The Difference A Dollar Makes: UConn Research Finds Minimum Wage Increase Reduces Maltreatment of Children

It has been nearly a year since a study co-authored by UConn Assistant Professor of Public Policy Kerri M. Raissian appeared in the academic journal Children and Youth Services Review, but the interest hasn’t waned.  In fact, it now tops the list of downloaded articles in the past 90 days from the journal’s website. The article, which Raissian co-authored with Lindsey Rose Bullinger, asks – and answers – this question:  Does the minimum wage affect child maltreatment rates?

Short answer, according to their research:  yes. 

Raising the minimum wage by $1 per hour would result in a substantial decrease in the number of reported cases of child neglect, according to a study co-authored by Raissian and Bullinger.  They reviewed eleven years of records on child abuse and neglect and found that increases in the minimum wage correlate with declining child maltreatment rates.

A $1 increase would result in 9,700 (9.6 percent) fewer reported cases of child neglect annually as well as a likely decrease in cases of physical abuse, Bullinger explained on the website sciencedaily.com, where their study was featured earlier this year. This decline is concentrated among young children (ages 0–5) and school-aged children (ages 6–12); the effect diminishes among adolescents and is not significant, the study’s abstract points out.

“Our results suggest that policies that increase incomes of the working poor can improve children's welfare, especially younger children, quite substantially,” the authors conclude in their 70-page article on the study.

"Money matters," Bullinger noted on sciencedaily.com. "When caregivers have more disposable income, they're better able to provide a child's basic needs such as clothing, food, medical care and a safe home. Policies that increase the income of the working poor can improve children's welfare, especially younger children, quite substantially."

More than 30 states had minimum wages exceeding the federal requirement by an average of $1 during the study period, allowing the researchers to track changes in the number of reports to child protective service agencies with increases in the minimum wage.  Data from the National Child Abuse and Neglect Data System was used in the research.

The substantial decrease in child neglect cases is concentrated among toddlers and school-age children, but changes in the minimum wage had little impact on reports of neglect of teenagers. The researchers found no variation based on a child's race.

“Families with low incomes have a great ability to make a dollar go a long way. On average, the weekly SNAP (Supplemental Nutrition Assistance Program) food stamp benefit for a family of three is about $30. That’s about what a one dollar an hour minimum wage increase translates into for full-time workers. Other studies show that a $1,000 tax refund results in similar declines in child maltreatment – neglect, specifically. So for really low-income families that probably have pretty severe material deprivation or economic hardship, that extra dollar can make a really big difference,” Raissian told UConn Today.

Raissian’s research interests are linked by a common focus on child and family policy, according to the university’s website.  Her dissertation, “Assessing the Role and Impact of Public Policy on Child and Family Violence,” evaluated the efficacy of policies designed to reduce violence directed towards intimate partners, children, and other family members. Her professional background includes nearly 10 years of government and nonprofit sector experience, which focused on serving abused adults and children.

Bullinger is associate instructor in the school of public and environmental affairs at Indiana University at Bloomington.  Both attended Syracuse University’s Maxwell School of Citizenship and Public Affairs.

“Most of the states don’t have a minimum wage at or above $10; Connecticut does. It’s possible Connecticut may be at the threshold,” Raissian said in an interview featured in UConn Today. “It’s also really important to note that, while our study looks at the minimum wage, this could really be an income story – remember other studies find similar results when incomes are increased in other ways. Our very low-income families might be facing other reductions in their incomes that will be costly to us as a state. We should consider that, moving forward.”

Charter, Henkel Select Connecticut for Growth, With Some Help from the State

Charter Communications has 92,000 employees worldwide.  The company’s headquarters is in Stamford.  Henkel employs 50,000 people worldwide.  The company’s world headquarters is in Dusseldorf, Germany; their Consumer Goods R&D Headquarters is in Stamford.  Both companies have announced major growth in the city, bringing jobs and boosting the economy in the region. They are the flipside of Aetna, Alexion and GE, whose corporate leadership drove highly publicized departures from the state.

Henkel is #158 on Forbes magazine’s Global 2000 list of Top Multinational Performers, and #307 on the list of America’s Best Employers.  Charter Communications is #38 on the Forbes list of Growth Champions and ranks #107 on the Global 2000.

Henkel operates worldwide with leading brands and technologies in three business units: Laundry & Home Care, Beauty Care and Adhesive Technologies. Many are unfamiliar with the corporate name, but know their products well:  Dial, Snuggle, All, Purex, Sunlight, and Surf, among many others.  The company’s United States Adhesive Technologies R&D headquarters is in Rocky Hill.

Just over a year ago, in September 2016, Henkel acquired Wilton-based Sun Products Corporation.  Jobs became available almost instantly for a variety of positions across Henkel’s Connecticut footprint – with locations in Trumbull and Rocky Hill as well as the new office planned in Stamford.  With the acquisition, Henkel reached the number two position in the laundry care market in North America, behind only Cincinnati-based Procter & Gamble.  North America is one the most important regions for Henkel, according to the company, and the U.S. accounts for the highest sales globally.

A month later, the state announced it would be providing the company with up to $25 million in state aid to support the company’s move of employees from Arizona to Connecticut (and Wilton to Stamford) as part of a consolidation and growth plan.   The Department of Economic and Community Development, as part of its “First Five” program, is to provide a 10-year, $20 million low-interest loan to support the project., and the company may be eligible for up to $5 million in tax credits for capital investment on eligible projects.  Projections were for 266 jobs in Stamford initially, with a workforce of 500 anticipated, according to published reports.

The move began into new headquarters began this summer, with about one-third moving here from Arizona, one-third from Sun Products, and one-third employees new to the company, Fairfield County Business Journal reported.

Henkel North America Consumer Goods Headquarters is a “new workspace” that will “showcase a forward-thinking office design, fostering a high level of creativity and collaboration, which are fundamental for growth and success as a thriving consumer goods business,” officials said.  The company’s website now features a video touting the advantages of Stamford, and why it was selected.

“We look forward to moving into our exciting new home, with the space and opportunity for growth,” the video narration declares. “Stamford is a vibrant community, brimming with restaurants, arts and entertainment within walking distance of our new office.  The city is a transportation hub, with easy access.”

Most Connecticut residents may also be unfamiliar with Charter Communications.  Connecticut has 24 cable franchise areas; Charter provides local cable service in only three of them, in the western and northeastern regions of the state for about 35 mostly rural communities.  The larger franchise owners in Connecticut are Cablevision, Comcast and Cox.  But the Connecticut map is deceiving – nationally Charter is the second largest cable provider in the nation.

Last month, Charter announced plans for a new 15-story headquarters building in Stamford.   The new building at the Gateway Harbor Point development along Long Island Sound is projected to have 500,000 square feet of work space. Employees are expected to move in during 2019.

“Since relocating Charter’s headquarter operations to Stamford in 2012, the company has undergone a transformation to become the second largest cable provider in the U.S.,” said chairman and CEO Tom Rutledge in a press release. “This new, state-of-the-art facility in downtown Stamford will provide Charter the necessary resources to facilitate its continued growth. ”

The Department of Economic and Community Development (DECD) will provide a 10-year, $10 million low-interest loan to support the project through the state’s First Five Plus program. The company may be eligible for loan forgiveness based on job creation and if employment obligations are met. Charter Communications will also receive up to $10 million in tax credits through DECD’s Urban and Industrial Sites Reinvestment Tax Credit program. Additional tax credits are available if the company exceeds job targets.

In a news release, the Governor’s Office indicated that “following its commitment to create and retain 400 jobs under the state’s First Five Program in 2012, Charter has committed to create an additional 1,100 new corporate headquarters jobs and has agreed to a total of $100 million in planned capital expenditures in Connecticut over the next several years. It was Stamford’s largest real estate announcement of the year. The new headquarters would become the first commercial facility with “direct access” to the station’s platform, company officials said, citing the location’s proximity to both rail and Interstate 95.

Charter’s growth is drive by the acquisitions during the past year of Time Warner Cable and Bright House Networks.  That expanded Charter’s reach to about 50 million homes and businesses and earned them the ranking of second-largest cable company in the country, just behind Philadelphia-based Comcast.

Varied Economic Development Projects, People and Programs to be Celebrated by State

The Connecticut Economic Resource Center, Inc. (CERC) has named top economic development projects, programs and leaders from throughout the state to be honored at the annual CELEBRATE CT! event on November 30, 2017 at The Bushnell in Hartford. The 21 honorees were selected by economic development officials in each of 10 regions across Connecticut for their contribution to the state’s economy – such as consistent or growing employment levels, playing a critical role in changing the character of its community or civic engagement, strong public/private collaboration to encourage new investment, or leadership resulting in growth or improvements.

The honorees include initiatives, businesses, organizations and individuals that are widely known in their communities, and some that are less well-known.  Reflecting the growth of the craft beer industry in Connecticut, the honorees include three breweries: Stony Creek Brewery in Branford,  Beer'd Brewing Company in Stonington, Alvarian Beer Company in New Britain. 

“These awards acknowledge key people, programs and projects that are stimulating new jobs and investment in our economy,” said CERC President and CEO Robert Santy. “They are well earned and well-deserved, and CERC is proud to recognize the 2017 honorees and their noteworthy accomplishments that are having a positive impact on Connecticut’s business environment.”

The 2017 honorees also include the UCONN Hartford Campus, which began operations this fall in downtown Hartford, the long-running Goodspeed Musicals, and the Heirloom Food Company in Danielson, an organic cafe and juice bar.  The state's increased emphasis on rekindling the manufacturing industries is reflected in the selections of Pegusus Manufacturing and Hurley Manufacturing.

This is the eighth year the event is being hosted by CERC, a nonprofit corporation and public-private partnership that provides economic development services, working closely with an extensive network of state, regional, local and utility partners to leverage Connecticut’s unique advantages as a premier business location.

Nearly 200 economic development and business professionals from around the state are expected to attend CELEBRATE CT! (To register or sponsor the event, visit www.cerc.com/celebratect)

The 2017 CELEBRATE CT! award honorees:

• Capitol Region/Hartford Joining Technologies UCONN Hartford Campus
• Central/New Britain Alvarium Beer Company Jasko Development LLC
• South Central/New Haven Stony Creek Brewery Mike Freda (for Amazon Fulfillment Center, North Haven)
• Southeastern/New London Beer’d Brewing Sean Nugent (for Preston Riverwalk)
• Lower CT River Valley/Middlesex Goodspeed Musicals Pegasus Manufacturing
• Naugatuck Valley/Waterbury Basement Systems Bristol Centre Square Project
• West/Danbury-Fairfield BRT General Corporation Ferguson Library (1 Million Cups) Inspira Marketing Group
• Metropolitan/Bridgeport Corvus Capital Partners LLC Future Health Care Systems
• Northeastern/Windham Heirloom Food Company Thompson Branding Plan
• Northwest Hills/Torrington Hurley Manufacturing Whiting Mills

Innovation Drives Start-Up Businesses to Receive CTNext Funding

When CTNext, described as state’s leading resource for entrepreneurial support, distributed $54,000 to five Connecticut-based businesses at the annual CTNext Entrepreneur Innovation Awards, they instantly became five to watch. The fledgling businesses are among a growing number of start-ups that are being encouraged by state and private funding sources as Connecticut seeks to become a place where innovation, often driven by millennials, can thrive.  Such financial support aims to increase the odds of a business succeeding, while at the same time making it more likely that the company founders would stay in the state, at a time when many millennials are heading elsewhere.

The companies, selected from 10 that sought the CTNext funding of $10,000 per company, were:

• FallCall Solutions (Stratford): Creating a telemonitoring system for Apple Watch and other mobile systems for elders and caregivers
• Rumble Helmet (Bridgeport): Developing a smart bicycle helmet that has embedded features designed to communicate the cyclist’s intentions to other road users
• Sitrep (Cheshire): Creating a system for better communication of heating, ventilation and air conditioning (HVAC) problems
• Deo2Go (Norwalk): Creating a topical delivery device that can be filled with a variety of products, such as deodorant, lip balm and sunscreen
• EZ ICE: Manufacturing a kit for a custom and portable backyard ice rink that can be assembled in under an hour, with no tools and on any surface

For the second consecutive EIA, Deo2Go took home the $2,000 Crowd Favorite award. Rumble Helmet won an additional $2,000 as Judges’ Favorite, at the awards ceremony held in Hamden.

Rumble Helmet, founded in January 2017, is a smart bicycle helmet that has an embedded adaptive light system consisting of front flash light, back light, turn signals, and uniquely designed sidelights to communicate the cyclists' intentions to other road users, according to a GoFundMe page, now seeking financial support. The light system can be activated using hand signals. The smart helmet can detect vehicle presence in the cyclist's blind spot. Moreover, it can be paired with a mobile navigation application. This invention has a utility patent and design paten granted.  CEO Reem AlAttas, a University of Bridgeport Ph.D. candidate, is a co-founder.

Sitrep, based in Cheshire, was founded in 2014 to “develop monitoring systems that are intuitively usable.”  Principals are Harland Christofferson, Gary Martin and Michael Byrne.

The mission of Stratford-based FallCall Solutions, LLC is “to become the premier innovator in simplified communication solutions for the geriatric population and their caregivers.” The company website explains that the company aims to maximize elder independence and caregiver peace of mind by “building software based solely on the needs of the consumer rather than the trying to create and introduce new ecosystems into our customers’ lives.”

EZ ICE began in 2010 as a small Rhode Island company constructing ice skating rinks in families’ backyards in the Providence and Boston Suburbs, according to the company’s website.

Since launching the Entrepreneur Innovation Awards in 2014, CTNext has now held 13 total events in the state, awarding a total of $642,000 to 58 unique companies.  All companies – including the most recent selections - must be registered with the Secretary of the State’s Office in Connecticut before receiving any grant dollars from CTNext.

“It’s exciting to see the innovative ideas moving toward commercialization by our state’s entrepreneurs, and we are so pleased to be able to provide support to help progress those ideas to the next level,” said Glendowlyn Thames, Executive Director of CTNext.

Award-Winning Accelerator Prepares for Next Cohort of Start-up Businesses

reSET, a Hartford-based non-profit organization supporting entrepreneurs, has opened applications for its highly regarded business accelerator program for 2018. Tailored for impact-driven businesses but available to early-stage ventures across all industries, reSET’s Impact Accelerator was a winner of the U.S. Small Business Administration Growth Accelerator Competition, and was the only Connecticut accelerator to receive the award, in 2015. Running from next January through May, the five-year old program will provide entrepreneurs with access to the knowledge and resources they need to grow their businesses and impact. Applications are being reviewed on a rolling basis; the final deadline is December 8, 2017.  Applicants are not limited to the Hartford area or Connecticut; in previous cohorts, participants have been from other states and nations.

reSET is a nonprofit organization whose mission is advancing the social enterprise sector. Its strategic goals are threefold: to be the “go-to” place for impact entrepreneurs, to make Hartford known as Impact City, and Connecticut the Social Enterprise state. reSET meets entrepreneurs wherever they are in their trajectory and aims to help them take their businesses to the next level.

The accelerator program has graduated 80 businesses to date. Recent participants have experienced success in advancing their businesses, including competitor acquisition, venture capital investment, and nationwide sales and recognition. 

Among the businesses are Almasuite, CareerPathMobile, Phood, Pelletric, Eureeka, Save America, and Genius Box. Kate Pipa, co-founder of Genius Box, which develops and sends science kits to elementary and middle-school age children, credits the Impact Accelerator with helping her business gain traction.

“reSET’s Impact Accelerator was a great stepping stone for getting introduced to and more involved in Connecticut’s startup scene.  Just being in reSET’s community allowed for access to workshops, mentors and service providers to answers questions and provide advice on different challenges that can come up when starting your business.”

Over the course of four weekend summits during the accelerator program, participants selected for the 2018 cohort will be connected to customers and industry-specific mentors. Up to 20 entrepreneurial teams will have access to:

• 20+ optional workshops covering a range of topics in business and social enterprise
• Numerous structured and unstructured opportunities to engage with investors and advisors
• 1-year reSET membership (includes access to co-working, programming and the on-site Entrepreneur-in-Residence)
• Exclusive discounts on business software packages and other resources

The accelerator will be free for accepted entrepreneurs and no equity will be taken from their operations. Graduates will also have an opportunity to compete for $20,000 in unrestricted funding at a culminating Venture Showcase in Spring 2018.

“As an entrepreneur myself, I have experienced the ups and downs of launching a new business,” said Jeremy Szechenyi, reSET’s Programs Manager. “Between reSET’s physical office and programs, we give entrepreneurs the resources and network that is critical to surviving and bringing their work to the next level.”

An information sessions will be held at reSET  (1429 Park Street, Hartford) on October 26 from 12:30-1:30pm, and November 15 from 5:30-6:30pm.  The sessions will be informal and meant to address prospective candidates questions.

reSET serves all entrepreneurs, but specializes in social enterprise ― impact driven business with a double or triple bottom line. In addition to providing co-working space, accelerator and mentoring programs, reSET aims to inspire innovation and community collaboration, and to support entrepreneurs in creating market-based solutions to community challenges.

Enfield, Backed by Western Mass., Goes After Amazon HQ2

The State of Connecticut is throwing its muscle behind Hartford and Stamford in their bids to become the home of Amazon’s second headquarters.  The Economic Development Council of Western Massachusetts, however, has issued a letter supporting a bid by the town of Enfield. In addition to Enfield, the cities and towns of Bridgeport, Fairfield, New Haven and Stratford submitted a joint proposal; Danbury also applied.

The bid by Enfield is perhaps the most ironic, as the Boston Globe pointed out in a front page article .  The central location being proposed is currently the Enfield Square Mall, which has seen its anchor stores – Macy’s, JC Penney’s and Sears – leave in recent years, followed by numerous smaller retailers.  The proposal is on the agenda of the next town Economic Development Commission, scheduled for Wednesday morning.  The Enfield proposal suggests Hartford, West Hartford, Windsor, Meriden and New Haven and Springfield as "potential satellite campuses" and stresses Enfield's place at the center of the Knowledge Corridor, which runs from Springfield to New Haven.

“It’s a scene repeating itself in dying suburban malls around the country,” the Globe reported, “a sweeping economic disruption known as the Amazon effect.”  Industry analysts have predicted that 20 percent of the 1,200 shopping malls in the U.S. will “meet their demise,” the Globe indicated.

Amazon.com has received 238 proposals from cities and regions across North America.  Amazon said Monday that 54 states, provinces, districts and territories in the United States, Canada and Mexico were represented in the bids. The number of applicants underscores the interest in the contest, which Amazon announced last month. The world’s largest online retailer said it would invest more than $5 billion and create up to 50,000 jobs for “Amazon HQ2”. The deadline for submitting proposals was last Thursday.

"There are no state boundaries for our region's workforce, company supply chains and students," Rick Sullivan, president and CEO of the Economic Development Council, wrote in a letter supporting Enfield.  The town is along the so-called "Knowledge Corridor," the economic region that includes Springfield as well as Hartford and New Haven, and follows the Interstate 91 corridor in Massachusetts and Connecticut.  The corridor is expected to benefit from the introduction of regular commuter rail service, being introduced next year; the Enfield proposal provides Amazon with a map of the new Hartford Line rail route.

The Enfield bid touts its proximity to higher education, Bradley International Airport and major highways, as well as arts and culture. Also highlighted are major businesses located in the community, including Lego, MassMutual, Brooks Brothers, and Eppendorf, according to published reports. The Enfield proposal opens with a stylized newsletter of the future, including facts about Enfield and the region, led by the headline “Internet Retail Giant Pumps Life Back into Dying Mall!”

"With a population of nearly 50,000, Enfield’s 33 square miles are at the center of the New England Knowledge Corridor, Enfield provides quick and easy access to several US Highways, airports and rail systems," the 12-page Enfield proposal explained.  "Tax Increment Financing (TIF) districts are being created in Enfield and surrounding towns to support new development and growth. Abatements and Regional Revenue Sharing are all available to sweeten the deal. Connecticut has the lowest corporate tax rate in the North East."

After having received more than a dozen potential bids, state economic development officials opted to promote Hartford and Stamford as its leading candidates to land the headquarters, developing a website to promote the two regions, under the headline “The Talent You Need.  The Lifestyle They Want.”  The submission noted that "if Connecticut were a country, we’d be the sixth most productive in the world—ahead of Germany, Japan and Hong Kong."

A letter of support jointly signed by the state’s seven-member Congressional delegation and included with the state’s submission did not indicate a preferred location in the state, advocating “full support of Connecticut as the home of your second headquarters.”  A similar letter was signed by legislative leaders of both political parties, along with the co-chairs of the state’s Commission on Economic Competitiveness.  That letter noted that “Connecticut has already made a major commitment to Amazon, with facilities in Windsor and Wallingford, and another planned for North Haven.”

The Hartford bid was supported by the Mayors of Hartford, East Hartford, and West Hartford, along with Chip Beckett of Glastonbury, Chair of the Capital Region Council of Governments.  A joint letter was included in the state’s overall package.  A similar letter supporting Stamford came from that city’s Mayor.

An additional letter of support for the state’s bid was signed by 57 business leaders from throughout the state, accompanied by another from nearly three dozen higher education leaders from public and private institutions.

It was, some have suggested, a show of unity that has been generally lacking during the four months that the state has operated without an approved state budget, the longest such period in the state’s history.

Some communities, most notably the joint proposal by the cities of Bridgeport and New Haven, along with their immediate suburban neighbors, didn’t make the state cut, but submitted proposals nonetheless.  The Enfield proposal touts the entire region, along the I-91 corridor.  Locations in Enfield, including the mall, are suggested, as are other communities north and south of the state line that could host various divisions of an Amazon headquarters, according to reports on the proposal.

Portions of artists renderings included in State of Connecticut proposal advocating for Stamford and Hartford.

Attracting International Start-Up Ventures to CT Takes State's Money and Business' Commitment

Connecticut’s efforts to attract innovative, early stage, start-up companies from around the world will be front and center on Friday at VentureClash, the state’s $5 million global investment challenge.  The mission is simple:  to provide early-stage companies worldwide with an opportunity to grow their business in Connecticut. Connecticut Innovations (CI), the leading source of financing and ongoing support for Connecticut’s innovative, growing companies, is the driving force behind VentureClash, which has attracted companies in digital health, financial technology, insurance technology and the Internet of Things.

The nine finalists, from seven countries, will present in front of a panel of expert judges, at the competition to be held at the Yale School of Management.  The challenge will provide one top winner with a $1.5 million investment. Up to two second-place winners will each receive a $1 million investment, and up to three third-place winners will receive awards worth $500,000 each.

Applications opened in March.  To be eligible, companies must have been in business for at least 12 months, have paying customers or customers who are actively testing the applicant’s product, and be focused in digital health, financial technology (Fintech), insurance technology (InsureTech) or Internet of Things (IoT).

Companies seeking the VentureClash funding must also “be willing to establish a Connecticut presence, which applies to domestic and international applicants,” according to the competition’s criteria.

Tim Armstrong, CEO of Oath, will be the keynote speaker at the event. Oath is a global digital and mobile company that reaches more than one billion global consumers and partners with the world’s leading global brands. Oath owns close to 50 mobile and internet brands, including Yahoo, AOL, HuffPost, TechCrunch, Tumblr and other leading brands as well as global commerce and advertising platforms that support thousands of partners across the globe.

The VentureClash finalists are:

• Bought By Many – A U.K.-based interactive members-only service, Bought By Many offers targeted insurance opportunities designed to help individuals find the right insurance efficiently and customized to their needs.
• Buzzmove – Buzzmove is the United Kingdom’s only price-comparison and instant-booking platform for all services related to moving and the right level of insurance needed to cover moving-related services.
• Davra Networks – Based in Ireland, Davra Networks provides a complete Internet of Things (IoT) platform that allows customers to define, build and bring to market vertical-specific IoT applications while collecting and easily sharing data.
• EAVE – U.K.-based EAVE is developing the next generation of hearing protection and communication technology utilizing noise cancellation and speech enhancement to eliminate noise-induced hearing loss.
• FRISS – Based in the Netherlands, Friss uses proprietary analytics software to provide state-of-the-art solutions in the fields of fraud, risk and compliance for the insurance industry.
• Peek Health, S.A. – Based in Portugal, Peek Health offers powerful three-dimensional preoperative planning software for orthopedic surgery that aims to help the surgeon better treat the patient while reducing costs and surgical times.
• SCADAfence – Based in Israel, SCADAfence is a pioneer in securing mission-critical industrial networks from cyber threats, reducing the risk of connecting multiple devices in industries like manufacturing, utilities, oil and gas.
• Tellspec – Headquartered in Toronto, Canada, Tellspec is a data company with the ability to scan food, offering non-destructive real-time food testing for quality control, authentication, safety and nutritional value.
• Vouchr – Based in Canada, Vouchr is a secure, payment-agnostic tool that allows users to bundle transfers of funds with photos, videos, social networking and gamification.

“VentureClash again attracted an impressive list of innovative, early-stage companies poised for growth,” said Matt McCooe, CEO of Connecticut Innovations. “The fundamental improvement in this year’s competition is the deep involvement of so many corporate partners. Many of Connecticut’s flagship companies engaged in the process to learn about, meet and help us select the competitors in VentureClash. The Connecticut-based companies are looking to CI to act as a tech scout, and to help identify fantastic talent and innovation from across the globe.”

Recognizing that it takes more than money to succeed, officials point out, the $5 million global business competition also includes access to a critical network of customers, investors, mentors and talent.

VentureClash 2017 has partnered with the following organizations for this year’s competition: Aetna; Bank of Ireland’s Startlab; Boehringer Ingelheim; Dream Payments; Fiondella, Milone & LaSaracina LLP; General Dynamics Electric Boat; Health Venture; ISG (Information Services Group); Magellan Health; Medtronic; Microsoft BizSpark Assets; Navigators; Pitney Bowes; RBS/NatWest; Shipman & Goodwin; Sikorsky & Lockheed-Martin; Stanley, Black & Decker; Stanley Ventures; Synchrony Financial; The Hartford; The Jackson Laboratory; Travelers; Updike, Kelly & Spellacy; Webster Bank; Yale University; Yale New Haven Health; and Yale Office of Cooperative Research (OCR).

A year ago, in the inaugural VentureClash, ten companies were selected as finalists from an initial field of 200.  The top prize winner, DreamPayments, was a financial technology company that provides a cloud-based mobile payment platform for merchants and financial institutions.  Based in Canada, the company was looking to expand its operations to the U.S.  In receiving the $1.5 million in funds from CT Innovations, they stated plans to hire up to 10 employee positions in Connecticut and add a business development professional to help assist with its U.S. growth plans.  The company is headquartered in Toronto, with operations also now in Stamford.  The company hired its first U.S. employee in March.

Connecticut Innovations is Connecticut’s strategic venture capital arm, providing funding and strategic support to early-stage technology companies. In addition to equity investments, CI provides grants that support innovation and collaboration through CTNext, and connections to its well-established network of partners and professionals.

To register to attend the 2017 VentureClash finals event, visit: www.ventureclash.com/event.

More CT Employers Expect Hiring to Increase for Remainder of Year; Hartford Region Lags State

Employers in Connecticut expect to hire at a modest pace during the fourth quarter of this year, which began on October 1, according to the ManpowerGroup Employment Outlook Survey. From October to December, 18 percent of Connecticut companies interviewed plan to hire more employees, while 7 percent expect to reduce their payrolls. Another 73 percent expect to maintain their current workforce levels and 2 percent are not certain of their hiring plans. This yields a Net Employment Outlook of 11%, which is below the national outlook projection.

“Hiring intentions are stronger compared to Q3 2017 when the Net Employment Outlook was 8%,” said ManpowerGroup spokesperson Betty Gooding. “The hiring pace is expected to remain stable compared to one year ago when the Net Employment Outlook was 12%.”

For the coming quarter, job prospects in the state appear best in Construction, Durable Goods Manufacturing, Nondurable Goods Manufacturing, Wholesale & Retail Trade, Information, Financial Activities, Professional & Business Services, Education & Health Services, Leisure & Hospitality and Other Services. Employers in Government plan to reduce staffing levels, while hiring in Transportation & Utilities is expected to remain unchanged, the survey found.

In an analysis of the largest metropolitan regions in the nation, three in Connecticut brought differing projections, with one slightly higher and the others slightly lower than overall expectations statewide.

In the Bridgeport-Stamford-Norwalk metropolitan statistical area (MSA), employers expect to hire at what is described as a “respectable pace” during this quarter, according to the Survey.  Twenty percent plan to hire more employees, which is offset by the 6 percent that plan to reduce payrolls, while 72 percent of employers expect to maintain current staff levels. Two percent indicate they are not sure of their hiring plans, which yields a Net Employment Outlook of 14% - higher than the expectation statewide.

In the New Haven-Milford MSA, 16 percent plan to hire more employees from October through December and 6 percent that plan to reduce payrolls. The Net Employment Outlook is 10%, just under the state outlook.  And in Hartford-West Hartford-East Hartford, 17 percent of employers plan to hire more employees, 8 percent that plan to reduce payrolls, while 70 percent expect to maintain current staff levels and 5 percent are not sure of their hiring plans. This yields a Net Employment Outlook of 9%.

Nationwide, of the more than 11,500 employers surveyed, 21 percent expect to add to their workforces, and 6 percent expect a decline in their payrolls during the final quarter of the calendar year. Seventy-one percent of employers anticipate making no change to staff levels, and the remaining 2 percent of employers are undecided about their hiring plans. When seasonal variations are removed from the data, the Net Employment Outlook is 17% nationwide.

This marks the 13th consecutive quarter with an Outlook of +15% or stronger, according to Manpower Group.  Compared with this time one year ago, hiring prospects are slightly stronger in the Northeast and remain relatively stable in the other three regions.  The Northeast Region includes Connecticut, Maine, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, and Vermont.  Employers across all sectors report favorable hiring intentions, with those in durable goods manufacturing reporting the strongest intentions in the past 10 years.

For the final quarter of the year, employers in Delaware, North Carolina, Wisconsin, Minnesota, Montana, Oregon, South Carolina and Utah report the strongest Net Employment Outlooks. Among the 100 largest metropolitan statistical areas, the strongest job prospects are expected in Cape Coral, Fla.; Oxnard, Calif.; Charlotte, N.C.; Stockton, Calif.; Deltona, Fla.; Grand Rapids, Mich.; Madison, Wis. and McAllen, Texas.  The Net Employment Outlook is derived by taking the percentage of employers anticipating an increase in hiring activity and subtracting from this the percentage of employers expecting a decrease in hiring activity, taking into account seasonal adjustments.

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.