PERSPECTIVE: Can the ‘Sharing Economy’ of Regionalism Reduce Income Inequality?

by Frank Shafroth So far, 2016 has been framed by unfolding fiscal tragedies in a number of cities -- Flint, Mich.; Ferguson, Mo.; and East Cleveland, Ohio, come to mind. Plagued by high poverty, rising crime rates and diminished sources of revenue, these cities are examples of the increase in income inequality among U.S. municipalities.

Just as the richest Americans have raced ahead of working-class Americans, there are haves and have-nots among cities, too. It got me thinking: What role should states play in all of this? And more specifically, are there ways to use the “sharing economy” to narrow the disparity gap?

For a change, we’re not talking about Airbnb or Uber. The sharing economy I mean is about regional governance, or sharing agreements where local policymakers create new, multijurisdictional fiscal arrangements to address regional objectives.

Right now, throughout America, otherwise identical households pay different taxes for the same level of public services simply because they live in different cities. Bo Zhao, senior economist at the Boston Federal Reserve, wonders if such differences in taxes put some cities or counties at a disadvantage in economic competition. After all, he says, fiscal disparities occur when economic resources and public service needs are unevenly distributed across localities. For the most part, it’s been up to cities and counties to attempt to address these growing disparities. There are any number of longstanding examples of regional taxation and regional tax-base sharing across the U.S., such as in Minneapolis-St. Paul. More recently, there are new innovations on the theme: The Scientific and Cultural Facilities District, for example, distributes roughly a tenth from a 1 percent sales and use tax to cultural facilities throughout the Denver metropolitan area.

States are really in the best position to implement sharing agreements, but few do. One exception is Minnesota, which more than a generation ago enacted legislation to encourage a sharing economy statewide. The Minnesota Fiscal Disparities law has three important goals: reduce the impact of fiscal considerations on location of business; reduce interjurisdictional competition; and direct resources to communities facing the greatest fiscal pressures.

The law shifts millions of dollars in property taxes to be shared among communities in a metro area, including cities, counties and school districts. Each jurisdiction or entity “contributes” 40 percent of post-1971 growth in its commercial-industrial property tax base to an areawide pool, where the tax base is then allocated among local governments in inverse relation to their per capita fiscal capacity.

The percentage of the total tax base in the Minneapolis-St. Paul areawide pool has increased from 6.7 percent in 1975 to 37.6 percent by 2012. More than $588 million of taxes were shared among the participating localities in 2012. The distribution of shared revenue reduced incentives for cities to compete for businesses and infrastructure projects, and it created greater incentives for shared investments, especially in infrastructure.

It is an effective fiscal disparities program. But unfortunately, despite the growing income disparity among localities and regions, the approach does not seem to be catching fire with other states or with the biggest potential player of all, the federal government.

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Frank Shafroth is the director of the Center for State and Local Leadership at George Mason University, and was director of policy and federal relations for both the National Governors Association and the National League of Cities.  He is a columnist for Governing magazine, where this article first appeared.  Reprinted with permission.

PERSPECTIVE commentaries by contributing writers appear each Sunday on Connecticut by the Numbers.

 Also of interest… Progress Made on Regional Cooperation

PERSPECTIVE: Why and How We Should All Be Concerned About College Student Retention

by Victor Neves and David Johnston The degree to which college students are capable of successfully moving from matriculation to graduation, described as “retention” or “persistence,” should be a concern for all of us.  Employers regularly complain that the skills needed for the workplace are lacking.  Policy wonks lament the declining ratio of productive workers to retirees, now about three to one, down drastically from decades ago – an ominous threat to the solvency of the Social Security system, as well as the viability of the economy and the health care system.

All the more reason to maximize proven, but not always followed, ways that can boost college persistence to graduation and through to employment.  The cost of implementing effective practices is one challenge, in light of steadily declining state support for higher education, especially for community colleges and state universities that take in the majority of our high school grads headed toward postsecondary education.

What are these strategies?  Not quite a “top ten” list, but they’re not just catchy, they work:

• Colleges and universities are increasingly collaborating with high schools to both expose high school students to college life -so-called bridge programs – and to help students earn college credits, through early college or dual enrollment programs.

• Community-based agencies in our cities are increasingly practicing “seamless counseling” -- working with high school grads to avoid “summer melt,” to assure these young people make it to campus after earning acceptance to college. In some cases, these programs continue to support these students once they are enrolled.  Currently, in Hartford, about 70 percent of high school grads are accepted into some form of higher education, but only 50 percent matriculate.

• Once on campus, more students, especially those from challenged backgrounds, are enrolled in first-year experience programs and/or learning communities that teach “college survival” – indispensable skills that can be the difference between staying and dropping out. These are required at some schools, but not all.

• More first generation college students are mentored by older students. For students of color, connecting with a mentor who looks like them is also a powerful retention factor.  A national study of “black male college student success,” documented the value of such relationships.  UConn’s recently-announced “black male dorm” arrangements are a step in this direction.

• More campuses are practicing “intrusive advising” that follows the progress of challenged students closely and intervenes quickly when they appear to be struggling academically or otherwise. Too many challenged students have non-academic obstacles that seriously disrupt their progress, and at times end their college careers before they’ve really begun.  Less than half of community college students move on to achieve a degree.

• All students, but especially challenged students, are repeatedly encouraged to get involved on campus – a proven retention factor. Stepping up the “ask” can bring results that make retention more likely.

• At times controversially, colleges are encouraging, and hiring, faculty who use more “student-centric,” interactive teaching styles, with new technologies increasingly integrated into the curriculum. Some veteran faculty resist, others adapt.  Traditional academic content will still be central – as it should be - but teaching, to be truly effective, has to accommodate today’s technology and media-savvy students, and build student-faculty relationships in non-traditional, interactive ways.

• Community college students, including older students, are increasingly being guided more quickly into career paths, ideally related to job growth areas, to reduce the confusion of too many choices and too little direction. Student majors can be changed, but a clear pathway from the get-go works wonders.

• Schools should also provide a platform in which students can showcase their accomplishments – for example, “E-Portfolios” that incorporate student work and achievements from enrollment all the way to graduation, providing students a tangible way of seeing their progress towards reaching their goals.

• Campuses, back-stopped by changing Federal policies, existing and proposed (e.g., free community college), are becoming more creative with financial aid; and lower-income community college and state university students have more access to more adequate financial aid.

These “wrap-around” strategies, and others, are effective.   National research and anecdotal experience in Connecticut point clearly in these directions.  However, they continue to be the exception in Connecticut, with progress towards implementation sporadic at best.

Employers, college administrators and faculty, community leaders, legislators, parents and students need to advocate for such effective creativity. The benefits will accrue not only to students and their families, but the communities and businesses of Connecticut in desperate need of the vitality and vibrancy that a new generation of ready, willing and able college graduates can bring to the state we share.

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Victor B. Neves is a graduate of Tunxis Community College who studies Business Administration at CCSU.  He chairs the Student Committee of the Center for Higher Education Retention Excellence (CHERE), based in Hartford, a program partner of the Hartford Consortium for Higher Education.  David Johnston is Executive Director of the Center for Higher Education Retention Excellence. 

PERSPECTIVE commentaries by contributing writers appear each Sunday on Connecticut by the Numbers.

LAST WEEK:  Back to School – Don’t Forget Your Child’s Mental Health

PERSPECTIVE: Back to School—Don’t Forget Your Child’s Mental Health

by Rachel Papke Back to school time is upon us. Parents are scurrying around shopping for back to school deals for their children—clothes, school supplies, and more. For parents with college-aged students the prep-work is more extensive: purchasing dorm room items and packing boxes to start. There are long “to-do” lists, calendar updates, alerts, reminders—a whirlwind of things to do to ensure that your child is ready for the school year. But what actions are you taking to check-in on your child’s mental health?

First, familiarize yourself with the symptoms of a mental health condition by accessing these mental health screening tools.

According to the Center for Disease Control and Prevention, 1 in 5 young adults has a diagnosable mental health disorder, yet most are not receiving help. If left untreated, the risk for suicide increases. Suicide is the second leading cause of death for persons aged 15-24. With suicide rates at their highest in 30 years, prevention programs like those of the Jordan Porco Foundation need your support more than ever to help save young adult lives.

First-Year College Students

Majority of U.S. first-year college students feel underprepared emotionally for college. 65% said they tended to keep their feelings about the difficulty of college to themselves, 60% of students wish they had gotten more help with emotional preparation for college, and 87% of students said college preparation during high school focused more on academics than emotional readiness.¹ These statistics are striking and we need to fill the gap to combat these statistics.

Connecticut Statistics

During the past 12 months, 26.6% of Connecticut high school students felt so sad or hopeless almost every day for two weeks or more in a row that they stopped doing some usual activities. This is suggestive of clinical depression, meaning that more than a quarter of high school students should be receiving treatment for depression or depressive symptoms.

When they feel sad, empty, hopeless, angry, or anxious, 50.4% of students said they only sometimes, rarely, or never get the kind of help they need. Talk your children, listen, and validate their feelings.

18.5% of CT high school students did something to purposely hurt themselves without wanting to die, such as cutting or burning themselves on purpose, within the past year. If your child displays the signs and symptoms of self-injury, you should consult a mental health professional with self-injury expertise. Learn more, here .

13.4% of Connecticut high school students seriously considered suicide in the past 12 months. It’s more common than you think, and it may well be your child or one of their friends. For more information about the warning signs of suicide visit our Nine out of Ten website.

Stay informed and attuned to any changes in behavior. Keep the mission of the Jordan Porco Foundation, the Hartford, CT-based non-profit, at the forefront to help you in your discussions.

The mission of the Jordan Porco Foundation is to prevent suicide, promote mental health, and create a message of hope for young adults.

To accomplish this, they:

Help challenge stigma by talking openly about mental health issues

Offer engaging and uplifting programming, emphasizing peer-to-peer messaging

Promote help seeking behavior, self-care, and coping skills

Educate about the risk factors and warning signs of suicide and other related mental health concerns

They do this in the name and spirit of Jordan Porco, who died by suicide in 2011. They’re in it for life every day. Saving lives is the heart and soul of their cause. Mental health needs a voice: you are that voice; we are that voice.

Work to create a message of hope for your children. Encourage open, honest conversations about mental health. Talk about feelings. Listen to your children and know what mental health resources are available in your area and at school. Educate your children to take care of their mental health, to carry the skills with them as they head off to school. Help them understand that they are not alone—where there is help, there is hope.

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Rachel Papke is Communications Coordinator for the Jordan Porco Foundation.  She may be contacted at (860) 904-6041 or rachel@rememberingjordan.org.  Learn more about the Jordan Porco Foundation at www.rememberingjordan.org

PERSPECTIVE commentaries by contributing writers appear each Sunday on Connecticut by the Numbers.

Also of interest: Creating a Message of Hope for Young Adults 

1 – The “First-Year College Experience Survey” was commissioned by the JED Foundation, Partnership for Drug-Free Kids, and the Jordan Porco Foundation, and conducted online by the Harris Poll among 1,502 U.S. college freshmen between March 25 and April 17, 2015. Survey respondents were students 17-20 years old in the second term of their first year at college, and attending some classes in person at a 2-year or 4-year college. For complete survey methodology, including weighting variables and subgroup sample sizes, visit www.SettoGo.org.

PERSPECTIVE: Philanthropy Can Respond to Anxiety, Alienation and Adversity

by Ambassador James A. Joseph [Part Two]

Think first of the anxiety so many people feel. There have been moments of great anxiety before. The period after 9/11 was such a moment. The period after the assassination of John F. Kennedy and Martin Luther King was such a moment. But psychologists have called the present moment a period of free-floating anxiety in which the anxiety we feel is not the result of one event, but a confluence of events.

The present mood runs the gamut from anxiety about the lingering effects of the economic free fall we faced a few years ago to anxiety about what violent conflicts are doing to our soul as a people; from anxiety about the new meanness in public life to anxiety about whether the increasing tendency to use the public square to promote private interests will lead to an eclipse of the very idea of a public good. Many people have become so anxious that they are anxious about the fact they are anxious.

Occasionally, there are those moments when our spirits are uplifted and the dream of a more perfect union seems within our reach. Those are the moments when we romanticize Nelson Mandela’s call for reconciliation; when we remember Martin Luther King’s admonition to respect the humanity of the adversary; and when we revel in what President Obama called amazing grace, the spirit we saw in South Carolina when a horrendous act of violence hoping to cause a race war had the opposite effect.

But while public acts of forgiveness and grace may be seductive, while they empower the victim of violence and can disarm the perpetrator, they are rather limited unless they lead to a larger social transformation that involves individual, political and economic change. And that is why Desmond Tutu and others in South Africa who are still revered around the world, now speak of the fundamental deficit in their democracy as the failure to achieve economic reconciliation.

So if the first element of the emotion we see and feel is anxiety, the second is alienation. Reconciliation is difficult because too many of us look at diversity and want to homogenize it to fit our comfort zone. Many good people with the best intentions fail to understand the difference between the individual as actor and our institutions as agents. A recent poll found, for example, that white Americans, by a two-to-one margin, believe that where racism is a problem, it is a problem of biased individuals. People of color who were surveyed were more likely to be concerned about biased institutions.

However, it is not just the alienation of population groups from each other that concerns me. I have spent much of the last twenty years in South Africa and one of the things I learned is that enduring reconciliation is not possible without eliminating historical illusions, dismantling deceptions and coming to grips with mis-teachings.

The poet William Wadsworth put it best when he wrote that the only thing worse than being untaught is to be mis-taught. I also learned in South Africa what we are now learning in the United States, how public symbols affect public memory and how they can be used to shape a sense of belonging or alternatively foster a feeling of alienation.

Those who write about building or re-building community are the first to remind us that Americans disagree about who we are because we cannot agree about what we have been. We are at odds over the meaning of our own history, over the sources of our national strength, over what it is philosophically and spiritually that make us Americans. We are alienated not just from each other but from our past as well.

There is much made of the meanness tearing at the fabric of both national and international life. The anger we see is often the result of not just anxiety and alienation but adversity as well. Disaster is also a part of the new normal. Many people in many parts of our country and our world live with either the consequence of a prior adversity or walk in the shadows and anticipation of a future adversity. Some live in a constant rage about went wrong in a previous disaster. They are the ones who look for scapegoats rather than solutions.

There are others who live with the fear of a future disaster but they have known adversity before so they respond with a kind of resilience that engages it rather than being consumed by it. I grew up in Louisiana and I served later as chair of the Louisiana Disaster Recovery Foundation in the aftermath of Hurricane Katrina, so I know something about the resilience of Louisiana’s people. I can still hear ringing in my ears a favorite quote of my father who liked to say that the soul would have no rainbows, had the eyes no tears. He was defiant rather than defeated because he looked at adversity and saw not so much the tears as the potential for rainbows.

Disaster challenges philanthropy in a very special way. My experience with Hurricane Katrina was that while private donors provided millions of dollars for relief and governments provided billions for recovery, neither sector provided very much for reform. And yet it is this third stage that can have the most enduring impact. It can help sustain the public attention to what remains to be done and it can help change policies and practices that may have contributed to the disaster in the first place.

My concluding observation then is that the present mood and the present moment in our communities and throughout the nation is a time when we need leaders in philanthropy who are willing to take risk and leaders who are not afraid to stand for something. I have been a leader and I have been a manager. As a manager, I prized order, but as a leader I had to be willing to risk chaos.

If those of us engaged in philanthropy are to help reimagine and reaffirm the centrality of community in the American story, if we are to be agents of reconciliation and purveyors of hope, we will need to take risks that may disturb our comfort zone; but I know from my experience that times of crisis are also times of opportunity and that when you provide help you also provide hope.

This is a moment when not just individuals but the entire civic sector will need to lead again. It is a moment when philanthropy will need to act wisely and boldly, without fear or timidity. It is not enough to simply lament the deficit of leadership in our public life. You have it within your power to be the authors of not only a new narrative, but the architects of a new age.

So I conclude these observations about the pursuit of connection and cohesion with a vision of community that has been my constant companion since the day I first pondered how to build community by design. Some of you may have heard it before. It comes from the writings of the mystic, theologian and poet Howard Thurman, who was fond of saying “I want to be me without making it difficult for you to be you.” There is no better way of thinking about building and sustaining community.

I wrote my recently published book because I wanted the reader to imagine what the future community would be like if each of us were able to say “I want to be me without making it difficult for you to be you.”

I wanted readers to imagine what our world would be like if more Americans were willing to say I want to be an American without making it difficult for an Asian to be an Asian, an African to be an African or a Latin American to be a Latin American. I wanted readers to imagine what our communities would be like if more Christians were able to say I want to be a Christian without making it difficult for a Jew to be a Jew, a Muslim to be a Muslim, a Buddhist to be a Buddhist or a Hindu to be a Hindu.

I hope that if you remember nothing else I said today, you will leave here saying to all in hearing distance “I want to be me without making it difficult for you to be here.”

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Ambassador James A. Joseph is professor emeritus of the Practice of Public Policy at the Sanford School of Public Policy at Duke University. The president of the Council on Foundations from 1982-1995, he has served in senior executive or advisory positions for four U. S. presidents, including Undersecretary of the Interior for President Jimmy Carter and Ambassador to South Africa for President William Clinton. His most recent book is “Saved for a Purpose,” published by the Duke University Press. This piece is excerpted from his keynote address delivered at the Connecticut Council on Philanthropy annual Luncheon and Conference on May 13, 2016. ©

Part I of Ambassador Joseph’s remarks were published last Sunday in perspeCTive.

PERSPECTIVE: The Challenge of Philanthropy - Anxiety, Alienation and Adversity

by Ambassador James A. Joseph, President Emeritus, Council on Foundations When I think about philanthropy in a badly divided nation and a badly divided world, I am reminded of what Scott Peck, the psychiatrist and noted writer said some years ago. He wrote that we build community out of crisis and we build community by accident but we know very little about how to build community by design. I would like to offer three observations about building community by design.

The first is the need to reimagine and reaffirm the centrality of community in the American narrative. I first became involved in organized philanthropy as an executive and a trustee a little more than fifty years ago. It was a time when Alexis de Tocqueville was the most quoted, but probably the least read, of our literary legacies. The public discourse about community centered on the civic habits of early Americans and how social cohesion was established and sustained by the coming together in local groups to promote the common good. It was a time when neighbors came together to help build each other’s barns and to take in the crops before the rains came.

In recent years, however, a second concept of community has competed for primacy in the American story. It emphasizes the centrality of the individual and romanticizes the lone ranger who conquered a hostile environment. A primary calling of leaders in the philanthropic sector, as well as policymakers and opinion leaders, is to help get the narrative right; to help bring back into balance the legitimate romance of rugged individualism with the equally legitimate effort to form communities where individuals embrace, reaffirm and take responsibility for supporting and promoting a common good.

I like the concept of community I encountered in Southern Africa in the 1970s. It had its genesis in the Xhosa proverb “People are people through other people.” It was not “I think, therefore, I am” but “I am because you are.” I am human because I belong. I was made for community, so If I deny your dignity I deny my own. If I diminish your humanity I diminish my own.  The early warring tribes in Southern Africa had war healers who came together after a conflict to plan initiatives to ensure that both the victor and the victims were restored into full standing in the community. It was said of Mandela’s ancestors that they had a short memory of hate.

When we are able to say that people are people through other people we are more likely to make the condition of others our own. It has been my experience that when neighbors help neighbors and even when strangers help strangers both those who help and those who are helped are transformed. When that which was their problem becomes our problem, the connection that is made has the potential for new forms of community. In other words, when you help someone who is homeless to find a home, when you help someone who is hungry to find food, when you help someone to find meaning in a painting or sculpture, when you help someone to fight bigotry or to find a job, you will be laying the groundwork for the genesis of community.

But while providing help can lead to a deeper connection, I must also caution that while charity is good, justice is better. One involves ameliorating the consequences of deep social ills. The other involves eliminating the cause and is likely to be more enduring. Let me provide an example of why I make this distinction. When we think of helping those in need, we often think of the Good Samaritan who encounters someone badly beaten on the side of the road and stops to give aid. But I ask you to imagine what the response would be if he travelled the same road every day and on each day he found someone badly beaten at the same location on the side of the road. Wouldn’t he be obliged to go beyond charity to the kind of strategic intervention that asks who has responsibility for policing the road? Charity is good, but justice is better.

My second observation is that foundations will need to help demonstrate that the fear of difference is a fear of the future. They will need to help persuade a concerned public that diversity need not divide, that pluralism rightly understood and rightly practiced is a benefit and not a burden. All of us will need to be reminded that when those who wrote the American constitution committed us to forming a more perfect union they realized that their initial work was neither fixed nor final. They understood that the American society is a community that is always in the making. Yet, it is this remaking of America that is causing great anxiety and even fear.

This conference comes at a time in which the fabric of American life is being torn apart by passions that seem almost out of control. We talk about forming a more perfect union, but the more interdependent we become, the more people are turning inward to smaller communities of meaning and memory. It is increasingly true in many parts of the United States that if you ask someone to step back and imagine what it means to be an American, they will not think of my face or even the face of our president. They will think of someone in whose image they see themselves; someone who fits their comfort zone; someone who looks like them, talks like them and thinks like them, that is, if they think at all.

Our challenge as we look at the passions that have been aroused around us, and often within us, is to help ensure that we do not misunderstand what divides us or misdiagnose the pathology that disturbs us. I am persuaded as I travel around the country that the emotions on display have at least three dimensions: anxiety, alienation and adversity; and that building and sustaining community will require that we recognize the distinctiveness of each of these emotions and develop strategies to respond to the cause of each.

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Ambassador James A. Joseph is professor emeritus of the Practice of Public Policy at the Sanford School of Public Policy at Duke University. The president of the Council on Foundations from 1982-1995, he has served in senior executive or advisory positions for four U. S. presidents, including Undersecretary of the Interior for President Jimmy Carter and Ambassador to South Africa for President William Clinton. His most recent book is “Saved for a Purpose,” published by the Duke University Press. This piece is excerpted from his keynote address delivered at the Connecticut Council on Philanthropy annual Luncheon and Conference on May 13, 2016. ©

Part II of Ambassador Joseph's remarks will be published next Sunday in perspeCTive.

PERSPECTIVE: How Brexit Could Impact Connecticut Companies

by Alissa DeJonge On June 23, voters in the United Kingdom made the decision to have the UK exit the European Union – an unprecedented split from the 28-country economic and political partnership. It will take at least two years for the terms of the separation to be agreed upon, so the changes and the outcomes will not be fully understood or felt for awhile. While it is obvious that the greatest effects of “Brexit” will be in Europe, companies in Connecticut could be affected for a few different reasons.

Exporting companies are sensitive: Connecticut is particularly linked to Europe through exports. France and Germany are top destinations for Connecticut exports. Plus, Connecticut trading with the United Kingdom is strong, with the UK being Connecticut’s 7^th largest exporting destination and our state’s largest source of imports.[1] When there is uncertainty or economic downturns in areas like the UK, there can be decreases in demand for Connecticut’s exports. In addition, exports become more expensive because the U.S. dollar strengthens relative to the British pound or euro (although imports become relatively cheaper, boosting the Connecticut companies with significant imports).

Global companies make location decisions: The UK represents the 7^th largest economy in the world. The Brexit process is therefore likely to disrupt global business operations and will have companies rethinking where they do business in Europe and elsewhere. At least 82 UK-based companies are currently doing business in Connecticut.[2] In addition, a number of Connecticut companies use the United Kingdom as a gateway to the EU for operations because once a company has one location in the EU they do not have to obtain separate regulatory approvals in order to do business in other member countries.

As Brexit occurs, tariffs and trading relationships will have to be renegotiated.  For companies with their location in the UK and not otherwise in the EU, this will add to business costs. So these companies may prefer to control their costs by moving their European locations out of the UK to avoid the uncertainties related to the renegotiation process.

Uncertainty affects all companies: This additional uncertainty about what the exit agreement will look like adds to the general increased economic uncertainty throughout the world. Brexit is an action that no other European Union country has undertaken and it affects a relatively large economic region. Does this mean that other countries will follow? The answer is unclear. The possibility of a recession in Europe has become more likely as a result of this turmoil.

When there is uncertainty in the global economic outlook, stock markets typically behave erratically. And when there is uncertainty, consumer spending can get held up, as can company investments. This poses additional risk not just for companies that are thinking globally, but for those with a local focus too, because overall demand for a host of products and services can decrease when consumers and companies are worried about the economic future.

Uncertainty is the ‘name of the game’ for Brexit, and with uncertainty comes risks (and potential rewards) for a host of Connecticut companies. One thing is for certain though – analysts will be tracking and forecasting the outcomes of Brexit for years to come. This ‘British Invasion’ unfortunately has less to do with popular songs and more to do with unpopular economic insecurities.

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Alissa DeJonge is Vice President of Research, Connecticut Economic Resource Center Inc. (CERC).

PERSPECTIVE commentaries by contributing writers appear each Sunday on Connecticut by the Numbers.

Also of interest: The State Budget - What Do Demographics Have to Do With It?

[1] Imports of nucleic acids and pharmaceuticals

[2] Connecticut Secretary of the State

PERSPECTIVE: For Families of Special Needs Children, Thoughtful Financial Planning Can Provide A Roadmap

by Valerie Dugan The anniversary of the Americans with Disabilities Act, on July 26, reminds us of the unique challenges families of children with special needs routinely face. One particular source of stress is financial: how will the special needs child be cared for in the event one or both parents pass away?

Wise investment and planning for the future is not only critical, but it also is much more complicated than for other families. Yet, planning carefully for future events can help alleviate some of the anxiety that parents of special needs children may feel. Planning for the care of their child can bring comfort.

Keeping in mind the goal – that is, to create an integrated financial and life strategy that allows the special needs child to maintain a sense of security, dignity and autonomy – here are some guidelines to consider:

1. Government benefits. Remember there are public benefits such as disability benefits, Supplemental Social Security Income (SSI) and Medicaid. These government benefits may be available to provide food, shelter, health care and other living expenses for special needs children.

2. Limited Conservatorship. Established at age 18, a limited conservatorship can help protect the child from possible fraud and embezzlement. A trusted, qualified individual serves as a watchdog of sorts.

3. Special Needs Trust. This could be used to fund a child’s specific needs, including special therapies and interventions, educational programs, caregivers, equipment, and so on.  A Special Needs Trust could help ensure that the child remains eligible for government benefits, both federal and state. Protected from creditors and litigation, its assets can be managed in a variety of ways; like any trust, it can be funded with stock, real estate, or other assets, but typically is most easily managed with cash and liquid assets. Another instrument to fund the trust is life insurance. Your estate attorney can set up a trust.

4. Life Insurance. Life insurance policies can be transferred to a Special Needs Trust that designates the Trust as owner of the policy; thus, the death benefit of the policy is removed from the parents’ estate. Clearly, there are numerous details that need to be considered; hence an experienced life insurance broker and estate attorney should be involved.

5. Succession Plan. This can be included in the Special Needs Trust for any assets remaining after the death of the special needs child.

6. Letter of Intent. This can help clarify the parents’ wishes for their child’s future care and living arrangements. It can outline such details as the child’s preferences for everything from food to environment.  It is the vehicle through which parents can express wishes for caring for their child and can pass on their legacy. A Letter of Intent is usually not legally binding, but it can guide conservators or other types of guardians.

7. Independent Trustee. An Independent Trustee or Licensed Professional Fiduciary can be retained to ensure that the provisions of any trust are carried out as intended. This person can also provide assistance with tax returns, court filings, trust distributions and other budgeting issues.

8. Gifts and bequests. Many people assume that a direct gift or bequest to their child is sufficient. While it may be straightforward, a special needs child may be incapable of managing the gifted assets. Such a gift, because of income limitations, could also render the child ineligible for government benefits.

Approached thoughtfully and comprehensively, financial planning for special needs children can provide for a lifetime of care. Knowing that their wishes and best intentions will be carried out may assuage some of the anxiety that many parents face.

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Valerie B. Dugan, CFP, is a Senior Vice President and Financial Advisor with the Global Wealth Management Division of Morgan Stanley in Hartford. For more information, contact Valerie at 860-275-0779.

PERSPECTIVE commentaries by contributing writers appear each Sunday on Connecticut by the Numbers.

PERSPECTIVE: The Midnight Art of Pavement Markings

by Jennifer Paquin The long and short of line painting is – the world needs it! It keeps chaos at bay. Imagine going to a mall that does not have pavement markings, especially during the holiday season. Pavement markings help prevent accidents and, at the scene of an accident, are often used to determine fault. The markings are for your safety: they protect you and, most importantly, they guide you to where you want to go.

If you’ve ever traveled on a newly paved road or parking area before the markings have been painted, you quickly realize how dangerous life would be without them.

While you are sleeping somewhere soft and warm – workers in this profession are painting lines on parking lot pavement that will tell you where to park, turn, and stop when you pull into school, or a store, or the dentist’s office, tomorrow morning.

This is the world of highway and pavement “marking,” also known as line painting or line striping. It is one of the few services performed in the dead of the night, so that parking stalls, arrows, fire lanes and those cross-hatches will seem to have magically appeared when you arrive at work or hit the road the next day.

A typical night has many challenges, and on occasion, unexpected surprises. First we position our trailer in a safe, central location, which allows for quick and easy access to paint cans and necessary tools. Then, we wait. And wait. For the parking lot, or at least a section of it, to empty out. This could take minutes or hours, depending on how cooperative people are, intentionally or unknowingly.

And yes, there is always that one car. No one knows who it belongs to or how long it has been there – or how long it might remain unmoved. Patience is a requisite. This is especially true when you realize that you have finished painting an entire lot, loaded everything back into the trailer to head home, and then along comes the person who owns that one car.   

If the job is to repaint over old lines, the work begins with cleaning each line with a broom and a leaf blower. Next, we measure lines that are completely faded out, mark them with yellow crayon, and snap each line with blue chalk from a snap-line. This process, which can take hours, has a rinse, repeat cycle to it. If the weather is windy, the chalk dust will fly everywhere except on the line.

If the job calls for a brand new layout (as with new pavement for a new business) then additional time must be factored in. The measuring is more precise and close attention must be paid to the contractor’s blueprint. Strong math skills, along with precision and patience, are necessary in this profession if the job is to be done right.

The machine needs to be loaded with paint and the paint gun positioned based on what type of work will be done first. The process of filling the paint machine usually goes smoothly; however the paint must be strained through a colander to ensure that no lumps will block the machine pump. Lumps can shut down the whole operation from minutes to hours while the pump is taken apart to locate, and then relieve, the blockage.

Paint color is determined by the business owner or the town. Yellow is preferred for visibility, especially during the winter months. The paint gun position is a trial and error process with an array of different sized gun tips available. For example, when painting stencils such as the Handicapped symbol, a larger tip is used. A large fabric tarp is placed on the ground to pre-test the width of the spray. The objective is for the paint gun to spray a four inch wide line.

Then come the “stalls.” There are three types: Standard, Hollywood, and Handicapped. (Yes, it is really called “Hollywood” in the industry.) A Standard stall consists of two lines, nine feet wide by eighteen feet long; a Hollywood stall consists of two rectangular boxes, one on each side of the stall, to allow more room when opening vehicle doors; and the Handicapped stall size and layout is determined by the Americans with Disabilities Act, and the town.

Constant alertness is needed on a job site. Cars and pedestrians can appear quickly, seemingly out of nowhere, so both painter and assistant need to watch and listen attentively, especially when the paint machine is running. Reflective vests and pants are a safety must, and a flashlight should be hooked onto your clothing as well, to be ready at all times.

Interruptions will occur throughout the night. People ask questions about what we are doing; onlookers are fascinated by the process; and cars can slip in and park without notice on larger jobs.

There is a lot of running around; it is in the nature of the job. Often, people come by to ask for directions, and as the night goes on, the questions can get strange. My favorite question has been, “Where is the nearest grocery store?” – as we were painting the grocery store’s parking lot! Another common question, “How long does it take for the paint to dry?” Answer:  It depends on temperature and weather conditions. On dry, hot days, it takes about fifteen minutes or less; but, when the temperature drops, drying time can take up to two hours.

When the sun starts to rise and the job is completed, we usually get a few early birds entering the lot before the paint has fully dried. Some people are annoyed about being re-directed to a different parking area, especially if they are late to their destination. Sometimes we have no choice but to reluctantly let them go, as they drive through the orange cones, because they have already driven over the paint that needed just a little more time to completely dry.

And now, as the clock reads 6:00 a.m., and the dawn awakens a new day, we are heading home. Another hundred-plus stall parking lot awaits us tomorrow.

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Jennifer Paquin is a seasoned legal marketing and business development professional, residing in Tolland County. She is currently writing her first novel and can be found frequently assisting her husband with his line painting business, A&A Line Painting.

PERSPECTIVE commentaries by contributing writers appear each Sunday on Connecticut by the Numbers.

PERSPECTIVE: CT Independent Colleges Among National Leaders in Student Completion; Working to Reduce Disparities

by Jennifer Widness Recent news coverage labeling Connecticut’s private, non-profit institutions of higher education as “drop-out factories” is a flawed conclusion based on incomplete data and requires additional scrutiny.  While more always can and should be done to improve the outcomes for low-income students in our higher education system, Connecticut’s private, non-profit colleges have made this issue a priority and in fact are among the nation’s leaders in completion rates for all students.

First, let’s address the limitations of the data used in the report.  To conduct their analysis, the authors from the Washington, D.C. think tank, the Third Way, used data compiled for the U.S. Department of Education’s College Scorecard.  As the authors noted in their study, but the reporter failed to mention, this data set only includes full time, first time students that have received a federal loan.  This accounts for less than 40% of the undergraduate students enrolled at these institutions.  There is no accounting for students that transfer, in or out, or a student that has taken a semester off and returned.  Given the evolution of how people access higher education, this is a significant omission.

Graduation rates are complicated and hard to calculate given limited access to good data but the National Student Clearinghouse is the most complete data set available as it does have the capacity to track transfer students.  As illustrated in Figure 1 below, it recently calculated the 6-year completion rate for students that began at a four-year private, non-profit institution in Connecticut at 84.72%.   This is the second highest completion rate in the country and ten points above the national average for the sector (20 points above the national average for the 4-year publics).  Connecticut’s private, non-profit institutions are some of the most productive in the nation.

Further, the authors misappropriated the term “dropout factories” by applying it to institutions with graduation rate of 75% or less.   This is a threshold used for K-12 schools by the U.S. Department of Education.   If all higher education institutions with a graduation rate of less than 75% using data compiled by the College Scorecard were considered “dropout factories” nearly all institutions in Connecticut, public and private, would fall into that category.  See for yourself here.

Nuances with the data and terminology used in this particular report aside, average completion rates in all sectors of higher education across do need to be improved.   While Connecticut’s higher education institutions have some of the highest completion rates in the country, our state faces one of the largest post-secondary degree attainment gaps between whites and minorities.  The authors of the Third Way are right to point out that high-risk populations need greater access to higher education.   We agree.

This has been a priority, and always will be, for Connecticut’s independent colleges.

CCIC’s member institutions have redoubled efforts to focus on this challenge by providing more resources to student support services, increasing financial aid to unsustainable levels and creating innovative programs that support a diverse student body to enroll, persist and complete college.

The state, on the other hand, also needs to play a greater role in this area. Why?  Connecticut’s Strategic Plan for Higher Education lays it out perfectly.  In essence, our economy will increasingly require a talented, well-educated workforce to thrive and the only way to guarantee this talent pool exists is to ensure our state residents have access to and complete a post-secondary education.  While severe budgetary constraints exists given shrinking revenues, we cannot afford not to do a better job in coordinating this work across all sectors of higher education and the workforce.

Connecticut is fortunate to have some of the best, most productive and diverse public and private higher education institutions in the country.  Labeling them inappropriately is untrue – and even worse unproductive.  These institutions are some of our state’s greatest assets.  If we want to see Connecticut grow and thrive again we have to capitalize on our strengths and put these institutions to work.

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Jennifer Widness is President of the Connecticut Conference of Independent Colleges. 

PERSPECTIVE commentaries by contributing writers appear each Sunday on Connecticut by the Numbers.

Also of interest… Do Community College Students Go Begging?

PERSPECTIVE: Can Trust be Restored?

by Peter F. Eder The public’s trust in just about everything continues to be at historically low levels and there is every indication this trending will continue its downward slope.  Not just trust in federal government action but all levels and branches of government, as documented by any number of ongoing Pew Research Center and Quinnipiac Polling Institute studies.

Just one example would be the Pew Research Center’s November 23, 2015 report, entitled: “Beyond Trust: How Americans view their government.”  The top line finding was that fewer than three-in-ten Americans have expressed trust in the federal government in every major national poll conducted since July 2007 – the longest period of low trust in government in more than fifty years.  The survey reported that increased distrust in government exists for every party, across the demographic spectrum and generation clusters, and extends to diminished belief in government fairness.

And while distrust is perhaps most manifest these days in politics, the same billowing distrust exists when respondents are measured about credibility in media outlets, financial institutions, religious organizations and seemingly any private or public institution.

Living in a digital age also makes it harder to figure out what is trustworthy.  When it is easy to find confirmation for almost anything ordinary, grave or absurd, with contradictory information and rival sources, determining trustworthiness is truly challenging.

All this seems based on the continual distortion of truth, no sense of compromise, and the polarization and self-serving nature of almost all collective and individual behavior.

If we accept this as current reality, the critical question is “How can Trust ever be restored?”  Let me suggest what might have to occur.  First of all, we have to find leaders who will put others first.  It will be individuals who recognize that their neighbors aren’t just the persons who live next to them or who share the same views, values, and interests, but those that inhabit every space around themselves.  We need individuals whose personal experience have guided them through tragedy and triumph, without fostering a mindset that they are championing their own advancement.

To those of us who look to – or up to – them, we need an open, inquiring, compassionate mind.  We need to set aside the rush to judgement, to listen to all sides of an issue, to take the time to search out the truth, to separate the hype from the reality.

In time past, these attributes ensured the common good.  Who will take the first leadership steps and who, as followers, will listen, encourage and emulate them?  Or is it sadly already too late?

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Peter F. Eder is a retired marketing executive, AARP Connecticut community volunteer and a founding board member of At Home In Darien, his community aging-in-place organization.  Throughout his career, he has been involved with local and national organizations within the communications arena and in responding to acute needs of people in our communities.

PERSPECTIVE commentaries by contributing writers appear each Sunday on Connecticut by the Numbers.

Also of interest:  Freedom's Just Another Word For