CT Residents See Improving Economy, Even As Jobs Remain in Short Supply; Millennials Most Upbeat About Business Conditions

Seven in 10 Connecticut residents say overall business conditions in the state are either better or the same as six months ago, according to the quarterly Inform CT Consumer Confidence Survey, and 75 percent expect conditions to either remain the same or improve in the next six months. The latest survey, covering the third quarter of 2016, also found residents are more willing to spend on major consumer items – a sign of a strengthening economy – and less concern about immediate job security.  The survey also found that millennials, ages 22-25, are the demographic most upbeat about the state’s economic progress, with 41 percent saying overall business conditions were better than six months ago.  Those ages 18-21 and 26-35 had the next most positive views.

In a reversal from the previous quarter, 42 percent of state residents surveyed said they were unlikely to move out of state in the next 5 years, compared with 34 percent who described such a move as likely.  In the previous survey, conducted in the second quarter of this year, the numbers were reversed with 42 percent saying that it was likely they’d be moving out of state within five years, compared with only 32 percent who said such a move was unlikely.

The quarterly survey is released by InformCT, a public-private partnership that provides independent, non-partisan research, analysis, and public outreach to help create fact-based dialogue and action in Connecticut.

Tempering upbeat views is the continuing widely-held opinion that there are “some jobs in Connecticut, but not enough.”  Those expressing that view increased to 63 percent in the third quarter, the highest percentage since the survey began.  An additional 24 percent view jobs as “very hard to get.”  Thus, nearly nine in ten view the number of available jobs as insufficient in the state.  The survey also found:

• Less concern about job security: Only one-third (35%) expressed concern that their job or the job of their spouse/partner is in jeopardy, down from 39 percent in the previous quarter and 42 percent in the first quarter this year.
• Continuing strong concern about health insurance costs: Nearly two-thirds of state residents (64%) say they are concerned about being able to afford health insurance.
• Continuing concern about retirement savings: Overall, 50 percent of those surveyed disagreed with the statement “I will have enough money to retire comfortably,” compared with 23 percent who agreed.  Those currently of working age are most concerned about retirement savings.
• Connecticut is a good place to raise a family: Overall, fifty percent of those surveyed expressed that view, compared with 28 percent who disagreed, a ratio that has been relatively consistent in the quarterly surveys.  The two age groups that agree most are now, or will likely soon be, starting families – 62 percent of those ages 22-25 and 60 percent of those ages 26-35.
• Personal financial situation improving: 30 percent of survey respondents said their personal financial situation was better today than six months ago, compared with 28 percent who said they were worse off.

Residents of Windham and Fairfield counties were more likely to view overall business conditions as being better now than six months ago, the survey found.  Twenty-nine percent of Windham residents held that view as did 28 percent of Fairfield residents.  Residents of the state’s other six counties, Middlesex (23%), New London (20%), New Haven (20%), Litchfield (16%), Tolland (16%) and Hartford (16%) had fewer residents expressing that opinion.

Among other consumer survey findings:

• Nearly three-quarters of those surveyed (73%) said that in the next 6 months they were likely to take a vacation outside the state, the highest proportion since the survey began nearly two years ago, and the fourth consecutive quarterly increase.
• The proportion of respondents likely to make a major consumer expenditure for furniture or another product also was the highest in seven quarters, at 43 percent, up from 26 percent a year ago.
• The percentage of respondents who indicated they were likely to buy or refinance their home (16%) or purchase a new car (26%) were both at levels higher than in the 3rd quarter of 2015.

Administered by researchers from the Connecticut Economic Resource Center, Inc. (CERC) and Smith & Company, the analysis is based on the responses of 510 residents across Connecticut and addresses key economic issues, providing a glimpse of the public’s views.  The survey has a margin of error of 5 percent.

Public Hearings Conclude; State Spending Cap Commission Seeks Definitions to Impact Spending Decisions

“Stop with the financial games and own up to the problem.”  That was the succinct comment provided to the 24-member state Spending Cap Commission by Darien resident Ken Weil at a public hearing this fall.  Small business owner Justin Higgins, of Orange, added that citizens should “always know where we stand financially without loopholes and political gamesmanship.” The Commission has held 18 meetings, beginning in March and most recently on November 14, as well as five public hearings during the past two months, during which nearly two dozen people filed testimony.  With the state anticipating an estimated $3.1 billion deficit for the next two fiscal years, dollars and sense will be front and center when the legislature, with 30 new members and a dead-even split in the State Senate, convenes in January.

The Commission next meets on Nov. 28, according to CT-N.  Public Act 15-1, December Special Session (Section 24) established the Spending Cap Commission, charged with creating, for the purposes of the state's constitutional general budget expenditures requirements, proposed definitions of (1) "increase in personal income", (2) "increase in inflation", and (3) "general budget expenditures".

What the commission has been asked to address is two decades in the making - definitional questions with fiscal implications that have influenced policy and budget balancing since the passage of the state income tax in the early ‘90’s.  The Director of UConn’s Center for Economic Analysis, Fred Carstensen, said in an article published this month that “the spending cap as designed has been an unmitigated disaster, fiscally and economically.” 

The Commission is chaired by William Cibes, a former state legislator and Secretary of the Office of Policy and Management when the income tax was imposed and state spending cap was approved by voters, and Patricia Widlitz, also a veteran former legislator.  Members include Republicans and Democrats currently serving in the legislature, and others who have extensive experience with state government, in the public or private sector.  It is likely that the incoming state legislature will be looking to the Commission’s findings, as it grapples with the way forward for state finances.

As the public hearings approached in October, the Commission voted to include the following proposed definitions to be addressed:

• “Increase in personal income” means the compound annual growth rate of personal income in the state over the preceding five calendar years, according to United States Bureau of Economic Analysis data
• “Increase in inflation” means the increase in the consumer price index for urban consumers, all items less food and energy, during the preceding calendar year, calculated on a December over December basis, according to United States Bureau of Labor
• The Commission is still considering potential optional language for the third proposed definition – “general budget expenditures” – it is charged with creating. That language may concern, among others, such expenditures as payments for bonds, notes and other evidences of indebtedness, court orders, federal mandates, grants to distressed municipalities, as well as the use of federal funds and monies contained in the budget reserve fund. Proposed language pertaining to these and other additional topics pertaining to general budget expenditures may also be suggested at the public hearing, and considered by the Commission.

Some of the comments received by the Commission, at hearings in Hartford, New Haven, Bridgeport, Willimantic and Waterbury, are quite clear on what the result ought to be done, even if precise wording is not offered:

Louise DiCocco, Assistant Counsel for the Connecticut Business & Industry Association, noted that “24 years ago, more than 80 percent of Connecticut votes overwhelmingly approved a spending cap to keep the cost of state government within the taxpayers’ means to afford it.  Voters demanded the cap as an offset to the persona income tax in Connecticut.  The state must enact a spending cap that is ironclad and works.”

Added the MetroHartford Alliance in testimony by Vice President Patrick McGloin: “Adoption by the legislature of well-crafted spending cap definitions will clearly demonstrate to our fellow residents and private sector employers that we have the political will to be fiscally disciplined.”  DiCocco noted that “the spending cap has always had a safety valve or escape mechanism.  They include bonded debt service, aid to distressed municipalities and first year costs of federal or court ordered mandates.”

The Connecticut affiliate of the National Federation of Independent Businesses pointed out that “reasonably understood, clear definitions of the key terms that will lead to additional budget transparency, predictability and ultimately cap state spending on an annual basis in a way that aptly reflects the will of the voters,” adding that “business owners feel that the legislature absolutely needs to stop allowing excessive spending to be an option and to recognize the ‘new economic reality’, just as small business owners have had to do. Achieving that goal is the most effective economic development policy we could have, and we believe that implementing the constitutional spending cap, and properly defining component terms, would go a long way in this regard.”

Westport resident Tom Lasersohn observed that “In business you learn that for every one customer that complains, there are many you have already lost as customers. For every citizen who gives testimony to this Commission, there are many who are so disgusted with the State’s fiscal mismanagement and chicanery that they will leave at the earliest convenient opportunity. Many outside the State peer in and resolve ‘no, not for me until the State gets its fiscal act together.’ A responsible definition for ‘general fund expenditures’ will communicate to both current and prospective residents and businesses that we are serious about fixing our problems.”

State Senator Toni Boucher of Danbury told the Commission:  “I hope that the commission to adopt a definition of general budget expenditures that is comprehensive and gives a complete and realistic account of all the money that the state spends… it is equally critical that the legislature not be allowed to move what was once an expenditure included under the cap to bonding or fund it with a revenue intercept for the purpose of undermining the cap’s integrity.”

The final form of Commission recommendations remains unclear.  Minutes of the Commission’s most recent scheduled meetings, on October 31 and November 14, have not yet been posted to the Commission’s website, nor has an agenda for the Nov. 28 meeting (as of Nov. 27).

While Boucher is not a member of the Commission, a number of her legislative colleagues are.  The definitions – and the implications for the state’s budget and taxpayers – may soon be theirs to decide.  A decade ago, a UConn report observed that “the spending cap is only as restrictive as the legislative process decides it should be; its strictures are not written in stone.”

UPDATE: 

link to Agenda for Commission's Final Meeting on Nov. 28, 2016 and CTNewsJunkie article reporting on meeting.

link to CT-N video of Commission's Meeting on Nov. 28  at the Legislative Office Building in Hartford; Next meeting scheduled for Dec. 5

CT Ranked 9th Among Small States in "Main Street Entrepreneurship," Showing Improvement

Improvements in Connecticut’s “Main Street Entrepreneurship” has pushed the state’s ranking to 9^th among the nation’s 25 smaller states, up from 12^th a year ago, in the latest analysis from the Kauffman Foundation. The nation as a whole and most states and metro areas are experiencing higher rates of small business activity, according to the 2016 Kauffman Index of Main Street Entrepreneurship.  Nationally, there was a sharp uptick in the survival rate of businesses in the last year. At the same time, Main Street entrepreneurship activity gained ground in 47 states and 38 of the 40 largest metropolitan regions.

Among the nation’s smaller states, the top ranked entrepreneurial states were South Dakota, Vermont, Montana, North Dakota, Maine, Iowa, Nebraska, New Hampshire.  After Connecticut, Oregon rounded out the top ten.  Connecticut was one of only two states to move up three positions in the ranking.

The state’s rate of business owners was 6.55 percent; the percentage of the adult population that owns a business as their main job, according to the survey data.

The number of established (older than four years) small (less than fifty employees) businesses per 1,000 firms was 649.9 in Connecticut.  In Massachusetts, which ranked third among the nation’s 25 larger states, it is 684.7.  The top ranked larger states were Minnesota, Wisconsin, Massachusetts, Colorado, Pennsylvania, Maryland, Ohio, Louisiana, California and Illinois. 

"The Main Street Entrepreneurship Index provides additional evidence that U.S. small business activity has rebounded from the downturn and continues to gather strength," said Arnobio Morelix, senior research analyst at the Kauffman Foundation. "More new businesses are making it through their first five years of operation. While this could indicate that a lack of dynamism is allowing less-productive firms to hang on longer, overall the entrepreneurial increases bode well for the established, small businesses that underpin much of our economy."

Among the larger states, the rate of businesses surviving through their first five years ranges from 44 percent in Arizona to 53.3 percent in Pennsylvania. Among the smaller states, the business survival rate ranges from 43.4 percent in Nevada to 58.1 percent in North Dakota.  In Connecticut, the rate is 51.35 percent, the 8^th highest among the 25 smaller states.

In start-up activity, Connecticut ranked 22^nd out of 25 smaller states, a drop of two positions since last year.  The Survival Rate of American businesses is the main driver of the recent improvements in Main Street Entrepreneurship in the United States, and has reached a three-decade high of 48.7 percent—meaning that almost half of new businesses make it to their fifth year of operation.

U.S. Census Bureau business statistics show that established small businesses represent almost 68 percent of all employer firms in the country.   The five metros with the highest Main Street entrepreneurship activity are Pittsburgh, Boston, Portland, San Francisco and Washington, D.C.

The Kauffman Index of Main Street Entrepreneurship captures business activity in all industries and is based on both a nationally representative sample size of roughly 900,000 responses each year and the universe of all employer businesses in the United States, in a dataset that covers approximately five million businesses.

New Haven Chamber Spotlights Millennial Leaders in Region

The Greater New Haven Chamber of Commerce has recognized 12 distinctive millennial leaders who are "making an outstanding difference in the professional and outside world." In making their selections, the Chamber indicated that "from organizing community events, working with charities on weekends or holidays, or tireless public outreach - these are the people that lead by example to the entire millennial generation and the rest of us."

The Chamber's young professional organization, PULSE, made the selections from those nominated for the recognition.  The announcement was made at a reception at the conclusion of the Chamber's day-long business expo, The Big Connect, held Thursday at the Oakdale Theater in Wallingford.

The millennial move makers for 2016 are:

Jack Yeung, a serial entrepreneur, attended St. John’s University for his Doctorate of Pharmacy degree. He started his own pharmacy in 2010, after noting he could offer services that other pharmacies were not offering, such as delivery. Jack who now owns pharmacies in Southbury, Danbury and one in the Bronx, started the Panic Room: Escape Room Entertainment in Norwalk, CT, which challenges participants while providing a safe and fun real-life adventure. Jack’s latest business venture is the opening of The Halal Guys Restaurant in New Haven this fall.

Ashley Calabrese is responsible for developing and implementing effective lobbying strategies and grassroots advocacy campaigns to best suit her clients’ interests. She works with the state legislature, the executive branch, municipal leaders and the Connecticut congressional delegation. Her efforts have created better insurance coverage for more advanced forms of breast tissue screening, including coverage for ultrasound and MRI screening. Through volunteer efforts, Ashley has advanced legislative efforts for ‘Are You Dense Advocacy’ to ensure that women with dense breast tissue have access to an early breast cancer diagnosis. She helped form the Danny Gilman Scholarship in memory of one of their peers. Ashley serves as President of the Association of Connecticut Lobbyists.

Peter Kozodoy is an author, speaker, serial entrepreneur, and the Chief Strategy Officer of GEM Advertising. His work at GEM has been featured in CNBC, Yahoo!, Bloomberg, Reuters, MarketWatch and more, and has earned Telly, Pixie, Communicator, Aurora, Davey and W3 awards in U.S. and international branding, advertising and production. He has spoken for Microsoft, the US Department of Commerce, and CEO Clubs of America on topics like millennials, and global advertising. He serves on the boards of the Greater New Haven Chamber and Junior Achievement in Connecticut. He is also a SAG/AFTRA professional actor, a three-time New England Champion in Men’s Figure Skating, and a black belt in Taekwondo.

Jenn Kuehn began SHiFT Cycling with a vision to create a workout experience that is accessible yet challenging to every rider, no matter where they are in their fitness levels. She left the high-powered world of corporate sales to create an inspirational local fitness experience. In less than a year, Jenn built a reputation for inspiring effective workouts in a judgment-free environment. Still sensing a missing need for a greater connection between motivation, mind and body, she launched SHiFT Cycling in March 2014. In 2015, Jenn and the team evolved and created SHiFT New Haven. In 2016 Jenn launched her newest fitness concept SHiFT Balance, a studio designed for barre, yoga, kickboxing, strength and mediation classes.

Jeremy Race is the President and CEO of Junior Achievement Southwest New England.  Through Junior Achievement, Jeremy is helping young people dream big about their futures and teaching them the strategies to achieve those dreams. Each year, Jeremy has the pleasure of working closely with several JA students in preparation for their speaking roles at JA’s annual Partners in Achievement breakfasts in Hartford and New Haven. At last year’s event, Jeremy was proud to watch Josslyn, a student from New Britain who at one point was on track to not graduate from high school, stand up in front of 400 guests and state that thanks to JA, “I will graduate high school. I will attend college.  I will be successful.” It was a moving moment and Jeremy will never forget.

J.R. Logan has worked as a volunteer to organize the establishment of a trail along the Mill River in New Haven. He serves on the boards of the New Haven Land Trust and Eli Whitney Museum. He led Cluefest for several years and is a cofounder and Chief Maker at MakeHaven, a community makerspace where anyone can participate in 3D printing, laser cutting, wood working, sewing, metal milling, electronics fabrication, programming, mold making, bike repair and more. In this role, he fosters a community of more than 100 entrepreneurs, artists and craftspeople. J.R. is also employed as Director of Digital Resources for United Way of Greater New Haven, where he works to implement organizational learning and technology locally as well as being a significant contributor to technology advancement in the worldwide United Way network.

Angelina Stackpole is a Director at the American Heart Association in Greater New Haven, where she oversees corporate fundraising and wellness initiatives in Greater New Haven. She is responsible for the Greater New Haven Heart Walk, which raises awareness and funds for cardiovascular diseases and stroke. In the past five years, Angelina has increased annual revenue from the event by 50%, and has grown participation to nearly 5,000 area professionals and community members. She is also responsible for starting an annual Connecticut-wide event that provides fun activities, support, and networking to families who have children suffering from congenital heart disease. Angelina currently serves as Chair on the PULSE Board of Directors.

Justin Nash, following his graduation from West Point in 2001, was commissioned as an Infantry Officer where he led an infantry platoon deployed to serve in Afghanistan. He was awarded the Bronze Star Medal, Army Commendation Medal, Army Achievement Medal, and Global War on Terrorism Expeditionary and Service Medals. His military career was cut short due to injuries sustained in the line of duty. He has also served as a project manager in the energy industry where he delivered complex projects over $10 million. Justin is the founder of Veteran Construction Services LLC and serves as president of Til Duty is Done, an organization he founded to help restore and improve the lives of veterans through supportive housing and employment opportunities.

Elisabeth Verrastro has a passion and drive to make live performance accessible to everyone and loves seeing her work come to life when the curtain rises and the audience erupts into applause. She is the Shubert Theatre’s Director of Development & Communications. Over the past eight years, Elisabeth has worked tirelessly to tackle the world of development, while giving birth to two children and exceeding expectations by raising over $1.2 million each year while implementing a campaign to raise over $8 million to celebrate the Shubert’s 100th Anniversary and complete Phase 1 of the Centennial Improvement Project. It is Elisabeth’s mission to continue her work to make Shubert’s Phase 2 of renovations a reality.

Darryl Brackeen Jr. was elected in 2014 to the New Haven Board of Alders (City Council), where he is the first African-American and youngest Alder to have been elected from Westville 26th district. While in office, he has championed the passage of the City of New Haven’s Clean Air Resolution, Domestic Workers Bill of Rights & Janitors Bill of Rights, and supported passage of a Connecticut student loan bill of rights, and countless other pieces of legislation and initiatives. In December 2015, he was named the CT State Director for the Young Elected Officials Network. Darryl serves on the Board of Directors for Greater New Haven Green Fund.

Jennifer Staple-Clark founded Unite For Sight in her dorm room in 2000 as a sophomore at Yale University. Unite For Sight is now a leader in both global health education and in providing cost-effective care to the world’s poorest people. Jennifer is the author of journal articles and book chapters about social entrepreneurship, best practices in global health, and community eye health. Additionally, she serves as a judge in social entrepreneurship competitions, including the Canadian Government’s Grand Challenges in Health. Jennifer is a member of the Yale University President’s Council on International Activities, and on the Operating Board of the Yale Entrepreneurial Institute.

Alex Engler is a Ph.D. student and NSF Graduate Research Fellow in Biomedical Engineering at Yale University. While at Dartmouth College for undergraduate studies, Alex’s research focused on developing biomaterials for orthopedics. Outside of the classroom, he led multiple music groups and mentored local middle schoolers for science competitions. Between Dartmouth and Yale, Alex worked in the heart of Boston’s hospital network developing medical devices to treat infants born with birth defects. Alex’s current research focuses on whole lung regeneration and tissue engineering. Outside of lab, he serves as a Director of the Science in the News program. He is also actively involved with the Yale Pathways to Science program and the New Haven Science Fair.

Stamford-based Harman to be Acquired by Samsung

Even as Connecticut’s economic development leaders toil diligently to retain and attract industry-leading businesses to the Land of Steady Habits, market forces at times pull in different directions.  That is again in evidence as Samsung has announced it will buy Stamford-based Harman for $8 billion. The acquisition of will make Samsung a major player in automotive technology, and removes an independent corporate headquarters from the state’s roster. Earlier this year, Harman was one of four Connecticut-based companies to be named among the most innovative companies by Fast Company magazine.  Harman ranked seventh on the Fast Company ranking of the 10 most innovative companies in the automotive sector.

Upon closing, Harman will operate as a standalone Samsung subsidiary, and continue to be led by Dinesh Paliwal and Harman’s current management team, both companies indicated in a news release.  Harman has a workforce of approximately 30,000 people across the Americas, Europe, and Asia and reported sales of $7.0 billion during the 12 months ended September 30, 2016.

“Samsung is pursuing a long-term growth strategy in automotive electronics, and plans to retain Harman’s work force, headquarters and facilities, as well as all of its consumer and professional audio brands.  Samsung believes the combination will increase career development and advancement opportunities for the employees of both companies,” the news release stated. 

“This compelling all-cash transaction will deliver significant and immediate value to our shareholders and provide new opportunities for our employees as part of a larger, more diversified company,” Harman Chairman, President and CEO Dinesh Paliwal said.

For Samsung, it is the biggest overseas acquisition ever by a South Korean firm, according to the news service Reuters. The Harman acquisition is subject to regulatory approvals and is expected to close in mid-2017, reports indicate. The agreement has been unanimously approved by the boards of directors of both companies.

Harman's products, which provide infotainment, telematics, connected safety and security services, are used in more than 30 million vehicles made by automakers such as BMW, Toyota Motor Corp and Volkswagen, according to its website. Harman’s portfolio of audio brands includes AKG®, Harman Kardon®, Infinity®, JBL®, Lexicon®, Mark Levinson®and Revel®

Harman executives will be at the Fleet Europe Forum and Awards on November 16 in Barcelona, Spain to highlight Harman's premium products for the fleet industry , which caters to businesses, government agencies and other organizations that purchase or lease groups of vehicles to support their services.

CT's Science and Technology Ranking Rises to 6th in the Nation

Following three consecutive finishes ranking ninth in the nation in the State Technology and Science Index (STSI), Connecticut has moved up to number six in 2016, it’s highest finish in more than a decade.  The state ranked ninth in 2010, 2012 and 2014 in the analysis produced every other year by the Milken Institute, following a 7^th place ranking in 2008 and 10^th in 2004.  The ranking was the highest for the state in all seven releases of the STSI index. The STSI benchmarks states on their science and technology capabilities and broader commercialization ecosystems that contribute to company growth, high-value-added job creation, and overall economic growth, the institute’s website explains.  

“We view the STSI as a measure of a state's innovation pipeline. The index isn't intended to be a measure of immediate economic impact, but rather to demonstrate that the return on science and technology assets will accrue in future years.”

The top five states in 2016 are Massachusetts, Colorado, Maryland, California and Washington.  Rounding out the top 10, after Connecticut, are Minnesota, Utah, Virginia and Delaware.

In specific categories, the state’s ranking varied, with considerable improvement in some categories. In the Technology and Science Workforce composite index, Connecticut ranked 10th, an improvement from rankings of 16th in 2014, 13th in 2012 and 14th in 2010.  This composite measures the relative presence of high-end technical talent, and consists of 18 eighteen various indicators.

The STSI's 107 individual indicators are sorted into five composites: Research and Development Inputs, Risk Capital and Entrepreneurial Infrastructure, Human Capital Investment, Technology and Science Workforce, and Technology Concentration and Dynamism.  The report indicated that "Connecticut showed major improvement in the Technology Concentration and Dynamism index, going from 21st to 10th. This dramatic rise marks one of the larger overall changes on this index. While modest increases were seen in the Research and Development Inputs index and Human Capital Investment index, these two indices have a much heavier focus on stock measures, and Connecticut’s aerospace and defense sectors help anchor the state’s performance in these areas."

Connecticut also ranked 10th in the Technology Concentration and Dynamism composite index, the state’s highest ranking in that category, and largest jump from two years ago.  In 2014, Connecticut ranked 21st.  In the two previous analyses, Connecticut was 12th in 2012 and 18th in 2010.

In the Human Capital Investment composite index, Connecticut ranked third, as it did in 2014 and 2012, after ranking fifth in 2010.  In Research & Development, Connecticut placed eighth, its second highest finish, after ranking tenth, seventh and seventh in previous indexes.  Connecticut ranked 11^th in Risk Capital and Entrepreneurial Infrastructure, up from 14^th two years ago, but not as high as sixth place in 2012 and third in 2010.

The Human Capital Investment composite index looks at how much is invested in developing the workforce—the most important intangible asset of a regional or state economy. Twenty-one indicators are included in this composite index.  The R&D composite examines a state's R&D capacity to see if it has the facilities that attract funding and create innovations that could be commercialized and contribute to economic growth, and includes eighteen indicators.  The Risk Capital and Entrepreneurial Infrastructure Composite Index determines the success rate of converting research into commercially viable products and services. It includes 12 indicators.

While Connecticut was gaining ground, other states were bottom dwellers.  The analysis raised alarms regarding the prospects for those states.

“The states with the weakest innovation assets and ecosystems for starting and growing innovative firms face a bleak future unless changes are made. West Virginia, Arkansas, Mississippi, Kentucky, and Louisiana make up the bottom five in this year's STSI. They are the least knowledge-intensive and their residents exhibit weak entrepreneurial skills. All of them have undertaken efforts to change their position in technology and science but have had limited success.”

Massachusetts remained in first place with a score of 83.7, retaining the position it has held since the inaugural STSI was released in 2002.

Wyoming, the most improved state, climbed 10 places, to 36th. The state had broad gains but benefited most from the broader definition of occupations in the Technology and Science Workforce category, which included its talent in mining engineering, the analysis pointed out. Missouri rose six spots, to 28th; seen as primarily attributable to a 24-place leap in Risk Capital and Entrepreneurial Infrastructure.

Pasta Making Business Continues to Grow, Government Continues to Help

Sometimes, home-grown businesses decide to stay in Connecticut.  That was the case this fall as Carla’s Pasta – an American Dream business success story – reportedly spurned an offer to relocate to a western state, and chose instead to expand in South Windsor, aided by a significant tax abatement. The company produces filled pastas, Italian sauces and pestos, appetizers, and entrees. The brainchild of Carla Squatrito, the business now employs 156 people, including her sons, Sandro Squatrito and Sergio Squatrito, who are vice presidents of business development and operations, respectively. The Italian food product manufacturer, which was launched in 1978, in Manchester and moved to South Windsor in 1997. 

The latest expansion deal, as reported by the Journal Inquirer, will see the town give the family-run Carla’s Pasta a 70 percent tax abatement for seven years, reducing the company’s tax burden by well over $200,000 per year.  The planned expansion is expected to generate 60 to 100 new jobs, and is due to be completed next fall. In 2013, Carla's completed a 30,000-square-foot expansion of its South Windsor facility, the Hartford Business Journal reported.

Town Manager Matthew Galligan, the JI reported, said the state of Utah was courting the company, but Carla’s ultimately decided to stay in town as a result of the deal that was approved by the Town Council.

Carla, a native of the small Italian village of Madonna del’Olmetto, emigrated to the U.S. at age 27.  Her business began as a means of bringing “home-made filled pastas, Italian Sauces and Pestos, made from fresh ingredients, the flavors of her youth” to local customers, retail and later wholesale.  Since 2010, Carla has been recognized by the National Women Business Owners Corporation as an outstanding CEO.

The company distributes its pasta to restaurants, institutions and supermarkets. In 2012, the company estimated that it was making about 2 million pounds of pasta per month, with projections to increase that number by a third.

The company received a bridge loan of $2,175,000 from Connecticut Innovations that year to help purchase and install a fuel cell along with a $750,000 grant from the Connecticut Clean Energy Fund. The state assistance was aimed at supporting the company efforts to be environmentally conscious and energy efficient.

In Oct. 2015, the company launched its own retail brand, Cucina di Carla.  Among the distinctive products inspired by the season:  autumn-inspired cinnamon clove pasta ravioli filled with golden pumpkin, whole milk ricotta and Fall spices.

https://vimeo.com/150720277

Almond Joy, Born in Connecticut, Is State's Candy Sales Champion

Almond Joy, Milky Way and M&Ms are the likely candies to be greeting Connecticut trick-or-treaters as they move from door to door later this month.  That’s according to candystore.com, which sells bulk candy on-line, in their review of sales data from 2007 through 2015. Connecticut's favorite Halloween candy is Almond Joy, with 2,619 pounds of it, on average, ordered each year, the website indicated. Milky Way is Connecticut's second favorite Halloween candy, with 1,366 pounds ordered. M&M's placed third, at 910 pounds on average.

Among Connecticut’s neighboring states, the candy favorite in Massachusetts is Butterfingers; in New York it is Sour Patch Kids, in Rhode Island candy corn topped the list.  Connecticut was the only state where Almond Joy ranked first in candy sales.

Industry research shows that since 2015, online candy sales have increased by 15 percent, according to candystore.com.

The Almond Joy candy bar was introduced in 1946, just after the World War II, when sugar, tropical coconuts and chocolate became more readily available, by the New Haven-based Peter Paul Manufacturing Company,  which was already well-known for its popular Mounds bar introduced in 1921. Today, the Peter Paul Candy Manufacturing Company is a candy-making division within the Hershey Company. It was originally founded in the Elm City in 1919 by six Armenian immigrants led by Peter Paul Halajian, with a manufacturing plant in nearby Naugatuck.

"Almond Joy has seen a resurgence in popularity over the past few years.  No where is that more apparent than Connecticut.  While it cracked the top 3 in a few other states (MN, SD, TX), it was the #1 candy in Connecticut, " said co-CEO of CandyStore.com, Tom Hoeck.

CandyStore.com is an industry leader in candy sales in the United States and Canada, and offers candies of all shapes, sizes, colors, and brands. To determine the best sellers by state, the company reviewed sales from 2007–2015, focusing on the three months leading up to Halloween.

“Since we sell candy to all 50 states (and Canada), it was easy for us to see a state-by-state breakdown of candy trends and top orders. And we have relationships with all the major candy companies, so they helped us verify as well. Based on this analysis, we determined the Halloween best-sellers that people all over the country love to use in Halloween crafts and treats and give out to trick-or-treaters.”

The company also provides “candy trivia” on its website, noting that during the 1981 inauguration of Ronald Reagan, three tons of jelly beans were served, candy corn is the top selling candy, and two-thirds of American candy bars were introduced more than 50 years ago.

Efforts to Improve Math Education in CT Don't Yet Add Up, Report Finds

If Connecticut students are to excel in math, it will take a concerted effort at the state and district level, revised curriculum by state colleges preparing math teachers, and greater community involvement.  That overall effort, according to a new state report, still has a ways to go. The 30-member Commissioner’s Council on Mathematics report, issued last week, outlines recommendations for educators, policy leaders, and community members to improve K-12 mathematics education in the state.  The report stresses several recommendations that are grounded in the lessons learned regarding strong leadership, quality professional development, dedicated time, and effective collaboration within, among, and beyond school districts.

The council outlines several specific actions for the State Department of Education, individual school districts, higher education, and the community in the report that are distilled into four broad recommendations. Each recommendation is evidence-based, actionable, inclusive of all stakeholders, and measurable.

The four broad recommendations are:

• develop a clear and consistent understanding of the Connecticut Core Standards-Mathematics (CCS-M) at the classroom, school, district, and state levels;
• provide the support and training necessary to effectively implement the mathematics standards with fidelity in all classrooms, schools, and districts;
• implement appropriate interventions and acceleration to support the needs of a diverse group of learners; and
• engage all stakeholders in the process of putting the Connecticut Core Standards-Mathematics into practice through effective communication that keeps teachers, parents and community members informed and participating in the process.

“Every student deserves the opportunity to receive a math education that is rich and rigorous, and equips them with the skills needed to graduate from high school prepared to be successful in both college and career,” said Commissioner Wentzell. “These recommendations by the Council on Mathematics have created a clear path that will help the State Department of Education take the steps needed to ensure that every student in our state receives a high-quality mathematics education.”

Next steps identified in the report include that “all stakeholders need to work and learn more in the area of mathematics education,” specifically as it relates to the following:

• instructional support necessary for students with special needs to access the standards;
• instructional support necessary for English learners to access the standards;
• interconnectedness of curriculum, instruction, and assessment; and
• teacher evaluation and certification requirements.

The framework for the recommendations was a logic model described as four buckets: Deep Knowledge of the CCS-M, Curriculum Development and Implementation, Intervention and Acceleration, Community and Family Engagement.

The Commissioner’s Council on Mathematics was initiated by Commissioner Wentzell in 2015 in response to the Smarter Balanced test results in mathematics. The council was convened to spearhead the state’s efforts to improve supports in mathematics by identifying best practices and exploring promising innovations in mathematics instruction.

Communities are urged, in some of the recommendations, to establish partnerships with local districts to create internships for high school students with businesses that require mathematics skills, use social media and distribution lists to promote the importance of the CCS-M, and urge community members to attend and participate in state- and district-provided workshops that deliver information about the standards.

Among a series of recommendations aimed at higher education, colleges are urged to:

• Increase mathematics coursework for elementary pre-service teachers.
• Increase coursework that focuses on the mathematical practices at all levels.
• Collaborate with district partners to ensure that pre-service teachers’ field experience is with a teacher who exhibits conceptual understanding, deep content knowledge, and effective use of the practices.
• Mentor teachers and provide training specific to mathematics content and pedagogy to teachers who will be assigned a pre-service teacher.
• Create professional learning workshops for in-service teachers to interact with professors at the university to make the connections of what is being taught at the K-12 level and how it is used in higher education.
• Build relationships with high schools by promoting early college experiences in high schools
• Require coursework in family engagement strategies for pre-service teachers.

Council members included parents, teachers, curriculum specialists, principals, superintendents, board of education members, higher education professors, business leaders, and State Department of Education staff members with the purpose of closely examining the current state of mathematics education in Connecticut.

The Commissioner selected the members through recommendations made by various stakeholder groups across the state, including the Connecticut Parent Teacher Association (CT-PTA), the American Federation of Teachers-Connecticut (AFT-CT), the Connecticut Education Association (CEA), the Connecticut Association of Schools (CAS), the Connecticut Business & Industry Association (CBIA), and the Connecticut State Department of Education (CSDE).  They met monthly from February 2016 to June 2016, and the recommendations were developed with the input of local school districts, higher education, and experts in family and community relations, according to the report.

First Niagara Transitions to KeyBank This Weekend

For customers of the soon-to-be-history First Niagara Bank, this will be a holiday weekend of banking transition, as KeyBank becomes the new name on the door on Tuesday morning after a host of changes inside. First Niagara branches, converting to KeyBank, will close at 3 p.m. Oct. 7 and reopen for business the morning of Oct. 11, the day after Columbus Day. The company promises a smooth transition, and has been providing customers of the bank’s more than 60 branches in Connecticut with step by-step previews of what to expect. The changes represent the completion of the $4.1 billion KeyCorp purchase of First Niagara.

“As KeyBank and First Niagara come together you can continue to bank as you currently do, using your same account number, checks, debit card, ATM card, credit card, telephone banking, online access and branches,” the company website points out.

First Niagara has 65 branches in Connecticut that will be transitioned to KeyBank branches. There were no existing KeyBank branches in the state prior to the merger, so there was no overlap that required branch closings, as is often the case with bank mergers.

Headquartered in Cleveland, KeyBank’s footprint includes 15 states via a network of more than 1,200 branches and more than 1,500 KeyBank ATMs. The company’s roots trace back 190 years to Albany, New York. Since then, KeyCorp has grown into one of the nation's largest bank-based financial services companies, among the top 15, with assets of approximately $135 billion, according to the company.

In recent months, First Niagara did consolidate five Connecticut branches (Woodstock, Dayville, Hamden, East Haven and Madison), and all of the employees who worked at those branches were offered positions within the bank, officials indicated, and no layoffs were associated with that consolidation.

"By asset size, this is the largest bank merger since the financial crisis,” Beth E. Mooney, Key’s chairwoman and CEO, told the Buffalo News last month, during a visit to Key’s Northeast regional headquarters in Buffalo, which had been First Niagara’s corporate headquarters.

“So there is a significance and an importance for us to do it well that’s critical for our communities, our clients, our employees and our shareholders. But from an industry perspective, this is actually one that there’s a fair amount of eyes on us, as well.”

The conversion of First Niagara accounts and services to KeyBank will begin at with a 3 p.m. close of business on Friday, October 7.  Due to Online Banking updates, customer balances that appears online on Thursday, October 6 at 11:59 p.m. will not change until Saturday, October 8, at 6 a.m., so any purchases or deposits made during that time will not be reflected on online balances until Saturday. Customers can continue to use current First Niagara ATM/debit card, account numbers and PINs will not change.

The acquisition of First Niagara by Keycorp was announced on Oct. 30, 2015, and includes the addition of approximately 300 First Niagara branches in New York, Pennsylvania, Connecticut and Massachusetts.  First Niagara had entered the Connecticut market in 2011 with the purchase of New Alliance Bank.