Tourism Awards Recognize Diligence in Promoting State

The 2016 Connecticut Governor’s Tourism Awards — individuals and organizations "who go above and beyond to enhance both the appeal of our state as well as the health of our economy," were presented at the 2016 Governor's Conference on Tourism, held in Hartford.  Sessions at the day-long conference included Using Creativity to Reimagine Tourism, Digital Marketing, Social Media Practices, and Innovative Trends in Cultural Tourism.

The  ctvisit.com website was also highlighted, and key stats reflecting the success of the state's Still Revolutionary campaign were promoted.  Among them:  3 million visits to the tourism website, 250,000 followers on social media, 25 percent visited Connecticut after seeing an ad, summer tourism was up 12 percent last year, leaf-seaon visits were up 16 percent, hotel occupancy was up 4 percent and room tax revenue up 7 percent.  Total economic impact is $14 billion.

Award recipients recognized during the conference include:

Tourism Volunteer of the Year - Jeffry and Maryan Muthersbaugh, Nehemiah Brainerd House B&B

As valuable members of the Central Regional Tourism District’s Board of Directors and members of the Executive Committee, Jeff and Maryan are tireless in their efforts to support statewide and regional tourism marketing. In addition to being owners and operators of the Nehemiah Brainerd House B&B in Haddam, CT, Jeff also serves as the Vice President of the CT Lodging Association and Chairman of the Bed & Breakfast Association. They have been instrumental in forming the CT Bed & Breakfast Association under the CLA umbrella.

Tourism Rising Star Award - Regan Miner, Norwich Historical Society

At the age of 23, Regan has already accomplished more in the area of regional tourism than some seasoned professionals. A life long native of Norwich, she worked with Norwich Historical Society to unite the city’s many historical entities into a comprehensive destination, securing a grant to open the Norwich Heritage and Regional Visitors Center on the Norwich town green in 2015. Ms. Miner has also developed a series of “Walk Norwich” trails and seasonal events hosted by volunteers and supported by a strong social media presence.

Tourism Partners of the Year Award - Carmen Romeo, Fascia’s Chocolates and Howard Pincus, Railroad Museum of New England

Fascia’s Chocolates and the volunteer-run Railroad Museum of New England have truly laid the track for a sweet collaboration. They’ve joined forces to operate special train tours, including a wine-and-chocolate-themed sunset ride and Halloween event for families, and are adding a regularly scheduled “Chocolate Train” in 2016 to market to charter groups such as bus tours. This partnership has resulted in a unique experience that has attracted high interest at recent ABA and NTA conferences and is a model for other partners statewide.

Leader of the Year - Stephen Tagliatela, Saybrook Point Inn, Marina & Spa

An influential proponent for the tourism industry as a board member of the Connecticut Restaurant Association, Lyme Academy College of Fine Arts and University of New Haven, Stephen is a strong advocate for arts and culture, education, and both historic and environmental preservation in the state. Under Stephen’s direction, The Saybrook Point Inn, as well as Spa and Marina, have won numerous awards for its often best-in-class green practices, including the first Connecticut hotel to be named a Certified Energy Hotel in 2007.

  Tourism Legacy Leader - John Lyman III, Lyman Orchards

John Lyman is a member of the 8th generation of the Lyman family to farm the land in Middlefield, CT. An early proponent of what has become known as “agritourism,” he has helped to steer his 275-year-old family business toward becoming one of Connecticut’s leading tourist destinations, attracting more than 600,000 visitors a year. Fostering working partnerships with other tourism leaders in the state and region, John initiated cause marketing with unique Sunflower and Corn Mazes, contributing $1 to charitable causes for every person who “gets lost” in the maze, currently surpassing $500,000.

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204,000 Self-Employed in CT; Freelancers Increasing Nationwide

The ranks of the self-employed are growing in Connecticut, as the number of freelancers continues to expand nationwide.  In Connecticut, there are now an estimated 204,000 individuals who are self-employed, more than 11 percent of the state’s workers, which exceeds the national average. As of March 2016, approximately 15.3 million people in the United States designated their employment status as “self-employed,” according to the U.S. Bureau of Labor Statistics, and increase of about 700,000 since May 2014, just over 10 percent of all U.S. employment.

In 2015, 29 states and the District of Columbia had self-employment rates below the U.S. rate of 10.1 percent, and 21 states had rates as least as high. Montana had the highest rate among states, 16.1 percent, followed by Maine (15.4 percent), Vermont (14.4 percent), and South Dakota (14.2 percent). The lowest rates were in the District of Columbia (7.1 percent), Delaware (7.2 percent), and Alabama (7.5 percent), according to BLS data.

Additionally, published reports last fall indicated that 54 million individuals report doing freelance work, either full-time or on the side, in the U.S., representing about one-third of the nation’s workforce.  That is an increase of 700,000 since 2014, according to a comprehensive study conducted by the independent research firm Edelman Berland.

“Americans who are freelancing already contribute more than $700 billion to our national economy and help U.S. businesses compete and find the skills that they need,” said Fabio Rosati, CEO of Elance-oDesk, which commissioned the survey with Freelancers Union.  The study identified five freelancer segments:

• Independent Contractors (36% of the independent workforce / 19.3 million professionals)
• Moonlighters (25% / 13.2 million)
• Diversified workers (26% / 14.1 million)
• Temporary Workers (9% / 4.6 million)
• Freelance Business Owners (5% / 2.5 million)

In its scale, scope, and complexity, the transformation (of the workforce) will be unlike anything humankind has experienced before," Klaus Schwab, founder and executive chairman of the World Economic Forum, which organized the Davos gathering,  wrote earlier this year. "The speed of current breakthroughs has no historical precedent. ... These changes herald the transformation of entire systems of production, management, and governance."

Already, 2.9 million freelancers earned more than $100,000 last year, up from 2 million who hit the six-figure mark just four years earlier, according to MBO Partners.  The report indicated that 60 percent of freelancers surveyed said they started freelancing by choice—up from 53 percent last year—and 67percent of freelancers agree that more people are choosing to work independently today compared to three years ago.

The survey commissioned by Freelancers Union and Upwork in 2015 found that than one-third of freelancers report that demand for their services increased in the past year, and 3 in 4 non-freelancers are open to doing additional work outside their primary jobs to earn more money, if such an opportunity was available.  The report stated that “freelancing is becoming a more prevalent, viable option for workers—a trend that spans across borders, industries and occupations.”

CT Aims to Keep Ultra-Wealthy in State; Tracks Tax Payments of 100 Top Earners

Connecticut is ranked second in the nation in the number of millionaires per capita.  Only Maryland has more.  But with Connecticut’s precarious financial situation amidst what has been described as a “new economic reality,” any drop in the plethora of extremely wealthy residents can almost instantly have far-reaching consequences, officials say. In Connecticut, as well as California, Maryland and New Jersey, the top 1 percent pay a third or more of total income taxes, The New York Times reported this month. “There's an outmigration trend. It's real,'' Sullivan recently told The Hartford Courant, describing the departure of wealthy residents from Connecticut.

But Connecticut is not sitting idly by.  The state is trying to keep its wealthy residents right here in the Land of Steady Habits.

Connecticut, the Times reported, now tracks the quarterly estimated payments of 100 of its top earners. State Revenue Services Commissioner Kevin B Sullivan told Inside Wealth columnist and CNBC wealth editor Robert Frank that about five or six of the highest earners could have a "measurable impact on the revenue stream."

By way of example, Sullivan said that when one of the state's rich hedge fund executives planned to move his family and company to a lower-tax state, state officials met with him and persuaded him to leave some of his work force in Connecticut, the Times reported.  "We knew we were going to lose him," Sullivan said, "but we wanted to keep some of the higher-paying jobs."

He added, “We advised him that there are ways to be close to family and friends in Connecticut on occasion that are perfectly legal.  We're trying to send a more welcoming message to the high earners as a group." Homeowners who spend more than 183 days in the state are considered residents for tax purposes.

The top 10 states in millionaires per capita, after Maryland and Connecticut, are Hawaii, New Jersey, Alaska, Massachusetts, New Hampshire, Virginia, Delaware and the District of Columbia, according to Phoenix Marketing International’s Global Wealth Monitor.

Earlier this year, the Courant reported that one of three Connecticut residents with an 11-figure net worth, according to the latest Forbes magazine list of the wealthiest individuals, had relocated from Greenwich to Florida, the second individual in that tax bracket to do so recently.  The exits, the Courant reported, “leave Connecticut with 13 billionaires, including Ray Dalio ($15.6 billion) and Steven Cohen ($12.7 billion), both hedge fund owners who live in Greenwich.”  Eight of those 13 state residents list Greenwich as their home address, according to Forbes.

Connecticut is not alone in keeping a watchful eye on its billionaires.  New York is now more closely monitoring wealthy taxpayers who have homes in New York but claim Florida as their tax residence. And New Jersey is collecting data on all of the taxpayers who make more than $1 million to forecast their tax payments more accurately, the Times reported.

As is true in a number of states with wealthy residents, including New York, New Jersey and California, even as some of the state's wealthiest residents head to warmer climates and more favorable tax structures, the number of millionaires in the state grows.

Just three years ago, in 2013, the number of millionaires in Connecticut topped 100,000 for the first time.  In 2015, it exceeded 101,000.  That compares with just over 84,000 in 2006.  Millionaires made up 6.2 percent of state residents that year, compared with 7.3 percent in 2015, based on data from Phoenix Marketing International.

Awards Will Recognize Innovative Efforts Invigorating CT Main Streets

A local theater helping to re-energize downtown Fairfield and a New London developer and property manager who took it upon himself to improve a neighborhood by offering attractive housing that is also affordable are just two of the initiatives being recognized with a 2016 Award of Excellence from the Connecticut Main Street Center (CMSC). In total, five recipients have been selected to receive the prestigious awards, including organizations and initiatives from Fairfield, Farmington, Mansfield, New London and Waterbury.

Also being recognized with awards are a public outreach effort in Farmington that resulted in hundreds of residents voicing their opinion on plans for a new gateway into the town; a holiday window display competition that draws shoppers back to downtown Waterbury while garnering extra press and marketing for the businesses; and a new Town Square in Storrs Center, built around the unique needs of the space and the people that use it.

This year's awards will be presented on June 6th at E.O. Smith High School in downtown Storrs.  CMSC’s mission is to be the catalyst that ignites Connecticut's Main Streets as the cornerstone of thriving communities. CMSC is dedicated to community and economic development within the context of historic preservation, and is committed to bringing Connecticut's commercial districts back to life socially and economically.

In addition to the competitive Awards of Excellence, where CMSC members submit applications that are reviewed by a jury of industry-related professionals and CMSC staff, CMSC also named Upper Albany Main Street (a CMSC member community) and the University of Hartford to receive the Founder's Award for their long and fruitful partnership - a relationship that has not only helped improve the appearance of the Avenue, but empowered many of the small business merchants in the neighborhood as well.

In addition, the Jack Shannahan Prize for Public Service was awarded to the Legislative Commission on Aging in recognition of their Livable Communities initiative.  This initiative aims to create thriving places for residents to grow up and grow older, notably by helping prepare Connecticut for the challenges presented by a rapidly increasing aging demographic through education, awareness and advocacy.

"This year's crop of winners is really special, because they demonstrate how important incorporating the voice of the people is in the final success of a project," said CMSC President & CEO John Simone. "In Farmington, Fairfield and Mansfield especially, each one either specifically asked - or was smart enough to observe - what people wanted in the space, and made changes accordingly.  As a result, there is greater support and usage of their public spaces and private businesses, meaning more people on Main Street and more money for the town coffers."

The June 6 awards ceremony will be followed by interactive experiences in the new Storrs Center.  Activities will include guided tours of the downtown development, a collaboration with the Ballard Institute and Museum of Puppetry, time for dinner and exploration among the Center's many shops and restaurants, and a closing concert featuring the Funky Dawgz Brass Band.

Created in 2003 to recognize outstanding projects, individuals and partnerships in community efforts to bring traditional downtowns and neighborhood commercial districts back to life, socially and economically, the Awards of Excellence are presented annually at CMSC's Awards Gala.  The evening’s welcome Reception Sponsor is United Illuminating and awards are presented with support from Webster Bank and Eversource Energy. 

Greater Hartford Grows as Regional Workforce Ecosystem

It may not be widely recognized, but the Greater Hartford area has become a dynamic, participatory, collaborative regional ecosystem.  And during National Workforce Development Week, which is celebrated nationally this week, that is an especially salient development. What exactly does that mean?  First, the definition: any time that partners within a region come together to solve problems, and meet regularly to answer new challenges, a regional ecosystem in is play.  An “ecosystem” is defined as a system, or a group of interconnected elements, formed by the interaction of a community of organisms with their environment. A “Regional Ecosystem” is just that –specific to a geographic region. 

In North Central Connecticut, the regional ecosystem is helping business grow, and find the talent they need, and it is affecting the greater welfare of society, even in these extremely challenging times with budget deficits, and economic pressures that abound.  So says Thomas Phillips, President and CEO of Capital Workforce Partners, among the drivers of progress underway across the 37-town region.

Regional ecosystems are like a chain of links, he explains, with each link playing a key role in holding the work together.  “In workforce development – the regional ecosystem is comprised of strategic partnerships with industry, education, economic development, community organizations, labor and business-led workforce boards – leading programs that are nimble, flexible, adaptable and generating economic opportunity for business and job seekers.”

Among the leading examples of the local regional ecosystems - focusing on workforce development - which use a set of common goals and outcomes:

1. MoveUp! – a regional ecosystem addressing the challenges relating to adult literacy, with 26 partners working collectively
2. Opportunity Youth – a regional ecosystem addressing the challenges of reconnecting out-of-work, out-of-school youth to education, training and careers, with over 50 partners and funders working collectively
3. Best Chance – a regional ecosystem addressing the challenges of returning citizens – finding sustainable employment for former offenders, with 15 partners working collectively
4. The Hartford Coalition on Education and Talent (soon to be renamed) – a regional ecosystem designed to help more youth complete post-secondary education while closing the gap experienced by employers, with 8+ partners working collectively. “Be on the lookout for the work this group is doing – building pathways of success for the youth in our region,” says Paul Holzer, President of Achieve Hartford, spearheading this effort.
5. The Knowledge Corridor – a region that crosses the Connecticut and Massachusetts border, this area is also a home to a robust regional ecosystem that includes 64,000 businesses, 41 colleges and universities, a labor force of 1.34 million and an international airport.

The organizations involved - scores of them - range from well-known names, such as Leadership Greater Hartford, Literacy volunteers, Capitol Region Education Council and the Hispanic Health Council, to those lesser known but just as vital.

“As ‘conveners,’ workforce development boards are often the ‘clasp’ of the chain, keeping all the links together, moving with changes in time,” says Phillips. “That means workforce development, economic development and education are responding collectively to work together toward sustainable jobs, talent creation and business growth.”

The number of organizations that collaborate continues to grow, with different organizations playing a lead role in select initiatives.  But there is definitely strength in numbers, they point out.

At the national level, officials note, the U. S. Conference of Mayors (USCM), Workforce Development Council is spearheading an effort to help each region have better access to best practices in building strong regional ecosystems.  The organizations is also working toward building more consistent communications and program focus that is designed to result in better outcomes.

That can best be accomplished region-by-region –addressing local area needs with locally based organizations.

Andrew McGough, Executive Director of the Portland, Oregon Workforce Development Board and Chair the USCM Workforce Development Committee, stresses that “Business-led local workforce boards lead the system through strategic partnerships with industry, education, community organizations, and labor, resulting in greater effectiveness and efficiency in serving businesses and job seekers in our communities.”

The Capital Workforce Partners website includes a list of participating community organizations.

Meriden Re-Make Continues, Spurred by State Support; Additional Funds Sought to Implement Plan

The City of Meriden is seeking $2 million from the State of Connecticut to improve six roadway sections in downtown Meriden, to improve traffic flow, improve accessibility and increase safety for vehicles, bicyclists and pedestrians traveling within Meriden’s Transit Oriented Development (TOD) zoning district. The grant application is the latest effort as part of the city’s “Meriden 2020 Bringing It Together” initiative, which is focused on transit oriented development to recapture the luster of the “Silver City”  and has received a steady flow of state funds in recent months to boost the effort.

The roadway sections - including Colony Street, West Main Street, State Street, Perkins Square/South Colony and East Main Street - were selected and analyzed for improvements in prior studies and investigations.  The initiative is an outgrowth of a two State of Connecticut TOD Pilot grants, a US Dept. of Housing and Urban Development (HUD) Sustainable Challenge grant and a HUD Choice Neighborhoods Planning grant.

A website, meriden2020.com, highlights the numerous efforts underway to redevelop the city’s central business, including ways to resolve historic flooding issues, repurpose underutilized brownfield sites, remake the rail station area into a modern transportation center, and provide links to the regional trail system.

Meriden’s Transit Oriented Development program seeks to “transform the Meriden Transit Center (MTC) and the half-mile area around it into a vibrant neighborhood that includes new residential and commercial development, public spaces and improved access to public transportation.” Construction of the new transportation center is underway, and local officials recently initiated a study to examine planned ridership and usage by area residents and businesses.

Last week, the Connecticut Housing Finance Authority (CHFA) and Department of Housing (DOH) announced approval funds for a proposed mixed use development project at 161-177 State Street, which is phase one of a multi-phase project that includes demolition of the Mills public housing project and implementation of the Harbor Brook Flood Control project north of the Hub site.   The new building will be within walking distance of Meriden`s new Transit center.

The proposed project will have 75-units of mixed-income family housing, with ground level retail space and a preschool. The property will include eight supportive units and 60 units targeted for households with incomes of 60 percent or less of Area Median Income (AMI). In addition, 26 of the 60 units will be supported by project based Section 8.

In February, the Connecticut Small Business Development Center (CTSBDC), the City of Meriden and The Midstate Chamber of Commerce announced the opening of the newest CTSBDC office, to be located at Meriden City Hall.

The new office is offering professional, confidential business advising to entrepreneurs in every stage of business and all industry sectors in the City of Meriden. “This beneficial partnership between the Connecticut Small Business Development Center and the City of Meriden ensures that entrepreneurs of the city have access to the necessary resources available to assist with starting or growing their business. This allows for economic growth and job creation in this area,” said CTSBDC State Director Emily Carter. CTSBDC also has a “virtual” location at the Meriden Public Library, where individuals can connect with CTSBDC advisors online.

In January, Meriden was awarded $100,000 in state funds to further revitalization and redevelopment in the TOD and Choice Neighborhoods target areas. The funding came through the state Department of Economic and Community Development (DECD) Brownfield Area-Wide Revitalization (BAR) Grant program, a year-old state pilot program that encourages communities to consider areas such as neighborhoods, downtowns, waterfront districts, or other sections with multiple brownfields and develop strategies to assess, clean up, and reuse the parcels for business, housing, and public amenities that will generate jobs and revenues and revitalize the entire area.

Weeks later, the Department of Economic and Community Development awarded the Meriden a $2 million grant for the demolition and remediation of the Mills Public Housing Complex.  The city plans to demolish the structures at 144 Mills Memorial as a prerequisite to implementing the Harbor Brook Flood Control Plan at the site.  While the 144 Mills Memorial site will be used for flood control purposes and will not be used for development, officials say the construction of the flood control plan at the site will allow for development to proceed at the adjacent sites, which include the Meriden Hub Site (located at 1-77 State Street) and at the Mills Megablock site (located at 161-177 State Street and 62 Cedar Street).

Meriden officials point out that commuter rail service to Hartford and New Haven is scheduled to begin later this year.  The new commuter rail service is expected to spur significant “transit oriented development” in the city center.  Once the rail service is operational, nearly 140,000 workers located within one mile of a rail station will be able to commute to Meriden within a 40-minute ride, the website points out.

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.”