Soda Tax Won't Hurt Job Prospects, Tobacco Tax Offers Preview, New Studies Find

As the Connecticut legislature considers a proposal to implement a 2 percent tax on sodas, proposed by Senate Majority Leader Martin Looney at the suggestion of New Haven Mayor and former state senator Toni Harp, two new academic studies challenge the beverage industry’s view that state and local taxes on sugary drinks will hurt employment, and offer suggestions to policy makers based on the tobacco tax experience.

Harp has said the soda tax would discourage consumption of the sugary beverages – part of her campaign to combat obesity - and bring in an estimated $144 million in revenue for the state each year. It would tax all beverages “high in calories or sugar” by two percent, but does not specify how many calories or grams of sugar would trigger the tax.

The studies, appearing in the February and March issues of the American Journal of Public Health, argue, in one case, that claims of employment losses are off base because they focus only on the effects within the industry, ignoring the economic activity that comes with people substituting lower-priced goods for more expensive products as well as new spending from tax revenues.  The other study says that tobacco taxes offer a how-to road map for policy makers.

The study to be published in March, led by Jennifer L. Pomeranz, JD, MPH, while at the Yale Rudd Center for Food Policy and Obesity at Yale University, uses as its premise that “excise taxes on sugary beverages have been proposed as a method to replicate the public health success of tobacco control and to generate revenue.”

“Sugary Beverage Tax Policy: Lessons Learned from Tobacco”  indicates that “as policymakers increase efforts to pass sugary beverage taxes, they can anticipate that manufacturers will emulate the strategies employed by tobacco companies in their attempts to counteract the impact of such taxes.”  Pomeranz suggests that “policymakers should therefore consider two complementary laws—minimum price laws and prohibitions on coupons and discounting—to accomplish the intended price increase.”

Researchers at the University of Illinois, in a just-published study in the February issue of American Journal of Public Health, found that a 20 percent increase on the price of sugar-sweetened beverages would have an overall positive impact on the labor market.

The American Beverage Association has traditionally argued that manufacturers, distributors and small business owners, particularly grocers and convenience store proprietors, would suffer were soda taxes to be imposed, but the study says that’s not likely.

In recent years, proposals to tax those beverages fell short in California, Vermont, Hawaii, Massachusetts, Mississippi, New York and Rhode Island, Governing magazine reported.  In Maine voters passed a soda tax of 42 cents per gallon in 2008 but repealed it two years later amid a major lobbying effort from the American Beverage Association. Voters in Washington state similarly reversed their legislature in 2010.  As of the end of state legislative sessions in 2011, Governing reported, only four states had taxes specifically targeting sugary beverages, including Arkansas, Tennessee, Virginia, and West Virginia, according to the Tax Foundation.

In the study published this month, researchers ran a simulation of the impact of 20-percent soda tax in Illinois and California—selected for regional differences—and found slight employment increases would occur, but the net effect would be close to nothing. They found that people choose to spend their money on other things, not to forego spending entirely, and that employment gains in other sectors of the economy far outweigh the job losses for soda makers, National Journal reported.

“We find there are losses in the beverage industry, but when you’re talking about the whole economy suffering job losses, you can’t just talk about your own industry,” Lisa Powell, health policy professor at the University of Illinois at Chicago and the study’s lead author, told National Journal. “Using job loss as a scare tactic for the economy overall is misleading.”

Public health advocates have warned of a link between added sugar and illnesses ranging  from Type 2 diabetes and obesity to heart disease and osteoporosis. The caloric intake of sugary beverages increased dramatically from 1988 to the mid 2000s, though consumption has dropped across all age groups in recent years, Governing reported, with some citing the increased public attraction to teas and other beverages.  Like Harp and Looney in Connecticut, some elected officials around the country have proposed raising taxes on sugary drinks in order to reduce consumption.  The New Haven Register reported that Harp has pointed out that revenue from the cigarette tax has decreased, showing that the effectiveness of a tax in reducing consumption.

Pomeranz is a public health law and policy researcher focusing on marketing, labeling and youth access issues related to food and beverages, over-the-counter diet drugs, and dietary supplements, publishing on topics including discrimination, the First Amendment, public health preemption, and innovative regulatory strategies to address public health problems such as obesity. She is Assistant Professor at the Center for Obesity Research and Education in the Department of Public Health and at the College of Health Professionals and Social Work at Temple University, having served previously as Director of Legal Initiatives at the Yale Rudd Center for Food Policy & Obesity.  She is currently the Policy Chair of the Health Law Section of the American Public Health Association and the official liaison between the American Academy of Pediatrics and the American Public Health Association.

Lisa Powell is a Senior Research Scientist in the Institute for Health Research and Policy and Research Professor in the Department of Economics at the University of Illinois at Chicago. She has extensive experience as an applied micro-economist in the empirical analysis of the effects of public policy on a series of behavioral outcomes.

A 2011 study by the Yale Rudd Center for Food Policy & Obesity found that young people are being exposed to a massive amount of marketing for sugary drinks, such as full-calorie soda, sports drinks, energy drinks, and fruit drinks.  The study, described as the most comprehensive and science-based assessment of sugary drink nutrition and marketing ever conducted, found that companies were marketing sugary drinks targeting young people, especially black and Hispanic youth.

Drive for More Electric Vehicles Continues to Gain Support, Funding in CT

The advance of electric cars continues, as does Connecticut’s encouragement of the trend.

The Connecticut Department of Energy and Environmental Protection (DEEP) and the Connecticut Automotive Retailers Association (CARA) will recognize state automobile dealers who sell or lease the highest number of electric vehicles (EVs) between February 1 and July 31, 2014 with the first ever “Connecticut Revolutionary Dealer Award.”  One award will be presented to the dealer that sells or leases the highest number of new EVs – including plug-in hybrids – and the other will go to the dealer who sells or leases the most EVs as a percentage of total sales during the period.

The announcement this week follows by just a few months the agreement by eight states representing nearly a quarter of U.S. auto sales – including Connecticut - to promote infrastructure and take other steps to increase the number of electric- and hydrogen-fueled cars, trucks and buses on the roads. The states involved are Connecticut, California, New York, Maryland, Massachusetts, Oregon, Rhode Island and Vermont.

By developing standards for charging stations, expanding financial incentives to buy the cars and lowering consumer electric rates, the states hope to make the vehicles more appealing, The goal is 3.3 million non-polluting cars on the road by 2025. Zero-emission vehicles include battery-electric vehicles and hydrogen fuel-cell-electric vehicles

State Funding Leads to More Charging Stations

State officials said that Connecticut is leading the nation in developing ways to encourage residents and businesses to buy electric and other zero-emission vehicles when making transportation purchases.  Since July 2013, the state has provided $177,600 to 48 towns, businesses, and schools to build 75 electric vehicle charging stations throughout the state.  It is estimated there are already more than 164 publicly available charging stations in Connecticut, including many located at auto dealers.

The Department of Energy and Environmental Protection provides an up-to-date list of all the charging stations in Connecticut, as well as those near the state’s border in neighboring states.  Just over 50 of Connecticut’s 169 communities have at least one charging station.  Both Hartford and New Haven each have nine stations. Stamford has six, Bridgeport has one, Waterbury has none, according to the January 2014 data from DEEP.

Nationally, automakers are under pressure from the federal government to increase the average mileage of the vehicles they sell. Zero-emission vehicles are also supposed to make up at least 15% of sales by 2025. The Electric Drive Transportation Association told CNN Money said the market for electric and hybrid vehicles is growing steadily, especially as word of mouth spreads from satisfied customers.

 Electric vehicles are “a ‘win-win’ for our state because they can cut costs for motorists while improving our environment and public health,” said interim DEEP Commissioner Ronald Klee.  “Cars and trucks burning gasoline and diesel are one of the largest sources of harmful air pollution and greenhouse gases that contribute to climate change.” Expanding the number of publicly available charging stations in Connecticut is critical to meeting the goals of the eight-state agreement.”

Electric cars are powered entirely by an electric motor supplied by a large battery.  Unlike traditional hybrid cars, electric cars do not have a gasoline engine; they are “fueled” by plugging into an electric charging station.  A plug-in hybrid electric vehicle has an electric motor, an internal combustion engine and a plug to connect to the electrical grid.

The Connecticut Automotive Retailers Association is a statewide trade association representing over 250 franchised new car and truck dealerships primarily engaged in the retail sale of new and used motor vehicles, both foreign and domestically produced.

Last fall, Luis Ramírez, CEO of GE Energy Industrial Solutions joined Governor Malloy in unveiling the GE Electric Vehicle (EV) Solar Carport in Plainville.  The project, one of the most expansive undertakings of its type in North America, uses GE’s new smart EV Charging Stations to charge electric vehicles.  DEEP’s stated goal, former Commissioner Dan Esty said at the time, is to provide “publicly accessible EV charging stations within a 15-minute driving radius of any location in Connecticut.”

U.S. electric car sales have more than tripled from 17,000 in 2011 to 52,000 in 2012, according to data from the DEEP. Motorists bought more than 40,000 plug-in cars in the first six months of 2013, the most recent data available.

State's Public Transportation Commission Calls for Service Improvements, Safeguards to Transit Fund

With the start of the legislative session, one of the many reports landing on legislators desks include a series of six recommendations for improving public transportation services, developed by the Connecticut Public Transportation Commission and outlined in their recently released 2013 Annual Report. The recommendations, according to Chair Kevin Maloney, “do not call for any major new State-funded initiatives, though some of the recommendations would require incremental expenditures to current projects or services.”

The Commission, a 14-member advisory body comprised of gubernatorial and legislative appointees, and including members from industry and the public, developed the recommendations following seven public hearings in Norwalk, Putnam, Bristol, Orange, New Milford, Enfield and New London, and monthly meetings throughout the year.  The Commission:

1.  Strongly supports efforts to safeguard the Special Transportation Fund, stating that resources of the fund “must be reserved to address the needs of Connecticut’s roads, bridges and transit systems.”  The report noted that:

• transfer of Fund monies to the General Fund deprives Connecticut’s infrastructure and services of these much-needed resources
• the transfer of Fund monies violates the trust that the Special Transportation Fund’s supporting revenues and user fees will benefit the transportation services and facilities upon which those who pay the gas tax, gross receipts tax, fares and license and permit fees rely
•  “the continued deferred investment in our transportation infrastructure that the diversion of Special Transportation Fund resources causes will erode Connecticut’s attractiveness and make it harder to compete with other states for businesses and residents”

2. Recommends sustained support for adequate for the continued operation and growth of the Coastal Link bus service, operated by Greater Bridgeport Transit, Norwalk Transit and Milford Transit along the Route 1 corridor, be provided. The line – which the report describes as “highly successful” and “perpetually in jeopardy” due to insufficient funding - carries over 4,000 passengers per weekday and over 1.2 million passengers annually, and the buses running this service are frequently at or above capacity with some occurrences where riders must be turned away.  “At a minimum,” the report recommends, “additional investment of state funds would be required to support additional buses to provide a consistent level of services and improve service quality.”

3. Commends ConnDOT for restoring funds to the Municipal Dial-A-Ride program – a “much needed program” that provides mobility to seniors and persons with disabilities across the state, and is “especially important to small rural communities.”  Funding had been reduced by 25 percent in 2011, which was restored in the FY2014 state budget, according to the report.  Approximately 130 municipalities apply for program funds each year.  The report notes that Connecticut is the seventh oldest state in the nation, with the over 65 population projected to grow by 64 percent by 2030. 

4. Encourages ConnDOT to apply the techniques used to inform the public about the progress and projected benefits of CT FastTrak (previously known as the Hartford-New Britain Busway) with information on other high profile projects such as the Stamford Transportation Center.   The report states that a “more vigorous and pro-active outreach effort...may pay dividends in lessening political headwinds and gain public support for these projects.”   Such actions “for other major transit projects such as the New Haven-Hartford-Springfield commuter rail service would also serve both ConnDOT’s and the public’s interests.”

5.  Urges State cooperation with an on-going effort by the Housatonic Railroad to develop a privately-run, unsubsidized passenger rail service between Danbury and Pittsfield.  With the commitment by Massachusetts of substantial funding for that state’s portion of the project, this proposal is starting to gain some momentum, the report indicates.

6.  Recommends “more effective dissemination of information about new and existing transit services,” recognizing that “the public does not have sufficient awareness of and information about existing transportation services to take full advantage of these services.”  The Commission indicated that this was a “recurring theme” at the Commission’s public hearings, and called for both high-tech and low-tech solutions.  The report noted that “addressing this need can be challenging,” because “ConnDOT has no dedicated marketing staff and no marketing budget,” and “marketing for individual services is often sporadic and inconsistent.” 

Additional topics were noted in the Annual Report as a result of issues raised during public testimony, including:

• the increasing popularity of cycling and the resulting demand for more bicycle amenities and facilities,
• the desire of several smaller transit districts to implement designated and signed bus stops to increase system visibility and assist their riders,
• the need for better communication on train platforms to alert riders as to which track an arriving train will be using,
• the increasing demand for inter-regional bus services, repeated accounts of train fares going uncollected, and
• the demand for bus and rail services which cross Connecticut’s boundaries into adjacent states.

The Commission is chaired by Kevin Maloney, President/CEO of Northeast Express Transportation, Inc. which operates NEXTAir, NEXTCourier and NEXTDistribution.  Commission members include Christopher Adams, Richard Carpenter, Morton Katz, William Kelaher, Yvonne Loteczka, Kevin Maloney, Edward McAnaney, Robert Rodman, Kiernan Ryan, Russell St. John, Richard Schreiner, Richard Sunderhauf, Alan Sylvestre, and John Zelinsky.  Among the ex-officio members are DOT Commissioner James Redeker, Sen. Andrew Maynard and Rep. Antonio Guerrera.

The Commission continues to meet monthly in accordance with state statute, with the next meeting scheduled for March 6 at New Haven’s Union Station.

Connecticut Talks Issues at Forums, Conferences Across State

The Connecticut legislature, now underway for 2014, is not the only place for conversation on key issues impacting Connecticut.  A range of news organizations, nonprofits, associations and community-based groups are sponsoring forums, summits and sessions to better-inform the public and bring interest and attention to specific issues.  Among them:

February 10  - Hartford’s Edgy Arts, Mark Twain House & Museum

The Hartford area attracts an array of creative people from actors to musicians, poets to painters.  What is it that so draws artists?  What to they need to flourish here?  A discussion of the creative economy, in the Capitol City.  Refreshments at 5:30; panel discussion at 6:15.  Advance articles published in The Hartford Courant; a program of Hartford Young Professionals & Entrepreneurs (HYPE), FOX Connecticut and The Hartford Courant.

February 20 - Pay-for-Success Informational Conference, Legislative Office Building

National leaders from the emerging field of Pay for Success will be speaking, with a focus on three key elements: 1) Offering high-quality preventative services; 2) Requiring rigorous measurement of results; and 3) Capturing savings or avoided costs. The 2014 Pay-for-Success (PFS) Informational Conference, 10:00-12:30 PM, will offer interested stakeholders the chance to discuss the field with leaders from around the country, while hearing about projects underway in the areas of early childhood, juvenile recidivism, health care and workforce development.  Sponsoring organizations include BlumShapiro, Connecticut Institute for the 21^st Century, Capitol Region Council of Governments, Connecticut Center for Social Innovation, Community Impact Strategies Ltd, and Connecticut Association for Human Services.

February 24 -  The Knowledge Economy; Connecticut Conference of Independent Colleges, CT Mirror, Quinnipiac University

Connecticut is home to almost 50 colleges and universities and has created an industry in surrounding towns and cities. What is expected as we continue into the 21st Century? Join the Connecticut Conference of Independent Colleges and The Connecticut Mirror in the lively discussion, "The Knowledge Economy," on Monday, Feb. 24 , from 7-9 p.m., in the auditorium at the Quinnipiac University Frank H. Netter MD School of Medicine. This event is free and open to the public. No registration is necessary.  Panelists include Sal Filardi - Vice President, Facilities & Capital Planning, Quinnipiac University; Rich Jacob - Vice President for Federal and State Relations, Yale University; Todd Andrews - Vice President for Economic & Strategic Development, Goodwin College and Jeff Seemann - Vice President for Research, UCONN.

February 26 - Vital Voices in Entrepreneurship, Goodwin College

A special speaker series focused on the first-hand perspectives of leaders making a mark in business and the community. The next event at Goodwin College's Community Room on February 26 will feature Stew Leonard, Jr., President and Chief Executive Officer of the unique, family-owned and operated farm fresh stores, Stew Leonard's. The keynote address will commence at 6:00 p.m., preceded by a networking reception at 5:00 p.m. with wine, beer and hors d'oeuvres.

February 28 – Retrofitting Our Towns:  Can We Add Density, Affordability and Walk-ability to Help Municipalities Survive…And Thrive?  The Lyceum, Hartford

Can suburbs and smaller towns reshape and respond to the demographic, economic and lifestyle pressures of the 21^st Century?  One of the nation’s leading experts – Lynn Richards of the EPA Office of Smart Growth – assesses four Connecticut municipalities and offers lessons for all the others.  Program 9:00-111:00 AM.  Sponsored by the Connecticut Main Street Center, Partnership for Strong Communities and the American Planning Association - Connecticut.

March  7  - An Honest Look at Mental Illness, Connecticut Forum, The Bushnell

The Connecticut Forum presents a conversation about perceptions, realities, and what it’s like to work and live with the stigma of mental illness.  Panelists include journalist and mental health advocate Andrew Solomon, Dr. Hank Schwartz, Chief of Psychiatry at Hartford’s Institute of Living, former NBA player Royce White and bipolar disorder authority Dr. Kay Redfield Jamison.   Founded in 1992, The Connecticut Forum is a one-of-a-kind 501(c)(3) nonprofit organization serving Connecticut and beyond with live, unscripted panel discussions among renowned experts and celebrities, and community outreach programs including the award-winning Connecticut Youth Forum.

March 14 – Hartford Business Journal Municipal Collaboration Summit, Goodwin College

An opportunity to learn about the benefits of collaboration which save money and leverage the purchases and agreements for towns.  The event will highlight people that are already implementing positive changes.   Panel discussions, workshops and Q&A with key leaders and a panel of experts.

March 26 - Student Debt and Financial Aid: What (if anything) can we do?, Southern Connecticut State University

Sponsored by the Center for Higher Education Retention Excellence, 9AM-3PM, at Southern Connecticut State University, featuring Sandy Baum, Research Professor of Education at the George Washington School of Education and Human Development and Senior Fellow at the Urban Institute, and  panel of Connecticut financial aid directors (representing a public university, community college and private college) and a student panel.  Registration now available; limit 75 attendees.

From Connecticut, Only Hartford Region Reaches Top 50 Best Cities for Job Growth

The rankings of Best Cities for Job Growth don’t place Connecticut’s major metropolitan areas  within reach of the top of the list.

Among the nation’s large-sized cities, "Hartford-West Hartford-East Hartford" made the top 50, ranking at #47 in the latest list from the website newgeography.com.  Leading the 2013 list were metropolitan San Francisco, greater Nashville, and Salt Lake City.  The rankings used four measures of growth to rank all 398 metro areas for which full data sets were available from the past 10 years.  The Hartford region dropped four slots from the 2012 rankings.

New Haven ranked at #65 among the medium-sized cities, just behind Fresno, California and Scranton-Wilkes-Barre, Pennsylvania.  Leading the list were Boulder, Colorado and Provo-Orem, Utah.  The highest ranked New England community was Framingham, Massachusetts, at #30.  The only other city from the region to reach the list was Springfield, Massachusetts, at #91. 

Among the leading Small Cities, Danbury was the highest ranked in Connecticut at #111, with Waterbury at #223, and Norwich-New London at  #233, on a list of 241 small cities.  Topping the list were Midland and Odessa, Texas followed by Columbus, Indiana; Cleveland, Tennessee; San Angelo, Texas and Owensboro, Kentucky.

"Large" areas include those with a current non-farm employment base of at least 450,000 jobs. "Midsize" areas range from 150,000 to 450,000 jobs. "Small" areas have as many as 150,000 jobs. The rankings reflect the current size of each MSA’s employment. Only two MSAs changed size categories, with Honolulu, HI moving from “Midsized” to “Large” and Savannah, GA moving from “Small” to “Midsized.”

In the overall rankings, Bridgeport-Stamford-Norwalk was #348, Waterbury ranked #380, and Hartford placed at #229.  All the leading Connecticut metropolitan areas dropped in the rankings in 2013, compared with 2012.

NewGeography.com, based in North Dakota and California, is a site devoted to analyzing and discussing “the places where we live and work.”   It includes “insights on economic development, metropolitan demographics, and community leadership.” 

The index is calculated from a normalized, weighted summary of: 1) recent growth trend: the current and prior year's employment growth rates, with the current year emphasized (two points); 2) mid-term growth: the average annual 2007-2012 growth rate (two points); 3) long-term trend and momentum: the sum of the 2007-2012 and 2001-2006 employment growth rates multiplied by the ratio of the 2001-2006 growth rate over the 2007-2012 growth rate (two points); and 4) current year growth (one point). The rankings include all of the metropolitan statistical areas (MSAs) for which the Bureau of Labor Statistics reports monthly employment data.

newgeography.com Executive Editor Joel Kotkin is distinguished Presidential Fellow in Urban Futures at Chapman University in Orange, CA and an adjunct fellow with the Legatum Institute in London. He is author of seven books including his most recent, The Next Hundred Million: America in 2050 from Penguin Press and is affiliated with the Praxis Strategy Group and the Center for an Urban Future.

Volatility Seen by High Net Worth Investors; Connecticut Views Differ From Region, Nation

Connecticut’s high net worth investors, coming off a year of substantial profits from Wall Street, remain optimistic, if cautious, about 2014.  There are, however, distinct differences in how and where they view investment opportunities, as compared with investors nationwide, and even compared with those in neighboring New York and New Jersey.

A newly released survey conducted for Morgan Stanley Wealth Management, found that high net worth investors – those with $100,000 or more in investable household financial assets – were both realistic and optimistic about the immediate investment horizon, according to Bradley Barber, Executive Director and Family Wealth Director for Morgan Stanley Wealth Management serving coastal Connecticut, based in Greenwich.

The survey reflects “cautious optimism,” Barker said, indicating that investors understand that the 30 percent returns of 2013 are not likely to be repeated this year, but that potential remains for solid gains.  “It’s a time to navigate the waters, not pull in the oars,” Barber told Connecticut by the Numbers.  “It is a market of stocks, not a stock market.  The high net worth investors surveyed were prescient about the volatility in the market we’ve seen since the first of the year.”

In the New York-New Jersey-Connecticut region, 86 percent of high net worth individuals said they expect their investment portfolios to be “better” or “the same” at year-end, and 84 percent believe their financial well-being will be the same or better.  At the same time, three-quarters of respondents said they were concerned about stock market volatility.  Among the top concerns of investors in the region are U.S. economic prospects (86%) and the federal budget deficit (83%).

Views on Industry Investment Potential Vary

There were also marked differences in the perceptions of investment potential for various sectors of the economy.  Those most favored as “good” investments nationally were technology (79% nationally, 72% in CT), energy (77% nationally, 66% in CT), bio-technology (63% nationally, 67% in CT), and pharmaceuticals (56% nationally, 61% in CT).  Connecticut policy makers have devoted financial resources to strengthening the state’s bio-technology industry in recent years, which may have contributed to the stronger upbeat attitudes here towards the sector as an attractive investment option.

The rocky national roll-out of the affordable health care act, and its comparatively smooth path in Connecticut, may also have been reflected in the survey findings.  Unlike the national results, those surveyed in the tri-state area viewed healthcare among the favored sectors for 2014 - 55% “good” in the tri-state region vs. only 45% nationally.

Other industry sectors that have a strong presence in the state and region, however, did not fare as well.  Aerospace was seen as a “good” investment choice by only 25 percent of those surveyed, both nationally and in the tri-state region.  Insurance was viewed favorably by only 30 percent of high net worth investors, both in the region and nationwide.  Those numbers, Barber said, should be “concerning” for Connecticut’s economic prospects.

Factors Close to Home of Greater Concern

Overall, the survey indicates that Connecticut’s high net worth investors have more concerns about internal factors, while New York residents expressed greater concerns regarding external factors, such as the possibility of terrorism or foreign entanglements.  Connecticut investors were more concerned than their regional and national counterparts with regard to their families’ financial well-being or the ability to have sufficient funds to retire in their region of the country.  While 53 percent of those in Atlanta and 59 percent nationally expressed concern over their families financial well-being, in the tri-state region seven in ten (70%) expressed that concern, with the highest numbers in the region in Connecticut.

Connecticut’s high net worth investors, Barber said, are a savvy lot, reflecting greater knowledge of investments than the national numbers reflect, yet more than 7 in 10 say they consult financial professionals.  Another clear distinction came in the percentage of investors who said dividend-bearing stocks are a good investment:  49 percent nationally, 61 percent in the tri-state area, and 71 percent in Connecticut.  “There are clear indications that Connecticut’s high net worth investors are focused on opportunity,” Barber said.

High net worth investors, overall, are bullish on America.  In the tri-state region 61 percent of those polled said the U.S. was their first choice for a positive investment outlook for 2014, even higher than the 52 percent who expressed that view nationally. There were also differences across the country in the issues of particular concern to high net worth investors.  Regarding terrorism, 82 percent in the tri-state area, 66 percent in San Francisco and 63 percent in Denver indicated concerns, for example.

As part of the national survey of 1,004 US investors, age 25 to 75, with $100,000 or more in investable household financial assets, an oversample of about 300 tri-state area investors were interviewed. Approximately one-third of those interviewed had $1 million or more in household financial assets. The poll, released on January 29, 2014, was conducted October through December 2013, by GfK Public Affairs and Morgan Stanley Corporate Communications.

Morgan Stanley Wealth Management provides access to a wide range of products and services to individuals, businesses and institutions, including brokerage and investment advisory services, financial and wealth planning, banking and lending, cash management, annuities and insurance, retirement and trust services.

Whalers Return to Connecticut - On Lottery Tickets

If you’re wondering why you’re seeing and hearing more advertising featuring the logo and theme song of the defunct Hartford Whalers than the tryin’-to-survive Hartford Wolf Pack, the Connecticut Lottery is the reason.

The lottery is in the midst of a very visible media campaign prominently featuring the sound of “Brass Bonanza,” the former team’s distinctive anthem, and a computer animated rink with the Whalers logo glistening at center ice.

The television and web promotions for the scratch tickets come, coincidentally, as Gov. Dannel Malloy indicated in recent weeks that he’s spoken with “at least two groups” that are interested in acquiring an NHL team about the possibility of relocating or expanding to Hartford.

The Whalers were moved by their owner to North Carolina in 1997, despite solid attendance and a successful season ticket sale drive, after two decades in the World Hockey Association and the National Hockey League, first in Boston, then Hartford.

Last month, the State Bond Commission approved funds for improvements at the 34-year-old XL Center (formerly the Hartford Civic Center, rebuilt after a roof collapse three decades ago). Improvements will include an upgraded videoboard, a new fan club area, renovated bathrooms, concession stand upgrades, a new bar area within the arena bowl, renovated locker rooms and improvements in handicap accessibility. Construction is expected to take place in the summer and be completed by the start of the 2014-15 hockey season.

The CT Lottery received permission to use the Whalers logo for this promotion from the National Hockey League (NHL), which retains rights to the logo.  The scratch game tickets cost $3 and the maximum winning prize is $30,000.  It is anticipated that 1,200,000 tickets will be sold, and the overall odds of winning a monetary prize is 1 in 3.67.  The game launched at the start of the hockey season last fall, and will continue “until the last top prize in the game is claimed” according to lottery officials.

As of last Friday, there remained two $30,000 winning tickets, 15 tickets with  a prize amount of $1,979, 105 tickets worth $500, and 300 tickets worth $250 yet to be claimed.  More than 7,500 winning tickets between $25 and $100 have also yet to be claimed.

The CT Lottery's use of the Hartford Whalers® logo is a first for Connecticut, according to lottery officials  Other CT Lottery sports branded scratch tickets have included the NY Giants®, NY Yankees® and the Boston Red Sox®.  The last time that the Whalers were front and center on a CT Lottery ticket was in 1992, when the team was still in town.  At the time, “Whalers Power Play” tickets cost $1, with prizes ranging from  $2 to $1,000, including some drawings between periods at Whalers games.

“I have encouraged at least two groups that have expressed interest in acquiring a team to do so and that we would be active participants should they acquire a team and win the rights to that team,” Malloy said last month.  In the meantime, die-hard Whalers fans in Connecticut can buy lottery tickets - as they hope that an even bigger bonanza is in the cards.

A Merger, A Name Change, and A Partnership: Chambers of Commerce Realign

There’s some movement among business associations in the Land of Steady Habits, with economic realities driving a new merger, a name change, and a partnership.

The Guilford and Branford Chambers of Commerce have merged, effective on New Year’s Day.  The new merged entity is called the Shoreline Chamber of Commerce - Guilford/Branford Alliance.  The merger was approved by the Boards of Directors and membership of both organizations in recent weeks. 

At a Special Meeting earlier this month, the membership of the Greater Meriden Chamber of Commerce voted to change the organization’s name to Midstate Chamber of Commerce.  Meriden Chamber President Sean W. Moore, said that “Midstate Chamber of Commerce reflects the inclusivity of this chamber’s membership throughout the central Connecticut region and reaffirms our commitment to ALL of the businesses and communities we serve.”

While not “official” until March 1, members and the communities can start to see changes as soon as next week.  A new website, www.midstatechamber.com, will transition from the existing website in the coming weeks.  The Chamber has more than 550 members.

The Middletown-based Middlesex County Chamber of Commerce remains by far the state’s largest, with over 2,350 members that employ over 50,000 people.  The organization, led by longtime President Larry McHugh, “strives to be the voice of business in Middlesex County and the surrounding area,” according to its website.

In the Guilford-Branford merger, the plan calls for the board of directors of the two corporations to merge into one board containing up to 37 members. As terms of directors expire, the number of directors will be reduced to no more than 21, with up to 7 selected from Branford, up to 7 selected from Guilford, and up to 7 selected from the entire membership.  The merged organization will have an office in each town.

Guilford has 320 members and Branford has about 350.  The first event of the joint organization will be a Business After Hours networking event on January 28 at Page Hardware & Appliance in Guilford.  It is co-hosted by Bailey, Murphy and Scarano, a CPA firm in Branford.  A logo for the newly merged association has yet to be unveiled.

A statement by the organization pointed out that “this proactive move will allow members to double their audience, double their market and provide enhanced networking opportunities.” The websites of the former Branford and Guilford websites are still active, and announcing the merger.  Among the advantages cited are:

•  Increased marketing and promotional opportunities through distribution of publications, website visits and email communications
• Better educational programs for professional development
• More signature events to attend and potentially sponsor as each town and chamber will continue and maintain this type of event
• Two Shoreline Locations along with a larger staff to assist business
• Larger social media presence and website traffic to membership pages
• Opportunity to re-brand as a member of  a larger more influential 650-member chamber
• Eventual gain of resources through economies of scale, allowing more money to go directly to member services
• Enhanced technology for website referrals and member services

Janet Testa, executive director for the Guilford Chamber, told the New Haven Register that 99 percent of members wanted the merger. She said her organization is always looking for ways to serve its members by “joining forces” with others. Ed Lazarus, president of the Branford Chamber, believes combining the chambers will benefit both communities. “Businesses will be represented the way they’re used to but with a combined staff,” the Register reported.

It is not the first Chamber merger in Connecticut.  In 1989, the North Haven Chamber joined the Wallingford Chamber to form the Quinnipiac Chamber of Commerce.  That business association has grown to more than 700 members.

Last fall the Greater New Haven Chamber of Commerce (GNHCC) and The Quinnipiac Chamber of Commerce announced the formation of a strategic affiliation between the two organizations, “creating a stronger, more streamlined collaboration that will work together to move the region forward.” As of October 15, 2013, the Greater New Haven Chamber and the Quinnipiac Chamber began to “officially collaborate on all aspects of their respective organizations, while continuing to operate as separate business units in separate office locations.”

In 2003, the Central Connecticut Chambers of Commerce was formed around the Bristol Chamber of Commerce, “in an effort to expand the area it benefited and to enable the Chamber to assist more members. This allowed the Chamber to expand from covering just Bristol to the entire Central Connecticut region,” the website points out.  The Central Connecticut Chambers – with a combined membership of approximately 1800 - is composed of several affiliate chambers including those of Bristol, Bloomfield , Burlington, Farmington, Plymouth/Terryville and Wolcott.

In terms of membership numbers, after the Middlesex Chamber and Central Connecticut Chambers, the next largest are the Chamber of Commerce of Eastern Connecticut, with 1,600 members; the Northwest Connecticut Chamber of Commerce, with 730 members; and the Quinnipiac Chamber of Commerce.  The MetroHartford Alliance is #6, with 600 members (although it may now be eclipsed by the newly combined Shoreline Chamber), followed by chambers from Greater Southington  (590 members), Greater Manchester, Greater Meriden and Glastonbury (each with approximately 550 members) and West Hartford, approaching 500 member businesses.

Nonprofit Seeks Support for STEM Mentoring Initiative Focused on Women, Underserved

It is, after all, National Mentoring Month.  It makes perfect sense, therefore, for a fledgling Connecticut-based nonprofit devoted to mentoring young women and students of color to increase their presence in the STEM fields (science, technology, engineering and math) to launch a fundraising initiative.

ManyMentors, a nonprofit that promotes peer mentoring to increase the interest, pursuit and attainment of STEM degrees among underrepresented students, has kicked-off an Indiegogo crowdraising campaign aimed at supporting the development of “the world’s first mobile mentoring app and complementary online platform,” according to the campaign’s website. 

Online contributions will also support the ongoing outreach and advocacy activities of ManyMentors in Connecticut, and support outreach activities planned for establishment of student chapters at universities nationwide.  The fundraising initiative runs through February 10, 2014.

The organization’s website notes that “of the 20 fastest growing occupations projected for 2014, 15 of them require significant mathematics or science preparation.”  The nonprofit hopes to “make STEM mentoring more mainstream among middle and high school students, college and graduate students, as well as working professional.”  As their slogan emphasizes, “If they never know, they will never go!”

Keshia Ashe, co-founder and CEO of ManyMentors, gave a well-received TEDx talk in Springfield, MA last fall about the important role of mentors and role models to encourage our young people to pursue degrees and careers in STEM. Keshia Ashe is a University of Virginia alumna, and current Ph.D. candidate in Chemical Engineering at the University of Connecticut. Since the age of 11 she has been actively involved in several youth-serving groups and advisory boards, and has had many opportunities to travel nationally and internationally as a speaker and trainer.

The ManyMentors program primarily serves middle and high school students located in the state of Connecticut. The organization currently implements onsite mentoring opportunities with local community partners, and is piloting the mobile mentoring with a select number of mentor/mentee pairs.  Supporting organizations of ManyMentors include the CBIA Education Foundation, Granville Academy of Waterbury, and CPEP (Catalysts Powering Educational Performance).

Tiffany St. Bernard, the co-founder and Chief Operating Officer of ManyMentors, is a University of Connecticut alumna, and current Ph.D. student in Genetics at Cornell University. She is passionate about ManyMentors because she has experienced first-hand the positive benefits of having many mentors guide her through academic life, beginning during her years at Tunxis Community College.

Using social networking, ManyMentors aims to connect students from a wide variety of academic and ethic backgrounds with the hopes that these relationships will stimulate, sustain, and support students’ interest in, pursuit, and attainment of STEM degrees.

Among the upcoming activities ManyMentors is sponsoring this year are a series of “STEMinars” at UConn, beginning in February, aimed at “Preparing Tomorrow's Female STEM workforce, Today.”  The sessions are designed to “increase awareness of female STEM workplace issues by being exposed to female STEM professionals who will discuss topics such as career placement basics, salary and promotions, communication, creating support groups, being culturally aware, finding a work/life balance, and appreciating the value of staying true to oneself in male-dominated fields.”

ManyMentors is moving forward with three central efforts:

• Creating partnerships between K-12 students, institutions of higher education and STEM professionals to stimulate and sustain student interest in the STEM fields.
• Selecting college mentors with a vested interest in sharing their best advice, wisdom, and insight to support the academic, professional, and cultural development of their mentees.
• Providing ongoing trainings for mentors to share best practices and cultivate a community of STEMentors.

 Photo:  Keshia Ashe (left) and Tiffany St. Bernard

Pay Inequality Gap Widens in Greater Hartford; 8th Largest in U.S. Since 2008

If you thought the earnings gap between the “have’s” and “have-nots” in the Greater Hartford region has been widening in recent years, new data indicates your impression is correct.  The Hartford-East Hartford-West Hartford region ranks #8 among the nation’s metropolitan areas with the largest widening gap in employee earnings, when comparing those making less than, or more than, $50,000. The data was compiled from the U.S. Bureau of Labor Statistics.

Between 2008 and 2013, the gap in the increase in pay between those earning less than $50,000 and those making more than $50,000 was $5,347 – the eighth largest gap in the nation.  The pay increase for the lower paid employees since 2008 was an average of $44, compared with a $5,391 average increase among those earning more than $50,000.

In analyzing the data, Bloomberg ranked the 49 metro areas with the most employed people on the difference in pay since 2008 between those earning more than $50,000 and those earning $50,000 or less.  Occupations with both annual median pay and total employment numbers were included. On average, more than 500 occupations in each Metropolitan Statistical Area were studied.

The widest gap was in the Washington-Arlington-Alexandria metropolitan area, at $9,603, followed by San Jose-Sunnyvale-Santa Clara at $7,837, and Riverside-San Bernadino-Ontario at $7,065.  Also with a wider gap than the Hartford region were metropolitan Sacramento ($6,368), the New York metropolitan area ($6,243), greater Orlando ($5,895) and metropolitan Oakland ($5,830).

The only big city in the U.S. where the gap between highest and lowest earners has narrowed since 2008 is Memphis, TN.

In the survey methodology, annual pay was employee-weighted and included base salary, cost-of-living allowance, guaranteed pay, hazardous-duty pay and incentive pay - commissions, production bonuses and tips. The analysis was released in December 2013, using the most recent data available.