Education Is Key to Improving State of Black Hartford, New Report Says

"The State of Black Hartford,"  published more than two decades after a landmark sociological text originally published in 1994, squarely focuses on education as the overriding issue on which Hartford’s future, and Connecticut’s, will be determined, flatly stating that “the future of Hartford rests with how we educate our children so they can contribute to the state and survive as productive citizens.” “The mis-education of children is a human rights struggle. Children of color are our children and the thousands that are failing can no longer be tolerated. We have a moral, ethical and economic responsibility to educate children in Hartford. Hartford’s future is our children and they deserve an opportunit to compete and survive,” the new report’s conclusion states.

The report, published in recent weeks and unveiled at a public session in Hartford, points out that “the city remains challenged with high unemployment rates, uneven public education, missed opportunities in economic development, and a work force that is not adequately prepared to achieve sustainable living wages.  There are new forms of discrimination where children graduate from high school without a real education to support themselves.”

Observing that “education in Hartford has been a priority for many years,” the report goes on to suggest what should happen next.  “Leaders with great intentions have tried, but it is time to require and invite the involvement and participation from parents and families as partners in their children’s education. There is no other way to address the needs of children. Our society has made it very clear it will not take care of them.”

The 220 page report, made possible through a $36,000 grant from the Hartford Foundation for Public Giving, was written by volunteers from a diverse group of disciplines, including educators, social workers and ministers. It was published by the Urban League of Greater Hartford, Inc.  Stanley F. Battle, director of the University of St. Joseph's master's of social work program was Editor; Ashley L. Golden-Battle was content editor.

The State of Black Hartford 2016 addresses challenges that African Americans face at both the national and local level through a series of briefs and chapters.  The chapter authors “pay close attention to how Blacks are perceived by the public” and “incorporate barriers to education, economic stability, health and welfare.”  Metrics and case studies are used "to better understand Black Hartford."  Chapter authors include Peter Rosa, Amos Smith, U.S. Sen. Chris Murphy, Maris Dillman, Rodney L. Powell, Yan Searcy, Kimberly Hardy, Yvonne Patterson, Eunice Matthews, Clyde Santana, Trevor Johnson, and Rev. Shelley Best.

Noting that Hartford holds the “distinction of being both the capital for one of the wealthiest states in the country and being one of the poorest cities in country,” among the key observations highlighted in the report:

• “We need family stability, livable wages, economic development, and education to fully bridge the achievement gap.”
• “Hartford is a great place to work—the Greater Hartford community is aware of this fact. It is important to make sure that Hartford residents receive some of those benefits.”
• “Economic growth and business development are the foundation for Hartford’s survival. With downtown development and the presence of universities, it is time to develop new business incubators in the arts, home repair, healthcare, biotechnology, and business.”
• “In Hartford, 37 percent of the population is Black yet they make up only 10 percent of the population throughout the rest of Connecticut and 12 percent of the population in the United States (DHHS, 2012). The population of Hartford is younger than other Connecticut and U.S. cities with over 70 percent of the residents being under 45 years old (DHHS, 2012).”
• “The lifeblood of Hartford depends on education, business, employment, economic status and mortality, housing and food.”

Issues including criminal justice, housing, healthcare, child welfare are also discussed in depth in the report.  Case studies, anecdotal evidence and data are highlighted throughout the report.  The central role of faith, and religious institutions is also the focus of the report, in the context that “presently Black Churches are still striving to meet increasing demands with decreasing resources.” 

That uphill effort is reflected in the report indicating that “the Black Church cannot continue to operate as an independent agent with sparse budgets drawn from the meager donations of an already struggling congregation.  Clergy and congregations need to build coalitions with other churches…”  The importance is underscored as the report stresses that “active involvement of faith leaders as community leaders in the ongoing struggle for social, political, and economic justice is no less necessary now than it has ever been.”

The report bluntly states that “…if we do not educate children from urban school districts, the future of this state will be at serious risk. The achievement gap continues to expand with little improvement. It is true that there has been some improvement in graduation rates. However, many graduating seniors from urban school districts must endure remedial work if they decide to attend a two or four-year institution.”

Education is viewed as essential to solving a range of persistent challenges facing the city’s African-American community and city residents: “The challenges that confront Hartford include the overarching issue of poverty.  While some efforts to address economic development, crime, and financial stability have been discussed in this book, education is the ultimate determinate of success.  In order for Hartford to excel, the population must be educated. The emerging majority must be able to support itself and children require cutting edge educational opportunities.”

Among the data points:

• One half of high school graduates need help when they start a community college or a state university. Sixty-three percent of Hartford high school graduates require a remedial coursework.
• Slightly less than one third of Black males and slightly more than one third of Latino males to begin college education at public institutions of higher education complete their education within six years.

The report notes that “Frequently, urban youth can’t afford to attend community colleges, so how will they be able to earn a four- year degree?  Hartford has the right idea to focus on education and economic development. Children need their parents, grandparents, aunts, uncles and the community to be successful.”

The report also calls for crime and homicide rates to be addressed at the community level. “There are families who have lived in Hartford for over 30 years and all of their children graduated from the Hartford Public school system. Their children are successful.  How did they do it and why don’t we ask them?”

Economic development, the report explains, is another pivotal area that requires attention that differs from past efforts: “Blacks must become a major part of the growth strategy of these neighborhoods. The promise will only work if there is a diverse group of investors with Black investors in these zones. Black people must become owners in the city in greater numbers.”

Dr. Stanley F. Battle, educator, author and civic activist is currently Director/Professor of the MSW Program in the Department of Social Work and Latino Community Practice at the University of Saint Joseph.  Previously, Dr. Battle was the Interim President at Southern Connecticut State University, Chancellor at North Carolina Agricultural and Technical State University (NCA&T) and President of Coppin State University in Baltimore.

The mission of the Urban League of Greater Hartford is “To reduce economic disparities in our communities through programs, services and educational opportunities.”

Mattress Recycling Has Solid First Year in Connecticut

Saying bye-bye to a used mattress in Connecticut has changed dramatically during the past year-and-a-half, as Connecticut became one of only three states in the nation to institute a statewide mattress recycling program. The initiative, approved by the state legislature two years ago and underway since May 2015, has gained a solid foothold here, according to its first annual report.  The Mattress Recycling Council (MRC), a non-profit organization established by the mattress industry that created and manages the program in Connecticut, California and Rhode Island, presented its inaugural Annual Report of the Connecticut Bye Bye Mattress Program to Connecticut municipal leaders and state regulators last month. The report summarized the Program’s performance from its inception through the end of the state’s 2016 fiscal year (June 30).

The Connecticut program has “exceeded, met or is on pace to achieve nearly all benchmarks” set in its plan, which was approved by the state in 2014. Highlights include:

• Recycled 150,000 mattresses.
• Recovered more than 2,800 tons of steel, foam and other materials that will be made into new useful products.
• Expanded the collection network to 101 free drop-off sites throughout the state.

“We are pleased with the program’s productive start and will continue to work with city leaders, businesses and the state to improve the program, expand the number of communities served, and increase the volume of mattresses recycled,” said Ryan Trainer, President of MRC and the International Sleep Products Association.

Bye Bye Mattress allows Connecticut residents to drop-off used mattresses at participating collection sites, collection events and recycling facilities free of charge. This collection network is made possible by the $9 recycling fee that Connecticut consumers pay when they buy a new mattress or box spring. The fee provides for collection containers, transporting the discarded mattresses and recycling costs.

Industry-led recycling programs like Bye Bye Mattress will play an important part in helping Connecticut reach its goal to divert 60 percent of materials from disposal by 2024, officials indicated in the 59-page report.

“We applaud the mattress industry for developing a successful statewide program under the mattress stewardship law that has already recycled thousands of mattresses in an environmentally sound manner,” said Robert Klee, Commissioner of Connecticut’s Department of Energy and Environmental Protection.  “This program has created jobs, recovered vast quantities of resources to be reused, saved municipalities $1.5 million in disposal costs and given residents an easy way to recycle a cumbersome item.”

MRC is also working with more than 130 other public and private entities, including mattress retailers, hotels, military bases, universities and healthcare facilities in Connecticut to divert their discarded mattresses from the solid waste stream.  The MRC website indicates that the organization continues to enroll interested municipal transfer stations in the program and work with those interested in hosting recycling events.

Connecticut’s Public Act 13-42 (enacted in 2013 and amended in 2014) required the mattress industry to create a statewide recycling program for mattresses discarded in the state. Connecticut residents can find their nearest participating collection site, collection event or recycling facility at www.ByeByeMattress.com.

Panera in Connecticut: State of Flux

If you’re looking for a Panera location in Connecticut, check twice before you head out for a sandwich.  There may be a new location opening nearby, or the locale you’re familiar with may have already closed its doors. The churn at Panera may not be unusual, but it did come as an unwelcome surprise to regulars at the Newtown location when it abruptly closed in mid-November, with a sign on the door saying farewell (and please visit other locations.)   And later this month, the long-time location in Darien will be closing.

The Darien store has been renting 3,754-square-feet — the entire first floor of its building, since 2007, when it became the first Panera Bread restaurant to open up in Connecticut, according to published reports.

The chain now has more than 2,000 locations, including in Connecticut – some owned by the company, most by franchisees.  While the departure from Newtown was an unexpected surprise to customers, plans to leave the Darien location have been known since June, when it was first reported by local media.

Last fall, a Panera location closed in Meriden and a location in nearby Wallingford opened. Also on the plus side, a Panera opened earlier this year at Evergreen Walk shopping plaza in South Windsor.  As of this spring, there were 17 Panera Bread locations in Connecticut, all across the state.  The Downtown Hartford location, its first in the city, opened in 2013.

As of June 28, 2016, there were 2,007 bakery-cafes in 46 states and in Ontario, Canada operating under the Panera Bread, Saint Louis Bread Co. or Paradise Bakery & Cafe names. Published reports indicate the company has 97,000 employees nationwide and saw a 3.4 percent growth in sales in its third quarter this year. In 2015, it reportedly generated roughly $2.7 billion in revenue. Founder and CEO Ron Shaich attended college at Clark University in Worcester in the 1970’s.

Earlier this year, Fortune magazine reported that the company estimated that over 20% of orders would be produced and paid for digitally by the end of 2016, up from 16%. In some markets, digital sales are making up more than a third of retail sales, according to the company. The restaurant chain says digital orders could make up half of the total business down the road, the magazine reported.

According to the industry website Fast Casual, Panera Bread does not sell single-unit franchises, so it is not possible to open just one bakery-cafe. Rather, the company has chosen to develop by selling market areas which require the franchise developer to open a number of units, typically 15 bakery-cafes in a period of 6 years.

Panera says it serves 3 to 4 percent of all Americans every week.

Changes on the Way in New Haven Media Coverage

The news media focused on New Haven is undergoing some changes, as one publication ends, a new electronic weekly business news round-up is about to begin, and a longtime local business paper is changing its subscription system, reducing the number of non-paying subscribers. New Haven Living magazine, published by the Hartford Courant Media Group in recent years, will cease publication with its January edition, the company recently announced.  The New Haven-focused edition of the weekly CTNOW. an entertainment section, will also cease publication, last publishing on Dec. 29, the company said.

The Courant plans to continue publishing Hartford Magazine and the Hartford edition of CTNOW.  Each monthly addition of New Haven Living was nearly identical to Hartford Magazine, usually with a handful of New Haven-focused articles and features added.  The Courant reported that it made the decision while evaluating opportunities to invest in higher-growth areas and the cost of distribution in Greater New Haven.

Business New Haven, which began publication in 1993, announced in its latest issue that “we are changing our publishing approach” in an open letter to readers from veteran publisher Mitchell Young, under the headline “The Time Has Come To Decide.  Do You Want Business New Haven?”

Young says that “only paid subscribers will be guaranteed” to be included on the newspaper’s circulation list beginning with the next issue.  Subscriptions to the monthly print edition will be $24 per year.

“We believe in the value of quality local publications and we hope you find us worth the cost of a lunch – perhaps that is a way of saying there is No Free Lunch,” the full-page letter said.

A limited number of promotional copies will be limited “based on a proprietary algorithm for the support of our advertisers,” Young noted.  He also indicated that plans are in the works to expand the publication’s CONNTACT.com website in the next year, as “we try to build our subscriber base” for the print edition.  Business New Haven also publishes the monthly New Haven Magazine.

The Hartford Business Journal (HBJ), which prints a weekly print edition in the Hartford region and has a roster of electronic news publications and business-oriented events, added a statewide daily email aimed at business executives statewide in 2013.  The  paper recently announced that for those doing business in New Haven and Middlesex Counties, a weekly news round-up, New Haven Biz, will be added to the HBJ e-mail line-up on February 1.

The email is slated to deliver a weekly roundup of business news and information from the Elm City and beyond, the paper’s website explains. The Hartford Business Journal recently had a prominent location at the Greater New Haven Chamber of Commerce Big Connect annual business-to-business event to promote the upcoming news service.

The publication also emails HBJ Today each weekday at noontime highlighting the day’s lead business stories.  Subscriptions to the email-delivered news products, which also include the CT Health Care Weekly and CT Green Guide Weekly, are free.   CT Morning Blend includes the top business stories from online news sources around the state and the nation “to keep business decision-makers ahead of the competition.” It also includes a stock market snapshot and a business calendar.

HBJ, with a strong local presence in Greater Hartford for more than two decades, is published by New England Business Media, which also publishes the Worcester Business Journal and MaineBiz.  It also sponsors the annual CT Business Expo at the Connecticut Convention Center and numerous business programs and events in the region.

CT Unemployment Rate in Construction Industry Improving, But Remains Among Highest in US

Connecticut’s unemployment rate in the construction industry remained among the highest in the U.S., ranked 39^th among the 50 states in October, although the year-over-year change was the 12^th best in the country.  Connecticut’s October unemployment rate in the industry was 6.7 percent, higher than the U.S. average of 5.7 percent, according to data released by the Associated Builders and Contractors (ABC).  The state’s construction industry unemployment rate nudged downward from 7.1 percent in September, but was 6.4 percent in July 2016.  In recent years, the rate ballooned to 18.1 percent in October 2010, at the height of the recession, from a low of 5.8 percent in October of 2008.

Overall, the U.S. construction industry added 19,000 net new jobs in November and has now added jobs for three consecutive months, according to analysis of U.S. Bureau of Labor Statistics data compiled by Associated Builders and Contractors. 

Industry employment is up by 2.4 percent on a year-over-year basis, considerably faster than the overall economy’s 1.6 percent job growth rate. Construction industry employment growth would likely be much sharper if more suitably skilled or trainable workers were available to fill available job openings, according to the ABC.

The data indicate that skilled labor shortage nationally appears to be impacting nonresidential activity more than residential. The nonresidential sector added 1,100 net new jobs in November, while the residential sector added 19,600 positions. Heavy and civil engineering lost 2,100 jobs for the month.

“The demand for construction talent was strong before the election, and the outcome has improved the near-term outlook for private and public construction activity,” said ABC Chief Economist Anirban Basu.  “The implication is that demand for construction workers is positioned to remain high, which will translate into gradual reduction in industry unemployment and significant wage pressures.

In the state-by-state numbers, calculated for October, the states with the lowest estimated not-seasonally-adjusted construction unemployment rates were North Dakota, Massachusetts, Colorado, Utah, New Hampshire and South Dakota. October not seasonally adjusted (NSA) construction unemployment rates were down in 33 states, including Connecticut, on a year-over-year basis.  Connecticut's October 2015 unemployment rate in the construction industry was 8.0 percent.

North Dakota’s unemployment rate in the industry was 2.4 percent, with Massachusetts at 2.5 percent.  New Hampshire’s construction industry unemployment rate was 3.6 percent.  Elsewhere in New England, Rhode Island’s unemployment rate in the construction industry was fourth highest in the nation, at 8.7 percent in October.

The unemployment rate for all U.S. industries fell to 4.6 percent in November, the lowest rate since mid-2007 and 0.3 percentage points below October’s rate. The labor force lost 226,000 persons for the month, but is still more than 2 million people larger than at the same time one year ago, officials pointed out.

EpiPen in Connecticut: Costs Vary, Concerns Continue; New Congressional Hearing Possible

Obscured in recent months by the intense presidential campaign, the furor over the price of pharmaceutical company Mylan’s life-saving EpiPen may be moving back to center stage in Washington as questions continue about Connecticut’s policy and the varying impact on school districts across the state.  The EpiPen is the widely used medical device that quickly administers a dose of epinephrine to counter allergic reactions. The cost of EpiPens to Connecticut schools - which keep EpiPens in their nurses’ offices in case a student has a severe allergic reaction - may be defrayed or eliminated by Mylan’s “EpiPens4Schools” program, which gives some schools two twin packs of the medical devices for free.  But that is not uniformly true, according to a recent survey by CT by the Numbers, and questions are being raised about the program’s future. 

A report by Connecticut’s Office of Legislative Research found that “over the last decade, Mylan has continuously increased the EpiPen’s cost, from approximately $60 in 2007 to over $600 in 2016 for a pack of two pens. The device requires a prescription and must be replaced annually.”

North Haven, which has participated in the free program, warns that “if the free program is discontinued, it will be a significant financial burden” for the school district.  “To satisfy the Connecticut mandate, we must stock one box each of EpiPen Jr. and EpiPen Sr., bringing the total cost to $1,600 x 7 schools = $11,200/year!!!”

In Chaplin, officials have also been using the free program, but note “we will not always be eligible year-to-year,” anticipating “the cost increasing by at least $300 or greater per school.”

Now, the chairman of the U.S. Senate Judiciary Committee says he is considering a subpoena or another method of compelling testimony from Mylan and federal officials, the Associated Press is reporting.  Mylan says it agreed to pay $465 million to settle allegations it overbilled Medicaid for EpiPen, but Sen. Charles Grassley says the Justice Department has said there is no "executed settlement."  At issue is whether the product should have been classified as generic.

Published reports indicate that Mylan acquired the decades-old product in 2007, when pharmacies paid less than $100 for a two-pen set, and has since been steadily raising the wholesale price. In 2009, a pharmacy paid $103.50 for a set. By July 2013 the price was up to $264.50, and it rose 75 percent to $461 by May 2015. This past May the price spiked again to $608.61, according to data provided by Elsevier Clinical Solutions’ Gold Standard Drug Database.

At a December 1 health forum sponsored by Forbes, Mylan CEO Heather Bresch said “We absolutely raised the price and take full responsibility for that, ” insisting that Mylan’s price increases were justified by improvements the company made on the product.

As the increases were being imposed, Mylan intensified efforts to have states require that EpiPens be made available in schools.  Connecticut was among 11 states which passed such a law.  The Connecticut General Assembly approved a bill in June 2014 that required all state primary and secondary schools to carry a supply of EpiPens. The new law also allowed school personnel other than a school nurse – if they were properly trained – to administer the epinephrine.  Published reports indicate that other states have approved laws allowing student to bring the dispensers with them to classes or encouraging schools to stock the drug.

The Connecticut Department of Education said it does not know how much the new mandate cost the state’s more than 1,300 primary and secondary schools, because the drug is purchased at the local level at a number of approved pharmacies throughout the state, officials told CT Mirror earlier this year.

A number of districts indicated to CT by the Numbers that they had EpiPens on hand in their schools even before passage of the state requirement, and at least one that had participated in the free program previously did not do so this year.

In Eastford, officials purchased one .15 mg dose and one .30 mg dose EpiPen in each of the past three years.  The costs increased steadily, from $599.90 in 2021-13 to $740 in 2015-16.   In the Region 9 (Easton, Redding) school district, for example, officials indicated that they paid $325 each for three EpiPen twin-packs for the Helen Keller Middle School this year.

Northwestern Regional School District 7 and Regional School District 12, both participants in the free program, have not incurred any costs for EpiPens in recent years.  Bolton school officials report that costs have increased in recent years, to approximately $600 per package of two” for a total of $1800 for the year.  Region 16 reports that they budget for EpiPen purchases each year, in case the free program is no longer available to them.  As of last year, they indicated, the twin-pack price was $535, but they were able to benefit from the company’s free program.

In Cromwell, schools have received 2 twin-packs per school through the free program for the past three years; previously they were purchased by the school district, officials said. In Ansonia, some were provided at no cost, others were purchased. The last time that North Haven paid for the EpiPens was in 2012, when the cost was about $190 each.

In 2015 the legislature considered, but did not pass, a bill requiring the insurance commissioner to study and report on health insurance coverage of and out-of-pocket expenses for EpiPens, according to the OLR report.  The 2014 legislation requires (a) schools to designate and train nonmedical staff to administer EpiPens to students having allergic reactions who were not previously known to have serious allergies and (b) the public health and education departments to jointly develop an annual training program for emergency EpiPen administration.

The website STAT, which focuses on health and medicine, reports that Mylan Pharmaceuticals has been selling the devices to schools at a discounted price for years, giving them a break from rising costs. But the program also prohibited schools from buying competitors’ devices — a provision that experts say may have violated antitrust law.

Mylan’s “EpiPen4Schools” program, begun in August 2012, offers free or discounted EpiPens to schools. Over 65,000 schools receive free EpiPens through the program; an unknown number of schools buy the epinephrine auto-injectors at a discount. Laws in at least 11 states require schools to stock epinephrine, and keeping a stockpile is incentivized by federal law across the country.

As of last year, the EpiPen4Schools discounted price was $112.10, according to company documents reported by STAT, although the prices cited by Connecticut districts vary.

America’s Best States to Live In: Connecticut Ranks Second

The only state that is a better place to live in than Connecticut is Massachusetts, according to a new survey of key data.  Connecticut was ranked second when the website 24/7 Wall St. reviewed three statewide social and economic measures — poverty rate, educational attainment, and life expectancy at birth — to rank each state’s living conditions.  Based on the data analyzed, the state’s motto could easily be “live long and prosper.” Massachusetts, home to one of the nation’s wealthiest and most highly educated populations, followed by neighboring Connecticut, lead the nation in quality of life. Mississippi, the poorest state in the country, trails the other 49 states.

Among the key stats for Connecticut:

• 10-year population growth: 5.8% (10th lowest)
• Unemployment rate: 5.1% (19th highest)
• Poverty rate: 10.5% (6th lowest)
• Life expectancy at birth: 80.4 years (2nd highest)

Quality of life in the United States is heavily dependent on financial status, the survey summary points out. As a consequence, the nation’s best states to live in often report very high incomes. With a median household income of $71,346 a year, fifth highest of all states, Connecticut is the second best state to live in and an especially good example of this pattern, the description of Connecticut’s ranking explains.

The publication notes that “While satisfactory living conditions are possible with low incomes, this is true only to a point. Once incomes fall below the poverty line, for example, financial constraints are far more likely to diminish quality of life.”

Rounding out the top five:  New Hampshire, Minnesota, and New Jersey.  At the bottom of the list: Alabama, Arkansas, Louisiana, West Virginia and Mississippi.

Education levels are another major contributor to a community’s living conditions — not just as a basis of economic prosperity, but also as a component of an individual’s quality of life. Due in part to the greater access to high paying jobs that often require a college degree, incomes also tend to be higher in these states. In all of the 15 best states in which to live, the typical household earns more than the national median household income of $55,775, 24/7 Wall St. pointed out.

Like the vast majority of states on the higher end of the list, Connecticut is described as relatively safe. There were 219 violent crimes reported for every 100,000 state residents in 2015, among the lowest rates of all states, the survey stated.  Housing markets are also indicative of quality of living. A high median home value, for instance, frequently means high demand for housing in the area. Nationwide, the typical home is worth $194,500. In most of the 25 top states, the median home value far exceeds the nationwide median.

The survey did not take into account more subjective conditions such as climate preference, the presence of friends and family, and personal history.

To identify the best and worst states in which to live, 24/7 Wall St. devised an index composed of three socioeconomic measures for each state: poverty rate, the percentage of adults who have at least a bachelor’s degree, and life expectancy at birth. The selection of these three measures was inspired by the United Nations’ Human Development Index. Poverty rates and bachelor attainment rates came from the U.S. Census Bureau’s 2015 American Community Survey. Life expectancies at birth are from the Centers for Disease Control and Prevention and are as of 2012, latest year for which data is available. Unemployment rates are from the Bureau of Labor Statistics, and are for October 2016, the most recent available month of data.

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.