Insurance Department Recovers $7.5 Million for Policyholders, Taxpayers in 2016; Highest Total in 4 Years

Connecticut’s Insurance Department recovered $7.5 million for policyholders and taxpayers in 2016, helping individuals, families and employers with their claims and complaints.  That is the highest amount in four years and an increase from the $6 million that the department saved taxpayers and policyholders the previous year. “Connecticut consumers turn to us every year to help them with claims and coverage issues or to just answer questions about their insurance,” said Insurance Commissioner Katharine L. Wade. “Our intervention in 2016 helped thousands of policyholders get much-needed answers, resolution and the benefits to which they are entitled.”

Consumer recoveries and industry fines totaled approximately $6.3 million in 2014, $7.3 million in 2013 and approximately $8.7 million for policyholders and state taxpayers in 2012, the high water mark in recent years.

Commissioner Wade said among the many cases the Department worked on during 2016 was a dispute that involved nearly $170,000 in hospital bills for a victim of a car accident. The patient had health care coverage under two plans – through his employer and as a dependent on his parent’s health insurance. When a dispute arose over which plan was the primary payer, the Department stepped in and determined it was the employer’s plan, which then covered the claims.  Another case involved a motorist whose car was totaled in an accident. When motorist’s insurer initially denied her claim, the Department required that the insurer review the case further. The insurer subsequently paid 100 percent of the motorist’s claims.

The Department’s Consumer Affairs Unit (CAU) fielded more than 5,800 complaints and inquiries and helped policyholders recoup nearly $6 million from January 1 to December 31, 2016, according to officials. Also in 2016, the Department’s Market Conduct division levied approximately $1.6 million in fines against carriers and returned that money to the state’s General Fund. The fines resulted from a variety of violations and settlements ranging from untimely claim payments to improper licensing, the department said.

The majority of the funds recovered for policyholders stemmed from complaints over health, accident, homeowners and life and annuities policies. The  breakdown of funds recovered in 2016:

• Accident, Health - $3.63 million
• Auto - $432,000
• General Liability - $33,710
• Homeowners and Commercial Property - $874,250
• Life, Annuities - $820,000
• Miscellaneous - $160,000

The department announced this month that licensing renewal notices for casualty adjusters and motor vehicle property damage appraisers will now be handled online, with an anticipated savings of nearly $40,000 in processing and mailing costs.The renewals also are now processed online through the National Insurance Producer Registry (NIPR). The licenses expire on June 30, 2017 and are good for two years. The casualty adjuster renewals are expect to generate approximately $6 million for the General Fund.

“The Department is now emailing renewal notices to the 73,000 casualty adjusters and motor vehicle property damage appraisers in Connecticut improving efficiency by saving time and shedding thousands of dollars in mailing and postage costs,” Wade said.

The Department calculates its consumer recoveries based on what the policyholder received as a result of the Department’s intervention. The inquiries and complaints also help the Department identify industry trends that may adversely affect consumers and trigger investigation by the Market Conduct division.  Complaint data also help determine topics for consumer education and serve as tools to help the Department monitor the industry.  The Market Conduct enforcement actions are posted on the Department’s Web site at www.ct.gov/cid

Strong Defense: Where CT's Jobs Will Be

“As a convergence of technological advancements, changing military demand and shifting workforce demographics force a major period of transformation across the (defense) industry, Connecticut must adjust its approach to workforce development and retention, or risk losing its competitive edge to other regions.” That’s the conclusion of a 23-page policy brief issued by CT21 which analyzed the pitfalls and potential of the aerospace and defense industries - a “significant pillar of Connecticut’s economy” - and the state’s workforce, on the brink of what the report describes as “an inflection point” for the state.

“With a workforce that is aging into retirement faster than the current pipeline of workers can fill the gap, existing training programs are being strained to both produce higher numbers of qualified graduates and keep their programs current with the skills industry needs,” the report indicated.

To solve this multi-faceted challenge, CT21 calls on state officials to:

• Expand existing training programs and launch new ones
• Increase industry input into training program development
• Expand the workforce applicant pool
• Incentivize the retention of retiring industry expertise

“The full ecosystem around the defense industry in the state must come together to address these overlapping trends – and many of these collaborative initiatives are already producing significant results – but state government still has a unique role to play in bringing the right ideas to the table,” the report explains.

The report notes that the 2016 Aerospace and Defense Workforce Study conducted by Aviation Week and Space Technology found over a quarter of the nation’s A&D workforce is over the age of 55. To highlight the local impact, 35% of Electric Boat’s workforce is within ten years of retirement. Over 7,800 workers have 20 or more years of service, and nearly 950 have 40 or more.

By way of illustration, the report devoted attention to United Technologies’ Pratt and Whitney.

“Based on projections for deliveries of military and commercial engines, Pratt expects to double production by 2020 and again by 2027. As of last September, the company expected to hire nearly 8,000 new workers in Connecticut over the next decade, including 1,000 engineers and 1,000 manufacturers in the next year. Pratt operates a business model that also relies heavily on the supply chain, with 85% of its engine parts being manufactured elsewhere.”

The report calls on state government to take a range of actions, including:

1. Expand existing training programs and launch new ones
2. Increase industry input into training program development
3. Expand the workforce applicant pool
4. Incentivize the retention of retiring industry expertise
5. Create additional professional growth opportunities
6. Take steps to improve the quality of life – both real and perceived
7. Expand existing training programs and launch new ones
8. Increase industry input into training program development
9. Expand the workforce applicant pool
10. Incentivize the retention of retiring industry expertise

Among the challenges the report cites are increasing competition from other industries and variable quality of life across the state. To respond, CT21 urges that state to create additional professional growth opportunities and improve quality of life statewide. CT21 stresses that the state must “leverage the opportunity before us to truly put Connecticut on a path towards a prosperous future.”

The Connecticut Institute for the 21st Century provides continuing opportunities for its members and other organizations to understand and discuss economic activity in the state and obstacles to its success. For more information, visit www.CT21.org

Pay Equity Gap Persists in CT, Nationwide

In Connecticut, median annual pay for a woman who holds a full-time, year-round job is $50,802 while median annual pay for a man who holds a full-time, year-round job is $61,666. This means that women in Connecticut are paid 82 cents for every dollar paid to men, amounting to an annual wage gap of $10,864.  Connecticut’s gap ranks as the 37^th highest among the states. That’s according to the National Partnership for Women & Families, which released state-b-state pay gap data for Equal Pay Day on Tuesday that reveals the size of the gender wage gap and its detrimental effects on women’s spending power in all 50 states.

The gap varies by state, but the largest cents-on-the-dollar differences are in Wyoming (36 cents), Louisiana, West Virginia, Utah and North Dakota. The smallest cents-on-the-dollar differences are in New York (11 cents) and Delaware.

The data for Connecticut also indicate that the wage gap is even larger for women of color. Among Connecticut women who hold full-time, year-round jobs, Black women are paid 58 cents, Latinas are paid 47 cents and Asian women are paid 80 cents for every dollar paid to white, non-Hispanic men.

On average, Connecticut women who are employed full time lose a combined total of nearly $15 billion every year due to the wage gap, the National Partnership reported. “These lost wages mean women and their families have less money to support themselves, save and invest for the future, and spend on goods and services. Families, businesses and the economy suffer as a result,” the organization pointed out.

According to data highlighted by the National Partnership, in Connecticut more than 170,000 family households are headed by women.  About 24 percent of those families, or 40,431 family households, have incomes that fall below the poverty level. Eliminating the wage gap, they suggest, would provide much-needed income to women whose wages sustain their households.

If the annual wage gap were eliminated, on average, a working woman in Connecticut would have enough money for:

• More than 11 additional months of child care;
• Nearly one additional year of tuition and fees for a four-year public university, or the full cost of tuition and fees at a two-year community college;
• Approximately 82 more weeks of food for her family (1.6 years’ worth);
• More than five additional months of mortgage and utilities payments; or
• Nearly 10 more months of rent.

“Equal Pay Day is a painful reminder that women in this country have had to work more than three months into this year just to catch up with what men were paid last year,” said Debra L. Ness, president of the National Partnership. “This analysis shows just how damaging that lost income can be for women and their families, as well as the economy and the businesses that depend on women’s purchasing power. Entire communities, states and our country suffer because lawmakers have not done nearly enough to end wage discrimination or advance the fair and family friendly workplace policies that would help erase the wage gap.”

In the nationwide data, the civilian industries that employ the most full-time employees – health care and social assistance, manufacturing, retail trade and educational services – pay women less than men. In the health care and social assistance industry, women are paid just 72 cents for every dollar paid to men. In manufacturing, just 76 cents. In retail trade, 79 cents. And in educational services, 88 cents. Across all industries, women are paid lower salaries than men.

The wage gap data reflects statistical analysis showing that 62 percent of the wage gap can be attributed to occupational and industry differences; differences in experience and education; and factors such as race, region and unionization. That leaves 38 percent of the gap unaccounted for, according to the analysis, leading researchers to conclude that factors such as discrimination and unconscious bias continue to affect women’s wages

The National Partnership for Women & Families is a non-profit, non-partisan advocacy group dedicated to promoting fairness in the workplace, access to quality health care and policies that help women and men meet the dual demands of work and family. Equal Pay Day marks how far into the new year women must work in order to catch up with what men were paid in the year before.

CT Is a Top Ten State - In A Good Way

Awash in a sea of negativity amidst yet another state budget deficit and intensifying concern about the prospects of additional fees, taxes, and service reductions, state residents now have an opportunity to accentuate the positive, courtesy of the 2017 Connecticut Economic Review. Noting that Connecticut is “at the epicenter of the Northeast” and “at the forefront of innovation,” the publication highlights an array of statistics that produce a “dynamic blend of advantages that make Connecticut a great place to start or grow a business.”

Among the key stats:

• Connecticut ranks #3 in the country for the percentage of employees with advanced degrees - more than 400,000 employees have advanced degrees. And Hartford was identified as one of the 19 global Knowledge Capitals by the Brookings Institution.

• Connecticut ranks #4 among the top states for private R&D investment per capita, at $2,227. Massachusetts, Delaware and California are the only states that rank higher. That’s also more than twice the national average.

• Connecticut ranks #5 among the states for productivity per person, and #6 on the State Technology and Science Index, which 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 state’s growing bioscience industry is responsible for more than 35,000 bioscience employees in over 2,000 companies. Connecticut also ranks #6 for academic R&D growth and #7 for state R&D investment.  Overall, the state ranks 5^th in patents per capita and has 39 percent more patents than the U.S. average. Two Connecticut companies, Alexion and priceline.com, have been named by Forbes as among the nation’s most innovative companies.

In his introduction to the economic report, Governor Dannel Malloy points out that “Connecticut has grown to become a global hub in bioscience, digital media and green technology. We enjoy a combination of a real entrepreneurial spirit, remarkable experience and one of the most educated and productive workforces in the world.”

The New Economy Index, which measures how states are positioned to drive economic evolution in today’s changing society, ranks Connecticut #8 in the U.S., indicating that the state “offers the kind of environment that is particularly conducive to growth for companies that are capitalizing on the latest global economic trends.  (The top seven are Massachusetts, Delaware, California, Washington, Maryland, Colorado and Virginia.)  The ranking is based on measures in five key areas:  Knowledge jobs, Globalization, Economic dynamism, digital economy, and innovation capacity.

Produced by the Connecticut Economic Resource Center, the publication was sponsored by Eversource.

North Stonington Entrepreneur Is CT's Small Business Person of the Year

Carla Bartolucci, President & CEO of Euro-USA Trading/Jovial Foods of North Stonington, has been named the U.S. Small Business Administration’s 2017 Connecticut Small Business Person of the Year, SBA’s top annual award. According to the company’s website, Jovial Foods, Inc. was founded by a husband and wife team who have always been passionate about food, farming and traditions. Carla and Rodolfo met in the 1980’s in Bologna, where she was spending a year abroad studying Italian and he was studying agriculture. Both were born into family of talented home cooks, he in Italy and she in New England, and food was at the center of their childhoods.

She began her work in the organic food industry by creating the bionaturae brand of organic foods from Italy in 1996, after losing both of her parents to cancer by her mid-twenties, her website biography says.

“As soon as I set foot into an organic food store, I knew I wanted to get involved in organic farming and food manufacturing,” Carla Bartolucci explains. “After losing my parents, I couldn’t help but feel compassion for anyone suffering from disease or hardship, and creating good food, true and pure, was my way of caring for others.”

“We are extremely excited to honor a truly amazing line up of small business owners and champions this year, said Anne Hunt, SBA’s Connecticut District Director.  It is important to recognize these outstanding small businesses in the state as they are the job creators, innovators and the fabric of our local communities!”  “We hope the small business community will join the SBA and our host, SCORE for an inspiring awards luncheon on May 2nd in New Haven, CT.”

2017 Connecticut SBA Honorees:

• Woman-Owned Small Business - Elizabeth Florian, Grassroots Ice Cream
• Family-Owned Small Business - Beverlee Dacey, Amodex Products Inc.
• CT Microenterprise Award - Katalina Riegelmann, Katalina’s Bakery
• Minority-Owned Small Business - Miguel Tomassio, Taco Loco
• Young Entrepreneur Small Business of the Year - Ashley Stone, Beauty Entourage
• Financial Services Champion - Kim Rodney, Connecticut Community Bank
• Entrepreneurial Success - Flavia Naslausky & Camilla Gazal, Zaniac Greenwich
• Exporter of the Year - Monica Goldstein, Recovery Planner
• Home-Based Business of the Year - Mary Goehring, Transcription Plus

The slate of leading small businesses owners in Connecticut will be honored at the Annual Small Business Week Awards Luncheon at Gateway Community College in New Haven on May 2.

“Your hard work, innovative ideas, and dedication to your employees and community have helped you build an outstanding business that has strengthened your state’s economy. The SBA is pleased to celebrate your achievements and recognize your personal role in driving our nation’s economic growth,” said Linda McMahon, administrator of the Small Business Association and a longtime Connecticut resident. The 2017 National Small Business Person of the Year will be announced at the ceremonies, along with three runner-ups.

Every year since 1963, the President of the United States has issued a proclamation announcing National Small Business Week, which recognizes the critical contributions of America’s entrepreneurs and small business owners.  This year, the dates are April 30 - May 7, 2017, with national events planned in Washington, D.C., New York City, Indianapolis, Dallas, and Fresno, California.

For more information and a complete list of Small Business Week events during the week of April 30 - May 7, 2017, visit www.sba.gov/ct.

https://youtu.be/50DcZn-9ce0

World’s Most Ethical Business: Three Headquartered in CT

Three Connecticut-based companies are among the world’s most ethical businesses. Norwalk-based Xerox Corp, Danbury’s Praxair Inc., and The Hartford, located in the Capital City are on the 2017 list developed by Ethisphere Institute, a Scottsdale, Arizona organization that measures corporate ethical standards.  The annual list has been published since 2007.

The Ethisphere Institute announced 124 companies spanning five continents, 19 countries and 52 industry sectors as the 2017 World’s Most Ethical Companies® honorees.

Ethisphere honors companies that “recognize their role in society to influence and drive positive change in the business community and societies around the world,” a news release announced the list stated. “These companies also consider the impact of their actions on their employees, investors, customers and other key stakeholders and leverage values and a culture of integrity as the underpinnings to the decisions they make each day.”

Xerox is one of only 13 honorees that have been named to the list for all 11 years, underscoring the company’s commitment to leading ethical business standards and practices.  The Hartford earned a spot on the list for the ninth time.

“At Xerox, we take great pride in our name being synonymous with innovation, quality and integrity,” said Jeff Jacobson, chief executive officer of Xerox. “We are committed to doing business the right way, with the highest degree of ethics and in compliance with laws worldwide.”

Among the 2017 list of companies are 13 eleven-time honorees and 8 first-time honorees. 2017 also marks the first-time appearance of a Mexico-based company.

The methodology is weighted into five key categories: ethics and compliance program (35%), corporate citizenship and responsibility (20%), culture of ethics (20%), governance (15%) and leadership, innovation and reputation (10%).  Non-profit colleges and universities, governments, governmental agencies, and NGOs are not considered for inclusion on the list.

“At Praxair, ensuring a culture of ethics and compliance is paramount to doing business the right way and is top of mind for all of our global employees,” said Steve Angel, Praxair chairman and chief executive officer. “It is a great honor to be recognized as a World’s Most Ethical Company and I thank all of our employees for their dedication to our core values and making this accomplishment possible.”

“Over the last eleven years we have seen an impressive shift in societal expectations, aggressive emergence of new laws and regulation and geopolitical swings that can further disrupt the balance. We have also seen how companies honored as the World’s Most Ethical respond to these challenges. They invest in their local communities around the world, embrace strategies of diversity and inclusion and focus on long term-ism as a sustainable business advantage. In short, these companies are transformative, not just out of need, but because they recognize that integrity is the key to their advancement,” explained Ethisphere CEO, Timothy Erblich.

Xeorx is one of 13 companies have made the list every year, including: Aflac, Deere & Company, Ecolab, Fluor, GE, International Paper, Kao Corporation, Milliken and Company, PepsiCo, Starbucks, Texas Instruments, and UPS.

The World’s Most Ethical Company assessment is based upon the Ethisphere Institute’s Ethics Quotient® (EQ) framework which offers a quantitative way to assess a company’s performance in an objective, consistent and standardized way, according to the Institute. The information collected provides a comprehensive sampling of definitive criteria of core competencies, rather than all aspects of corporate governance, risk, sustainability, compliance and ethics.

Municipal Finance to be Focus of Conference, State Leaders

State aid to municipalities will be the focus of attention Wednesday at the State Treasury’s Public Finance Outlook Conference, when Office of Policy and Management Secretary Ben Barnes is joined on a panel by House Minority Leader Themis Klarides and House Speaker Joe Aresimowicz before an audience of finance officials and municipal leaders from communities across the state. Proposed reductions and revisions to municipal aid, a by-product of the state’s anticipated deficit, have been the source of much conversation and contention in recent weeks, with leaders of the state’s cities and towns raising concerns about plans that would have them pay more for resident state troopers, teacher retirements, K-12 education and other programs.

The Connecticut Conference of Municipalities (CCM) recently pointed out that while the state economy grew by 17 percent between 2006 and 2015, state expenditures grew by 48.9 percent during the same period. The organization also reported that excluding K-12 education, local general government expenditures in Connecticut rank 50^th out of all states and the District of Columbia as a percentage of the U.S. Treasury’s measure of total taxable resources.

In a report recommending changes in the state’s fiscal relationship with cities and towns, CCM observed that “for over a decade prior to the Great Recession, governments in the state benefited from a strong economy and stable revenue. But this stability depended on reliable, adequate state aid and the local property tax. The lack of diversity in revenue sources and uncertainty at the state level are now eroding the capacity of local governments to meet their obligations to the public.”

State Rep. J.P. Sredzinski (R-112) wrote last month that “Monroe ranks among the top ten ‘biggest losers’ in terms of how much municipal aid was cut compared to their town budgets. For Monroe, the costs that the governor’s budget proposal will shift onto taxpayers clock in at a whopping $6.5 million for this year alone – nearly 10% of our revenue. This unprecedented transfer of costs is neither predictable, nor sustainable.”

The day-long conference on March 29 will also include a panel discussion with the U.S. Head of Government Regulations and Regulatory Policy, Bret Hester, and a review of methods to protect municipal governments from cyber hacking and theft, featuring David Geick, Director, IT Security Services, Bureau of Enterprise Systems and Technology, State Department of Administrative Services; Christopher Hauser, 2nd Vice President, Cyber Risk, The Travelers Companies, Inc.; Jack McCoy, Chief Information Officer, Town of Manchester.

An economic update, highlighting current and anticipated trends, will be provided by the state Department of Labor’s Patrick Flaherty, Assistant Director of Research and Information, and the Treasury’s Short-Term Investment fund and Municipal Employees Retirement Fund will provide updates.

The Treasurer’s Short-Term Investment Fund (STIF) is a Standard & Poor’s AAAm rated investment pool of “high-quality, short term money market instruments,” the Treasury website explains. STIF serves as an investment vehicle for the operating cash of the State Treasury, state agencies and authorities, municipalities, and other political subdivisions of the State. As of June 30, 2015, the fund administered 939 active accounts for 67 state agencies and authorities and 222 municipalities and local entities in Connecticut.

The conference will be held at Rentschler Field in East Hartford.

Connecticut Main Street Center Award Winners Reflect Excellence, Community Involvement

A downtown management organization engaging the community in envisioning two underutilized parks as places that downtown residents, visitors, workers and families can mingle with artists and creatives, and a regional planning organization that created a program focused on supporting local businesses, creating jobs and filling vacant spaces in eight village centers are just two of this year's Awards of Excellence winners being recognized by the Connecticut Main Street Center (CMSC). In total, eight recipients have been selected to receive the prestigious awards, including organizations and initiatives from Bridgeport, Unionville Village in Farmington, Hartford, Meriden, New Britain, New Haven, and the Northwest Corner.  The awards will be presented at CMSC's Vibrant Main Streets event in the atrium of the Legislative Office Building on May 18 in Hartford.

The other winning entries include:

• a 14-acre flood control project that created a public park and mixed-use economic development in downtown Meriden;
• a comprehensive and complete overhaul of the City of Hartford's zoning language and process;
• an interpretive wayfinding/signage program that connects Walnut Hill Park, Little Poland and Downtown New Britain;
• the restoration of a historic ball bearing mill on the banks of the Farmington River into a mixed-use campus in the heart of Unionville Village;
• a Twilight Bike Race & Street Festival that celebrates biking, food, culture and entertainment in Downtown New Haven; and
• the redevelopment of a 1903 factory building into 72 units of market rate housing within easy walking distance of jobs and transit in downtown Hartford.

"This year's winners represent both catalytic and keystone initiatives that ignite and support significant positive change in Main Street communities," said CMSC Associate Director Kimberley Parsons-Whitaker. "From engaging the community in playing a proactive role in local economic development and envisioning new life for their historic public places, to the complex redevelopment of historic mills and factories for modern residential and commercial uses, our 2017 award recipients are leaders in re-imagining Main Streets."

In addition to its Awards of Excellence, CMSC also named the recipient of its 2017 Founder's Award, presented by Eversource Energy. CMSC founding President & CEO John Simone, who will retire in August, was selected to receive the Founder's Award for his more than 17 years of leading the organization's evolution as the voice of downtown, and for championing the tools, resources and political will needed for Connecticut's Main Streets to thrive.

Connecticut Main Street Center's mission is to be "the catalyst that ignites Connecticut’s Main Streets as the cornerstone of thriving communities."  CMSC works at both the local and State level to create and implement successful downtowns that meet the needs of residents and visitors. The organization describes a successful downtown as "one that incorporates housing, retail, social and business opportunities with transportation options for all users – walkers, cyclists, motorists and more."   Created in 2003 to recognize outstanding projects, individuals and community efforts to bring traditional downtowns and neighborhood commercial districts back to life, socially and economically, the Awards of Excellence are presented annually.

2017 Connecticut Main Street Center Awards of Excellence

CT Main Street Catalyst Awards

•  Meriden Green - Recipient: City of Meriden. Partners: State of CT (DECD, DEEP, DOT); U.S. EPA; FEMA; Army Corps of Engineers; Meriden Flood Control Implementation Agency; Milone and MacBroom; AECOM; and La Rosa Construction.
• Downtown Bridgeport Placemaking Program & Downtown Farmers Market at McLevy Green - Recipient: Bridgeport Downtown Special Services District. Partners: Project for Public Spaces; New Venture Advisors LLC.
• ZoneHartford: Form-Based Code Zoning Regulations - Recipient: City of Hartford. Partners: Fitzgerald & Halliday, Inc.

CT Main Street Keystone Awards

• Collaborative Shared Economic Development Services Project - Recipient: NW Hills Council of Governments. Partners: Goman+York; One Eleven Group; State of CT (OPM); Towns of Canaan/ Falls Village, Cornwall, Goshen, Kent, North Canaan, Norfolk, Salisbury/Lakeville and Sharon
• New Britain Historic Trails & Signage Program - Recipients: City of New Britain; TO Design LLC. Partners: National Parks Service
• Upson Market Place, Unionville - Recipient: Brian Lyman of Parker Benjamin Real Estate Services LLC. Partners: Town of Farmington.
• New Haven Grand Prix: a Twilight Bicycle Race & Street Festival - Recipients: CT Cycling Advancement Program; Town Green District (New Haven). Partners: City of New Haven; Taste of New Haven.
• Capewell Lofts, Hartford - Recipient: CIL. Partners: Capital Regional Development Authority; State of CT (DECD); InsurBanc; Guilford Savings Bank; Crosskey Architects; TO Design

CT Has Nation’s Highest Average Rate of Student Debt, Topping $35,000 Per Borrower

In 2017, more than 44 million Americans are working to repay student debt.  Nowhere in the nation is the challenge and burden of student debt more acute than in Connecticut, which has the highest student-debt-per-borrower average in the United States. At $35,947, Connecticut’s average student loan debt outpaced the nation, where, on average, borrowers are working to repay more than $28,000 after graduation.  That’s according to student loan and refinancing marketplace website LendEDU.com’s recently released study and analysis.  LendEDU has pointed out that 59 percent of college graduates in the state have student loan debt. 

In addition to having the highest student-debt-per-borrower average, according to LendEDU’s analysis, Connecticut has the:

• 12th highest percentage of graduates with debt (68%)
• 29th highest default rate (5.66%)
• 31st highest college enrollment (133,999)

Student loan debt is the second highest form of debt in the U.S., second only to mortgages, according to LendEDU.  In addition, nationwide:

• Over 40% of borrowers have delayed starting a family because of their debt
• Over 60% of borrowers have delayed buying a car because of their debt
• Over 70% of borrowers have delayed saving for retirement because of their debt
• Around 75% of borrowers have delayed buying a home because of their debt

In terms of average student debt, among the states with the highest levels, after Connecticut, are New Hampshire (#49), Pennsylvania (#48), Rhode Island (#47), Delaware (#46),  Massachusetts (#45), New Jersey (#44), Minnesota (#43), Iowa (#42), South Carolina (#41), and New York (#40).

At $42,912, the average student debt per borrower in Connecticut’s 4th Congressional District, is not only higher than the state average, but is the highest among Connecticut’s five congressional districts.

In the 1^st Congressional District (Rep. John B. Larson) it’s $32,003; in the 2nd (Rep. Joe Courtney), $28,900 the 3^rd (Rep. Rosa L. DeLauro), $38,255; and the 5^th District (Rep. Elizabeth Esty), $20,246.

The portion of graduates with student debt in 4^th District is 70% — tying with the 3rd District for second highest in the state. At 84 percent, the 5th Congressional District has the highest portion of graduates with debt in the state, while the 1st District has the lowest, at 52 percent.

While the student loan default rate in U.S. Rep. Jim Himes’s district (4.99%) is lower than the state average, it is the second highest in the state. The 5th District has the highest student loan default rate, at 11.84 percent, while the 3rd District has the lowest, at 3.73 percent.

The largest college going population is in the New Haven-centered 3^rd Congressional district, with enrollment of 46,440 students, according to the website.  The 4th Congressional District has a total college enrollment of 21,537, just behind the 3rd District (46,440) and 5th District (22,451). The 2nd Congressional District has the smallest enrollment total in the state, at 11,605.

Among the state’s public colleges, the average student debt ranged from UConn’s $25,000 to Central Connecticut State University’s $27,920.  Among all the state’s colleges and universities, among those with the highest average debt levels are Quinnipiac University, Sacred Heart University, and University of New Haven, all in the top 10 nationally with average student debt exceeding $40,000.

Higher Ed Panel on Innovation and Entrepreneurship Seeks to Map Statewide Plan

The charge of the state's Higher Education Innovation and Entrepreneurship Initiative is to strengthen innovation and entrepreneurship within Connecticut’s public and private higher education institutions while fostering collaboration and providing economic value to Connecticut. The Higher Education Innovation & Entrepreneurship Working Group, in accordance with Public Act 16-3, met in December, and again in mid-February, and aims to complete its work in May to develop a plan to support innovation and entrepreneurship.  Joanne Berger-Sweeney, Trinity College president and professor of neuroscience, and Mark E. Ojakian, president of the Connecticut State Colleges and Universities system (CSCU), were selected in December to co-chair the working group that includes public and independent institutions of higher education from throughout the state.

The group, which is staffed by CTNext, will send its strategic roadmap to CTNext’s board of directors for approval. Once the plan is approved, the board will elect an advisory committee made up of public and private school officials and student representatives. This new committee will advise the CTNext board of directors as it deploys $2 million each year for the next five years to projects and initiatives that fit the priorities identified in the strategic road map, according to the CTNext website.

The working group is tasked with developing a master plan for fostering innovation and entrepreneurship at in-state public and independent colleges and universities. The master plan will:

1. address opportunities and risks to innovation and entrepreneurship resulting from existing and emergent conditions affecting entrepreneurial programs and initiatives at institutions of higher education;
2. assess the scope and scale of existing entrepreneurial programs and initiatives at such institutions in the context of best practices at state and national institutions of higher education that are leaders in innovation and entrepreneurship;
3. recommend initiatives that facilitate collaboration and cooperation among institutions of higher education on projects that address and strengthen innovation and entrepreneurship at such institutions;
4. provide for the establishment of a state-wide intercollegiate business plan competition; and
5. identify funding priorities for higher education entrepreneurship grants-in-aid pursuant for projects that expand and enhance entrepreneurial programs and initiatives or projects involving partnerships among institutions of higher education.

“As co-chair, I look forward to working closely with colleagues from across Connecticut,” said Berger-Sweeney. “Our strategic planning to support entrepreneurship and innovation is critical to the economic vitality and future of the state.”

“I’m excited to work with all our presidents, both public and private, to find ways to nurture innovation and entrepreneurship at our institutions,” said CSCU President Ojakian. “Our mission is help our students turn their creative ideas into businesses that will grow and thrive in Connecticut.”

During the working group’s December meeting, which ran just over an hour, participants from 27 colleges and universities, including the presidents of most of the institutions, discussed the challenges and opportunities to advance innovation and entrepreneurship on their campuses and in the state.

According to the meeting minutes, there was discussion on how best to allocate $10 million ($2 million/year for 5 years), centered on determining a strategy to leverage the funds.  Participants suggested a focus on partnerships, and urged efforts to “think from the beginning about how to connect people (broadly) to the jobs that will be created,” along with a “commitment to creating a whole that is greater than the sum of the parts.”  Education leaders also noted that Connecticut “is relatively more highly regulated than other states in public education,” which could make the effort “more difficult.”

The college and university leaders also listed an array of assets that exist in Connecticut which could spur their efforts.  Among those cited were:

• Strong medical/bio-science institutions
• Long standing leader in advanced manufacturing
• Lower cost of real estate relative to Cambridge and Silicon Valley
• Leadership in aerospace
• International linkages/partnerships
• Prime location between NYC and Boston

Also mentioned was the fact that Connecticut has “a lot of empty buildings” in “legacy cities ripe for redevelopment.”  Connecticut’s status as a financial capital, and the potential collective political force of higher education leadership were also noted as potential pluses.

Late last year, CTNext issued an RFP for “qualified independent higher education institutions, policy institutes, or research organizations to conduct certain analyses of innovation and entrepreneurship in the state.”  The assignment proposed included: “a baseline assessment of the state’s innovation and entrepreneurship based on certain program measures,” including:

1. the increase or decrease in the state’s (a) start-up businesses, including growth stage start-ups; (b) software developers; and (c) serial entrepreneurs (i.e. those having brought at least one start-up business to venture capital funding by an institutional investor);
2.  job growth within growth-stage businesses;
3. the amount of private venture capital invested in start-up and growth-stage businesses;
4. employee turnover at start-up and growth-stage businesses;
5. the amount of entrepreneurship and innovation research funded by higher education institutions in the state;
6.  the rate at which businesses enter and leave the state; and
7. the degree to which the state’s (a) hiring rate exceeds its job creation rate and (b) employment separation rate exceeds its job loss rate.

CTNext is Connecticut’s innovation ecosystem designed to build a more robust community of entrepreneurs and to accelerate early-stage growth by providing access to talent, space, industry expertise, services, skill development, and capital to foster innovation and create jobs in Connecticut.  CTNext is a wholly-owned subsidiary of Connecticut Innovations.

Photos:  Trinity College President  Joanne Berger-Sweeney, CSCU President Mark Ojakian; February meeting of working group.