At a public hearing in California last month convened by that state’s Insurance Department, consumer advocates and the AMA opposed the acquisition.

"This merger would create the nation's largest insurer, which could have a significant impact on California's consumers, businesses, and the healthcare marketplace," said California’s Insurance Commissioner. "I am considering what is best for consumers and the overall marketplace. Anthem and Cigna bear the burden of demonstrating this proposed merger is in the best interest of California consumers and the health-care marketplace."

Shareholders of Anthem and Cigna voted overwhelmingly in favor of the merger plan late last year, and regulators in 26 states where the companies operate are at various stages of considering the acquisition.  Attorneys General in a number of those states, including Connecticut, are looking into the proposed acquisition on anti-trust grounds, and the U.S. Department of Justice has the final authority to approve the deal, published reports indicate.

The news site Business Insurance reported soon after the acquisition was announced that “viewed in tandem with rival Aetna Inc.'s recent $37 billion merger agreement with Humana Inc.— as well as St. Louis-based health insurer Centene Corp.'s proposed acquisition of Woodland Hills, California-based Health Net Inc. for $6.3 billion — experts said regulators may be more stringent in examining the Anthem/Cigna deal's potential to dampen health insurer competition.”

CT Businesses Expect More Hiring During 2nd Quarter, Survey Says

Employers in Connecticut expect to hire at a respectable pace during the second quarter of 2016, which began on April 1, according to the Manpower Employment Outlook Survey. From April to June, 19 percent of the companies interviewed plan to hire more employees, while 6 percent expect to reduce their payrolls. Another 75 percent expect to maintain their current workforce levels. This yields a Net Employment Outlook of 13 percent, according to the Survey.

“Hiring intentions are stronger compared to Q1 2016 when the Net Employment Outlook was 8 percent,” said Manpower spokesperson Becca Dernberger. “The hiring pace is expected to slow down compared to one year ago when the Net Employment Outlook was 19 percent.”

For the quarter just underway, job prospects appear best in Construction, Durable Goods Manufacturing, Transportation & Utilities, Wholesale & Retail Trade, Information, Financial Activities, Professional & Business Services, Education & Health Services, Leisure & Hospitality and Other Services. Employers in Nondurable Goods Manufacturing plan to reduce staffing levels, while hiring in Government is expected to remain unchanged, according to the projections.

Plans for potentially massive state employee layoffs, now anticipated in the coming weeks, had not been announced when the survey was conducted.

In the Northeast, the expectations are somewhat better than in Connecticut, as 21 percent  of employers surveyed plan to increase staff levels during Quarter 2 2016 while 4 percent expect a decrease in payrolls, resulting in a Net Employment Outlook of +17 percent.

Among Connecticut’s largest municipalities, the net employment outlook for Q2 includes 14 percent in Bridgeport, 13 percent in Hartford and 11percent in New Haven.  Survey results were developed for the 100 largest Metropolitan Statistical Areas, based on business establishment count.  Leading the list were Charlotte and Omaha at 29 percent, followed by Albany and Boise City and 28 percent, Dallas and Providence and 27 percent, and Phoenix and Toledo at 26 percent.

The Net Employment Outlook is derived by taking the percentage of employers anticipating an increase in hiring activity and subtracting from this the percentage of employers expecting a decrease in hiring activity.

Of the more than 11,000 employers surveyed in the United States, 22 percent expect to add to their workforces, and 4 percent expect a decline in their payrolls during Quarter 2 2016. Seventy-two percent of employers anticipate making no change to staff levels, and the remaining 2 percent of employers are undecided about their hiring plans. When seasonal variations are removed from the data, the Net Employment Outlook is +16 percent, relatively stable compared to the Quarter 1 2016 Outlook, +17 percent.

The Manpower Employment Outlook Survey is conducted quarterly to measure employers’ intentions to increase or decrease the number of employees in their workforces during the next quarter. The weakest outlook for 2016 Q2 are projected in Youngstown, Akron, Baton Rouge, and Las Vegas.

“The U.S. labor market is strong compared to the global situation, with the economy still generating a sufficient number of jobs to keep the unemployment rate down,” said Kip Wright, Senior Vice President, Manpower North America. “However, we now live in a world of ‘certain uncertainty,’ where increased volatility may be here to stay. As a result, organizations and individuals need to be more agile in order to better adapt to this rapidly evolving environment, and a key differentiator to success is attracting and developing the right skills.”

Former Hometown Stamford, Public Television Launch Ken Burns' Documentary on Jackie Robinson

As the 2016 major league baseball season begins, the eyes of the nation – and his former hometown of Stamford – will once again turn to the remarkable legacy of Jackie Robinson. A new documentary by acclaimed film director Ken Burns, titled Jackie Robinson, premieres Monday, April 11 at 9 p.m. and continues Tuesday, April 12 at 9 p.m. on PBS and CPTV. To kick-off the program’s debut, the Connecticut Public Broadcasting Network (CPBN) will host a special tribute to Jackie Robinson at The Palace Theatre, Stamford on Friday, April 8 at 7 p.m. The event will include live jazz music by award-winning saxophonist Albert Rivera, and commentary and a Q&A session with ESPN commentator and former Major League Baseball player Doug Glanville.

Although not a Connecticut native, Robinson lived in Stamford for nearly 20 years, having moved to the community while a member of the Brooklyn Dodgers in 1954.  Robinson, known world-wide for breaking the color barrier in major league baseball in 1947, died of a heart attack in 1972, at age 53.

The evening will include an advance preview screening of the new two-part documentary by Ken Burns. The story of the first African American to play baseball in the major leagues features interviews with President Barack Obama, Harry Belafonte, Tom Brokaw, and others who share how Robinson’s determination and heroism influenced generations.

Upon arriving in Stamford, Robinson and his family lived with Richard Simon, co-founder of Simon and Schuster, and his wife, Andrea and their family at their North Stamford home before building a home on Cascade Road in North Stamford. The Simons’ daughter, singer/songwriter Carly Simon, recalled going with Robinson to Ebbets Field to see the Brooklyn Dodgers when she was young, the Greenwich Time recently reported.

Stamford has a public park named in his honor, recalling that Robinson represented tolerance, educational opportunity, and the confidence that inspires personal achievement and success. A life-size bronze statue of Jackie Robinson with an engraved base bearing the words “COURAGE,” “CONFIDENCE,” AND “PERSEVERANCE” stands in the park located on West Main Street, the gateway to downtown Stamford.

Just weeks ago, Jackie Robinson’s daughter Sharon and her mother Rachel accompanied President Obama to Cuba, and joined him and the United States delegation at an exhibition baseball game.  She told mlb.com:

“It brought back very personal memories of my father talking about his trip to Cuba in 1947, when the Brooklyn Dodgers trained in Havana. At the time, dad was a member of the Dodgers' farm team, the Montreal Royals. Branch Rickey arranged for him to fly to Cuba for an exhibition game, just a couple of months before he broke down baseball's color barrier in the United States. To me, this connection to my father almost brought me to tears. I was watching a baseball game in the same stadium nearly 70 years later.”

In the two-part documentary, Ken Burns “reveals fascinating stories about the legend’s life on and off the field.”  In part one, Robinson “rises from humble origins to integrate Major League Baseball, performing brilliantly despite the threats and abuse he faces on and off the field and, in the process, challenges the prejudiced notions of what a black man can achieve,” according to PBS.  In part two, Robinson” uses his fame to speak out against injustice, alienating many who had once lauded him for ‘turning the other cheek.’” After baseball, during his years in Stamford, “he seeks ways to fight inequality, but as he faces a crippling illness, he struggles to remain relevant.”

The documentary “paints the picture of a man who challenged institutional racism in the face of harsh criticism. It also delves into his close-knit relationship with his wife, Rachel, and their children through candid interviews and personal family photos.”

In 1997, Major League Baseball “universally” retired his uniform number, 42, across all major league teams; he was the first pro athlete in any sport to be so honored. Initiated for the first time on April 15, 2004, Major League Baseball has adopted a new annual tradition, “Jackie Robinson Day,” in which all players on all teams wear #42.

Of his interest in sharing Robinson’s story, director Ken Burns said, “There was so much more to say not only about Robinson’s barrier-breaking moment in 1947, but about how his upbringing shaped his intolerance for any form of discrimination and how after his baseball career, he spoke out tirelessly against racial injustice, even after his star had begun to dim.”

My dad once said, "A life is not important except in the impact it has on other lives," Sharon Robinson recently recalled.

CT Women of Innovation To Be Honored This Week

The 12^th annual Women of Innovation® awards gala this week will recognize 52 women who are accomplished in science, technology, engineering, math and who are involved in their community, five college students and seven high school students who have already begun to demonstrate similar accomplishment. The annual awards event is “a time for like-minded, successful women to network and celebrate their accomplishments,” continuing a tradition led by the Connecticut Technology Council aimed at recognizing women in a range of innovative businesses, education and communities, and highlighting role models for young women looking ahead to career pursuits.

The categories include:

• Youth Innovation and Leadership
• Collegian Innovation and Leadership
• Community Innovation and Leadership
• Research Innovation and Leadership
• Academic Innovation and Leadership
• Entrepreneurial Innovation and Leadership
• Small Business Innovation and Leadership
• Large Business Innovation and Leadership

One woman in each of the eight categories will be selected as a top Woman of Innovation in her category, at the April 6 awards ceremony.

Among the nominees, in the Entrepreneurial Innovation and Leadership category, are Marcia Fournier, Founder & CEO of BioArray Therapeutics, Inc.; Gloria Kolb, CEO/Owner of Elidah, Inc.; Wendy Davis, CEO of GestVision, Inc.; Amy McCooe, Co-CEO of Level Up Village; Nicole Bucala, CEO of MIFCOR; Kelly Simpson-Angelini, CEO and Chief Strategic Officer of Simpson Heathcare Executives; Janine Darling, Founder & CEO of STASH America, LLC; and Anuja Ketan, Chief Technology Officer at Zillion Group Inc.

The women nominated in the Small Business Innovation and Leadership category include Melissa Casini – etouches, Norwalk, (Director of Account Management); Dina Dubey – Z-Medica, Wallingford,  (Executive VP, Corporate Development); Merrie London – Connecticut Innovations, Rocky Hill (Manager, SBIR and Federal Leveraging Programs); Jackie Mulhall – SMC Partners, Hartford (Director); Pam Perdue – Continuity Control, New Haven (Founder, EVP Regulatory Operations); and Kathleen Roberge – etouches, Norwalk (VP of Global Sales).

The full list of nominees includes individuals at some of Connecticut’s leading companies, including Sikorsky Aircraft, Frontier Communications, Hartford Hospital, Pfizer, and Pratt & Whitney. Academic institutions with Women of Innovation include the University of Connecticut, Wesleyan University, University of Bridgeport, and Yale University.

The keynote speaker for the April 6 awards program will be Congresswoman Elizabeth H. Esty, U.S. Representative for the 5th Congressional District of Connecticut. During the past 11 years, more than 500 women have been honored by Women of Innovation.

“Our state’s innovation sector recognizes the essential contributions its female engineers, scientists, programmers, physicians, mathematicians and teachers make in developing new products and services, advancing health technologies and serving as educators and role models for generations of women that follow,”said Connecticut Technology Council President and CEO Bruce Carlson. “Women of Innovation® allows us to put the spotlight on these exceptional innovators and leaders and connect them with a professional network of other women who strive for excellence.”

https://youtu.be/Uz1gQ96Yk1c

First Time Home Buyers: New Hartford, Westbrook, Coventry Most Attractive

In Connecticut, as elsewhere across the country, it is a home buyers’ market.  And that is especially prevalent in some of Connecticut’s smaller communities, and those in the central and northern parts of the state, according to an analysis by NerdWallet, a national finance website, which determined the top places for first-time homebuyers in Connecticut. The site identified the top communities for new home buyers, considering how much individuals would need to spend on a mortgage and examining the data on appreciation “to find the best locations, based on the health of the local housing market, the costs of housing, and the prosperity and safety in each community.”

“To be sure,” the website noted, “the state is not a magnet for first-time buyers based on affordability, but the places we identified stand out as being the most suitable for those looking for a foothold in the housing market.”

The top community was New Hartford, which was described as having “a population of just over 6,900, this small community was the 11th-safest among the 116 in the state we analyzed. Additionally, the select monthly ownership costs were the second-lowest among the top 10 cities, at $1,813; that’s $235 less than the median for all 116 communities.”

Runner-up was Westbrook, along the Connecticut shoreline.  Westbrook had “the second-most expensive home value among the top 10. But it also had the strongest home value growth rate among all 116 communities analyzed — a positive economic sign for homebuyers,” the website indicated.   “Although home values in many areas of the state fell between 2011 and 2014, they grew by 4.87% in Westbrook; that’s well above the median decline of 6.8% for all communities analyzed. Westbrook also had the lowest real estate tax rate among the top 10, at 1.15% of assessed value per year.

The top ten communities:

1. New Hartford
2. Westbrook
3. Coventry
4. Berlin
5. Colchester
6. Windsor Locks
7. Durham
8. Ellington
9. Marlborough
10. Windsor

Of Coventry, the third-ranked community, the website said: “Homeowners here see median monthly ownership costs of $1,883, which is $165 less than the median of all communities analyzed. Among the top 10 locations, it takes the third-shortest amount of time to save for a down payment in Coventry (19.86 years). With a crime rating of "safe," low poverty rates and home values nearly $20,000 less than the state median, Coventry could be an ideal location for first-time homebuyers if they can find employment within commuting distance.”

The fourth-ranked town, Berlin, was cited for its population growth, “the third-highest of all 116 communities analyzed, rising 3.34% between 2011 and 2014 — much higher than the median population growth of 0.5% for all places analyzed. The median home value here as of 2014 was $286,800, slightly higher than the median of all places analyzed.”

Colchester, with a median age of 39, was described as the youngest among the to 10, and Windsor Locks, home of Bradley International Airport, was highlighted for the affordability of its homes, “the least expensive” among the top communities.

Rounding out the top twenty were South Windsor, Canton, Haddam, Suffield, Glastonbury, Burlington, Tolland, East Hampton, Southington and Lebanon.  A total of 116 communities were ranked in the analysis, with Stamford, Ansonia, Waterbury, New Haven,  and Bridgeport at the bottom of the list.  

For their calculations, the website assumed a first-time homebuyer in Connecticut earns an annual income of $73,361, the 2014 state median for households headed by residents ages 25 to 44. They also assumed a personal savings rate of 4.8 percent, based on the U.S. 10-year average as measured by the Federal Reserve Bank. Assuming the homebuyers are starting with nothing in the bank, they then estimated how many years it would take to save for a 20 percent down payment

By following the Consumer Financial Protection Bureau's recommendation that homeowners shouldn't allocate more than 28% of their gross monthly income to housing costs, NerdWallet analysts determined that a first-time homebuyer in Connecticut could afford to spend $1,712 a month on ownership costs — mortgage, taxes, utilities and insurance.

Greater Hartford Residents Prefer Focus on Vibrant Communities Over Recruiting Businesses

In a time of reduced resources and stark choices for policy makers, a survey of Greater Hartford residents suggests that investments aimed at creating vibrant communities, with the focus on local schools, transportation options, walkable, attractive physical environment is preferred to devoting greater resources to recruiting employers. In a survey for the Hartford Foundation for Public Giving as part of the Metro Hartford Progress Points effort, and conducted by Inform CT, residents of Hartford and Tolland County, by 57 percent to 43 percent, said that investing in communities was a better approach than recruiting businesses.

The findings reaffirm one of the key goals in the new three-year strategic plan of HFPG, launched earlier this year, developing vibrant communities.  The plan states that “All of our region’s residents should have the opportunity to live and contribute to strong, safe vibrant communities,” and calls for a “focus on people and places with the greatest need by engaging and supporting partners who promote meaningful civic engagement, safe affordable housing, quality health and mental health care and a rich diversity of cultural and other experiences to improve the quality of life.”

The data from the survey reflect a difference of opinion among older residents of the region.  Individuals over age 46 took the opposite view from younger residents, with a majority expressing a preference for spending skewed toward recruiting companies.   The reversal was dramatic, with two-thirds of those age 36-45 preferring investing in communities, by a margin of 67%-33%, and individuals age 46-55 expressing a preference for resources to be aimed at recruiting companies, with two-thirds holding the opposite view, 63%-38%.

Across all age groups, a majority of homeowners preferred that the emphasis be on vibrant communities, 52%-48%, and an even larger majority of respondents who are not homeowners, 64%-36%, shared the same view.

The preference for policy to be targeted more towards assuring vibrant communities than recruiting companies was consistent across a majority of respondents of various education levels and among white, black and Hispanic residents of the region, according to the survey.  A majority of survey respondents who are currently employed full-time, as well as those working part-time, and those unemployed all expressed a preference for investing in communities rather than recruiting companies.

The Greater Hartford survey results are not inconsistent with data gathered elsewhere.  A March 2014 national survey by the American Planning Association (APA) found that Millennials and Baby Boomers want cities to focus less on recruiting new companies and more on investing in new transportation options, walkable communities, and making the area as attractive as possible. The national survey found that 65 percent of all respondents and 74 percent of millennials believe investing in schools, transportation choices and walkable areas is a better way to grow the economy than investing in recruiting companies to move to the area, according to the APA.

A 2013 study in Michigan, posing similar questions, brought similar results.  In the statewide survey, 64 percent of Michigan citizens said they believed the most important thing state government can do for job creation is to “provide quality education, good roads and transportation, good public services like safety, water, fire, parks and libraries that create an environment in which people want to live, work and run a business.”  This contrasts with 29 percent who said the most important thing state government can do is to “cut taxes for individuals and businesses.”

Earlier this month, at the annual Municipal Collaboration Summit organized by the Hartford Business Journal, one of the session’s was devoted to an exploration of “Building Vibrant Communities,” with observations from representatives of Connecticut Main Street Center, the Partnership for Strong Communities and the Connecticut Economic Resource Center.

The Hartford Foundation for Public Giving serves 29 towns, hundreds of nonprofits and more than 750,000 residents in the Greater Hartford region.  As Greater Hartford’s community foundation, HFPG brings together members of the community to “share information, understand local problems and put resources behind effective solutions.”

Developed by a group of key regional stakeholders, Metro Hartford Progress Points is a periodic 'check-up' to build greater understanding about issues facing the Greater Hartford community. The second edition of Progress Points, released late last year, takes a deeper look at key issues impacting our communities and how they are connected, with a particular focus on access to better schools, better jobs and stronger neighborhoods.  Along with the Hartford Foundation, partners include the Hispanic Health Council, MetroHartford Alliance, United Way of Central and Northeastern Connecticut, Urban League of Greater Hartford, Capitol Workforce Partners, Capitol Region Council of Governments, the Center for Urban and Global Studies at Trinity College and the City of Hartford.

The survey was conducted for the Foundation during the 4^th quarter of 2015 by Inform CT.

Influx of Chinese Students in CT High Schools Reflects National Trend

When the soon-to-be-vacated UConn campus in West Hartford attracted the interest of a Chinese education company looking to establish their first international high school in the United States, some may have been surprised by the interest by the interest in having American, Asian, and other international students live and receive instruction on the suburban campus. But for those who have noticed the nearly exponential growth of Chinese high school students coming to the United States to study, the proposal submitted to the town of West Hartford and the UConn Board of Trustees was less surprising.

Chinese made up 35 percent of the 92,000 foreign secondary school students in the United States in 2015, according to the US Department of Homeland Security, by far the largest group studying here, the Boston Globe reported this week. That number has grown rapidly from only dozens a decade ago, fueled by the growing middle class in China and a desire to their children to gain an early advantage in efforts to attend college in the United States.

The number of international students across New England, with its long history and tradition of private schools, rose from 9,338 in 2010 to nearly 14,000 last year.

In Connecticut, with the second largest international student population in the region, the number has quickly climbed from 2,548 to 3.548, an increase of 39 percent in the past five years, the Globe reported, based on data from U.S. Immigration and Customs Enforcement.   In Massachusetts, the number has jumped from 3,780 to 5,963 during the past five years.  Every New England state has seen the number of international students attending local high schools increase, which Chinese students spurring the growth.

The number of Chinese K-12 students rose 290% percent to 34,578 as of November 2015 from 8,857 five years previously, according to data collected by the Student Exchange and Visitor Program, a unit of the Department of Homeland Security that tracks foreigners on student visas and the schools they attend, the Wall Street Journal reported.  Chinese students make up roughly half of the 60,815 foreign pupils in U.S. high schools and the 6,074 in primary schools, according to the newspaper.

Founded in 1999, the Beijing-based Weiming Education Group is the largest and leading provider of private schools in China with over 40,000 students in 42 campuses. The Group, which is looking to establish the new international high school in West Hartford, has established a long-term international education partnership with more than 20 schools and education institutions from a dozen of countries including the United States, Britain, Canada, Singapore, and South Korea.

The company’s website points out that “Internationalized education has become the strategic direction” of the Weiming Education’s operation management, noting U.S. offices in Michigan and Connecticut. To date, about a half-dozen partner high schools in the United States are in Michigan.

The Hartford Courant reported last summer that Cheshire Academy, a private school with 400 boarding and day students in grades 8 through 12, had 85 students from mainland China this past academic year among its international contingent of 164 students from 32 countries, or more than 40 percent of its total enrollment.

West Hartford has yet to make a decision regarding the disposition of the UConn property, with a number of competing proposals under consideration.  The UConn Board of Trustees is poised to move forward with a sale of the property to Weiming, but the town retains right of first refusal, and ultimately has zoning control over the property, regardless of the owner.