Hurricanes v. Whalers: Words and Numbers Tell Different Stories

In the midst of the war of words between unrelenting fans of the former Hartford Whalers (joined by Governor Malloy) and the Raleigh News & Observer, which has aimed a cease and desist order at Hartford, it may be worthwhile to delve into the data. It prove to be a distinction without a difference, however. Gov. Malloy’s February 8 letter to Thomas Dundon, a Dallas businessman and new owner of the Carolina Hurricanes, urged that the team return to the Nutmeg State for a regular season game at Rentschler Field or the XL Center so the team could be “embraced by a grateful fan base.”  Doing so, Malloy pointed out, “would make clear that Hartford is a far more viable long-term home for the team than Raleigh.”

When asked days ago by The Sporting News about the 'Canes future in Raleigh, Dundon said: “As long as I’m involved, this is where we’re going to be. One of the best things about this is the people. They’re just nice people here. They care. There’s no reason to be anywhere else.”

In an editorial, the Raleigh newspaper added that if a game were to be played in Hartford, it would be preseason, not regular season, and only because it would be “a chance to hoover some money out of the pockets of long-suffering Whalers fans desperate to see NHL hockey again…  But that’s not going to happen.”

Last season, the Hurricanes had the league’s lowest attendance, averaging 11,776 per home game.  It was their second consecutive season at the bottom of the league in attendance.  In the 2015-16 season, average attendance was 12,203. Midway through this season, after 27 home games, the Hurricanes are averaging 13,039, 29th out of 31 teams in the league.

In the Whalers’ final season in Hartford, 1996-97, attendance at the Hartford Civic Center had grown to 87 percent of capacity, with an average attendance of 13,680 per game.  Published reports suggest that the average attendance was, in reality, higher than 14,000 per game by 1996-97, but Whalers ownership did not count the skyboxes and coliseum club seating because the revenue streams went to the state, rather than the team.

Attendance increased for four consecutive years before management moved the team from Hartford. (To 10,407 in 1993-94, 11,835 in 1994-95, 11,983 in 1995-96 and 13,680 in 1996-97.)  During the team’s tenure in Hartford, average attendance exceeded 14,000 twice – in 1987-88 and 1986-87, when the team ranked 13th in the league in attendance in both seasons.

During the 15 years prior to the past two seasons at the bottom, Carolina has been among the league’s bottom-third in  average attendance eight times, and the bottom-half every season but one.

The Sporting News has reported that Dundon purchased a 61 percent stake in the franchise last month, with Peter Karmanos, who relocated the Whalers to North Carolina in 1997, retaining a 39 percent minority stake. Dundon reportedly has an option to purchase the remainder in three years. He is a New York native, and lived in New Jersey and Houston before Dallas.

The arena's lease in Raleigh expires in 2024.  The team's current playoff drought is the longest of any team in the NHL - nearly a decade.

In the interview, Dundon pointed out “We have a really passionate, loyal season ticket base. The number is just smaller than you’d like it to be, but you have one. Every year that’ll grow. So the only challenge is just the amount of people that you have to touch. It’s inevitable that we’re going to touch them all and we’re going to get them.”

SeeClickFix is Only CT Business to Reach GovTech 100

New Haven-based SeeClickFix is the only Connecticut business to make the 2018 GovTech 100, an annual compendium of 100 companies focused on, making a difference in, and selling to state and local government agencies across the United States. SeeClickFix was launched ten years ago this month, according to co-founder Ben Berkowitz: “It began as a ‘nights and weekends’ project between friends with a goal of fixing some small problems locally and a big problem globally. SeeClickFix has become something much bigger than I could have ever imagined.”

Described as “a service to make communities stronger,” the key benchmarks the company points to include: a full time job for 33 employees, a platform that has helped facilitate the resolution of 4 million issues, a space for aspirations in tens of thousands of communities, and the official digital channel for service request resolution for hundreds of governments and tens of millions of their residents.

The annual list, compiled and published by Government Technology,  highlights leaders in the government technology sector – a marketplace that the publication says has ”brought bigger deals, more investment, new companies and many fresh new innovations that moved the needle in the public sector.”

Overall, 32 of the 100 companies are based in California, seven are based in New York, and six are headquartered in Massachusetts.  Rhode Island placed one company, Providence-based software company Utilidata.  There were no other companies based in New England.

“State and local governments have become more willing to try implementing new systems using agile methodologies that fit better with the modern tech world,” the publication pointed out. “They are striking up pilot projects and demonstration agreements that let them try out new ideas before taking the kind of big-dollar risks that government is not amenable to taking.”

“It is no secret that SeeClickFix was built from a place of distrust in the existing bureaucratic process that existed in 2007 for handling citizen concerns,” Berkowitz noted. “The three hundred governments and the thousands of officials that leverage SeeClickFix daily to engage in transparent and responsive communication has more than reversed our distrust.”

SeeClickFix is proving effective in small towns as well as big cities.  The town of Wilton in Southern Connecticut went live with SeeClickFix this past fall and used it at a Winter Carnival and Ice Festival in town this week.

The SeeClickFix blog highlighted the town, explaining that “They are a model town — they have done everything right! They have sustainable marketing, well-crafted goals and benchmarks, a responsive set of municipal departments, a champion in town leadership, and the flexibility necessary to add in request categories when citizens underscore a need.”

SeeClickFix co-founders include Miles Lasater, Kam Lasater, Jeff Blasius.  The company holds an annual User Summit every fall in New Haven, drawing local government customers from throughout the country to share best practices.

https://youtu.be/NYKo5koU_jI

Insurance Department Recovers Almost $7 Million in 2017, Nearly Even with Previous Year; Industry Fines Increase

The Connecticut Insurance Department recovered nearly $7 million for policyholders and taxpayers in 2017, helping individuals, families and employers with their claims and complaints.  That’s slightly less than the $7.5 million recovered in 2016, but higher than the $6 million that was recovered for policy holders in 2015.  About $2 million in fines were issued against carriers, an increase from $1.6 million and $1.7 million during each of the previous two years. “Consumers have every right to expect that the promises made to them by their insurance companies will be kept and the Department is here to help them every step of the way. Protecting consumers is our mission and the Department makes certain that carriers adhere to all insurance laws and regulations are followed,” Insurance Commissioner Katharine L. Wade said. “We assist thousands of consumers every year who have brought their questions and concerns to us.”

The Department’s Consumer Affairs Unit (CAU) fielded 5,800 complaints and inquiries in 2017 and helped policyholders recoup nearly $4.8 million from January 1 to December 31, 2017. Also in 2017, the Department’s Market Conduct Division levied approximately $2 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 majority of the funds recovered for policyholders stemmed from complaints over health, accident, homeowners and life and annuities policies. The following is the breakdown of funds recovered in 2017:

• Accident, Health - $2.9 million
• Auto - $584,200
• General Liability - $101,000
• Homeowners and Commercial Property - $344,600
• Life, Annuities - $739,000
• Miscellaneous - $89,000

A year ago, in 2016, the Department’s recoveries were somewhat higher than in 2017 - recovering $7.5 million for policyholders and taxpayers.  The Department’s Consumer Affairs Unit (CAU) fielded more than 5,800 complaints and inquiries during the year.

In 2015, there were more consumer inquires and complaints, which resulted, however, in a lower total of money recovered with the department’s assistance.  The department recovered approximately $6 million for policyholders and taxpayers in 2015, when the majority of the funds recovered for policyholders stemmed from complaints over health, accident, homeowners and life and annuities policies. That year, the Department’s Consumer Affairs Unit (CAU) fielded more than 6,100 complaints and inquiries.

Officials explained that 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, they added.

The Insurance Department also highlighted three matters that were dealt with during 2017 which resulted in recoveries for policy owners.

• When an individual who had health coverage through his employer complained about being overcharged for a visit to the emergency room, intervention by the Department’s Consumer Affairs Unit resulted in corrective action not only for that individual but for nearly 200 people whose employers used that same health insurance company for their health plans. The Department required the carrier to review similar claims for that plan, resulting in $47,000 in total recoveries for those affected individuals. As a result, the Department’s Market Conduct Division is investigating to determine if this was an isolated incident or is a systemic issue with the carrier.
• The Department intervened when a family was denied a $100,000 death benefit because the life insurance company said the deceased had pre-existing health issues that disqualified the payment. The Department determined the company issued the policy without first looking into the individual’s health history despite having the opportunity to do so and therefore was obligated to make good on the claim. The family received the full death benefit plus interest.
• The Department helped expedite a damage claim for a widow who was trying to get her husband’s gravestone replaced when it was one of several damaged by a car that crashed in a cemetery. The auto insurance company for the driver had the claim for three months but once the Department got involved, the carrier settled it within 10 days and paid nearly $30,000 to repair the cemetery damage.

Complaint data also help determine topics for consumer education and serve as tools to help the Department monitor the industry, officials noted. The Market Conduct enforcement actions are posted on the Department’s website at www.ct.gov/cid.

New Haven Chamber Names New Leader; MetroHartford Alliance Next?

One down, one to go.  While the MetroHartford Alliance’s search for a new leader continues, the Greater New Haven Chamber of Commerce has announced their choice to succeed Anthony Rescigno, who led the organization for nearly two decades. The Chamber’s Board of Directors named Garrett F. Sheehan as President of the Greater New Haven Chamber of Commerce and Quinnipiac Chamber of Commerce.  Sheehan has experience working with local companies, building partnerships throughout communities and the state, and understanding regional growth and competitiveness, serving most recently as a Community Relations & Economic Development Specialist at Eversource. He will begin work in his new position on March 1, 2018.

“I am honored and humbled to have been selected for this role,” said Sheehan. “The Greater New Haven Chamber of Commerce is a pillar of our community and has an excellent track record of providing services for our membership and leadership on key issues affecting the New Haven region. I am excited to begin working with the staff, board, members, and volunteers of this amazing organization to help write the next chapter for the Chamber.”

At Eversource, he provided leadership on strategic initiatives including enhancements to the Company’s economic development program, and was actively engaged in Eversource’s commitment to volunteerism and community giving.  He also served as the primary point of contact between the utility and chief elected officials in 23 municipalities in Connecticut.

Prior to his position with Eversource, Sheehan served as an economic developer at The United Illuminating Company, where he was responsible for regional business growth and expansion and strategic partnerships with state organizations, chief elected officials, and business leaders.

Sheehan grew up in Middlefield, and after attending Syracuse University, moved to Mississippi to take a job as a television news reporter. After five years in journalism, Garrett transitioned to a career in economic development. In addition to his work in economic and community development, Sheehan served as a Law Clerk for the Honorable Bethany J. Alvord of the Connecticut Appellate Court, conducting legal research and drafting legal opinions.

During his career, he also served in the Connecticut Army National Guard as an infantry officer in the New Haven-based First Battalion, 102nd Infantry Regiment.  In 2010, Sheehan completed a tour of duty in Afghanistan, serving as a platoon leader and executive officer.

The MetroHartford Alliance has hired New York economic-development consultancy Camoin Associates to assist with the search for its next CEO. Travelers Cos. Executive Vice President and Chief Administrative Officer Andy Bessette, who chairs the Alliance's board, told the Hartford Business Journal recently that the nonprofit seeks to have a successor in place by early 2018.  Oz Greibel, who led the Alliance for the past 16 years (one less than Rescigno led New Haven’s Chamber) resigned late last year and subsequently launched an independent candidacy for Governor.

Established in 1794, the Greater New Haven Chamber of Commerce is the nation’s third oldest business organization.

Five in Connecticut Reach Forbes List of America’s Best Employers for Diversity

Studies published by Massachusetts Institute of Technology, Harvard Business Review, and numerous others during the past decade have consistently concluded that diverse teams – and diverse companies - have stronger financial performance.   With that backdrop, Forbes worked with research firm Statista to compile a list of the best employers for diversity in America. Two Connecticut-based companies, ESPN and Stanley Black and Decker made the top 100 list; ESPN at number 36, Stanley Black & Decker at number 67.  They were the only Connecticut companies to do so. The LEGO Group, with U.S. headquarters in Enfield, was ranked number 169.  Starwood Hotels and Resorts, headquartered in Stamford, was number 197 in the rankings.  Yale New Haven Health was just outside the top 200, at number 208.  Yale University also made the Forbes ranking, at number 242.

Statista surveyed 30,000 U.S. employees in August 2017 to inform the list, asking questions about diversity, gender, ethnicity, sexual orientation, age and disability, according to Forbes. Responses among underrepresented ethnic minorities, women and people aged 50 and older received greater weight in the ranking.

Bristol-based ESPN, the Worldwide Leader in Sports, launched in 1979 as 30,000 viewers tuned in to watch the premier episode of SportsCenter. ESPN aired its 50,000th episode of SportsCenter in 2012 and the channel is has been the main attraction for sports coverage despite challenges through the years.  A 2013 study by the Institute for Diversity and Ethics in Sports concluded that when it comes to diversity, the Worldwide Leader is leading the way.

Reporting on the study, the publication Think Progress indicated that “ESPN has a strong diversity hiring policy outlined on its web site and it has won numerous awards for hiring a diverse cast writers, editors, and columnists. It regularly features minority and female hosts, analysts, announcers, and journalists on both its scheduled programming and its live broadcasts. ESPN is proof that there are qualified minority and female reporters and editors out there, and it is also proof that the rest of the sports world needs to do a better job finding them.”

Other factors Statista incorporated, according to Forbes, were the gender split of companies’ management teams and boards, and whether a company proactively communicates about diversity. It also looked at the gap in diversity perceptions at a given organization. For example, if women, older employees and underrepresented minorities rated an employer poorly on diversity, but everyone else rated it highly, Statista considered that a negative indicator and adjusted the score downward. Only companies with 1,000 or more workers were eligible to qualify for the list.

Last summer, Stanley Black & Decker held its first-ever Global Diversity & Inclusion conference, joining together established affinity networks from around the company.  Affinity networks – voluntary, employee-driven groups – have been established throughout the company’s business and regions to “provide an environment where employees can engage around a particular shared interest or experience,” the company’s website explains.

“The objective of the groups is to engage, enable, and empower by providing networking opportunities, improve representation across the business and promote career advancement.  We embrace and respect differences – and diversity and inclusion are embedded into our company values and purpose,” the website points out.

The top 10 included:

1. Northern Trust, Chicago
2. The Smithsonian Institution, Washington D.C.
3. Levy, Chicago
4. Intuit, Mountain View, California
5. Harvard University, Cambridge, Massachusetts
6. Principal Financial Group, Des Moines, Iowa
7. Emory University, Atlanta, Georgia
8. Wegmans Food Markets, Austin, Texas
9. Keller Williams Realty, Austin, Texas
10. AbbVie, North Chicago

In addition to the Connecticut-based organizations named in the top 250, New York City-based NBC Universal Media, with a strong presence in Stamford, placed at number 42.  TIAA-CREF, which coordinates the state’s college savings program for the State Treasurer’s Office, was ranked at number 59.  GE, which departed Fairfield for Boston, also made the top 100 at number 85.

WalMart Dominates National Map, But Not in Connecticut

Connecticut’s largest employers – after the state itself – are Yale New Haven Health Systems, Hartford Healthcare, Yale University and United Technologies Corp, General Dynamics Electric Boat, and the University of Connecticut, according to a list published last year by the Hartford Business Journal.  Wal-Mart Stores ranks eighth in the state, followed by Sikorsky (Lockheed Martin) and Travelers and The Hartford Financial Services Group. Connecticut is one of a dozen states where the dominant employer is the healthcare.  The others include Rhode Island, Massachusetts, Vermont, Alaska, Delaware, Minnesota, North Dakota, South Dakota, Oregon, Idaho, and Utah, according to data published by Visual Capitalist.

In nearly as many – 11 states – higher education institutions are the largest employer, including New York, Michigan, Wisconsin, Iowa, Nebraska, New Mexico, California, Maryland, Pennsylvania, and North Carolina.

Maine’s largest employer is Hannaford Supermarkets.  In New Jersey it is Wakefern Food Corporation, the largest supermarket cooperative in the United States, including ShopRite and PriceRite stores in Connecticut.

In an era where Amazon steals most of the headlines, it’s easy to forget about brick-and-mortar retailers - especially Walmart, which remains dominant across much of the nation's retail landscape.  The company is the biggest private employer in America in a whopping 22 states -  and employs 1.5 million people nationwide.

In New England, Wal-Mart is the largest employer in New Hampshire, with more than 8,000 employees.

In Walmart’s home state of Arkansas, the company employees 53,310 people, or about 4% of the non-farm work force. That includes about 18,600 jobs at the HQ in Bentonville, AR.

Despite the company’s obvious influence in the state where it was founded, Walmart is also the largest employer across the South in general. Whether it is Texas (171,531 employees) or Virginia (44,621), there are Walmarts aplenty in the states surrounding Arkansas.

Eversource Hartford Marathon Brought $14.5 Million in Economic Benefit to Region in 2017

Just four years ago, in 2014, there was a title sponsor changing-of-the-guard at Connecticut’s premier spectator sporting events, as Eversource took over sponsorship of the Hartford Marathon, Travelers stepped in to save the state’s PGA Tour event (now the Travelers Championship), and United Technologies took the lead sponsorship that same year of what had been the Pilot Pen tennis tournament, now renamed as the Connecticut Open. Aside from a source of pride in maintaining marquee sporting events, the economic impact of the events continue to underscore the significance of local corporations coming through to sustain the events.

The latest evidence comes with news that the Hartford Marathon Foundation’s 2017 Eversource Hartford Marathon, Half Marathon, Team 26.2 Relay and Charity 5K brought an estimated $14.5 million of economic value to the area over the course of race weekend.  That figure is up from an estimated $13.6 million in 2015.  Eversource is signed on as title sponsor through 2019.

Official indicated that the Hartford Marathon Foundation (HMF) spent approximately $1 million to produce the Saturday, October 14th race in 2017, primarily working with local vendors and service providers.

In addition to a local economic boost to the city of Hartford and surrounding communities, the marathon drew 71,780 spectators, participants and volunteers to the area. Officials point out that runners, friends and families stayed in Hartford lodging, shopped in the area and dined in local restaurants. Significantly, 87 percent of participants visited Hartford primarily for the event. Of those traveling from out of state, 44 percent were visiting the city for the first time, officials specified.

Thousands of runners are motivated to use the race to raise funds on behalf of various charities and causes. Through these efforts more than $288,000 was raised and reported by the event’s 20 official charities and other groups, although charity fundraising is not required to be reported, so the true numbers may be higher.

The annual Travelers Championship has an annual economic impact on the state of $68.2 million, according to a recent study by Connecticut Economic Resource Center, Inc. (CERC). An economic impact study conducted a decade ago, in 2008, found that the tennis tournament predecessor to the Connecticut Open contributed approximately $26 million to the regional economy, including $10 million in local economic impact.

The Hartford Marathon will mark its 25th running on October 13, 2018.  The 2018 Travelers Championship, will be held June 18-24 at TPC River Highlands in Cromwell.  The Connecticut Open, at the Connecticut Tennis Center at Yale, will be held August 17-25 in 2018.

“We’re proud to host people from across the country to achieve personal goals and celebrate their accomplishments,” said Beth Shluger, CEO of the Hartford Marathon Foundation and Race Director of the Eversource Hartford Marathon and Half Marathon. “We are able to highlight the best of what the capitol region has to offer in a positive and truly inspiring event that allows tens of thousands to run, walk, volunteer or spectate. We are excited to be celebrating our 25th running in October 2018 and hope to create an even bigger positive impact through this milestone event.”

The Hartford Marathon Foundation also produces more than 30 events through the year, many that contribute to other organizations’ community fundraising goals.  The 2017 Mystic Half Marathon and 10K in May 2017 generated $28,000 to benefit the charitable works of the Mystic Rotary Club.  Additional fundraising events HMF was contracted to produce races for in 2017 include the Mahoney Sabol 5K to benefit Hospital for Special Care, CT Race in the Park to benefit CT Breast Health Initiative, Zero Prostate 5K to benefit ZERO - The End of Prostate Cancer, Achilles CT Hope & Possibility 5K & 10K to benefit Achilles International – CT Chapter, Pumpkin Run/Walk to benefit Youth & Family Services of Haddam-Killingworth, Inc. and the Norwich Winterfest 5K to benefit Reliance Health, Inc.

Hartford Rail Line May Bring Jobs, Opportunity for Key Populations, Study of Public Transit Suggests

As Connecticut moves closer to a significant increase in rail service connecting communities from New Haven to Springfield, MA, with the introduction of the Hartford line, anticipated in May, a report by Demos underscores the potential impact on economic opportunity and segments of the state’s population. The report, “To Move is to Thrive:  Public Transit and Economic Opportunity for People of Color,” which looked at public transportation in metropolitan areas across the country, presents a series of findings on the use of public transit by people of color and on the potential jobs benefits that people of color can gain from investments in public transit.

Its key findings on the use of public transit are:

• Racial, ethnic, and class inequities in the access to and funding of public transit continue today.
• Latino and Asian-American workers are twice as likely as white workers not to have a vehicle at home. African American workers are three times as likely. These disparities are heightened in certain metropolitan areas; Latino and black workers lack a private vehicle at as much as six times the rate of white workers in some areas.
• Asian-American and African-American workers commute by public transit at nearly four times the rate of white workers. Latino workers commute by public transit at nearly three times the white rate.
• Workers of color are overrepresented among public transit commuters with “long commutes”—one-way commutes of 60 minutes or longer.

The key findings on the jobs benefits from investment in public transit are:

• America’s employment rates are still low relative to 2000, and there is a strong racial hierarchy in employment rates.
• The majority of the jobs created from infrastructure investments can be non-construction jobs.
• All racial and ethnic groups gain jobs from large infrastructure investments and, generally, the larger the investment, the more jobs for each group.
• Investments in public transit show good returns in terms of the shares of the total jobs going to workers of color.

The report also noted that “growing numbers of Americans rely on public transit in their daily lives. In 2015, passengers took 10.5 billion trips on transit systems, up 33 percent from 20 years ago. Public transit ridership has grown faster than the population. But our public transit infrastructure, like much of our infrastructure generally, is old and decrepit. And many of our transit systems were not designed to handle such heavy use.”

While Connecticut’s cities are not as large as many of the nation’s largest metropolitan areas, they do have populations with larger numbers of people of color than mnay surrounding suburbs.  Providing greater ease of mobility to station stops along the Hartford line could offer impacts suggested by the study.

The Hartford line, which is focused on increasing the frequency of station stops from Springfield to New Haven, will also see additional stations constructed in the coming years.  When the CTrail Hartford Line service launches in May, it will consist of both expanded Amtrak service and new regional trains operated by the Connecticut Department of Transportation and will offer more frequent, convenient and faster passenger rail service between New Haven, Hartford and Springfield.

Plans call for an increase in the number of round trip trains from six daily Amtrak intercity and regional trains to a total of 17 round trip trains a day to Hartford, and 12 trains per day to Springfield. In addition, trains will operate at speeds up to 110 mph, reducing travel time between Springfield and New Haven. Stops are to include rail stations in Windsor Locks, Windsor, Hartford, Berlin, Meriden, Wallingford and New Haven.   New stations are to be added, refurbished or relocated in North Haven, Newington, West Hartford, Windsor, Windsor Locks and Enfield by 2020.

Projections include more than 4,500 construction related jobs and over 8,000 total jobs, including both direct and indirect jobs.  Transit-oriented development, including housing is also anticipated along the route. Recently, plans to convert a long-vacant factory into housing was announced in Windsor Locks.

The national data indicates that workers of color are roughly 2 to 3 times as likely as white workers not to have a private vehicle at home: only 2.8 percent of white workers do not have a vehicle at home, but 6.9 percent of Asian-American workers, 7 percent of Latino workers, and 9.5 percent of African-American workers do not have a vehicle at home.

Nationally, 3.1 percent of white workers use public transit, while 7.8 percent of Latino workers, 11 percent of Asian-American workers, and 11.1 percent of African-American workers commute using public transit. In other words, Latino workers are almost 3 times as likely, and Asian-American and African-American workers are almost 4 times as likely as white workers to commute by public transit, the report indicated.

Based in New York, Boston and Washington D.C., Demos is a public policy organization “working for an America where we all have an equal say in our democracy and an equal chance in our economy.”

New Requirements for Data and Analysis Due in Economic Development Report on February 1

A new state law is making changes to the annual report of the state Department of Economic and Community Development (DECD), due to be completed by February 1.  The law changes the mix of data and analyses DECD must include in the report, eliminating many types of previously required information but also requiring more data and analyses about the impact of all economic development programs, not just those DECD administers, according to the Office of Legislative Research (OLR). The analysis of each program in the DECD annual report must now include:

1. an analysis of the program’s impact on the state’s economy, including, if available, the number of new jobs it created and its estimated impact on the state’s annual revenues;
2. an assessment of whether the program is meeting its statutory and programmatic goals and, if possible, the obstacles preventing it from meeting those goals;
3. recommendations about whether the program should be continued, modified, or repealed and the reasons for each recommendation;
4. recommendations for additional data that must be collected to improve the evaluation; and
5. a description of the methodologies used and the assumptions made to analyze the program.

DECD must also include how much it cost the state to borrow funds to finance them.

Public Act 17-219 also requires DECD to include:

• an overview of its tourism, arts, and historic preservation activities and
• an economic impact analysis of each state economic development business assistance or incentive program, including those administered by other agencies that had 10 or more recipients or awarded over $1 million in assistance during the prior fiscal year.

Examples of economic development programs administered by other agencies include the Labor Department’s Subsidized Training and Employment Program and Connecticut Innovations’ Angel Investor Tax Credit.

Instead of submitting a separate report about film industry tax credits, as was done previously, DECD must report about them in the annual report. In doing so, the law passed in 2017 requires DECD to summarize its efforts concerning media and motion picture production in Connecticut and indicate the total (1) amount of credits it issued during the reporting period and (2) production costs and expenses credit recipients incurred in Connecticut.

The law also requires DECD to submit the report annually, by February 1 to the governor, the auditors, and the legislative review committees. Under prior law, it had to submit the report to the governor and the entire legislature annually by that date. Beginning March 1, 2018, OLR indicates, the law requires the legislature’s review committees to hold one or more separate or joint annual hearings on DECD’s report, focusing on the analyses of DECD’s community development projects and DECD’s efforts to promote international trade.  The new law also calls for the Appropriations; Commerce; and Finance, Revenue and Bonding committees to hold hearings periodically on the economic impact of state economic development programs.

The law further requires DECD to analyze the First Five Plus program’s net return to the state and include that analysis in its biannual report on the program, which, by law, it must submit to the Commerce and Finance, Revenue and Bonding committees.   It also requires the committees to hold a hearing exclusively on the program, which combines financing and tax incentives under various programs into a comprehensive assistance package for business development projects that meet specified investment and job creation targets.

OLR also notes that among other things, the law approved by the state legislature last year eliminates the requirement that the report include data about specific businesses, municipalities, and projects that received DECD funding and instead requires the report to identify the website where this information can be found.

Connecticut, Massachusetts Economies on Divergent Paths

Connecticut and Massachusetts share a border but diverge dramatically in economic standing.  The stark contrast was evident this week in local updates provided by the Boston Globe and Connecticut Business and Industry Association newsfeeds. First, Connecticut:

Connecticut lost 3,500 jobs in November, extending a five-month slide that now marks a crisis point for the state's struggling economy.  The state has lost 15,300 jobs since reaching a post-recession employment high in June—a trend that stands in stark contrast to what's happening in the region and the country.

Connecticut has lost 15,300 jobs since hitting a post-recession employment high in June.

CBIA economist Pete Gioia noted that after an encouraging start to 2017, Connecticut's year-over-year job growth is now flat.

The New England states average 1.2% growth over the last 12 months, while U.S. growth is at 1.4%.

"You can't deny the fact that we now have a full-blown crisis in jobs," Gioia said.  "It's difficult to define the glass as half full when we see continued job losses like this."

Next, Massachusetts:

The Massachusetts unemployment rate dropped to 3.6 percent in November, from 3.7 percent in October, the fourth consecutive monthly decline – the Executive Office of Labor and Workforce Development reported.  The state jobless rate remained one-half percentage point below the national average of 4.1 percent, according to the Massachusetts Department of Unemployment Assistance.

An estimated 6,700 jobs were added to payrolls statewide.  In the private sector, most of the gains occurred in areas that included leisure and hospitality education and health services, construction and manufacturing.  The state labor force dropped by 8,200 from October and is now at more than 3.6 million.

The U.S. Bureau of Labor Statistics estimates that Massachusetts has added 65,200 jobs since last November.