CT Saves Week Focuses on Individual Finances (Not State Finances)

When the Legislative Office Building hosts a Financial Education Expo on Wednesday as part of Connecticut Saves Week, there may be more than one passerby suggesting that legislators pay particular attention, given that the state budget has been perpetually out-of-balance in recent years. The Expo, from 10 a.m. to 1 p.m., is open to the public.  Connecticut Saves Week, which runs through March 3, is part of America Saves Week, which began in 2007.

In addition to the expo at the State Capitol complex, there are three financial action workshops this week at American Job Centers around the state, with a focus on setting financial goals, reducing expenses and improving credit. They are being held from 9 to 11 a.m. on Tuesday in Hamden, 1 to 3 p.m. on Tuesday in Bridgeport and 9 to 11 a.m. on Thursday in Hartford.

UConn Extension will also be holding a Beyond Paycheck to Paycheck workshop series at its New Haven County Extension Center from 6 to 7:30 p.m. on March 5 and March 12 (The first of three sessions was held on Feb. 26).

“These workshops are designed to help individuals and their families take charge of their educational and career goals by providing budgetary guidance that will lead to future success,” said state Labor Commissioner Scott D. Jackson. “Whether the plan is to purchase tuition and books, buy a car to get to work, or start a savings plan, the end goal is improving economic security and employment opportunities for our residents.”

According to a May 2016 report from the Federal Reserve, 46 percent of adults surveyed said they could not cover an emergency expense costing $400.  Results from the 2015 FINRA Investor Education Foundation US Financial Capability Study indicate that among Connecticut residents, 48 percent do not have emergency funds, 52 percent have not set aside money for children’s college education, and 18 percent are spending more than their income. Financial literacy is offered in some Connecticut schools, but it is not required by the state for high school graduation.

Chris Lee, president of Connecticut JumpStart, a local nonprofit that works to get financial literacy into schools, told WNPR in December 2017 that a part of the state’s budget problem might be because lawmakers aren't very financially literate, the news station reported.

"I've always said I think a lot of members of the House and Senate both need to take some financial literacy courses and get some background in it before they go in to do some budget talks just to understand how all this stuff works," Lee told WNPR. "They don't understand financial literacy and they don't understand why it's important."

A financial literacy survey of high school and college students in Fairfield and New Haven counties and surrounding areas conducted last year showed 29 percent of local young adults do not have checking accounts or regularly use only cash, highlighting the need for expanded financial literacy education.  The survey was conducted by Stamford-based Patriot Bank.

An online “pledge” is available for interested individuals that will trigger periodic information, advice, tips, and reminders sent by email or text message, designed “to help you reach your savings goal, ” according to the CT Saves website.

The Connecticut Saves campaign encourages residents to assess their savings and save automatically to achieve financial goals. It is coordinated by UConn Extension and partners that include the Connecticut Department of Banking; the Connecticut Department of Labor; Connecticut State Library; Hartford Job Corps Academy; People’s United Bank; Human Resources Agency of New Britain, Inc.; Connecticut Association for Human Services; the Better Business Bureau Servicing Connecticut; Chelsea Groton Bank; and Community Renewal Team.

As Demographics Change, Connecticut Extends Borders, Colleges Seek More Diverse Student Population

When it comes to college tuition, Connecticut’s borders are expanding and colleges across the state are focused on potential students that likely wouldn’t have on the radar screen only a few years ago.  The impetus is a declining population of college-age students, expected to intensify over the next decade particularly in the Northeast, and declining financial support from state governments.  The results are dramatic efforts to further diversify the student populations - in geography, income, ethnicity and other factors, including offering the lower in-state tuition to out-of-state students. In the case of Connecticut, the state Board of Regents, which oversees four universities and 12 state colleges, has proposed merging the colleges into one statewide college with 12 campuses in a controversial plan that has drawn doubts and substantive questions from students, faculty, and legislators in Connecticut, and the region’s accrediting board, the New England Board of Higher Education, which is considering the plan.  It would be the largest merger of colleges in New England’s history, and the resulting college would be among the largest in the nation.

The number of high school graduates in Connecticut is expected to drop 14 percent from 2012-13 to 2025-26, according to reports citing U.S. Department of Education statistics, driven by the nation’s second-largest proportional decline in public school students over the next 10 years. CT Mirror reported this week that “The major organization that accredits colleges has said many questions need to be answered before the new college system is awarded accreditation, which is essential to make students eligible for federal financial aid and to guarantee the college’s degrees have educational value.”

Fall student headcount at the 12 colleges has dropped from a peak of 58,253 in 2012 to 50,548 in 2016, the lowest level in a decade.  The four state universities (Central, Eastern, Southern and Western) have seen enrollment decline from 36,629 in 2010 to 33,187 in 2016, the lowest level in this century.

Even in advance of the merger plan, the Board of Regents has been extending lower tuition offers in every direction, reaching out to students in Massachusetts, Rhode Island, New York and even New Jersey, making offers that the Regents hope will be tough to refuse.

Eight of Connecticut’s public colleges and universities extended in-state tuition to residents of neighboring states this academic year, primarily in response to declining enrollment and seeking to boost income.  The initiative expanded a pilot program by previously implemented at Asnuntuck Community College in Enfield, just south of the Massachusetts border.  Asnuntuck saw a 34 percent increase in students from the Bay State since the program began in June 2016.

Norwalk, Housatonic and the Danbury campus of Naugatuck Valley community colleges extended in-state tuition to New York residents, and t hree Rivers Community College in Norwich does the same for Rhode Island residents.  Northwestern Connecticut Community College in Winsted offers in-state tuition to Massachusetts residents, and Quinebaug Valley Community College in Killingly offers in-state tuition to Massachusetts and Rhode Island residents.

At Norwalk Community College, for example, the in-state tuition program reduces the cost for full-time tuition from $12,828 to $4,276 for the 2017-18 academic year, a savings of $8,552 for New York residents, the Norwalk Hour reported.

In addition, students from New York and New Jersey considering Western Connecticut State University will be able to pay in-state tuition — less than half the current rate for out-of-staters – beginning in the fall.  After receiving Board of Regents approval, the university announced a two-year pilot program to combat declining enrollment. Under the new pricing, students from the two states will pay $10,017 a year instead of the $22,878 out-of-state rate, the Danbury News-Times reported.  The program extends a smaller across-the-border recruitment effort that offered seven Hudson Valley counties in-state rates last fall, which led to an increase in students residing in those counties from 74 in the fall of 2016 to 243 in 2017.

The Boston Globe reported this month that the nation’s high school population “is becoming increasingly diverse and increasingly unable to afford high tuition prices. Additionally, experts predict a major drop in the number of high school graduates overall after the year 2025 — especially in New England — because people have had fewer babies since the 2008 economic recession. As a result, local colleges will have to work harder to bring students to campus and offer them significantly more financial assistance. And some of them, experts predict, will find this a daunting new calculus, leading to more college mergers and even closures.”

At Trinity College in Hartford, the Globe reported, “Angel Perez, the vice president for enrollment and student success, met with his staff to formulate a plan for how they will recruit amid the expected demographic shifts.  “This is the biggest challenge higher education has right now,” Perez told the Globe. When Perez sends out his recruiters each year, he urges all of them to seek out low-income, first-generation students, even though it can be more time-consuming and expensive, the Globe reported. The paper noted that they “meet students not only during the day at high schools but increasingly at after-school programs that help such students successfully make it to college.”

The Globe also noted that in a report released in December, Moody’s Investors Service “changed its outlook for the higher education industry from stable to negative because of the expected slowing of tuition revenue growth.”

Among the Wealthy, CT’s Gender Pay Gap is 4th Widest in the U.S.

In Connecticut, among the top 2 percent of wage earners, men earn an average of $658,000 while women earn an average of $214,000, a gap of $444,000.  That’s 67 percent less earned by women in the top 2 percent.  It is the fourth largest wage gap in the nation, comparing people earning in the top 2 percent in all 50 states. The data, compiled by the website howmuch.net, used information from the United States Joint Economic Committee.  The analysis indicates that the pay gap is “enormous everywhere you look. There isn’t a single place in the country where it doesn’t exist. The best state for pay equality is Alaska, but even there, women make 25% less than men.”

The largest pay gap between wealthy men and women is in Wyoming, at 71 percent, followed by Nebraska (68.7%), Oklahoma (68%), Connecticut (67.4%) and New York (67.3%).

The website indicates that for people earning an average income, the gender pay gap is typically around 20 percent. “For the ultra-rich, however, women make 60-71.76% less than men in a whopping 37 different states.”

In 1963, only 44 percent of prime working-age women (ages 25 to 54) were in the labor force. Around that time, women held fewer than one in three jobs. Today, about 75 percent of prime working-age women are in the labor force and women hold almost half (49 percent) of all jobs, according to data compiled by the Bureau of Labor Statistics.

Connecticut’s average for men in the top 2 percent of wage earners - $658,000 – was the highest in the country, just ahead of Washington, DC ($637,000), New York ($613,000) and New Jersey ($555,000). Massachusetts was next, at $551,000.

For women in the top 2 percent, Washington, D.C. topped the list at $280,000, followed next by Connecticut at $214,000, and New York, New Jersey, Massachusetts and California at $200,000.

The website analysis concludes that the pay gap “gets worse the richer you are."

Longstanding Coverage of State Government to End; Drastic Reduction in Funding, Imposition of Content Limitations Cited

CT-N, which has provided coverage of State Senate and House sessions and all three branches of state government for nearly two decades, will cease operations on Friday, November 3, due to severe budget cuts and limitations on coverage being imposed by the legislature on the network’s operator, the Connecticut Public Affairs Network (CPAN). CPAN has operated the network, under a series of contracts with the legislature’s Joint Committee on Legislative Management (OLM), since March, 1999, and was among the first in the nation to provide comprehensive coverage of state government.

“CPAN was created with a nonpartisan, educational mission to run CT-N as a three- branches network, at arm’s length from the government,” CPAN Executive Director Paul Giguere wrote in a letter notifying the non-partisan OLM that CPAN would be ending coverage. “It was a mission and purpose once supported by the Leadership of the General Assembly. Even the state statute governing CT-N’s revenue intercept refers broadly to coverage of ‘state government deliberations and public policy events.’ The thinking has clearly changed.”

At least one of those contracts, covering November 2003 - October 2006, clearly delineates that CPAN’s operation of CT-N would provide coverage of “the legislature, events of public interest in the Executive and Judicial Branches and other events of statewide interest.”  That contract also indicates that “many of the executive branch events to be covered will be taking place at locations away from the Capitol Complex.”  A subsequent contract, which ran through last year, also stated that “CPAN retains full editorial discretion regarding day-to-day programming.”  CT-N broadcasts seven days a week, 24 hours a day.

CPAN’s most recent contact expired in September, was extended through October, and was on a day-by-day basis this week. The 33-person staff worked with an annual operating budget that was unexpectedly reduced by 65 percent in the budget approved by the legislature this week for the current fiscal year.  At the same time, the legislature sought reductions in coverage of state government outside the State Capitol, limitations on editorial content decisions, and cutbacks on public affairs programming.  Those changes, which were revealed in the RFP for a new five-year in April, drew sharp criticism at that time, which were renewed this week.

“For some time now, we have contended with encroachments on our editorial independence, despite our best efforts to be responsive to concerns while continually working to improve the CT-N service and over-delivering on every contract we have ever signed,” Giguere wrote.

The National Alliance of Public Affairs Networks (NAPAN), points out that while many variations exist in programming and operating models among state public affairs networks, a series of “Best Practices” can be drawn from “the most effective strategies used by highly regarded networks across the country.”

NAPAN points out that “citizens’ trust in all three branches of government is at all-time lows,” and “while the judicial, executive and legislative branches actively operate in states daily, the understanding of what and how decisions are being made at the highest levels go largely unreported and consequently unnoticed by the general public.”  CT-N coverage was available on television and on-line, both live and in archives that are easily accessible to the public.  CPAN also has provided educational materials for classroom teachers and the general public.

In his letter, Giguere, who brought the concept for such a network to the Connecticut legislature in the 1990’s and led its launch and development, said “the scope at which we would be obliged to operate CT-N would cease to provide any meaningful level of transparency:  even less so, if the few coverage decisions we would have the opportunity to make were controlled by the CGA (Connecticut General Assembly) to the extent that recent events convince us they would be.”  He continued:  “at best, CT-N would provide the façade of transparency, cloaked – at least temporarily – in the credibility and reputation that CPAN has spent 18 years building.  We will not abet that course of action by the CGA by participating in it.”

In recent days, CT-N has provided coverage of Gov. Malloy’s news conference announcing he had signed the state budget into law, a news briefing on state infrastructure and resiliency improvements since Super Storm Sandy, meetings of the Connecticut Board of Firearms Permit Examiners and the Governor’s Nonprofit Health & Human Services Cabinet, and a hearing by the legislature’s Judiciary Committee considering nominations of individuals to serve on the State Supreme Court and Appellate Court.

Earlier this year, Danbury State Rep. Bob Godfrey cited the role of CT-N in providing the public with access to government, noting that "The General Assembly itself has provided more public access to lawmaking through both our web site (www.cga.ct.gov) and the Connecticut Television Network (CT-N, at www.ct-n.com)."

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Five best practices for state public affairs networks are described on the NAPAN website:

1. Accessible to All: 24/7 programs on a dedicated channel across multiple platforms

A state public affairs network is most effective in connecting citizens to state government when it is available full-time to the maximum number of citizens possible, including a robust online presence with strong searchable streaming and on-demand content, accessibility enhancements such as closed captioning for the hearing impaired and a permanent archive of programming produced.

2. All Three Branches of State Government

A state public affairs network is most effective in connecting citizens to state government when it provides a nonpartisan, unbiased and unfiltered window on all official state business.

3. Operating at Arm’s Length

A state public affairs network is most effective in connecting citizens to state government when it is structured with an independent governing body using a set of agreed-upon operating guidelines to make programming and operational decisions free from political influence.

4. Citizen Engagement

A state public affairs network is most effective in connecting citizens to state government when it seeks to demystify the process of governing by providing additional information and context through on-screen graphics, online reference materials and links to other resources.

5. Programming Breadth

A state public affairs network is most effective in connecting citizens to state government when it provides a broad range of high-quality public affairs programming beyond gavel to gavel coverage of government proceedings, as well as official emergency information from appropriate state public safety agencies.

More Changes Proposed as Enrollment Drops at State Colleges, Universities; Feedback Sought on Consolidation Plan

The recent decision by the Board of Regents of the Connecticut State Colleges & Universities (CSCU)  to begin offering students from New York and New Jersey the considerably lower in-state tuition rates in an effort to stem an increasing drop in enrollment at Western Connecticut State University may be the tip of the iceberg. Since 2011, enrollment numbers at higher education institutions in Connecticut have been moving in very different directions, according to data developed by the Connecticut Conference of Independent Colleges (CCIC) from the National Center for Education Statistics.

The data show that the state’s community college system has experienced a net loss of 7,126 students, and the state’s four regional universities – Western, Central, Southern and Eastern Connecticut – saw a net loss of 3,518 students between 2011 and 2016.

Trending in the opposite direction has been the University of Connecticut, with a net increase of 1,502 students, and the independent, non-profit institutions, was an increase of 4,626 students.

CCIC member institutions include Albertus Magnus College, Connecticut College, Fairfield University, Goodwin College, Mitchell College, Quinnipiac University, Rensselaer at Hartford, Sacred Heart University, St. Vincent's College, Trinity College, University of Bridgeport, University of Hartford, University of New Haven, University of Saint Joseph, Wesleyan University and Yale University.

Currently, in-state students pay $10,418 in annual tuition at Western, while out-of-state students pay $23,107.  Published reports indicate that enrollment at the university has dropped by more than 700 students over the past six years.  The university serves about 5,700 students, with more than 90 percent of them coming from Connecticut.

Similar initiatives at the other three colleges are less likely, as they are located in Willimantic, new Haven and New Britain, not adjacent to any state line.  Central Connecticut State University is the largest of four universities within the CSCU system, serving nearly 11,800 students--9,800 undergraduates, and 2,000 graduate students.

Last year, in a program that was promoted with radio advertising, the CSCU board approved a plan that permitted Asnuntuck Community College in Enfield to admit students from Massachusetts to enroll at in-state rates. And last spring, the board allowed six other community colleges located near state borders to do the same starting this fall.  The plan boosted enrollment at Asnuntuck; data on the other colleges is not yet available. 

Earlier this year, the CSCU system proposed merging the 12 community colleges into one college with 12 branch campuses, as a cost-saving measure, and, officials say, to direct more resources to students.  That plan is pending.  If approved, the change would make the newly named Connecticut Community College the fifth largest in the country with more than 52,000 students, reports indicate.  Officials indicate that "Only a few of these recommendations will require policy changes by the Board of Regents. The majority of the administrative recommendations can be implemented as soon as time and resources are available to complete."

Currently, the system is soliciting feedback on the proposal with an on-line poll on the CSCU website.  The survey asks respondents to offer opinions on the plans, as well as suggestions and opinions on strengths of the 12 into 1 plan.  The survey is open until Nov. 20.

State Energy Policy Needs Further Revisions, Environmental Advocates Say

Connecticut Fund for the Environment has formally submitted its comments on the state’s draft 2017 Comprehensive Energy Strategy to the Connecticut Department of Energy and Environmental Protection. The plan is intended to shape the state’s energy policies and investments for the next three years. “The draft energy strategy includes some important recommendations that will reduce dependence on outdated fossil fuels, landfill gas, and biomass, but it still doesn’t map out how the proposed policies will put Connecticut on a path to achieve the greenhouse gas reduction targets of the Global Warming Solutions Act,” said Claire Coleman, climate and energy attorney at CFE.

The final CES should do the following to sustain Connecticut efforts to combat climate change, CFE urged:

• Incorporate a quantitative analysis of how its policies will achieve the emissions reductions necessary to meet Connecticut’s 2020 commitment under the Global Warming Solutions Act;
• Go forward, not backward, on renewable energy by proposing a more ambitious annual increase to the renewable portfolio standard, with the minimum goal of powering 45 percent of Connecticut’s needs from renewable sources by 2030;
• Recommend a full-scale shared solar program to allow access to renewable energy for the 80 percent of Connecticut residents who can’t install solar panels on their own roofs, and remove the proposed cap on behind the meter solar;
• Bring Connecticut’s energy efficiency investment in line with neighboring states;
• Create incentive and marketing programs to encourage consumers to switch to efficient heat pumps; and
• Rapidly get more electric vehicles on the road by strengthening the CHEAPR rebate program, expanding charging infrastructure, and establishing a regional cap-and-trade program for fuels to reduce emissions.

  “Meeting these goals isn’t optional—it’s required under state law that’s been on the books now for almost a decade,” Coleman stressed. “State agencies and lawmakers need to get serious about rapidly ramping up renewables and energy efficiency, cutting emissions from cars and trucks, and clearly identifying how state policies will work together to meet the 2020 and 2050 targets. That’s what we’ll be looking for in the final plan.”

The Connecticut Electric Vehicle Coalition, of which CFE is a founding member, submitted its own comments last week. The coalition emphasized the urgency of more specific plans to get EVs on the road and meet the state’s commitments under the Zero Emissions Vehicle Memo of Understanding to get have 150,000 EVs on Connecticut roads by 2025.

CFE, Consumers for Sensible Energy, RENEW Northeast, and Sierra Club also released an analysis by Synapse Energy Economics  which concluded that a 2.5 annual increase in Connecticut’s renewable energy growth would yield significant public health, economic, and climate benefits. Increasing the Connecticut RPS to 2.5% per year, the report indicated, would add an estimated 7,100 additional jobs to New England between 2021 and 2030, or about 710 jobs per year.

The Sierra Club noted that “even the administration's own analysis shows the draft energy strategy is not sufficient to protect the climate, and that more clean energy would create jobs, grow the economy, and improve public health.”

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.”

Innovative Start-Up Companies Seek State Funds to Propel Growth

CTNext will bring together start-up businesses seeking the financing to move forward, providing the opportunity for them  to pitch at the next Entrepreneur Innovation Awards (EIA) event scheduled for Thursday, June 15 at the LOFT at Chelsea Piers in Stamford. Connecticut's "innovation ecosystem" will be highlighted as the nine companies, from all across the state, will be competing for $10,000 grants.  The competitors include:

• Deo2go (Fairfield): Creating a topical delivery device that can be filled with a variety of products including, but not limited to deodorant, lip balms, and sunscreen
• Egghead (Danbury): Developing a new way to package and sell ice cream that brings new revenue to a mature market
• FallCall Solutions (Trumbull): Creating a tele-monitoring system for the Apple watch and other mobile systems for elders and caregivers
• Fjord Weather Systems (Wilton): Developing a way to turn every boat on the water into a weather-monitoring system
• LiquidSphere (New Haven): Creating an interactive app that will connect people who struggle with stress, anxiety, depression and addiction with therapists via text and video sessions
• Lucca Ventures (Southington): Developing a Bluetooth-enabled microphone attachment to a full-face oxygen mask, letting patients communicate clearly while wearing it
• Obvia (West Hartford): Manufacturing dual-winglet blades and semi-shroud power upgrade for Sunforce Wind Turbines that will improve efficiency and scalability for the turbines
• Sweet Equations (East Hartford): Making custom candy cakes, edible cupcake displays and other desserts through the development of an on-demand decorating device
• Trekeffect (Lyme): Developing a system to let individual travel planners buy and sell their itineraries.

To determine the finalist pool, each company’s application was vetted by a separate and independent team of reviewers who deemed their products, services and/or business ideas worthy of consideration for an EIA. Each finalist will have an opportunity to compete for a $10,000 grant as well as the judges’ and crowd favorite awards, each in the amount of $2,000 each.

The judges who will hear the company pitches and determine the winners include:

• Elena Cahill: Senior Lecturer, University of Bridgeport, Entrepreneurship Department
• Jim Kern: Co-founder, COMRADITY
• Greg Kivenzor: Associate Professor of Marketing, Director of Experiential Learning Collaborative, UCONN- Stamford
• Mark Lasoff: Founder, LearnToProgram
• Mike Roer: President, The Entrepreneurship Foundation

Throughout the year, CTNext hosts the EIA, a Shark Tank–style pitch event where Connecticut-based startups and entrepreneurs compete for grants that can be applied toward a specific project that will help accelerate growth.

CT Next support the success of companies and entrepreneurs by providing guidance, resources, and networks to accelerate their growth. CT Next is a wholly-owned subsidiary of Connecticut Innovations, described as "a network of passionate people who offer services to busy entrepreneurs." Launched in 2012, there are now more than 1,500 members. Since its inception in 2014, CTNext has held 11 total events in cities and towns all over Connecticut, awarding $544,000 to 52 unique companies.

https://youtu.be/Au4ULyo5L1g

More Daughters Mean More Venture Capital Investment, More Success, Study Shows

As the growing number of Connecticut start-up firms seek to attract venture capital funds to propel their growth, a newly published study may suggest some surprising influences on the investment decisions – and ultimately the success of venture capital investments. A National Bureau of Economic Research (NBER) working paper by Paul A. Gompers and Sophie Q. Wang from Harvard University says that gender diversity may boost performance of venture capital firms.  But it is not the gender diversity of the start-up firms leaders, or the gender diversity of the venture capitalists, who tend to predominantly be white males.

It is the gender diversity of the children of venture capitalists that appears to make the difference.

The paper, “And the Children Shall Lead: Gender Diversity and Performance in Venture Capital,” is based on a study of a dataset of gender of venture capital partners’ children. It finds that partners with more daughters than sons were more likely to hire female partners. But that’s not all.

The study also finds that having more girl children had a positive effect on deal and fund performance of these partners.  The authors indicate that the effects concentrate overwhelmingly on the daughters of senior partners than junior partners.

“Taken together, our findings have profound implications on how the capital markets could function better with improved diversity,” they say in the paper’s abstract.

Venture capital firms are typically deep-pocketed, small companies that bet on startup success by investing millions in exchange for an ownership interest and hopes of high returns.  Published reports indicate that according to the study, firms that increased their gender diversity by hiring more women saw their deal success rate increase by nearly 3 percent. Their profitability, as measured by internal rates of return, rose by more than 3 percent.

Venture capital in Connecticut is available from a range of private and quasi-public sources, including Connecticut Innovations.

The 62-page paper was posted last week; Paul Gompers is Professor of Business Administration and Director of research for the Harvard Business School Finance Unit.  Sophie Q. Wang is a PhD student in the Department of Economics at Harvard University. They based their results on some 12,000 venture-capital investments made between 1990 and 2016, primarily by U.S.-based firms.  They also studied personal information obtained from some 1,400 investing partners.

The NBER is a private, non-profit, non-partisan organization dedicated to conducting economic research and to disseminating research findings among academics, public policy makers, and business professionals.

New Ventures Impress, Receive Funds to Advance Entrepreneurial Efforts

reSET, the Social Enterprise Trust (www.reSETCo.org), whose mission is advancing the social enterprise sector and supporting entrepreneurs of all stripes, revealed the winners of its 2017 Venture Showcase last night at The Mark Twain House and Museum to a sellout crowd of 200. The annual event recognizes the talented entrepreneurs and innovative businesses that have just graduated from reSET’s nationally recognized accelerator. 17 early stage enterprises graduated from the recent cohort, and last night, seven finalists competed for $30,000 in unrestricted funding.

The entrepreneurs pitched their business models to an audience of founders, investors, and community and corporate stakeholders. An esteemed panel of judges, including Tony Vengrove of Miles Finch Innovation, Michael Nicastro of Continuity, and Lalitha Shivaswamy of Helios Management Corporation, selected the ultimate winners.

Recipients of the competition’s three “reSET Impact Awards” are listed below, as is the winner of the “Tech Impact Award,” which was given by reSET’s Founding Partner and the evening’s Presenting Platinum Sponsor The Walker Group.

reSET Impact Awards:

$10,000 - Career Path  http://www.careerpathmobile.com

$6,000- Pelletric  http://www.pelletric.com

$4,000 - Phood  http://phoodsolutions.com

The Walker Group’s Tech Impact Award:

$10,000 - Phood http://phoodsolutions.com

Other finalists included:  Almasuite http://www.almasuite.com, Eureeka BI http://www.eureekabi.com, Optima Sports System http://optimasports.es,

and Sweetflexx http://sweetflexx.com/en.

The Showcase’s prize purse was made possible by a handful of reSET’s community partners: The Walker Group (Presenting Platinum Sponsor), The Hartford (Platinum Sponsor), Eversource (Gold Sponsor), AT&T (Gold Sponsor), Accounting Resources, Inc. (Silver Sponsor), Qualidigm (Silver Sponsor), CT by the Numbers (Silver Sponsor), and Aeton Law Partners (Silver Sponsor). The David Alan Hospitality Group and Capture provided in-kind services.

CareerPath is a platform that enables career planning teams to "effectively connect and communicate with students." Using a series of milestones, tasks, and events as drivers, CareerPath allows students to "tackle their career planning objectives in an organized and manageable way."

reSET also receives generous support from its Strategic Partners: The Walker Group, Connecticut Innovations, MetroHartford Alliance, and the Connecticut Department of Economic and Community Development.  reSET, the Social Enterprise Trust is a non-profit organization whose mission is to advance the social enterprise sector. Its strategic goals are threefold: to be the “go-to” place for impact entrepreneurs, to make Hartford the Impact City, and Connecticut the social enterprise state.  Since its inception, reSET has awarded more than a quarter of a million dollars to scaling ventures. Graduates of the organization’s accelerator have generated $4.4 million in revenue and have taken on $5.5 million in investment.

https://youtu.be/EAC6W3Dn_k8