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

Independent Analysis Sought for State's Economic Incentive Programs

Timing is everything.  Just days after the Yankee Institute for Public Policy reported that a federal grand jury has indicted a former Vernon resident for using a fake pita company to fraudulently obtain $3 million, including $400,000 from the State of Connecticut, the state legislature held a public hearing on a proposal designed to enhance Connecticut’s analysis of the efficiency and effectiveness of the state’s economic development investments. State Comptroller Kevin Lembo, joined by a broad coalition of open government advocates, testified in support of the legislation.  “Connecticut can and should be one of the most economically competitive states in the nation – but that can only happen if we adopt best practice in how we analyze the success and failures of our economic development programs,” Lembo said.

“The state provides hundreds of millions of dollars in economic incentive programs to Connecticut businesses every year for the purpose of advancing economic development and job creation,” Lembo said. “The state owes it to businesses and all taxpayers to fully analyze the return on investment that these sizable and important programs actually deliver in order to assess whether such resources are fulfilling their intended purpose or, if not, whether state funds would be better deployed to other economic development or infrastructure investments.

The proposal, House Bill 7316, would improve how Connecticut analyzes the success and failures of its economic development investments in several ways, according to the Comptroller’s Office. It will streamline the reporting requirements, while expanding the scope of reporting to include all business assistance and incentive programs. It will subject business assistance and incentive programs to performance reviews by the Auditors of Public Accounts and require the Auditors to review the analysis and reporting performed by DECD on such programs – providing necessary independent oversight.

Lembo pointed out that “Connecticut is now one of only two states in the nation where the success of economic development programs is analyzed by the same agency that administers the programs. An unbiased assessment of the performance and administration of these programs has in other states resulted in opportunities for savings.

The Comptroller noted that his office has worked with both the Auditors of Public Accounts and the Department of Economic and Community Development, to “come to mutual agreement on the bill’s language.” The legislation would also require specific legislative committees to hold public hearings to discuss the results of the evaluations and receive input from stakeholders.

The Yankee Institute report indicated that the state’s Small Business Express program, which offer grants and loans to small businesses, awarded the now-indicted former resident a $300,000 loan and a $100,000 grant in 2012.  The report said that the state funding was meant to retain 11 jobs and hire 25 more people.

A broad coalition of open government advocates and organizations submitted testimony in support of the legislation.

On behalf of The Pew Charitable Trusts, Robert Zahradnik, Director of Policy, State Fiscal Health, said, “In Connecticut, as in many other states, business incentives are both a primary economic development tool and a major budget commitment. For that reason, The Pew Charitable Trusts’ research shows that studying the results of incentives is a vital step for states to create jobs, raise wages, help businesses to grow, and to maintain a balanced budget.”

Derek Thomas, Fiscal Policy Fellow at Connecticut Voices for Children, said, “Unlike general fund spending on education, roads, and other spending on the building blocks to a healthy economy, business tax breaks lack transparency. Once on the books, they can remain for years, or even decades, without scrutiny. A more efficient, transparent, and fair budget process would include regular reviews of all economic development incentives to ensure that tax expenditures are yielding the promised economic development benefits. Just like spending, business tax breaks should undergo regular scrutiny to determine their effectiveness.”

The Small Business Express program, which gives grants and loans to smaller to medium sized businesses, has “assisted 1,687 companies — ranging from 'mom and pop' stores to advanced manufacturing firms — with $267 million in loans and grants to retain 18,671 and create 6,795 jobs,” according to the DECD 2016 Annual Report.  In 2016, there were 194 businesses receiving assistance in exchange for commitments to retain 2,912 jobs and create an additional 931.  Total funding commitments were $35,408, 428 in grants and loans.  A year ago, DECD celebrated the 1,500th company to take part in “the governor’s keystone small business development program, the Small Business Express program,” the DECD report indicated.

Joe Horvath, Assistant Policy Director at Yankee Institute for Public Policy, said, "Good economic policy is broad-based and does not favor single businesses, or even industries. This bill would help provide state officials with critical information in determining which economic development programs fail to provide the returns promised, an important step to ending waste and cronyism in Connecticut." Added Daniel J. Klau, President of the Connecticut Council of Freedom on Information (CCFOI):  “CCFOI is very pleased to support this legislation that enhances public confidence in the effectiveness of economic development investments.”

The streamlined report will focus on the most pertinent information, Lembo said, including economic impact of each program, the extent to which it is meeting statutory and programmatic goals, and the efficiency with which the program is being administered. “These incentive programs reduce tax revenue at both the state and local level, and increase state borrowing. It is essential that the legislature review their impact and make informed decisions about the continuation, expansion or elimination of each program. The changes proposed in this legislation will help our state make data-driven decisions about tax credit and abatement programs, ensuring that we are focusing state resources toward their highest and best use.

Municipal Finance to be Focus of Conference, State Leaders

State aid to municipalities will be the focus of attention Wednesday at the State Treasury’s Public Finance Outlook Conference, when Office of Policy and Management Secretary Ben Barnes is joined on a panel by House Minority Leader Themis Klarides and House Speaker Joe Aresimowicz before an audience of finance officials and municipal leaders from communities across the state. Proposed reductions and revisions to municipal aid, a by-product of the state’s anticipated deficit, have been the source of much conversation and contention in recent weeks, with leaders of the state’s cities and towns raising concerns about plans that would have them pay more for resident state troopers, teacher retirements, K-12 education and other programs.

The Connecticut Conference of Municipalities (CCM) recently pointed out that while the state economy grew by 17 percent between 2006 and 2015, state expenditures grew by 48.9 percent during the same period. The organization also reported that excluding K-12 education, local general government expenditures in Connecticut rank 50^th out of all states and the District of Columbia as a percentage of the U.S. Treasury’s measure of total taxable resources.

In a report recommending changes in the state’s fiscal relationship with cities and towns, CCM observed that “for over a decade prior to the Great Recession, governments in the state benefited from a strong economy and stable revenue. But this stability depended on reliable, adequate state aid and the local property tax. The lack of diversity in revenue sources and uncertainty at the state level are now eroding the capacity of local governments to meet their obligations to the public.”

State Rep. J.P. Sredzinski (R-112) wrote last month that “Monroe ranks among the top ten ‘biggest losers’ in terms of how much municipal aid was cut compared to their town budgets. For Monroe, the costs that the governor’s budget proposal will shift onto taxpayers clock in at a whopping $6.5 million for this year alone – nearly 10% of our revenue. This unprecedented transfer of costs is neither predictable, nor sustainable.”

The day-long conference on March 29 will also include a panel discussion with the U.S. Head of Government Regulations and Regulatory Policy, Bret Hester, and a review of methods to protect municipal governments from cyber hacking and theft, featuring David Geick, Director, IT Security Services, Bureau of Enterprise Systems and Technology, State Department of Administrative Services; Christopher Hauser, 2nd Vice President, Cyber Risk, The Travelers Companies, Inc.; Jack McCoy, Chief Information Officer, Town of Manchester.

An economic update, highlighting current and anticipated trends, will be provided by the state Department of Labor’s Patrick Flaherty, Assistant Director of Research and Information, and the Treasury’s Short-Term Investment fund and Municipal Employees Retirement Fund will provide updates.

The Treasurer’s Short-Term Investment Fund (STIF) is a Standard & Poor’s AAAm rated investment pool of “high-quality, short term money market instruments,” the Treasury website explains. STIF serves as an investment vehicle for the operating cash of the State Treasury, state agencies and authorities, municipalities, and other political subdivisions of the State. As of June 30, 2015, the fund administered 939 active accounts for 67 state agencies and authorities and 222 municipalities and local entities in Connecticut.

The conference will be held at Rentschler Field in East Hartford.