Income Inequality in CT's 4th Congressional District is 4th Largest Gap in Nation; 2nd District Has Least Income Inequality in State

Connecticut’s 4th Congressional district, centered in Fairfield Country, has been ranked as the district with the 4th highest level income inequity in the nation.  A year ago, the 4^th C.D. was ranked fifth. A ranking of congressional districts of by their level of income inequality, conducted by Bloomberg, uses the Gini coefficient, a formula that measures the distribution of income across a population. The closer a Gini number is to 1, the greater the level of inequality; the closer to zero, the closer to perfect equality. The average score for the United States was 0.4804.

All of Connecticut’s Congressional Districts, with the exception of the Fourth District, did better than the national average in the degree of income inequality.

Bloomberg Businessweek has previously pointed out that the U.S. congressional districts with the most inequality share certain traits: “they contain a small, enormously wealthy elite surrounded by impoverished neighbors.” Most of the districts with the greatest disparity are located in or near major urban metropolitan areas.

The greatest income inequality in the most recent analysis indicated that the Congressional Districts with the most income inequality are Pennsylvania’s 2^nd District, New York’s 10^th District, and Florida’s 27^th District.  Following Connecticut’s 4^th District on the list are Illinois; 7^th District, and three additional Congressional Districts in New York – the 12^th, 7^th and 16^th.  Rounding out the 10 C.D.’s with the most income inequality are Ohio’s 11^th District and Georgia’s 5^th District.

In Connecticut’s 4^th Congressional District, which includes Bridgeport, the state’s largest city, as well as the communities often referred to as the “Gold Coast,” 59.3 percent of the population has household income in the highest quintile, while 6.7 percent of households have income below the poverty level.

Connecticut’s 5^th Congressional District (.4810) ranked number 88 on the list of Congressional Districts with the most income inequality among residents.  The state’s 3^rd Congressional District (.4792) ranked at number 95, and the 1^st C.D. (.4631) at number 175.  Much later in the rankings, Connecticut’s 2^nd District (.4261) came in at number 387, indicating it is the C.D. in Connecticut with the least income inequality.

The Gini coefficient, which is calculated by the U.S. Census from household income share by quintiles, was used to measure distribution of wealth. It ranges from zero, which reflects absolute equality, to one, complete inequality. The data was updated in November 2015, using 2014 data.  In 2014, a person living alone making less than $12,071 was classified as in poverty. The threshold increases for each additional household member and varies by the number of adults and children in each household.

Seven CT Financial Institutions Earn Federal Designation to Assist Low Income Communities

Across the country, there are 963 institutions designated by the U.S. Department of the Treasury’s Community Development Financial Institutions Fund as having earned CDFI Certification.  Seven of them are based in Connecticut’s urban centers, the focus of their financial activities. CDFIs are specialized community-based financial institutions with a mission to promote economic development by providing financial products and services to people and communities underserved by traditional financial institutions, particularly in low income communities and to people who lack access to financing.  By offering tailored resources and innovative programs that invest federal dollars alongside private sector capital, the CDFI Fund serves mission-driven financial institutions that take a market-based approach to supporting economically disadvantaged communities. The institutions to receive CDFI Certification in Connecticut are in the state’s major cities:

• Housing Development Fund (Stamford)
• HEDCO Inc. (Hartford)
• Community Capitol Fund (Bridgeport)
• Greater New Haven Community Loan Fund (New Haven)
• Hartford Community Loan Fund (Hartford)
• Seasons Federal Credit Union (Hartford)
• Start Community Bank (New Haven)

CDFIs include regulated institutions such as community development banks and credit unions, and non-regulated institutions like loan and venture capital funds. By building the capacity of a nationwide network of CDFIs, the CDFI Fund works to empower low-income and underserved people and communities to enter the financial mainstream.

Certified CDFIs are eligible to apply for awards through a variety of programs offered by the CDFI Fund. These awards enable CDFIs to finance a wide range of activities—including mortgage lending for first-time homebuyers, flexible underwriting for community facilities, and commercial loans for businesses in low-income areas. Through varying strategies, each CDFI contributes to the cultivation of a healthy and stable local economy, the CDFI website points out.

Speaking last week in Detroit, where CDFI Certified institutions are involved with the city’s rebound, CDFI Director Annie Donovan said “CDFIs have always led the way, demonstrating to mainstream investors that there are opportunities in communities that have been overlooked, or judged to be too risky. If mainstream financial institutions move into markets behind us, we must continue to blaze new trails, to find the next community that is even harder to serve than the last one.”

The Housing Development Fund, Inc. was established in 1989 as a nonprofit organization to finance the development of affordable housing in Stamford, CT. Today, with offices in Stamford, Bridgeport, and Danbury, HDF provides lending and homeownership counseling services to the entire state of Connecticut as well as Nassau, Suffolk, Rockland, and Westchester counties in New York.

Community Capital Fund facilitates the flow of capital and expertise into housing and economic developments that “benefit low and moderate income people in the Greater Bridgeport Area.”  It was formed in 2005 from the merger of two loans funds.

The 27-year old Greater New Haven Community Loan Fund’s mission is to create and sustain vibrant neighborhoods and communities. Through its lending and investment, the Loan Fund is the flexible source of alternative financing for affordable housing and community development in the greater New Haven area.

Since 1975 HEDCO Inc. has helped clients and their communities improve, achieve and succeed by supporting their growth and progress. They “build productive partnerships, create new programs that meet the changing needs of entrepreneurs and increase the funds available to help people build and improve their business and non-profit organizations.”

Formerly the Middlesex Credit Union, Seasons Federal Credit Union was renamed in 2006 after expanding into New Haven County. Over the years, the credit union has “broadened its services beyond simple share savings and small loans to meet the increasingly diverse financial needs of its growing membership.”

The First City Fund Corporation (FCFC), Start Community Bank’s parent company, was formed in 2004 as a result of a challenge of the city of New Haven to New Haven Savings Bank’s conversion to a public company. In the fall of 2012 the bank received certification as a Community Development Financial Institution, (CDFI). There are only 100 CDFI certified banks in the country, and Start Community Bank is the only bank so designated in New Haven.

The work of the Hartford Community Loan Fund is to provide and promote just and affordable financial services that benefit low-wealth residents of Hartford.  HCLF helps borrowers overcome barriers—such as credit history, language, cultural differences, financial literacy, or lack of economic assets--that can isolate people from the financial mainstream.  As the Fund’s slogan indicates, “We Finance Hope.”

Providing access to affordable financial products and services in underserved communities is a vital part of the CDFI Fund’s mission. By building the capacity of a nation-wide network of specialized financial institutions serving economically distressed communities, low- income people are empowered to enter the financial mainstream, the CDFI website emphasizes.

Donovan, in her Detroit speech last week, underscored that “CDFIs do connect their strategies with many community stakeholders, but let’s make sure we aren’t leaving out the important voices of the people who live in the communities we serve. If we are to deepen our impact and increase economic opportunity, we must know and serve our target markets from the bottom up.”

White House Conference on Aging Has Connecticut Connections

It is a once-a-decade event that will feature the President of the United States and other senior administration officials. The White House Conference on Aging (WHCOA), first held a half-century ago and a key driver of federal policy towards the nation’s seniors, will be a conference reliant on digital technology befitting 2015. Rather than having delegates from throughout the nation stream into Washington, D.C., Americans are asked to watch events unfold via live stream – either at home, or by getting together with co-workers or people from their local communities.  Officials note that more than 600 public and private Watch Parties—in every state—have been organized and registered with WHCOA.

According to the WHCOA website, there are four “watch party” sites in Connecticut, where people can gather to watch the live video feed together. The sites are in Hamden at the Whitney Center, in Norwalk at Home Care 100, in Waterbury at the Western CT Area Agency on Aging, and in West Hartford at Hebrew Healthcare.  The WHCOA has produced a Watch Party Discussion Guide to encourage dialogue during the event, in addition to listening to speeches emanating from the White House.

Earlier this year, regional forums leading up to the WHCOA were held in Tampa, Phoenix, Seattle, Cleveland and Boston.  Lisa Ryerson, President, AARP Foundation President, moderated the panel in Boston, which explored the topics of healthy aging and long-term services and supports. Panelists included Jewel Mullen, Commissioner, Connecticut Department of Public Health and President, Association of State and Territorial Health Officials.  The Boston  Regional Forum, held on May 28, 2015, was the fifth and last in the series of regional forums, coordinated with the Leadership Council of Aging Organizations, a coalition of more than 70 of the nation’s leading organizations serving older Americans.

In addition, Connecticut’s Department on Aging, Legislative Committee on Aging and Commission on Aging held a public hearing in May at the Legislative Office Building highlighting issues impacting the state’s seniors, with the testimony from that day being shared with WHCOA officials. Connecticut officials noted that Connecticut is undergoing a “permanent and historic transformation” in its demographics, and currently has the nation’s 7^th oldest population.  Between 2010 and 2014, Connecticut’s population of people age 65 and older is projected to grow by 57 percent, while at the same time the population of individuals between age 20 and 64 will grow by less than 2 percent.

Monday's WHCOA  begins with a welcome from Valerie Jarrett, Senior Advisor and Assistant to the President for Intergovernmental Affairs and Public Engagement, being introduced by Bernard Nash, Caregiving in America Panel.  An early morning panel is to be moderated by actor David Hyde Pierce and will include Secretary Robert A. McDonald, U.S. Department of Veterans Affairs; Ai-jen Poo, Caring Across Generations; Harry Leider, The Walgreen Company; Frank Fernandez, BluePlus, BCBS Minnesota Foundation; and Britnee Fergins, Caregiver.

Remarks by President Barack Obama, will be followed by a panel on “Planning for Financial Security at Every Age” moderated by Secretary Tom Perez, U.S. Department of Labor.  The panel will include Jean Chatzky, AARP Financial Ambassador; Vickie Elisa, Mothers’ Voices Georgia; Robin Diamonte, United Technologies Corporation; and Andy Sieg, Merrill Lynch Bank of America.

Diamonte, UTC’s Chief Investment Officer, was voted CIO of the Year in April by her peers in the Investor Intelligence Network (IIN), an online forum of senior financial decision-makers. IIN is part of Institutional Investor PLC, a leading international business-to-business publisher best known for its Institutional Investor magazine.  Diamonte is responsible for overseeing UTC’s $52 billion in global retirement assets, including $24 billion in domestic pension plans, $7 billion in foreign pension plans and $21 billion in the defined contribution plan.

Following the panel that includes Diamonte, viewers will hear remarks from Nora Super, Executive Director of the 2015 White House Conference on Aging and Cecilia Muñoz, Assistant to the President and Director of the Domestic Policy Council.

Also delivering remarks or participating in panels are Secretary Tom Perez, U.S. Department of Labor; DJ Patil, White House Office of Science and Technology Policy; Secretary Tom Vilsack, U.S. Department of Agriculture; professional athlete Diana Nyad; Vice Admiral Vivek Murthy, U.S. Surgeon General; Director Richard Cordray, Consumer Financial Protection Bureau; and Stephanie Santoso, White House Office of Science and Technology Policy.

In addition, Kevin Washington, President and CEO of the YMCA, will be a member of a panel on The Power of Intergenerational Connections and Healthy Aging.  Washington, who formerly led the YMCA in Hartford, was honored last month by The Amistad Center for Art & Culture in Hartford for his leadership, noting that he is the first African American to lead the nation’s YMCA organization.

Throughout the day, individuals are asked to “Tweet us your questions using #WHCOA and we will pass them along to our experts participating on panels at the conference.” People are also asked how they would finish the sentence: “Getting older is getting better because …”? A PDF form can be downloaded and then sent along to WHCOA officials.  Interviews with older adults can be uploaded to be archived in the Library of Congress, and people are encouraged to share their interviews on social media using the #WHCOA hashtag.

https://youtu.be/gdAWa6wNYXs

Governor Travels to Iowa for Insurance Industry Keynote

When “attendees from around the world” convened in the “insurance hub of Des Moines, Iowa,” for the second annual Global Insurance Symposium, the keynote speaker was an individual from a state long considered as the hub of the industry, Governor Dannel Malloy of Connecticut. The symposium, being held this week, was designed to “provide a forum for insurance professionals and regulatory authorities to share insights into challenges facing the insurance industry,” and includes “some of the most knowledgeable experts in the insurance field and discuss important issues facing the industry, such as cybersecurity and big data,” according to conference organizers.

Why Des Moines, Iowa?  The conference website points out that “for decades, Iowa has been committed to policy that creates favorable conditions for the insurance industry to thrive. As home to more than 200 insurance companies, Iowa is uniquely suited to host the Global Insurance Symposium and assemble global leaders to discuss these important issues.”

The symposium will  also serve as a coming out for six start-ups completing Iowa's Global Insurance Accelerator, a fast-track business development program focused on insurance innovation. The accelerator brought together startups from Iowa, Nebraska, California, Germany and Brazil, for 100 days of fast-paced business development, and mentoring.  The initiative was launched in February.

Iowa Governor Terry Branstad provided opening remarks at Wednesday’s session, followed by Malloy’s keynote address.  Branstad, a Republican, and Malloy, a Democrat, were re-elected by voters in their respective states last fall.

The 2014 Connecticut Insurance Market Brief reports that Connecticut ranks #1 in the U.S. for insurance carrier employment as a percentage of total employment, #1 in the U.S. for insurance payroll as a percentage of total payroll (5.6 percent) and that one new job in the insurance industry results in 1.73 additional jobs to the Connecticut economy.  The insurance sector accounts for 5.7 percent of Connecticut’s Gross State Product, ranking #2 in the U.S. as a percentage per capita. 

A 2012 report by the Connecticut Insurance and Financial Services (IFS) Cluster and PwC US indicated that an increase of $1 in insurance labor income puts an additional $0.78 into state commerce; and every year the insurance industry purchases an average of $2 billion in goods and services from other industries in Connecticut.

The Iowa Economic Development Authority reports that “Iowa’s insurance industry grew by 11 percent during the past 15 years, while industry throughout the entire U.S. was flat.”  The agency indicates that while Iowa has 1.6 percent of the nation’s finance and insurance jobs, it generates 2.9 percent of the nation’s insurance GDP.

In a op-ed co-authored by the two Governors and published in 2012 by the Connecticut Post, Malloy and Branstad pointed out that “in Connecticut and Iowa, the multibillion-dollar insurance industry remains one of the essential anchors for sustained prosperity and quality of life. Both states are among the top four in the nation for the share of insurance and financial services jobs when compared to the entire workforce. In addition, the U.S. insurance industry is a titan in the world marketplace, accounting for nearly 34 percent of the worldwide market share.”

“Unique and fundamentally stable, insurance would top the list of industries for any governor to nurture and grow in his or her state,” the states’ chief elected officials noted. “The industry attracts a well-educated, well-paid work force of actuaries, financial analysts, attorneys, certified accountants and skilled support staff.”

The text of remarks by Branstad and Malloy at the Global Insurance Symposium were not immediately available, but The Hartford Courant reported that Malloy advocated continued state regulation of the industry, rather than an increased federal regulatory scheme.  "Our states, our commissioners and our governors need to be more actively involved if we are going to protect our industry as we know it, and not be dictated to, not simply by people in Washington but people abroad as well," the Courant quoted Malloy as stridently urging those gathered for the symposium.

https://youtu.be/R_aApLrqy5o

https://youtu.be/CmDCxvRIC3I

Connecticut Ranks #39 Among States for Retirement; Lowest In New England

Connecticut, ranking 39^th overall and lowest among the six New England states, came away with a mixed bag of results on a list of the “Best and Worst Places to Retire,” compiled by the financial data website bankrate.com and published this week. The good news:  Connecticut ranked #6 in crime rate, the state’s highest ranking among the six categories included in the survey, and just outside the top ten at #12 for health care quality.  Undeterred by the challenging February weather this year, Connecticut ranked #14 for weather among the nation’s 50 states.  Not so good – Connecticut ranked near the bottom, at #48, in cost of living, and at the middle-of-the-pack, at #24, for community well-being.

The survey of around 1,000 adults in the U.S. questioned what Americans' priorities are when it comes to retirement. Nearly a quarter of those surveyed said being close to family was the deciding factor. But when it came to climate, while around a quarter prefer being close to a beach, nearly 40 percent of people want access to the great outdoors, rivers and mountains, according to published reports highlighting the survey results.

The top 10 states were Wyoming, Colorado, Utah, Idaho, Virginia, Iowa, Montana, South Dakota, Arizona and Nebraska.  The highest ranked New England states were Maine at #12, Vermont at #15 and New Hampshire at #16.  Massachusetts came in at #18 on the list, and Rhode Island was just ahead of Connecticut at #38.

By category, Minnesota topped the list in health care quality, Hawaii was #1 in community well-being, New Mexico was #1 in weather, and Mississippi (which ranked #36 overall) had the lowest cost of living.   Vermont had the lowest crime rate and Wyoming the lowest tax rate.

Bankrate provided the following breakdown of the origin of the data used in compiling the rankings:  The cost-of-living data was provided by the Council for Community and Economic Research, a Virginia-based group that tracks retail prices in more than 300 communities around the country. Crime statistics include property and violent crimes reported by police departments to the FBI.

Health care quality scores come from the Agency for Healthcare Research and Quality, a federal office that measures each state's performance on about 160 different health-related issues. The National Oceanic and Atmospheric Administration provided weather data, including readings on temperature, humidity and sunshine. The "well-being" scores for seniors were from Healthways, a research group that works with the Gallup polling service to survey the public about their happiness and general satisfaction with their surroundings.

There are worse places than Connecticut to retire, according to the survey.  Among them:  Oklahoma, Oregon, Missouri, Kentucky, Louisiana, West Virginia, Alaska, and Arkansas, as well as New York and New Jersey.  Hawaii also ranked in the bottom 10, largely due to its highest-in-the-nation cost of living.

More US Cities Seek to Join Stamford in Commitment to Energy, Water Usage Reductions in Commercial Buildings

Efforts are underway this year for seven additional cities, from Albuquerque to Ann Arbor, to follow Stamford and seven others across the nation, in making a long-term commitment to reduce energy and water consumption in commercial buildings and reduce emissions from transportation, while increasing competitiveness in the business environment and owners' returns on investment. The “2030 District” initiative began with Seattle in 2011, grew by two cities in 2012, to four in 2013, and then to eight in 2014 when Stamford joined Seattle, Pittsburgh, Cleveland, Los Angeles, Denver, Dallas, and San Francisco as a 2030 District.  Now working towards the designation, in addition to Albuquerque and Ann Arbor, are Detroit, San Antonio, Ithaca, Toronto and Portland.

Across the United States and Canada, 2030 Districts are forming with greater frequency to meet incremental energy, water and vehicle emissions reduction targets for existing buildings and new construction called for by Architecture 2030 in the 2030 Challenge for Planning.  Districts are generally private/public partnerships that commit to dramatic reductions in water consumption and energy and greenhouse gas (GHG) emissions, as well as adaptation and resiliency actions that address projected climatic impacts.

The Stamford 2030 District – launched this past  November - is an interdisciplinary public-private-nonprofit collaborative working to create a groundbreaking high performance building district in downtown Stamford.  Leading the way in the Stamford 2030 District are the Business Council of Fairfield County and Connecticut Fund for the Environment. As Stamford is a coastal city, its 2030 District will also implement a proactive vision to ensure resiliency against projected sea-level rise and storm surge.

The Stamford 2030 District – the first in New England - began with 23 founding members, including 11 property owners and 12 prominent professional and community stakeholders committed to meeting the 2030 Districts goals and targets. High performance buildings have proven track records of simultaneously increasing business and property profitability, reducing environmental impacts, and improving occupant health.

Now in the process of assessing the District’s current building performance levels, one-on-one assistance is provided to property owners and managers in benchmarking their buildings.  In addition, a first-time webinar will be held this week, on Wednesday, February 18, with several founding members highlighting best practices and procedures:

• Jay Black of SL Green Realty/Reckson Properties will offer industry perspective through his experience with benchmarking buildings in both NY and CT.
• WegoWise will present an overview of their web-based software that is able to benchmark a portfolio and provide deeper analytics into a buildings’ energy performance to find savings opportunities.
• Steven Winter and Associates will demonstrate how to take benchmarking a step further with tools such as building energy audits to help identify opportunities within the building.
• New Neighborhoods, Inc. will serve as a case study project in Stamford that has contracted with WegoWise for their benchmarking and will share their experience.

Officials indicate that District Members develop realistic, measurable, and innovative strategies to assist district property owners, managers, and tenants in meeting aggressive goals that keep properties and businesses competitive while operating buildings more efficiently, reducing costs, and reducing the environmental impacts of facility construction, operation, and maintenance.

“These collective efforts will establish the Stamford 2030 District as an example of a financially viable, sustainability focused, multi-sector driven effort that maximizes profitability and prosperity for all involved. Through collaboration of diverse stakeholders, leveraging existing and developing new incentives and financing mechanisms, and creating and sharing joint resources, the Stamford 2030 District will prove the business case for healthy and high performing buildings.”

Property owners and managers are voluntarily committing their properties to Stamford 2030 District goals; they are not required to achieve the District goals through legislative mandates or as individuals.

“Stamford is already a business leader in Connecticut. The Stamford 2030 District will make the city a sustainability leader nationwide,” said Megan Saunders, Executive Director of the Stamford 2030 District. With over 170 million square feet of commercial building space (including 6 million thus far in Stamford), 2030 Districts are rapidly emerging as a new model for urban sustainability, officials indicate.

The Stamford 2030 District provides members a roadmap and the support they need to own, manage, and develop high performance buildings by leveraging Community and Professional Stakeholders, market resources, and by creating new tools, partnerships, and opportunities to overcome current market barriers. This type of collaborative action is not only a strategic undertaking to keep Stamford competitive in the year 2030, but also represents a major investment in Stamford's future and reflects the collaborative nature of our region.

New Interactive Tool Brings Focus to Cuts in State Funding of Children's Programs

If a picture is worth a thousand words, the impact of a series of interactive data visualization graphs must be, well, off the charts.  For Connecticut Voices for Children, the new online, interactive visualization tool has been designed to help the public and policymakers see how funding for children's programming in Connecticut has fallen through the years.  Coming on the brink of a new legislative session and an ever-tightening state budget, the hope is that more widespread understanding of  past trends will forestall further cuts. The new interactive tool, on the Connecticut Voices for Children website, enables visitors to track spending across nearly 100 children’s programs over 25 years.  Over the last two decades, spending on children’s programs has declined from 40% to 30% of the state budget, according to the advocacy organization.  Had the state not changed its budgeting priorities, it would have invested about $1.5 billion more each year in children’s programs—enough, for instance, to be the first state to implement a universal early care and education system, Voices points out.

The new interactive tool, created by Connecticut Voices for Children, enables users to create their own graphs of state budget trends and then embed the charts in social media, blog posts, news articles, and reports. Users, for instance, can compare the dip in state support for K-12 education to the even steeper drop in support for higher education.

Detailed budget visualizations for Fiscal Years 1990 through 2015 are available for the following areas:

• The overall Children's Budget (at right)
• Early Care and Education
• K-12 Education investments
• Children's Health and Human Services
• Debt and Fringe Benefits

In producing this resource, Connecticut Voices for Children seeks to draw attention to what they describe as "Connecticut’s long-term disinvestment in young people – a trend that is particularly troubling in a state with an aging and shrinking workforce that will result in an increasing demand for well educated, career ready young adults."

Regarding K-12 education, for example, the website points out "K-12 Education has declined substantially as a share of the General Fund since the early 1990s, from about one fifth to one seventh in the most recent budget. This decline is seen most clearly in Educational Equalization Grants, the state's main contribution to local school districts. State support for K-12 education in Connecticut is among the lowest of any state in the union. In Connecticut, we leave the large majority of education expenses up to towns, which have no major revenue source except the property tax, thus contributing to the state's high and inequitable property taxes."

The information used in creating the graphs is official appropriations data from the Connecticut legislature's non-partisan Office of Fiscal Analysis.

Connecticut Voices for Children's mission is to promote the well-being of all of Connecticut's children and families by identifying and advocating for strategic public investments and wise public policies. Connecticut Voices advances its mission through high quality research and analysis, policy development, strategic communications, and establishment of a sustainable and powerful voice for children.

Whittlesey & Hadley Joins BlumShapiro Among Nation’s Top 200 CPA Firms

Whittlesey & Hadley, P.C., one of the area's largest regional accounting firms, ranks #192 in the Inside Public Accounting (IPA) fifth annual ranking of the Top 200 public accounting firms in the United States.  It is the firms’ debut appearance on the industry ranking list. West Hartford-based BlumShapiro was the highest ranked Connecticut headquartered public accounting firm, ranking at #56, up from #68 a year ago.  BlumShapiro and Whittlesey & Hadley are the only Connecticut-based firms among the top 200.

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

The top 10 firms – ranked by U.S. net revenue - include some well-known national names, and large regional firms not well known by businesses and consumers outside their regions.  The top 10 are:  Deloitte, PwC, Ernst & Young, KPMG, McGladrey, Grant Thornton, BDO USA, Crow Horwath, CliftonLarsonAllen, and CBIZ  & Mayer Hoffman McCan.  CohnReznick, which has a footprint in Connecticut (including a recent consolidation of suburban offices in downtown Hartford) ranked at #11.

Whittlesey & Hadley’s managing partner, Drew Andrews says, “We are pleased to see our firm join this prestigious list of growing CPA firms in the United States. This ranking represents our strategic plan to expand our professional services and talented team throughout the northeast.”

BlumShapiro was also named among the fifty “Best of the Best” by the publication, a category described as firms that “show strong growth and profitability, and rank high on numerous key metrics, they also demonstrate an enviable culture. These Best of the Best firms are at the top of their game.”

“We are honored to be recognized for this prestigious award,” said Carl Johnson, BlumShapiro Firm Managing Partner.  “To be distinguished as one of the best firms … is a testament to the teamwork, leadership and vision of all employees at BlumShapiro,” said Johnson. BlumShapiro is the largest regional accounting, tax and business consulting firm based in New England, with offices in Connecticut, Massachusetts and Rhode Island.

According to the publication, net revenue at Whittlesey & Hadley grew by 7.9 percent from the previous year; at BlumShapiro up 6.5 percent.

“With more than 540 firms participating in the IPA annual Survey and Analysis of Firms this year, along with many CPA firm associations contributing to the search to identify the IPA 200, this (is) the definitive ranking of the nation’s largest public accounting firms,” said Kelly Platt, principal of The Platt Group, the publisher of IPA.

Among the industry trends cited by the publication are tighter margins, leadership changes, globalization, new regulations, acquisition pressures, evolving technology, cultural shifts, fierce competition, and commoditization of services (firms struggling to differentiate in the marketplace).

Three firms earned positions in the Top 100 for the first time, and 12 firms – including Hartford’s Whittlesey & Hadley – debut on the Top 200 list.

Other industry trends, as highlighted by Inside Public Accounting:

• Cultural shifts – Younger employees often have different motivations and expectations than their elders at the firm. Up-and-comers who have “the right stuff” aren’t willing to wait the traditional 12 to 15 years to become partner and will challenge the firm to re-think normal career paths.
• Lack of diversity among partners – The ever-diversifying population – in age, ethnicity, language and gender – is not reflected in the makeup of the owners of accounting firms and change is glacially slow.
• Work environment challenges – Technology makes it possible for professionals to work anytime, anywhere. Balancing the needs of the individual with the needs of the firm, colleagues and clients can be tricky.

The IPA 200 are also engaged in acquisitions to grow in size, scope and capability, with 21 mergers reported for the group last year, adding more than 200 staff and more than $22 million into the aggregate numbers of the group.

CT’s 40 Fastest Growing Tech Companies Achieve Statewide Recognition

Connecticut’s fasted growing technology companies will be the center of attention Thursday evening as the Connecticut Technology Council (CTC) and Marcum LLP spotlight the 2014 Marcum Tech Top 40. Now in its 7^th year, the annual list features privately and publicly held companies, including some newcomers to the top 40. The 2014 winners are predominantly privately held companies, but 12 public companies also made the list, including Rogers Corporation, Gartner Inc. and Alexion Pharmaceuticals. That’s a slight drop from a year ago, when 14 public companies made the list.

Geographically, Fairfield County is home to 16 winning companies this year, followed by Hartford County and New Haven County, both with ten companies. For Fairfield and New Haven counties, the count increased by two businesses from a year ago; for Hartford County, the number was unchanged from last year. 

The selected companies have at least $3 million in annual revenue and a demonstrated record of growth in each of the preceding four years.  Four of the businesses have over $1 billion in revenue.

The Marcum Tech Top 40 recognizes technology leaders in six industry sectors, including Advanced Manufacturing, Energy/Environmental, Life Sciences, New Media/Internet/Telecom, IT Services, and Software. This year’s winners range from newcomer VRSim, Inc., a creator of virtual reality training tools for industrial and manufacturing applications, to Priceline.com, a leader in mobile travel.

Bruce Carlson, CTC’s President and CEO added, “Connecticut is proud of its remarkable heritage of innovation and invention. Job growth in Connecticut is going to come from the technology sector and these Tech Top 40 companies are a great example of the range of technology companies that are growing substantially in Connecticut.”

Among the names on this year’s list:  Frontier Communications, based in Stamford, providing communications services to residential and business customers across the country (in the news this year for the proposed purchase of AT&T’s business in Connecticut); and Bolt Technology Corporation, based in Norwalk, the leading worldwide developer and manufacturer of seismic energy sources, synchronizers and underwater connectors used in offshore seismic exploration for oil and gas; and Fitlinxx, based in Shelton,  an industry leading provider of wellness applications, wireless activity monitors, and health tracking devices that motivate people to live active and healthy lifestyles.

The city with the largest number of companies on the Top 40 list this year is Stamford, with six, followed by Norwalk with four, Shelton with three, and Wallingford, South Windsor, Simsbury and New Haven, each with two businesses on the list.  Other towns with a top 40 high tech business are Torrington, Danbury, West Hartford, Cheshire, Guilford, Greenwich, Plainville, Middlebury, New London, Killingly, Middletown, Fairfield, Madison, Branford, Farmington, Glastonbury, Windsor, Orange and East Hartford.

“Technology companies have a set of shared challenges that range from capital-raising and complex revenue reporting to intellectual property management and international expansion.  Whether they are private enterprises or Fortune 500 companies, this year’s Marcum Tech Top 40 winners all demonstrate management excellence and market foresight,” said Alex Discepolo, a Tax Partner in Marcum’s New Haven office and Practice Leader of the Firm’s High Technology Services Group.

The October 2 awards program, being held at the Oakdale Theater in Wallingford, will include an exhibition featuring the Marcum Tech Top 40 companies. Six category winners will be announced, and one company will be named overall winner for demonstrating the greatest percentage growth in revenue across all the technology verticals.

The Connecticut Technology Council is a statewide association of technology oriented companies and institutions, providing leadership in areas of policy advocacy, community building and assistance for growing companies. Speaking for 2,500 companies that employ some 200,000 residents, the Connecticut Technology Council seeks to provide a strong and urgent voice in support of the creation of a culture of innovation.

 The Tech Top 40:

Advanced Manufacturing

• APS Technology Inc – Wallingford
• Bolt Technology Corporation – Norwalk
• Dymax Corporation – Torrington
• Revolution Lighting Technologies Inc. – Stamford
• Rogers Corporation – Rogers 

Energy/Environmental/Green Technology

• FuelCell Energy, Inc – Danbury
• Proton OnSite – Wallingford

 IT Services

• Cervalis LLC – Shelton
• Datto Inc. – Norwalk
• Gartner Inc. – Stamford
• Information Services Group Inc. – Stamford
• IT direct, LLC. – West Hartford
• VLink Inc. – South Windsor

Life Sciences

• Alexion Pharmaceuticals, Inc. – Cheshire
• Bio-Med Devices, Inc. – Guilford
• Metrum Research Group LLC. – Tariffville

 New Media/Internet/Telecom

• Chief Executive Group – Greenwich
• EasySeat, LLC – Plainville
• Frontier Communications – Stamford
• HealthPlanOne LLC – Shelton
• iSend, LLC – Middlebury
• Job Target, LLC – New London
• M2 Media Group – Stamford
• Priceline.com, Inc. – Norwalk
• Reality Interactive, LLC. – Middletown
• TVEyes Inc. – Fairfield

Software

• Clarity Software Solutions, Inc. – Madison
• Core Informatics, LLC – Branford
• Evariant, Inc. – Farmington
• Evolution1, Inc. – Simsbury
• Fitlinxx, Inc. – Shelton
• Higher One, Inc. – New Haven
• KenCast, Inc. – Norwalk
• Link Systems Inc. – Stamford
• Shoptech Corporation – Glastonbury
• Square 9 Softworks Inc. – New Haven
• SS&C Technologies Holdings Inc. – Windsor
• Tangoe Inc. – Orange
• TicketNetwork - South Windsor
• VRSim, Inc. – East Hartford

CT Women Underrepresented Among Top Earners; 4th Widest Gap in US

In only three states in the nation are women more underrepresented among the top 1 percent of wage owners, when compared with the state’s overall female population. Connecticut ranks 4th – after South Dakota, New Hampshire and Wyoming – in underrepresentation of women among the top earners in the state. Connecticut has a ratio of 6 men for every woman in the state’s top 1 percent of wage earners. South Dakota has the widest gap and largest ratio, at 8.2.

In Connecticut, 51.3 percent of the state’s population is female, yet only 14.4 percent of the top 1 percent of wage earners in the state are women. That is a gap of 36.9 percent, ranking the state fourth.  In Wyoming the gap is 37.1 percent, in New Hampshire 38.6 percent, and in South Dakota, 39 percent. In South Dakota, with the widest gap, only 10.9 percent of the wage earners in the top one percent are women.

On the other end of the spectrum, the gap in Delaware is 10.6 percent, in Hawaii 16.8 percent, Rhode Island 17.8 percent and Vermont 21.7 percent. The ratio of males to females among the top one percent earners is 1.4 in Delaware, 2.0 in Hawaii, 1.9 in Rhode Island and 2.5 in Vermont, compared with Connecticut’s 6.0.

Bloomberg ranked the U.S. states and the District of Columbia on the extent to which females are underrepresented in the 1% income bracket, utilizing U.S. Census data.

Connecticut also had the nation’s second highest threshold income to gain entry into the one percent club, at $429,793. Only Alaska, at $500,052 was higher. Just slightly lower than Connecticut was the District of Columbia, New York, New Jersey, North Dakota and Minnesota ($387, 414). At the opposite end of the states tally was Wyoming, with an income of $244,207 placing individuals in the state’s top one percent of earners.

In the percentage of women in the overall population, Connecticut ranked 10th, at 51.3 percent. Only 10 states have more men than women in their population. Alaska has the highest percentage of men, at 52.1, and the District of Columbia the highest percentage of women, at 52.7. Following closely behind are Rhode Island and Mississippi, both with 51.7 percent of their population being female.

Using data from the U.S. Census, Bloomberg calculated the approximate 99th percentile, or top 1%, of inflation-adjusted wage or salary income figures for those ages 16 and older and employed. Gender information was extracted and the gap between the percentage of females in the 1% bracket and the percentage of females in the state's population was calculated.