CT Families Continue to Struggle Financially, United Way Report Reveals

More Connecticut households are struggling to pay for their most basic needs, according to a new report from United Way.  More than one out of four households - in one of the wealthiest states in the U.S. - are employed, yet still fall below what is needed to thrive financially.  That is an increase in both the number and percentage of such households in 2014 as compared with 2012, according to the updated ALICE report. Two years ago, United Ways introduced ALICE, which stands for - Asset Limited Income Constrained Employed - to place a spotlight on a large population of residents who are working, but have difficulty affording the basic necessities of housing, food, child care, health care and transportation.

In those two years, the problem has grown worse, even has the recession has given way to a slow economic recovery, in Connecticut and nationwide.  ALICE and poverty households combined account for 38 percent of households in the state that struggle to make ends meet.

A total of 361,521 Connecticut households fall into what the study describes as the ALICE population. These are households earning more than the official U.S. poverty level, but less than the basic cost of living. This is more than 2.5 times the number of households that fall below the federal poverty level. ALICE households make up 20% or more of all households in 114 (67%) of Connecticut’s 169 cities and towns.

The highest levels (ALICE and poverty households) were in Hartford (74%), New Haven (65%), Waterbury (63%), Bridgeport (63%) and New Britain (63%).  Also above 50 percent are Meriden, West Haven, East Hartford and New London.  From 2007 to 2014, two cities, Danbury and Waterbury, saw their total household population decrease, by 7 and 9 percent respectively, while the rest experienced an increase in households, with the largest increase of 8 percent in Stamford, according to the report. The number of household below the ALICE Threshold increased in every one of the nine largest cities and towns with Norwalk seeing the largest percent increase (38 percent).

While the prevalence of low-wage jobs still defines Connecticut’s economy for ALICE, for the first time in the past decade, the percent of jobs paying less than $20 per hour fell below 50 percent of all jobs.  The report also highlights a number of trends in Connecticut, including:

• The population is aging, and many seniors do not have the resources they need to support themselves.

• Differences by race and ethnicity persist and ethnicity persist, creating challenges for many ALICE families, as well as for immigrants in Connecticut.
• Low-wage jobs are projected to grow faster than higher-wage jobs over the next decade.
• Technology is changing the workplace, adding some jobs, replacing many others, while also changing where people work, the hours they work, and skills required. The report notes that technology creates opportunities as well as challenges for ALICE workers.

For the first time, an online simulator is also available to experience the financial challenges that ALICE households in Connecticut face at www.MakingToughChoices.org.  The updated Report uses data from a variety of sources, including the U.S. Census and the American Community Survey to provide tools that quantify the number of households in Connecticut's workforce that are struggling financially. The updated United Way ALICE Report reveals:

• The composition of the ALICE population is men and women, young and old, of all races.
• The breakdown of jobs in Connecticut by hourly wage (51% of jobs pay more than $20/hour) compared to what it costs to survive for a family of four (2 adults, 1 infant, 1 preschooler) - $70,788.
• Every city and town in Connecticut has ALICE households. More than two-thirds of Connecticut's cities and towns have at least 1 in 5 households that fit the ALICE definition for financial hardship.

Poverty and ALICE households exist in every racial and ethnic group in Connecticut, but the largest numbers are among White non-Hispanic households. There were about one million White households in 2014, compared to 328,000 households of color (Figure 4 shows the populations of color for whom there is income data: Hispanic, Black and Asian). However, these groups made up a proportionally larger share of households both in poverty and ALICE: 64 percent of Hispanic households, 58 percent of Black households, and 30 percent of Asian households had income below the ALICE Threshold in 2014, compared to 31 percent of White households.

The largest population of color in Connecticut, Hispanics, has been growing since 2007, totaling 156,837 households in 2014, a 25 percent increase. As the number of Hispanic households increased, so did the number and proportion of Hispanics living below the ALICE threshold. The percentage of Hispanic ALICE households rose from 34 percent in 2007 to 39 percent in 2010 and then to 43 percent in 2014. Together Hispanic households in poverty and ALICE made up more than two-thirds of Hispanic households in 2014.

There are some signs of improvement in the education gap among racial and ethnic groups, suggesting that some structural changes are occurring in Connecticut. In K-12 education, the Education Equality Index (EEI) shows that the achievement gap – the disparity in educational measures between socioeconomic and racial or ethnic groups – narrowed slightly between 2011 and 2014 in Connecticut.

Achievement gaps impact graduation rates and college performance. Among the Class of 2013, 64 percent of Black students and 59 percent of Hispanic students in the state went on to college within a year after graduating from high school, compared to 78 percent of White students. They also had lower 6-year college graduation rates: While 54 percent of White students got a college degree within 6 years, only 24 percent of Black students and 21 percent of Hispanic students did the same (Connecticut State Department of Education, 2015).

The updated ALICE Report recommends both short-term and long-term strategies to help ALICE families and strengthen our communities. United Ways work with many community partners to provide support to ALICE families to help them get through a crisis and avoid a downward spiral into even worse circumstances such as homelessness as well as assisting with financial literacy, education and workforce readiness.

Further, United Ways in Connecticut have invested more than $8.5 million in child care and early learning; $1.3 million in housing and homeless prevention work; $5 million in basic needs programs; and, have assisted working families in obtaining nearly $40 million in EITC and tax refunds and credits in 2016.

The updated Connecticut ALICE Report was funded by the 16 Connecticut United Ways. For more information or to find data about ALICE in local communities, visit http://alice.ctunitedway.org.  Connecticut United Ways are joining with United Ways in fifteen other states to provide statewide ALICE Reports. The updated Connecticut ALICE Report provides analysis of how many households are struggling in every town, and what it costs to pay for basic necessities in different parts of the state (Household Survival Budget).

https://youtu.be/u7gPJGu2psw

 [2014 ALICE introductory video]

Heart Disease, Cancer Leading Causes of Death in CT; Septicemia Deaths Among Highest in USA

Heart disease, cancer and accidents were the leading causes of death in Connecticut according to data released by the National Center for Health Statistics of the Centers for Disease Control and Prevention.  The other major causes of death in Connecticut include chronic lower respiratory diseases, stroke, alzheimer’s disease, diabetes, influenza/pneumonia, kidney disease and septicemia. In all but two instances, Connecticut ranked in the lowest quintile among the states, ranking 40^th in the rate of heart disease deaths, 43^rd in cancer deaths, 48^th in deaths due to diabetes, and 48^th in deaths caused by stroke.  The state ranked 15^th, however, in deaths caused by septicemia and 35^th in accidental deaths.

Septicemia, or sepsis, is a life-threatening complication of an infection in the bloodstream. Sepsis is the body’s overwhelming response to infection which can lead to tissue damage, organ failure, and death. It kills 258,000 Americans each year, according to the Sepsis Alliance, but remains largely unknown. Although it is among the 10 most frequent causes of death nationwide, in a 2015 online survey of 2,000 participants, only 47 percent of Americans were aware of sepsis, the Alliance reported. The deaths this year of actress Patty Duke and boxing legend Muhammad Ali have brought some increased attention to sepsis.

Connecticut had 578 recorded deaths caused by septicemia, a rate of 12.6 per 100,000 total population, in 2014, according to the CDC data.  The United States rate was 10.7.  The highest death rates from septicemia were in Mississippi, Louisiana, Alabama, Texas, New Jersey, Kentucky, Arkansas, Maryland, Georgia, and Virginia.

There were 7,018 deaths from heart disease and 6,621 from cancer in Connecticut in 2014, according to the data.  The next most frequent cause of death, accidents, totaled 1,642, followed by chronic lower respiratory diseases, which caused, 1,368 deaths, and stroke, which caused 1,266.

Connecticut’s rate of deaths per thousand population by stroke, 26.3, is among the nation’s lowest.  The national rate is 36.5.  The only states with lower rates of stroke deaths are Rhode Island and New York.  Connecticut is tied with Arizona, just ahead of Massachusetts, New Hampshire and Wyoming.  The highest rate of deaths from stroke are in Mississippi, Alabama, Tennessee, Louisiana and Arkansas.

Heart disease has long been the leading cause of death for all U.S. states, with cancer as the second leading cause, according to the CDC. In 1990, Alaska became the first state to experience a switch in ranks between these two causes. In 2000, Minnesota experienced the same switch. As of 2014, there are now 22 states with cancer as the leading cause of death.  Heart disease remains the leading cause in Connecticut.

In 2013, the leading causes of death in Connecticut were heart disease (7.090), cancer (6,619), chronic lower respiratory diseases, accidents, stroke, alzheimer's disease, diabetes, influenze/pneumonia, kidney disease and suicide.

Connecticut Public Accounting Firms Reach National Rankings

The largest Connecticut-based public accounting firm, BlumShapiro, earned the #54 position in the nation’s top 100, according to the publication Inside Public Accounting.  It is one of a handful of Connecticut firms to make the annual top 300 list, in addition to regional firms with offices in Connecticut. BlumShapiro is the largest regional business advisory firm based in New England providing accounting, tax and business consulting services. The firm serves clients from six offices offices in Connecticut (West Hartford and Shelton), Massachusetts and Rhode Island. BlumShapiro ranked #53 last year. 

Noted among the nation’s top 200 public accounting firms is Hartford headquartered Whittlesey & Hadley.  The firm, ranked at #155 this year, up from #178 a year ago, and #192 in 2014, has two additional offices, located in Hamden, CT and Holyoke, MA. The firm provides a comprehensive array of accounting, auditing, tax, and advisory services to a broad range of businesses and individuals.

Ranked #285 is Reynolds & Rowella LLP, which maintains offices in Ridgefield and New Canaan.  “We are proud to be counted among the top-ranked accounting firms nationwide on a list that includes Deloitte, PwC, Ernst & Young and KPMG,” Frank Rowella, Reynolds & Rowella’s managing partner, told the Fairfield County Business Journal. “The IPA list is known as one of the most thorough and accurate sets of rankings in the accounting profession. Our inclusion reflects our determination to provide the very best quality compliance and financial services solutions to our valued clients.”

At #296 is Glastonbury-based Fiondella Milone & LaSaracina.  FML was founded in 2002 “for the purpose of providing professional auditing, tax and business consulting services to a wide range of clients and industries throughout the Northeast,” the company’s website indicates.  After working together at Ernst & Young, the firm’s founding partners, Jeff Fiondella, Frank Milone and Lisa LaSaracina launched FML.

Inside Public Accounting (IPA), founded in 1987, is published by The Platt Group. The Platt Group publishes both the award-winning Inside Public Accounting newsletter and the award-winning National Benchmarking Report.

Beginning in 1994, INSIDE Public Accounting’s Survey and Analysis of Firms and the resulting national benchmarking report on the nation’s largest accounting firms has served as a barometer of the overall health, challenges and opportunities of the profession, according to the publication.

Annually more than 500 accounting firms across the North America complete the in-depth financial and operational survey. The data is then used to compile the annual ranking of the nation’s largest accounting firms, which is unveiled in August of each year. The annual IPA rankings are considered to be among the longest-running, most accurate and up-to-date for the nation’s largest accounting firms.

Leading the list nationally were Deloitte, PricewaterhouseCopers, Ernst & Young, KPMG, RSM, and Grant Thornton.  Ranked at #11 is New York based CohnReznick, which has offices in Hartford.  Marcum LLP ranked #16, Citrin Cooperman & Company, also based in New York and ranked #21, has offices in Fairfield County.

Opioid Epidemic Leads Conference Marking 100 Years of Public Health in CT

Tackling the opioid epidemic at the federal, state, and local levels will be the focus of the featured panel when the Connecticut Public Health Association (CPHA) celebrates 100 years of public health in Connecticut at the 2016 CPHA annual conference in November. In addition to the expert panel on opioid abuse, there will be more than 30 presenters on public health topics, a presentation on the history of CPHA and public health in the state, and a look forward to the future and innovations on the horizon in health research, policy, and community programs.

“Today, more than ever, the value of public health in saving lives and reducing health care costs is at the forefront of public policy,” the organization’s website points out.  Members represent a wide variety of disciplines, and “are united in the goal of protecting and promoting the public's health.”

Keynote speaker will be Camara P. Jones, MD, MPH, PhD, President of the American Public Health Association (APHA).  Dr. Jones is a research director on social determinants of health and equity in the Division of Adult and Community Health, National Center for Chronic Disease Prevention and Health Promotion and President of the American Public Health Association (APHA).

She seeks to broaden the national health debate to include not only universal access to high quality health care but also attention to the social determinants of health (including poverty) and the social determinants of equity (including racism). As a methodologist, she has developed new ways for comparing full distributions of data (rather than means or proportions) in order to investigate population-level risk factors and propose population-level interventions.

Opioid abuse has hit record levels in the United States, with drug overdose deaths quadrupling over the last 15 years, the CPHA points out. According to the Centers for Disease Control, Connecticut is experiencing a death rate for drug and opioid overdoses that surpasses the national rate and has reached epidemic proportions.

The conference is being held at Anthony’s Ocean View in New Haven on November 10.  The theme is “Back to the Future – 100 Years of Public Health in Connecticut and Beyond.” The annual meeting is the oldest and largest gathering of public health professionals in Connecticut, attracting hundreds of attendees each year.

Financial Capital Remains Hurdle for Women Entrepreneurs

“Data reveal that an increasing number of women are choosing entrepreneurship as a career path, and of those, a growing number of them share aspirations for growth.”  That fact, pointed out in the preface of a new book co-written by a local university professor, is the proverbial tip of the iceberg. According to the U.S. Census Bureau, there are roughly 9.9 million women-owned firms in the United States, representing over a third of all firms in the country—and the ranks of new enterprises with women at the helm are growing rapidly. Between 2007 and 2012, women-owned firms in the U.S. grew by 27 percent compared to a growth rate of 2 percent for firms overall.

“But in spite of their impressive growth in numbers,” writes University of Hartford finance professor Susan Coleman, “the business ventures women are launching today continue to lag behind those launched by men in terms of revenues and employment. So while an increasing number of women can count themselves as entrepreneurs, many appear to be running into barriers, as the vast majority of their businesses remain quite small.”

Coleman, along with Alicia M. Robb, have co-authored The Next Wave: Financing Women’s Growth-Oriented Firms (published by Stanford University Press), which points to “three essential factors that women entrepreneurs need to thrive: knowledge, networks, and investors. In tandem, these three ingredients connect and empower emerging entrepreneurs with those who have succeeded in growing their firms while also realizing the financial and economic returns that come with doing so.”

Robb is Senior Fellow with the Ewing Marion Kauffman Foundation and Visiting Scholar at the University of California, Berkeley and the University of Colorado, Boulder. She previously worked with the Office of Economic Research in the Small Business Administration and the Federal Reserve Board of Governors. Coleman is Professor of Finance and Ansley Chair at the Barney School of Business at the University of Hartford.

Coleman notes that “A crucial pitfall is that women face unique challenges in their attempts to acquire financial capital. Growth-oriented firms typically require substantial investment—both in the form of bank loans and external equity in the form of angel or venture capital funding—to scale up.” Studies reveal, however, that “women entrepreneurs raise significantly smaller amounts of capital than men and face continued barriers in their attempts to secure external equity in particular,” Coleman points out.

In the book’s forward, the authors explain that the motives behind women-run entrepreneurial businesses vary.  “Some of these growth-oriented entrepreneurs are motivated by a desire to pursue an opportunity or an unmet need in the marketplace.  Others are frustrated by the constraints imposed by a ‘glass ceiling’ that prevents them from reaching the most senior ranks of corporations.  Still others are drawn by the financial and economic rewards that can come from leading a firm that achieves scale.”

According to IRS data, women represent over 40 percent of top wealth holders in the United States, yet estimates from the University of New Hampshire’s Center for Venture Research indicate that they represented only 25 percent of angel investors in 2015, Coleman notes.

Optimistic about the future success of women entrepreneurs, Coleman and Robb observe that “Successful women entrepreneurs who are paying it forward in a variety of ways are a driving force” in what they describe as the “next wave.”

“In a virtuous cycle, women entrepreneurs evolve from being the recipients of human, social, and financial capital into becoming the providers of those key resources as their firms grow and create economic value. The more successful women at the helm of businesses that kick off cash, the more women there are to invest in others, and the faster we see the number of women grow in the ranks of larger businesses and investing.”

In addition to appreciation expressed to the Kansas City-based Kauffman Foundation for financial support, the book’s acknowledgements note that the Barney School of Business and the University of Hartford’s Women’s Education and Leadership Fund provided grants that helped support initial research and development of case studies on women entrepreneurs. The authors also expressed appreciation to three University of Hartford graduate assistants – Ece Karhan, Mert Karhan, and Isha Sen – who “played an invaluable role in the book’s development.”

UConn Study: Look-alike ‘Smart Snacks’ Confuse Students, Parents

Unhealthy snack food brands such as Cheetos, Fruit-by-the-Foot and Froot Loops have reformulated their products to meet new USDA Smart Snacks nutrition standards so they can be sold to kids in schools. But these products often come in packages that look similar to the unhealthy versions of the brands that are still sold in stores and advertised widely to youth. Selling these look-alike Smart Snacks in schools confuses students and parents, provides companies a way to market their brands to kids in schools, and may hurt schools’ credibility, according to a new study by the Rudd Center for Food Policy and Obesity at the University of Connecticut, published in the journal Childhood Obesity and reported by UConn Today.

It is the first to examine how selling look-alike Smart Snacks in schools affects attitudes about the brands and perceptions of schools selling these products.

“Kids think the healthier Smart Snacks they can buy in school are the same products that are sold in stores,” says Jennifer Harris, lead author of the study and director of marketing initiatives for the UConn Rudd Center. “It’s confusing because the packaging for these look-alike Smart Snacks looks so much like the less nutritious versions that kids see advertised on TV and in the stores.

“This is a great marketing tool,” she adds. “The snack makers get to sell their products in schools and at the same time market their unhealthy brands to kids every school day.”

The study involved an online experiment with 659 students 13 to 17 years old, and 859 parents of children 10 to 13 years old.  The participants viewed information about a hypothetical school that sold either look-alike Smart Snacks, regular versions of the same brands sold in stores, Smart Snacks in redesigned packages, or only brands whose regular products met Smart Snacks standards.

Specific findings of the study include:

• Students and parents rated the healthier look-alike Smart Snacks similarly in taste, healthfulness, and purchase intent as the store versions, while considering Smart Snacks in different packages to be healthier but less tasty.
• Most participants inaccurately believed they had seen look-alike Smart Snacks for sale in stores.
• Participants also rated schools offering the look-alike Smart Snacks and the store versions of the brands as less concerned about students’ health and well-being.

“The practice of selling look-alike Smart Snacks in schools likely benefits the brands,” says Harris, “but may not improve children’s overall diet, and undermines schools’ ability to teach and model good nutrition.”

The Rudd Center for Food Policy & Obesity relocated to UConn in 2015 after 10 years at Yale.  The Center is a distinguished multi-disciplinary policy research center dedicated to promoting solutions to childhood obesity, poor diet, and weight bias through research and policy. The Rudd Center is a leader in building broad-based consensus to change diet and activity patterns by conducting research and educating policy makers and the public.

The research was funded by a grant from the Michael & Susan Dell Foundation.

CT Residents Concerns About Health Care Affordability, Job Prospects Increase; More Expect to Leave, Even as Optimism Grows

Nearly two-thirds of Connecticut residents are concerned about the affordability of health insurance, a jump of 12 percentage points in just the past year, and the highest level since the quarterly Inform CT Consumer Confidence Survey began 18 months ago. And slightly more than 4 in 10 Connecticut residents now say it is likely that they will move out of the state within the next five years, reflecting concerns about a lack of jobs, declining business conditions and health insurance costs. Yet, many residents continue to say that Connecticut is a good place to live and raise a family, and some optimism is evident in consumer spending expectations.  The survey found that:

• 41% say it is likely they will make a major consumer expenditure (for furniture or other products) during the next six months.
• 31% say it is likely they will purchase a car in the next six months.
• 71% indicated they expected to take a vacation outside of Connecticut in the next six months.

All are the highest percentages since the quarterly survey began in 2015.

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

Despite qualms about the state’s economy, residents are increasingly optimistic about their own financial circumstances.  One-third (32%) say they are better off now than six months ago, and 42 percent believe they will be better off six months from now than they are today.  Both numbers are 5 percentage points higher than they were a year ago.  The overall view of the state’s fiscal picture differs:

• A year ago, 40 percent of those surveyed disagreed with the statement that the Connecticut economy is improving. That percentage has now climbed – one year later – to 49 percent, nearly half the state.
• The percentage who believe that the state’s economy is improving has dropped from 29% a year ago to 23% during the second quarter of this year.
• Residents of New London and Fairfield County most strongly believed that business conditions had improved over the previous six months, with Middlesex, Windham and Litchfield more likely to say that business conditions had worsened.

Increasingly, residents believe that jobs are “very hard to get” in Connecticut compared with six months ago (from about one-quarter to one-third of those surveyed in Q2 2016 versus Q2 2015), and are, in growing numbers, saying they would rather leave than stay.

• A year ago, 32 percent of those surveyed said it was very likely or somewhat likely that they would move out of Connecticut within the next five years.
• A year later, that percentage has climbed by 10 points to 42 percent.

At the same time, about half of those surveyed say that “Connecticut is a good place to live and raise a family” – a number that has remained consistent for the past year and a half.  Only 1 in 4 disagree.  More than half of 18-21 year-olds and 22-25 year olds say they are likely to leave in the next five years; in all other age categories it is less than half, with those age 56-65 the least likely.

Concerns about having “enough money to retire comfortably” have remained steady for six consecutive quarters, with about less than 1 in 4 expressing the opinion that they anticipate having sufficient funds. And 1 in 4 now say it is likely that they will refinance their home or purchase a new home in the next six months, the highest percentage since the quarterly survey began.

With increasing calls for regional support of Hartford and regional approaches to tackling budget challenges, the survey found that an increasing number of residents in Connecticut believe that a range of services “could be effectively delivered regionally.”

Forty-three percent, an increase from 40 percent in the year’s first quarter, answered “all of the above” when asked if education, libraries, public health, public safety and animal control could be provided regionally.  Among those services individually, there was slightly greater support for a regional approach to public safety, slightly less for each of the others.  The largest increase was for “all” of the services.

The question of what residents in the region consider to be the “best way to grow the economy” saw a preference for investing in schools and community features over recruiting companies, by an increasing margin.  In this year’s first quarter, the margin was 52% to 48%. In the most recent quarter that margin had grown by 9 percentage points to 61%-39%, from just over half to more than 6 in 10.

Veteran-Owned Small Businesses Will See Expanded Price Preference for State Work, Beginning Oct. 1

Applications are available for a new Connecticut initiative designed to “spur veterans to start a business and to help small veteran-owned businesses to flourish.”  The law, which takes effect on October 1, is the most generous of it’s kind in the nation, and provides veteran-owned businesses with a price preference of up to 15% for certain state Department of Administrative Services open-market orders or contracts. These businesses must have a gross revenue of up to $3 million in the most recently completed fiscal year, and at least 51% of the ownership must be held by one or more veterans. Under existing law, a “veteran” is anyone honorably discharged or released from active service in the U. S. Armed Forces or their reserve components, including the Connecticut National Guard performing duty under Title 32 (such as certain Homeland Security missions).

The legislation, which began as Senate Bill 2 in the 2016 session of the state legislature, was unanimously approved by the Veterans Affairs Committee and Government Administration and Elections Committee, before gaining unanimous approval in the Senate and House and the Governor’s signature.

The National Veteran-Owned Business Association, in testimony before the state legislature in March, said passage of the new law would “make Connecticut the most ‘Vetrepreneur-Friendly”state” in the U.S.  The organization noted that 27 states have programs in place “to create opportunities for veteran-owned businesses, and that New Mexico had recently increased its preference to 10 percent.  At the time, Connecticut’s veterans preference also stood at 10 percent.

Senate leaders Martin Looney (New Haven) and Bob Duff (Norwalk) said the move to 15% was part of a multi-year effort by the legislature to “improve the lives of our vets, and help them earn a living.” State Comptroller Kevin Lembo, testifying in support of the proposal, told the legislature it would “decrease a bit of the burden on those veterans who are doing much more than just getting by.  These veterans have not only re-entered their communities as productive taxpayers, but have taken the risk of starting up their own business to realize their piece of the American dream.”

“We applaud your leadership of the important piece of legislation that will enhance and expand opportunities for the small businesses” owned by veterans, said Matthew Pavelek, Vice President of the national organization, NaVOBA, based in Pittsburgh.

To receive the fifteen per cent price preference, a bidding business must first obtain a Veteran-owned Micro Business certification from the Connecticut Department of Veterans Affairs. The Certification is valid for six months or until such time as the business is no longer in compliance with the statutory requirements, whichever occurs first.  Applications for the certification are now available from the state Department of Veterans Affairs.

Childcare Costs Continue to Outpace Inflation, Low Income Families Hit Hardest; CT 6th Most Expensive

One of the more notable aspects of the latest data on consumer prices provided this month by the U.S. Bureau of Labor Statistics is the striking increase in childcare and nursery school prices.  That data, along with statistics that reflect the impact of those increasing costs on families ability to afford such care, highlight the struggles and disparities that continue to exist, in Connecticut and nationwide. Over the past 25 years, childcare and nursery school costs have risen 177 percent, while prices more generally have risen just 77 percent.  Childcare and nursery school costs have been outpacing general inflation for at least 25 years (the data do not go back any further than 1991);  this is putting a significant strain on the budgets of low-income families.

The Center for Economic and Policy Research points to an August 2014 study by the U.S. Department of Agriculture that found a two-parent, middle-income family (those making between $62,000 and $107,000 per year) will spend an average of $245,000 (in 2013 dollars) on their kids between the ages of zero and 17.

Significantly, due to rising income inequality, poor families are finding it harder to give their children the same opportunities afforded to rich children, the study points out. At present, families in the top fifth of the income distribution spend seven times as much on their children as families in the bottom fifth.

“This inequality can also be observed for paid leave: about 23 percent of workers in the top tenth of the wage distribution have access to paid family leave, compared to just four percent of workers in the bottom tenth,” the findings show.

Child care in Connecticut, the Economic Policy Institute points out, “is expensive.” Connecticut is ranked 6th out of 50 states and the District of Columbia for most expensive infant care.

• The average annual cost of infant care in Connecticut is $13,880—that’s $1,157 per month.
• Child care for a 4-year-old costs $11,502, or $959 each month.

Childcare is also “unaffordable” for a large percentage of Connecticut famiies.  The Economic Policy Institute indicates that infant care for one child would take up 16 percent of a typical family’s income in Connecticut, noting that according to the U.S. Department of Health and Human Services (HHS), child care is affordable if it costs no more than 10% of a family’s income. By this standard, only 28.1% of Connecticut families can afford infant care.

A minimum-wage worker in Connecticut would need to work full time for 36 weeks, or from January to September, just to pay for child care for one infant. And a typical child care worker in Connecticut would have to spend 63.6% of her earnings to put her own child in infant care, according to the data.

CEPR points out that other costs for raising children have increased as well, also outpacing the inflation rate. For instance, elementary and high school tuition and fees have risen 3.2 percent over the past year (four times the overall inflation rate of 0.8 percent); college tuition and fees are up 2.7 percent. At the same time, infant care in Connecticut costs $3,752 (37.1%) more per year than in-state tuition for 4-year public college, according to the Economic Policy Institute.

According to the Organisation for Economic Cooperation and Development (OECD), public expenditure on pre-primary education and childcare is just 0.4 percent of GDP in the United States; this is far lower than the rates of spending in Denmark (2.0 percent of GDP) or Iceland and Sweden (1.6 percent). By this measure, the U.S. comes in 33rd out of the 36 countries surveyed by the OECD, according to the CEPR report.

Public expenditure on pre-primary education spending is 0.3 percent of GDP in the U.S. but averages 0.5 percent in the other OECD countries; even more shockingly, public expenditure on childcare is just 0.06 percent of GDP, well short of the 0.4 percent average from the rest of the OECD. Nor do differences in GDP make up for the latter gap.  In 2011, public expenditure on childcare was $794 per child in the U.S., less than one-third of the OECD average. By contrast, public spending on childcare is $7,100 per child in Finland, $6,400 in Norway and Denmark, $5,900 in Sweden, and $5,700 in Iceland — despite the fact that the U.S. is substantially richer than all those countries except Norway.

In a separate survey, the OECD found that just 14 percent of all public spending on children in the U.S. went to children age five and under — dead last among the 32 OECD countries in the sample. In the United States, 14 percent of all public spending on children goes to children ages zero to five; 41 percent goes to children ages six to 11; and 45 percent goes to children ages 12 to 17. For the other 31 countries (data were not available for Canada and Turkey), 26 percent of all public spending on children went to children ages zero to five; 35 percent went to children ages six to 11; and 39 percent went to children ages 12 to 17, the Center for Economic and Policy Research explained.

Prompted by Economy, Only Half of Nation's Millennials Plan to Work for Same Company Next Year, Gallup Survey Says

Millennials are entering the workforce in increasing numbers, and are the intense focus both of governments – including Connecticut – and businesses seeking to attract and retain them.  As Connecticut’s economic ranking among the states continues to hover near the bottom, the job choices of millennials become increasingly important to future economic vitality. Even amidst less than favorable comparisons in recent rankings, Connecticut has managed to achieve recent employment figures that show improvement. Last month, the state added some 3,000 jobs in the private sector and wages have also risen slightly in recent reports after a period of stagnation, WNPR reported recently.

Heather Ziegler, managing partner for Deloitte in Stamford, told WNPR that in her view the state is doing some things right, like encouraging high technology industries and fostering entrepreneurship. "But what I think is most effective, and one of the challenges at the same time," she told WNPR, "is getting individuals with the right skill sets interested in staying in the area and staying in Connecticut, versus moving on to the larger metropolitan areas that we are right between."

Millennials are already in a tough situation – they’re better educated, yet earning less than their counterparts in 1990, points out Christine Schilke of Young Energetic Solutions (YES CT), a statewide initiative seeking to empower young people to create a vibrant Connecticut.  She indicates that “while 28% of millennials hold bachelor’s degrees compared to 24% in 1990, only 67% are employed, compared to 74% two decades ago.  Those who are working earn an average $40,849, versus $46,569 by their predecessors.”

“Today’s millennials,” Schilke adds, “are also burdened with college debt, and are less likely to be married, live alone or drive. Adding to these challenges is the fact that Connecticut has some of the highest homeownership and rental costs in the nation (6^th and 8^th most expensive, respectively), creating a tough living environment for today’s young adults.”

Nationwide, according to a recent Gallup poll, six in 10 millennials say they're open to different job opportunities, and only 50% plan to be with their company one year from now. Millennials are cracking under the weight of too much debt, according to Merrill Lynch's 2016 Workplace Benefits Report, which points out that only 24% of millennials surveyed say that they are in control of their finances.

Technology is the primary facilitator of millennials' job research: 81% of millennials indicate that they view the websites of organizations they're interested in, and a majority (62%) report that they conduct a general web search to learn about job opportunities, Gallup reports.

Not surprisingly, “millennials are extremely digitally connected, and smartphones have become a ubiquitous accessory for them.” Gallup found that 91% of millennials owned smartphones in 2013, compared with 83% of those in older generations. And compared with other generations, millennials are:

• almost 40% more likely to say they sent or read email messages "a lot" within the past day
• 2.5 times more likely to say they posted or read messages on Facebook, Instagram or another social media site "a lot" within the past day
• 11 times more likely to say they used Twitter, including posting or reading tweets, "a lot" within the past day
• more than 2.5 times more likely to say they sent or read text messages "a lot" within the past day

To attract the best workers, Gallup suggests, “organizations need brand strategies that account for millennials' motivation and ability to find the best employers -- especially considering that millennials currently make up 38% of the U.S. workforce, and some estimate that they will make up as much as 75% of it by 2025.”

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