Neighboring States Bring in Millions in Toll Revenue; CT Remains Toll Free

The Connecticut House of Representatives debated for nearly six hours the issue of reinstating tolls on Connecticut highways, but did not vote.  Connecticut remains a toll-free state, for residents and those driving through the state. How much money might the state receive in toll revenue if tolls were imposed?  The Office of Legislative Research, responding to a legislative inquiry, has surveyed neighboring states and issued a report this past week.

Toll revenue ranged from $20.4 million in FY 16 (Rhode Island) to $1.57 billion in calendar year 2016 (New Jersey), according to the legislature’s research office. In Massachusetts in FY2016, toll revenue was $395 million; in Maine $133.8 million in calendar year 2016; in New Hampshire a total of $130.7 million. 

The New York Thruway Authority and New Jersey Turnpike Authority each collect tolls on their respective highways, the Office of Legislative Research (OLR) report noted. In addition, the Port Authority of New York and New Jersey collects tolls on its bridges and tunnels connecting those two states (the George Washington, Goethals, and Bayonne bridges, the Outerbridge Crossing, and the Lincoln and Holland tunnels). In calendar year 2016, the Port Authority collected $1.86 billion in toll revenue.

Tolls were eliminated by lawmakers more than three decades ago in 1983, following a horrific accident at the then-Stratford toll booths, in which six people were killed. The last Connecticut highway toll was paid at the Charter Oak Bridge in Hartford on April 28, 1989.

In their final year of operation in the mid-‘80’s, Connecticut Turnpike tolls brought the state $56.4 million, the Merritt and Wilbur Cross Parkways 11.3 million, and the three bridges in the Hartford area, $4.7 million, according to a previous OLR report issued in 2009.

Technology, however, has made traditional toll booths obsolete, and Massachusetts recently removed its toll booths, switching to an overhead electronic system – thus maintaining the revenue without extending the dangers and the highway back-ups inherent with the toll plazas.  Connecticut residents driving through Massachusetts on the MassPike have noticed the striking difference.

Despite projections of budget deficits in coming years, the legislature did not vote on imposing tolls as a means of raising revenue this year.    It was estimated that 30 percent of the tolls would be paid by out-of-state drivers and 70 percent by Connecticut residents.  Federal rules require that toll revenue from interstate highways must be used for maintenance or improvements on those highways.  The legislature’s Transportation Committee had voted 19-16 in favor of the tolls bill, which led to the House debate on the proposal.  It was pulled before a vote could be held.

The 2009 OLR Report also noted that according to annual data compiled by the Federal Highway Administration, in 2007 almost 32.5 percent of all the vehicle miles traveled (VMT) in Connecticut occurred on its Interstate highways. Nationally, only 24.4% percent of all VMT occurs on Interstate System. Connecticut's Interstate VMT percentage is higher than many other states, including, at the time, Massachusetts, New York, New Jersey, and Pennsylvania.

The most recent OLR Report did not estimate what Connecticut might earn in toll revenue; it merely reported on the most recent earnings of neighboring states that impose tolls on their major roadways.

CT Ranked 36th in Construction Jobs Added During Past Year

Connecticut ranked 36^th in the nation in the number of construction jobs added between July 2016 and July 2017, one of 36 states (and the District of Columbia) that added construction jobs during the 12-month period. The analysis by the Associated General Contractors of America of Labor Department data found that firms in parts of the country that build infrastructure projects are seeing less demand for their services amid overall declines in public-sector spending. Only 100 construction jobs were added in Connecticut during the past year, moving the states employment level in construction industries from 58,800 to 58,900, reflecting growth of two-tenths of one percent.

“Despite growing private-sector demand, it appears that construction employment in some parts of the country is being brought down by declining public-sector investments,” said Ken Simonson, chief economist for the association.  “Some of these declines will be offset thanks to recently enacted state infrastructure funding increases, but stagnant federal investments are not helping.”

Among the New England states, Rhode Island ranked third in the nation, with a 12-month gain of 12.7 percent, New Hampshire ranked fourth with 11.8 percent growth in construction jobs, and Maine ranked sixth, with a 9.3 percent increase.

California added the most construction jobs (51,000 jobs, 6.6 percent) during the past year. Other states adding a high number of new construction jobs for the past 12 months include Florida (35,800 jobs, 7.5 percent); Louisiana (13,900 jobs, 9.8 percent); Oregon (11,900 jobs, 13.2 percent) and Texas (10,400 jobs, 1.5 percent). Oregon added the highest percentage of new construction jobs during the past year, followed by Nevada (12.8 percent, 9,700 jobs).

Thirteen states and the District of Columbia shed construction jobs between July 2016 and July 2017 while construction employment was unchanged in North Dakota. Iowa lost the highest number of construction jobs  (-4,400 jobs, -5.4 percent), followed by Illinois (-4,300 jobs, -2.0 percent) and North Carolina (-2,500 jobs, -1.2 percent).  South Dakota lost the highest percentage for the year (-5.6 percent, -1,400 jobs) followed by Iowa and Mississippi (-3.9 percent, -1,700 jobs).

Association officials have continued to urge Congress and the administration to make needed new investments in the country’s aging infrastructure to offset declining public-sector investments in construction. In particular, they urged officials to consider including new infrastructure investments as part of a tax reform measures expected this fall, the association indicated in a news release.

State’s Money Woes Earn National Spotlight

The cover of the national magazine depicts a waterfront home in Mystic Seaport, under the headline that reads “The fiscal mess in America’s richest state.”  Connecticut, without an approved state budget for all of July and August and nearly half of September, is earning some notice.  And it is not particularly friendly. The article, in the September issue of Governing, begins with the question, “How could the nation’s wealthiest state become a fiscal basket case?”  The answer is complex, and the magazine devotes a full six pages to walking through how the state got into this mess, and how it might navigate its way out.

Along the way, the magazine suggest that the state “may be too rich for its own good,” pointing out that “long blessed with a disproportionate number of high-income residents, the state has entertained lavish spending habits for decades.” It also cites statistics that underscore the problems and challenges:

• Over the past 20 years, job creation numbers have ranked in the bottom five among the 50 states
• Connecticut has the nation’s second-highest rate of income inequality, after New York
• The state has lost population for three years running
• Last year, Greater Hartford ranked fourth and New Haven fifth in population loss among the nation’s 100 largest metro areas

The ineffective state spending cap, approved by voters more than 20 years ago but routinely circumvented since, is cited as a contributor to the fiscal cliff the state sits on, along with an overreliance on the income tax, political infighting, increased taxes, the lack of regionalism and a host of other decisions made by Governors and legislatures for decades.

One glaring example cited:  “Connecticut, which is home to 3.6 million people, has 111 police dispatch centers.  By comparison, Houston, which as 2.3 million residents, has just one emergency dispatch center, which handles fire as well as police.”

With a circulation of 85,000 in print and a widely viewed website, Governing is described as "the nation's leading media platform covering politics, policy and management for state and local government leaders." It is among the most widely read and most influential among government leaders - with an audience that also includes "journalists, academics, advocates and activists."

The article did point to some silver linings, past and present.  “Connecticut clearly has the means to change course. Not only is its median income still high, but the state boasts assets such as proximity to Boston and New York, amiable coastlines and river valleys, and notable institutions of higher education.  In addition to the continuing presence of a thriving financial sector, Connecticut is home to aerospace and defense contractors and other advanced manufacturers who can’t hire help fast enough, as well as a growing medical and life sciences sector.”

On the other hand, the publication points out, “Connecticut is 80 percent white, but its population of white children under the age of 10 is falling faster than in any other state.  Racial and ethnic minorities already make up more than 50 percent of infants and toddlers and are about to become a majority of 3- and 4-year olds.”  There is, the publication adds, “a pronounced achievement gap among racial groups and by geography.”

The conclusion reached by the Governing article?  “Connecticut is not in a death spiral but it has failed to position itself to react to changing demographics and location preferences… it’s clear that what’s worked so well for Connecticut in the past isn’t working now.”

Summed up House Speaker Joe Aresimowicz, one of many political leaders, including the Governor and legislators from both political parties, as well as city officials and economic analysts, who were interviewed for the article: “We are the land of steady habits and the world has changed around us.”

NY Settlement with Outlet Mall Owner Eliminates Non-Compete Extending into Southwestern Connecticut

Most Connecticut residents are likely unfamiliar with Woodbury Common, an outlet mall in the town of Central Valley in Orange County, New York brimming with 240-plus retailers.  Due to a contract provision with those retailers that prevented them from opening another location within a 60 mile radius of Woodbury Common, however, the impact of that mall may have been felt throughout southwestern Connecticut for decades. A settlement in pending litigation reached between the New York Attorney General’s Office and Simon Property Group (SPG), owner of Woodbury Common, and announced late last month, could open the door to new retail outlet opportunities in Southern and Western Connecticut – regions that had long been under the restrictions.

"No business should be allowed to stifle an entire industry at the expense of consumers—but for years, that's exactly what Simon Property Group did to New Yorkers," said New York Attorney General Schneiderman. "Simon's anticompetitive conduct blocked competition and drove up prices for New York consumers. That ends today. I am pleased this agreement will allow for new shopping outlets to finally open within New York City, and make affordable shopping more accessible for residents across the region."

While Schneiderman focused on New York, the possible consumer benefits from the agreement extend further.  The region under the now-eliminated restrictions extends beyond New York into Connecticut, including much of Fairfield County – including Norwalk, Stamford, Danbury and Bridgeport - and extending nearly into New Haven.  (The straight line distance from Central Valley, NY to New Haven is 62 miles; to Milford is 55 miles.)

In a press release, Simon said Woodbury Common's 60 mile radius provision has been used since 1985, well before SPG acquired Woodbury Common as part of its 2004 acquisition of Chelsea Property Group. The statement pointed out that Woodbury's radius provisions have been upheld as lawful, reasonable and consistent with industry practice in the courts, as recent as 2010.

“While we have agreed to reduce the reach of the radius provisions in Woodbury Common leases, these provisions will continue to cover Woodbury Common's essential trade area, extending to all of Manhattan,” the company noted.

Simon Property Group described Woodbury Common as “an economic engine for Orange County, the lower Hudson Valley, and New York State,” indicating that “it regularly granted exceptions to radius provisions and understands the importance of competition and consumer choice in the market.”  In Connecticut, SPG operates two properties in southeastern Connecticut - Clinton Crossing Premium Outlet in Clinton and Crystal Mall in Waterford.

Reached via the New York State Thruway at exit 16 in Harriman, Woodbury Common Premium Outlets features “the most sought after, high-end fashion and designer retail brands in the world,” SPG said in its news release, highlighting stores including Tory Burch, Nike, Celine, Bottega Veneta, Polo Ralph Lauren, Michael Kors, Burberry, Coach, and The North Face.

As part of the settlement, Simon Property agreed to revise their existing leases with Woodbury Common retailers to remove the radius restrictions; not to engage in exclusionary tactics, including radius restrictions, for the next 10 years; and pay a $945,000 fine to New York State.

Even as negotiations proceeded on the settlement, Woodbury Common announced last month that 10 new retailers would be opening at the premium outlet mall, including Zadig & Voltaire, a high-end French ready-to-wear brand, and Sayki, a Turkish menswear designer.  The outlet mall also recently completed extensive multi-million dollar renovations. Simon Property Group, based in Indianapolis, owns nearly 100 outlet malls around the world and is an S&P 100 company.

Women in Manufacturing Bring Summit to Hartford Next Week

The 800-member Women in Manufacturing (WiM) professional organization will hold their annual Summit at the Connecticut Convention Center in Hartford, September 13 - 15, 2017. This annual Summit is geared toward women who have chosen careers in manufacturing and want to share perspectives and network with others in the industry. It is expected to attract more than 300 professional women in manufacturing, with titles ranging from production to CEO. Attracting hundreds of women in manufacturing from across the country, WiM's annual Summit is the only national conference of its kind. This networking and educational event features manufacturing plant tours, professional development tracks, industry roundtables, keynote presentations and social events to expand participants' networks.

Plant tours that have been organized as part of the conference agenda include visits to Kaman Corporation, CNC Software, Hartford Flavor Company, TRUMPF Inc., and Pratt & Whitney, all on the opening day of the conference on September 13.

Break-out sessions will focus on Technology, Leadership & Professional Development, Operational Excellence, and Diversity & Inclusion.  Speakers at conference-wide sessions will discuss topics including “Engineering Young Women,” “Developing Your Personal Brand,” “Recruiting A Pipeline for Skilled Labor Positions,” “Empowering Women Through Sales,” and “The growing Digital Intensity of Manufacturing.”

Speakers will include Jonna Gerken, Manager, PCME Group, Pratt & Whitney and the president of the Society of Women Engineers, and George Saiz, President & CEO of The Association for Manufacturing Excellence.

The Board Chair of Women in Manufacturing is Sheila LaMothe, Vice President of Strategic Initiatives for Goyer Management International, a Florida-based company.  Previously, she spent 15 years responsible for the marketing and public relations activities for TRUMPF Inc. in Farmington, CT, initially serving as Marketing Manager before becoming Associate Director of Marketing & Public Relations. She founded the WiM Connecticut Chapter and served as chapter chair until her relocation to Florida.

Among the host committee members is the Connecticut Business and Industry Association.  The New Haven Manufacturers Association and the Waterbury Regional Chamber’s Manufacturer’s Council are among the Supporting Partners for the Summit.

This is the organization’s first summit to be held in the Northeast.  The Summit location moves around the country giving attendees the opportunity to experience manufacturing and develop their networks throughout the United States.  The  6^th annual summit was held last year in Nashville, TN.  Previous events were held in Minneapolis, MN; Schaumburg, IL; Dearborn, MI; Milwaukee, WI; and Cleveland, OH.

How Connected is Connecticut? State Ranks 6th in the USA

Internet access is as good in Connecticut as just about anywhere else in the country.  A new report on the Top Connected States in America ranks Connecticut as the 6th most connected state in the nation. The analysis, by USDish.com, found that the top 10 states showing excellent connectivity to broadband all value connecting rural citizens to the resources they need to succeed economically, both in school and at work. “Overall we found that the most important factor in these states’ ability to connect rural citizens to the internet were the use of government funded broadband task forces, infrastructure maintenance, and local support. The states that listened to the community were more likely to connect them to proper resources and economic growth flourished.”

While Connecticut ranked 6^th overall, the state’s ranking varied in each of the categories of the analysis:  Connecticut ranked 10th in Access, 1st in Rural Access, 12th in Speed, and 21st in Support (by government).

Analysts compiled and ranked the report using data from the American Community Survey, conducted by the U.S. Census Bureau, the EducationSuperHighway non-profit, Fastmetrics, the National Conference of State Legislatures (NCSL) and the Institute for Local Self-Reliance.

Connecticut ranked 10^th in Access, 1^st in Rural Access, 12^th in Speed, and 21^st in Support.  The top five states for Rural Access were all in the Northeast – Connecticut, Massachusetts, New Hampshire, New Jersey, and Rhode Island. “Perhaps the emphasis on education and communication makes it easier to access the internet as a student, even in a rural area like Connecticut,” the analysis stated.

The analysis points out that a main reason why people don’t have access to broadband internet is due to a lack of income. Cited is a Pew Research poll that found 23 percent of people making under $30,000 per year don’t use the internet, possibly because of the high price for something they don’t consider a basic need. Most rural schools across the country still lack access to fiber and pay more than twice as much for bandwidth.

In contrast, Minnesota, New Hampshire, Oregon, and Maryland all have state government broadband task forces which promote the expansion of internet access throughout their rural areas, the analysis points out.

For internet access per state, the USDish team analyzed the percentage of school districts meeting a minimum of 100 Kbps per student.  They also examined the percentage of those with an internet subscription, and the total percentage of users with any access to the internet at all, be it in the form of a community library, town hall, or school.

Speed was analyzed by the average Mbps per state, and they evaluated states on whether they had a stimulus project, broadband task force, or whether the state had barriers preventing them from expanding the connectivity of those living in the area (i.e. laws, infrastructure support, prohibitions, etc.). As for rural area access, data on the number of households that had broadband internet in both urban and rural areas was used.  USDish.com is an authorized retailer of DISH Network.

Gender Disparity Is Alive and Not-So-Well; Particularly in Connecticut, Analysis Finds

Connecticut places dead last among the 50 states in the degree of gender gap in executive positions in the workplace and overall workplace environment for women, according to a new analysis prepared by the financial website WalletHub.  The state also ranked in the bottom ten in the “education and health” category, ranking higher – in the top ten – only in “political empowerment,” despite having fewer women in the state legislature than about a decade ago. Overall, the state ranked 28^th among the “Best and Worst States for Women’s Equality.”

The challenges present in Connecticut are true – to varying degrees – nationwide.  In 2016, the U.S. failed to place in the top 10 — or even the top 40 — of the World Economic Forum’s ranking of 144 countries based on gender equality, WalletHub reports.

Among the states, the top 10, with the slimmest inequality gap, were Hawaii, Nevada, Illinois, Minnesota, Washington, Maine, North Dakota, Oregon, Wisconsin, and Vermont.  Among the other New England states, Massachusetts ranked #13, New Hampshire was #16, and Rhode Island was #34.  The widest gaps were in Texas, Virginia and Utah.

"Connecticut ranked below average overall mostly because of its rankings for two of the categories we analyzed, Workplace Environment (50th) and Education & Health (43rd),” WalletHub analyst Jill Gonzalez told CT by the Numbers.  “Connecticut's disparities between women and men are quite pronounced when it comes to the workplace environment. Women earn 23 percent less than men, 9th highest in the country, and Connecticut has the highest gap of women in executive positions. Large differences also appear when looking at higher-income earners, with a 13 percent gap between women and men, and the entrepreneurship gap in Connecticut is at 48 percent, again favoring men."

To determine where women receive the most equal treatment, WalletHub’s analysts compared the 50 states across 15 key indicators of gender equality in three central categories: workplace environment, education and health, and political empowerment  Among the indicators used in the analysis, Connecticut ranked 46th with among the largest educational attainment gap among Bachelor’s Degree holders, 48^th in the entrepreneurship gap, 49^th in the disparity among higher income wage earners (in excess of $100,000 annually) and 50^th with the largest executive positions gap.

According to the National Conference of State Legislatures, just over one-quarter of Connecticut’s legislators are women, at 27.3 percent, compared with the national average among state legislatures of 24.8 percent.  There are 1,830 women serving in legislatures across the country.  In Connecticut, 42 of 151 House members are women, and 9 of the Senate’s 36 seats are held by women.   Among the states with the highest percentage of women in their legislature are Vermont, Colorado and Nevada with 39 percent, Arizona with 38 percent, and Illinois and Washington at 36 percent.  Connecticut’s numbers have declined since 2009, when a total of 59 women held legislative seats, 8 in the Senate and 51 in the House.

The workplace environment category included data on income disparity, the number of executive positions held, minimum wage workers, unemployment rate disparity, entrepreneurship rate disparity and the disparity in the average number of work hours.

The analysis found that in every state, women earn less than men. Hawaii has the lowest gap, with women earning 12 percent less, and Wyoming has the highest, 31 percent. Connecticut ranked 41^st.  Rhode Island has the highest unemployment-rate gap favoring women, with 2.4 percent more unemployed men. Georgia has the highest gap favoring men, with 1 percent more unemployed women. The unemployment rate is equal for men and women in Illinois and Idaho.  In Connecticut’s it’s nearly identical, with the 0.3 percent more unemployed men than women, based on the data reviewed.

Women continue to be disproportionately underrepresented in leadership positions nationwide. According to the Center for American Progress, women make up the majority of the population and 49 percent of the college-educated labor force. Yet they constitute “only 25 percent of executive- and senior-level officials and managers, hold only 20 percent of board seats, and are only 6 percent of CEOs.”  In addition, salary inequity continues, and women are underrepresented in government.

The analysis was released to coincide with Women’s Equality Day, which is observed annually on August 26. The U.S. Congress designated the commemoration beginning in 1971 to remember the 1920 certification of the 19th Amendment to the Constitution, granting women the right to vote. The observance of Women’s Equality Day also calls attention to women’s continuing efforts toward full equality, according to the National Women’s History Project.

National Leader, Connecticut Green Bank Reaches Milestone in Project Financing

The Connecticut Green Bank’s C-PACE program recently surpassed $100 million in closed project financing. Out of the 19 states with C-PACE (Commercial Property Assessed Clean Energy) programs, this project financing level is second only to California, according to officials. The Connecticut Green Bank’s C-PACE program reached the milestone of $100 million in total closed project financing. The solar photovoltaic (PV) and energy efficiency projects, which vary in size and scope, are saving more than $9.29 million annually in energy costs for nearly 170 building owners across multiple sectors. 

The Green Bank, which administers the C-PACE program, seeks to make green energy more accessible and affordable to commercial and industrial property owners by providing no money down long-term financing for meaningful energy upgrades to their buildings.

C-PACE enables building owners to finance qualifying energy efficiency and renewable energy improvements through a voluntary assessment on their property tax bill. As the program grows, more Connecticut businesses can achieve lower energy costs. Reaching $100 million in closed project financing reaffirms Connecticut’s program as a national leader, officials indicated.

Since its inception in 2011, 166 C-PACE projects have been closed in 69 of the 128 municipalities that have opted into the program. C-PACE funds have been used in manufacturing facilities, non-profits, houses of worship, retail establishments, office buildings, and other business entities.  The projects consist of solar installations, new boilers, energy efficiency lighting measures, HVAC systems, and other energy improvements that help building owners to take control of their energy costs.

“Connecticut’s Green Bank has really been the national leader for C-PACE,” said David Gabrielson, the Executive Director of PACENation, the national non-profit that supports development of PACE programs nationwide. “The way they administer their program has really served as a great example for other program administrators throughout the U.S., and we congratulate the entire Green Bank team on this impressive milestone.”

The project that propelled the Green Bank over this milestone will be installed at Farmington Sports Arena (FSA). FSA is a 130,000-square foot modern indoor sports facility that is home to four indoor and three outdoor artificial turf fields as well as four natural grass outdoor fields. The project, which will be installed by 64 Solar, consists of two solar PV systems (170 kW total).

Connecticut’s C-PACE program maintains an open market approach, allowing private capital providers to finance projects for building owners, and, in 2015, the Green Bank reached an agreement that provided it access to up to $100 million in private funding for C-PACE projects. Today, nearly 70% of the funding in the program consists of private capital.

“The Connecticut Green Bank is a leader in the green energy movement, but the rapid growth of C-PACE wouldn’t be possible without the support of our contractors, capital providers, municipal officials, and other stakeholders who have contributed to the C-PACE movement,” said Mackey Dykes, Vice President of Commercial, Industrial and Institutional programs at the Connecticut Green Bank. “There is still significant potential for energy improvements for Connecticut businesses and non-profits, and we look forward to bringing cleaner and cheaper energy to more building owners across the state.”

The website Energy Collective noted recently that “states have and will continue to play a key role in leading the clean energy transition,” highlighting the work in Connecticut as among the national models.

“Connecticut has found a way to make the financing of clean energy deployment more accessible and affordable for consumers and businesses. In 2011 the state legislature created the Connecticut Green Bank, the nation’s first green bank. It uses public funds to attract private capital investment in green energy projects. By leveraging private investment, the Green Bank significantly increases the total amount of financing available for clean energy projects.

The site highlighted that “Among the Green Bank’s most successful initiatives is the Commercial Property Assessed Clean Energy (C-PACE) program, which allows commercial property owners to pay for clean energy or efficiency upgrades over time through their property taxes.

The Connecticut Green Bank is the nation’s first green bank. Established by the Connecticut General Assembly on July 1, 2011 as a part of Public Act 11-80, the Connecticut Green Bank evolved from the Connecticut Clean Energy Fund (CCEF) and the Clean Energy Finance and Investment Authority (CEFIA), which was given a broader mandate in 2011 to become the Connecticut Green Bank.

https://youtu.be/kPqO4QlTkDU

Immigration May Be Key to Connecticut's Economic Future (Again)

Immigrants may be a pivotal component in Connecticut’s economic strength – or weakness – in the coming decade, according to recent statistics.  Population projections from the University of Virginia’s Demographics Research Group, reported by the American Immigration Council, show that in many states in the Northeast and Midwest, including Connecticut, growth of the working-age population is slowing due to aging, lower fertility rates, and people moving out of the state. The aging of the workforce in the working-age population can mean shrinking workforces and potential economic problems, the Council reported recently. As a result, “states need to think about how immigration can ameliorate impending trouble.”

By 2020, the number of working age adults (age 25-54) is expected to decline in 16 states. For example, in Maine, while the overall population is expected to decrease by about two percent, the working age population will decline by 16 percent. Vermont and West Virginia can also expect declines of more than 10 percent, while Connecticut, Illinois, Michigan, New Hampshire, Ohio, Pennsylvania, Rhode Island and Wisconsin can expect more than five percent decline, according to the data.

Those states “will become less attractive to the people who are already there, and less attractive to newcomers,” according to UC-Berkeley demographer Ronald Lee, who explained that a shrinking working-age population can hurt a state’s economy: businesses close due to a lack of workers and customers, housing prices drop, schools close, and tax revenue declines.

The decline in the working-age population will not be offset by births, the Council reported, citing data the projects the current total fertility rate is about 1.86 children per woman and would need to be at least 2.08 for the population to replenish itself. At the same time, the U.S. population is getting older and living longer. The Bureau of Labor Statistics (BLS) projects that by 2024, Americans age 55 and older will increase by 18.2 million—reaching 102.9 million, or 38.2 percent of all people in the country.

Reliance on immigrants is nothing new for Connecticut.  The Connecticut Business and Industry Association recently cited statistics from the New American Economy, which indicated that 494,059 Connecticut residents were born abroad.  That is 14 percent of the state’s population, compared to 13 percent across the United States.

For example, almost a quarter (23%) of Connecticut workers in science, technology, engineering, and math fields such as healthcare and bioscience were immigrants.  Over 36,000 foreign-born Connecticut residents are self-employed, with immigrant-owned businesses generating $1.1 billion income in 2014 while employing 73,047 people. “Immigrants are already playing a huge part ensuring that Connecticut remains a leading innovator in industries like healthcare and bioscience,” according to the analysis.

The report also notes that foreign-born workers currently make up 21.3 percent of all entrepreneurs in the state, despite accounting for 13.7 percent of Connecticut’s population.

Immigration mitigates the downward population trends that are anticipated, in Connecticut and beyond. In many areas of the country, the foreign born have accounted for more than 20 percent of the growth of the adult population since 1990. In some areas – mainly in the Midwest – overall adult population would have declined if not for an increase in the foreign born population. Almost half of immigrants admitted between 2003 and 2012 were between the ages of 20 and 40, while only 5 percent were ages 65 or older, the Council reported.

Rebuffed Again in CT, Tesla Explores Growth in Westchester

Tesla’s goal of selling vehicles direct to consumers in Connecticut remains elusive, dismissed out of hand by Connecticut’s legislature this year, as last year and the year before.  Even the sole “gallery” the electric car manufacturer and retailer has been operating in the state, in Greenwich, has been ordered by the Connecticut Department of Motor Vehicles to “cease all functions.” Within a stone’s throw of the state line, in Westchester County, NY, the company is actively exploring potential locations for a new car dealership and customer education center, according to published reports. Under Connecticut’s dealer franchise law, automobiles may only be purchased through independent car dealerships.  Tesla’s business model relies on direct-to-consumer sales.

Both a retail center and warehouse in the town of Greenburgh are currently under consideration, Westfair Publications reported this week.  “We’ve been working with Tesla for quite some time now in searching for a proper facility in the area where they can house both sales and service,” said James MacDonald of Simone Development Cos., a Bronx-based company that owns both potential Tesla properties, Westfair reported.

In June, as the Connecticut legislature’s regular session concluded, a proposal that would have permitted Tesla to sell cars directly to consumers was never raised for debate. It made it through the Transportation and Finance, Revenue, and Bonding Committees, but was never called for a vote in either chamber.

House Speaker Joe Aresimowicz said at the time that he was reluctant to say that it was the objections of the state’s car dealers, who are subject to the regulations under the state’s motor vehicle franchise system, that killed the Tesla bill, CTNewsJunkie reported.  The Connecticut Automobile Retailers Association strongly advocated for defeat of the proposed legislation this year, as in previous years.

In New York, Tesla is currently limited to five sales locations, in accordance with a law passed in that state in 2014.  Efforts are underway in New York to increase that number.

A spokesman for Tesla said in June that the company wasn’t quite ready to give up on Connecticut.  Diarmuid O'Connell, Tesla's vice president of business development, said in an interview with the Hartford Business Journal in May that the company hoped to open 10 stores if the legislation was approved, which would "conservatively" employ 25 full-time workers.

"We're talking 250 jobs in the near term," O'Connell said, adding that some locations could employ as many as 50 people, the newspaper reported. The company also released a Greenberg Quinlan Rosner poll showing that 74 percent of Connecticut residents "strongly" or "somewhat" support allowing direct sales in Connecticut.

Tesla is prohibited from selling directly in Connecticut, Michigan, Texas, and West Virginia, according to the company. There are about 1,300 Teslas registered in Connecticut, nearly two-thirds of the electric vehicles in the state, according to the state Department of Motor Vehicles.

In a recent op-ed published in New York, Nick Sibilla of the Institute for Justice, a libertarian public interest law firm, indicated that in a review of employment figures for car dealerships in Massachusetts, New Jersey and New York, the Acadia Center, a nonprofit focused on creating a clean energy economy, concluded that “there has been no negative impact on auto dealer job levels or trends” in nearby states that allow direct sales of electric vehicles.  The Union of Concerned Scientists recently pointed out that “between January and June of 2016, dealers in the Bridgeport to New York City metro area had 90 percent fewer electric vehicles listed for sale than Oakland, when adjusted for relative car ownership.”

Tesla is currently in the midst of raising $1.5 billion as it ramps up production of the Model 3 sedan, its first mass market electric car, with an anticipated pricetag hovering around $35,000, about half the cost of Tesla's previous models, and thought to be more attractive to consumers.  The loss in sales tax revenue to Connecticut could be substantial if sales of the Tesla are not permitted in the state, according to some estimates.

Will the company’s plans impact legislatures in Connecticut or New York?  Back in June, CTNewsJunkie reported Connecticut House Majority Leader Matt Ritter said he thought the issue might be resolved “when you see more Teslas” on the road.  That day may be coming, emanating from Greenburgh if not Greenwich.