Foundation Seeks Loaned Funds to Launch Early Childhood Music in Hartford

A full page advertisement in The Hartford Courant recently sought individuals interested in “parking idle funds for education.”  The open request, designed to attract funds that would enable the organization to create a free early childhood music program in Hartford, came from the POTE Foundation, Inc., a Connecticut based organization committed to providing educational support and resources to youth. POTE, which is an acronym for providing opportunity though education, promotes the vision that success is achieved when opportunity meets preparation.  The organization, founded in 2007:

• provides financial and support services to all levels of the educational process—early childhood through higher education;
• strives to develop unique programs to encourage educational excellence for youth who encounter the lack of opportunity, either because of economic or intellectual barriers; and,
• engages the intellectual and financial resources of baby boomers along with corporate and foundation outreach.

The ad points out that POTE “has successfully provided cost free violin instruction to K and pre-K students in Connecticut,” noting that “early involvement in music enhances reading achievement and fosters and appreciation of music in the development of the child.”

It asks that interested individuals “grant an interest free term loan to provide investment income to fully fund enrollment” in the program, to be used to develop a learning facility in Hartford and provide investment income to fully fund enrollment.  “Loan principal will not be expended for either construction or operating costs,” the organization points out. And POTE emphasizes that “all funds collected from fundraising activities go to program services – there are no administrative costs for POTE activities,” according to POTE President Christopher Wolf.

In accordance with its mission statement, during the past five years, the Glastonbury-based POTE has:

•  Enrolled 90+ pre-k and kindergarten children in Suzuki cost free violin program over five years in Windsor Locks

• Provided major funding for 565 youth (ages 4 to 18) for inner city youth in the Waterbury Police Athletic League’s Safe Water Information Movement (SWIM) program
• Funded after school program for middle school youth for science, math and technology in Waterbury
• Used fees collected from consulting services, to fund $3,000 for water appreciation and nature walk for Waterbury’s West Side Middle School
• Provided $5,000 in grant funds to Hartford Conservatory for musical instrument acquisition, maintenance and repair

POTE provided $34,000 in funding for various youth educational programs during 2012.

POTE anticipates that if they are able to move forward with the new Hartford early childhood music education program, “local jobs would be created during the development phases” and the ongoing program would “employ local musicians.”  In the event that the program does not go forward, all proceeds would be refunded.

Six CT Communities to Receive "Preservation of Place" Grants to Boost Local Downtowns

Connecticut Main Street Center (CMSC), the downtown revitalization and economic development non-profit, has awarded six organizations and municipalities a total of $60,000 in 2013 Preservation of Place grants. These grants will be used to provide the communities and organizations with targeted resources to increase their capacity to plan for preservation and revitalization initiatives in their downtowns and neighborhood commercial districts. The winning organizations and initiatives - which will each receive a $10,000 Preservation of Place grant - are:

• the Town of Kent for a Planning & Engineering Study for its Village Center Streetscape;
• the City of Bridgeport for the Little Asia Historic Streetscape and Archway Project;
• the Town of Putnam for the Putnam Downtown Center Signage and Wayfinding Design Project;
•  the Town of Seymour for the Seymour Greenway Trail and Linear Park Master Plan;
• the Westville Village Renaissance Alliance for the Westville Village Public Parking Comprehensive Design & Marketing Plan; and the
• Northwestern Connecticut Regional Planning Collaborative for the NW CT Village Center Vitality Tourism Marketing Campaign.

The Preservation of Place grant program provides a source of funding for new initiatives that can be integrated into, and leverage, comprehensive Main Street preservation and revitalization programs. The funds are meant to be flexible to meet individual community need.

"Historic preservation and the revitalization of our Main Streets create jobs, bring vacant buildings back on the tax rolls and add value and vitality to adjacent buildings and neighborhoods," said John Simone, CMSC President & CEO. "The diversity of locations and the diversity of projects will allow each community to respond to their greatest current need, actively creating their direction of growth."

Since 2008, CMSC has awarded $288,030 through the Preservation of Place grant program to sixteen Connecticut communities, leveraging over $768,427 in local Main Street initiatives. The program receives support from the State Historic Preservation Office with funds from the Community Investment Act.

The mission of CT Main Street Center is to be the champion and leading resource for vibrant and sustainable Main Streets as foundations for healthy communities. CMSC is dedicated to community and economic development within the context of historic preservation, and is committed to bringing Connecticut's commercial districts back to life socially and economically. The Main Street initiative is one of the most successful economic development programs in the country. For every $1 spent on a local Main Street program, $73.13 is reinvested in Connecticut Main Street downtowns.

Adding Women to Corporate Boards Makes Financial Errors Less Likely

Two years ago, Calvert Asset Management Company, Inc. and the Connecticut Retirement Plans and Trust Funds (CRPTF) announced the successful resolution of their joint shareholder proposal on board diversity filed with Netflix, the world's largest subscription entertainment service. The announcement came as the company named its first female director, Ann Mathers, an entertainment industry veteran who joined the Netflix Board on July 1 of that year.  On behalf of the CRPTF, Connecticut Treasurer Denise L. Nappier has spearheaded Connecticut's initiative to increase the participation of women and minorities as members of Boards of Directors of corporations in which the $24 billion pension fund invests.

New data developed by a team of researchers at the University of Wisconsin-Milwaukee suggests that Nappier got it right, at least in one critical aspect of business.  Companies whose directors include one or more women are 38% less likely to have to restate their financial-performance figures to correct errors than firms with all-male boards, says the team led by Lawrence J. Abbott of the University of Wisconsin-Milwaukee.

Gender diversity may make a board more open to viewpoints that oppose the CEO's and may encourage a more deliberative and collaborative decision-making process, according to the research, published in the American Accounting Association journal Accounting Horizons.

Treasurer Nappier has filed numerous shareholder resolutions on corporate board diversity, in accordance with the State of Connecticut's investment policy and the recognition that companies and firms that demonstrate a commitment to diversity are more likely to succeed in an increasingly global marketplace.

Restatements are necessitated by serious misrepresentations, whether through error or fraud, in corporate financial reports. A woman's presence on a board, the researchers found, does more on behalf of financial integrity than such tried-and-true measures as requiring the board's audit committee to consist entirely of independent directors, one of them with financial expertise, and mandating that it meet at least four times annually. The study finds those measures in combination to reduce the likelihood of restatements by about 20%, about half the effect achieved by having a woman director.

As the findings point out, “Gender diversity can potentially affect the outcome by generating more questioning of the status quo, greater acknowledgment and legitimization of opposition and third-party viewpoints (including those of the audit committee, auditor, or internal audit director) and a slower, more deliberative and collaborative decision-making process...heightening the monitoring effectiveness that may [otherwise] be diminished by groupthink."

The study's findings involved a comparison of companies that had to issue financial restatements with a control group of similar firms with no such reporting problem. The restatement sample consisted of 540 firms in total, with each of the restating firms matched with a control company on the basis of market capitalization, industry, and the ranking of the firm that performed its auditing.

Nappier, inducted into the Connecticut Women’s Hall of Fame in 2011, has served as State Treasurer since 1999, having previously served as Treasurer of the City of Hartford.  She is the first African-American woman to serve as a State Treasurer in the nation’s history.

Student Debt Continues to Climb; CT is 5th Highest in USA

Two-thirds of college seniors who graduated in 2011 had student loan debt, with an average of $26,600 per borrower, up from $25,250 in 2010, according to a recent report from the Project on Student Debt at The Institute for College Access & Success (TICAS).  The loan burden of Connecticut college students, on average, exceeded the national average. The top-five leading high-debt states were New Hampshire ($32,440), Pennsylvania ($29,959), Minnesota ($29, 793), Rhode Island ($29,097)and Connecticut ($28,783).  In addition, 64 percent of Connecticut college students have debt, which places the state 15^th in the nation.

The five-percent increase from 2010 to 2011 is similar to the average annual increase in recent years. The report also found that about two-thirds of the Class of 2011 had loans, and that private (non-federal) student loans comprised about one-fifth of what they owed.

The report’s findings focus solely on public and private nonprofit four-year colleges, because so few for-profit colleges chose to report the necessary data. However, federal survey data show that nationwide, graduates of for-profit four-year colleges are much more likely to borrow federal and private student loans, and they borrow significantly more than their counterparts at other types of colleges.

Utah and Hawaii had the lowest and second lowest average debt at $17,250 and $17,450.

In looking at the institutions specifically, the only Connecticut higher education institution to reach the top 20 High-Student Debt Public Colleges was the University of New Haven.   Among the top 20 “low-debt” institutions was Yale University.

Targeting Financial Fraud Against Senior Citizens in CT

Attorney General George Jepsen is encouraging members of the public and social service agencies that work with seniors to attend the annual Connecticut Triad conference to learn more about financial exploitation and ways to protect against such abuse. The conference will be Thursday, Nov. 1 from 8:30 a.m. to 12:30 p.m. at the Riverfront Community Center, 300 Welles Street in Glastonbury. In addition to the Attorney General, featured speakers include Hubert H. Humphrey III, of the Consumer Financial Protection Bureau’s Office of Financial Protection for Older Americans; Special Agent Anna Ferreira-Pandolfi of the U.S. Department of Health & Human Services’ Office of the Inspector General and Dr. Linda Eagle of the Global Bankers Institute.

Assistant Attorney General Phillip Rosario, head of the OAG’s Consumer Protection unit, will moderate a panel discussion by representatives of the Glastonbury Police Department, the state Department of Banking, the state Department of Social Services, People’s Bank Fraud Unit and the Probate Court.

The event is free and open to the public, but seating is limited and those attending are asked to reserve a space by e-mailing gjames@swcaa.org, or by calling 203-814-3620, on or before Friday, Oct. 26.

Triad is a national initiative of law enforcement agencies and community groups working together to reduce crimes against seniors. There are more than 60 local Triad chapters in Connecticut. Current members of the CT Triad Advisory Board include: The Office of the Attorney General, The Department of Social Services Aging Services Division, People’s United Bank, The CHOICES Senior Medicare Patrol (SMP) Healthcare Fraud and Abuse Project, AARP Connecticut and the Connecticut Area Agencies on Aging.

David B. Fein, U.S. Attorney in Connecticut, hosted the first of the six summits nationwide focusing on financial fraud earlier this month. He says between 2008 and 2011, FBI statistics show at 136 percent increase in investor fraud schemes. At an event in Stamford on October 1, speakers discussed an increase in scams involving reverse mortgages, the failure of victims to have done any due diligence on those they trust their money to, and a lack of skepticism when an "investment counselor" asks for funds to be paid directly to them.  Since last year, the U.S. Department of Justice says, it has charged, brought to trial, taken pleas or received sentences for more than 800 defendants in investor fraud cases. The amount taken from victims exceeds $20 billion.

Earlier this week, a Wells Fargo survey found that a growing number of middle-class Americans plan to postpone their golden years until they are in their 80's.  CNN reported that nearly one-third, or 30%, now plan to work until they are 80 or older -- up from 25% a year ago, according to the survey of 1,000 adults with income less than $100,000.   Overall, 70% of respondents plan to work during retirement, many of whom plan to do so because they simply won't be able to afford to retire full time.

Student Debt Levels High in CT, Young Unemployment Rate Drops Slightly

As college students across the nation graduate with record-high levels of loans, a recent report found that Connecticut ranks among the five states  with the highest loads of student debt. Roughly 66 percent of college students from the class of 2011 nationwide graduated with student loan debt, and the average loan debt per person amounted to $26,600, according to a report by The Project on Student Debt, an initiative of The Institute for College Access and Success.

The survey  asked universities to self-report debt figures from their graduating classes. In Connecticut, the 2011 average was $28,783, making it the fifth-highest debt state behind four other Northeastern states.  New Hampshire topped the list, with average student debt of $32,450.

The report also found that unemployment rate for young college graduates was 8.8 percent in 2011, a slight drop from 2010’s record high of 9.1 percent. Many more young graduates were underemployed, working just part-time or in lower paying jobs that did not require a college education. Still, college graduates are much better off than those without a college degree. The unemployment rate for young high school graduates was 19.1 percent in 2011, more than double the rate for those with bachelor’s degrees.

Connecticut-specific data, by institution, offers stats including the percentage of students graduating with debt in 2011, which includes universities where the percentage exceeded three-quarters of students.

CT nonprofit launches online financial literacy program

The Connecticut Association for Human Services (CAHS) has launched Financial Avenue, a free, online financial education program to help adults and young adults better manage their money and assets.  The program is the latest in a full range of financial literacy services offered by the New Haven-based CAHS, including in-person classes at partner nonprofits throughout the state.  The new on-line courses provide an option for those who have had trouble making it to  scheduled on-ground classes. Students can earn up to 16 certificates in specific topics and work at their own pace.  According to the Pew Research Center's Internet & American Life Project, two-thirds of American adults earning less than $30,000 use the internet. In addition lower-income internet users (earning $25,000 or less) tend to spend more time on the internet than others, about 13 hours online per month.

CAHS also offers the Connecticut Money School as well as a series of downloadable fact sheets on various financial topics. Connecticut Money School (CMS) is a project of the CAHS  and five nonprofit partners.

To sign up or receive more information on the Financial Avenue program, visit www.ctmoney.org.  Class topics span a wide range of topics including: Budgeting, Borrowing Money, Tackling Debt, Understanding Insurance, Taxes & You, Understanding a Paycheck, Importance of Saving, Banking Basics, Investing in Your Future, Your First Job, Paying for College, Working in College, Credit History, Credit Cards, Contracts, and Identity Theft.

A $25,000 grant from the First Niagara Bank Foundation helped launch Financial Avenue.

Record-Setting Returns from State Treasurer's Office

The State Treasurer's Office returned a record-setting $83.5 million to rightful owners of unclaimed assets during the 2012 fiscal year, shattering last year's record high by more than $30 million. This historic payout was due in large part to a claim for $32.8 million -- the largest single claim for unclaimed property in Connecticut's history, State Treasurer Denise L. Nappier reported.  The $32.8 million claim was for proceeds from the sale of 1,259,925 shares of stock received by the Treasury in the name of one person. The owner, who has asked to remain anonymous, was listed on the Treasury's Unclaimed Property website, www.CTBigList.com, and the owner's broker of record contacted the Treasury to make a claim.

The Treasurer’s Office reported that from lists published in the state’s general circulation newspapers in October 2009 and November 2011, in accordance with state law, two consecutive record-breaking years in the return of assets to rightful owners resulted.  As part of response, there were:

• Over 1.1 million searches on the Treasury website, www.CTBigList.com
• 147,914 claims filed
• 86,196 phone calls to the toll free information number, 1 800 833 7318

The Treasury also noted that during FY 2012 alone, the unclaimed property division collected $96 million in unclaimed property for deposit into the state’s general fund – funds not yet returned to rightful owners who have not come forward - which exceeded budgeted projections by more than $11 million.

Since Nappier took office in 1999, the Treasury's Unclaimed Property Division returned in excess of $362 million to nearly 210,000 individuals, businesses and organizations.

Fastest Growing Technology Companies in CT Recognized

The Connecticut Technology Council (CTC) and Marcum LLP have announced the 2012 Marcum Tech Top 40 list of the 40 fastest growing technology companies in Connecticut.  The list includes primarily privately held companies, but 10 public companies also made the list, including:  Priceline.com, FuelCell Energy and Alexion Pharmaceuticals.  The breakdown by counties:  13 in Hartford County, 12 in Fairfield County, 10 in New Haven County.  Alexion, which recently announced plans to be an anchor in New Haven’s Downtown Crossing development, was highlighted in an op-ed in the New Haven Register. Winners are grouped into six areas of technology:  Software, IT Services, Life Sciences, Advanced Manufacturing, New Media/Internet/Telecom, and Energy/Environmental Technologies.  Eligible companies must have revenues of $3 Million and have been in business at least four years.  The companies will be honored on September 27 at Oakdale Theater in Wallingford.  The complete list (asterisk indicate first appearance on the annual list): Advanced Manufacturing: APS Technology, Wallingford Dymax Corporation, Torrington EDAC Technologies Corp., Farmington Foster Corporation, Putnam Reflexite Corporation, Avon RSL Fiber Systems, LLC, East Hartford

Energy/Environment/Green Technology FuelCell Energy, Inc., Danbury Precision Combustion Inc, North Haven Proton OnSite, Wallingford STR Holdings, Inc., Enfield

IT Services Cervalis LLC, Shelton *Datto Inc., Norwalk *iSend, LLC, Middlebury OpenSky Corporation, Tolland *PCNet, Inc., Trumbull *Systems Integration Inc., Wethersfield *VLink Inc, Hartford

Life Sciences Alexion Pharmaceuticals, Inc., Cheshire Bio-Med Devices, Inc., Guilford Defibtech, LLC, Guilford Metrum Research Group, LLC, Tariffville

New Media/Internet/Telecom *EasySeat, LLC, Plainville HealthPlanOne LLC, Shelton JobTarget, LLC, New London M2 Media Group, Stamford Priceline.com, Inc., Norwalk TicketNetwork, South Windsor *WebMediaBrands, Inc., Norwalk

Software Adeptra, Inc., Norwalk Core Informatics, LLC, Branford *ePath Learning, Inc., New London *eVariant, Inc., Simsbury Evolution1, Inc, Avon *FitLinxx, Inc., Shelton Higher One, Inc., New Haven

New Website Spurs Action by U.S. Senator on Mortgage Aid Fraud Claim

The ranks of state news websites grew by one more in Connecticut with the recent launch of ctlatinonews.com, with former WFSB-TV reporter Diane Alverio among the organizers of the initiative.  The demographics of the niche being sought by the new web site were immediately understandable:  of 3,577,000 residents in Connecticut, 482,000 identify themselves as Hispanic and almost 75 percent of them were born in the U.S. Within weeks of getting underway, the site is not only reporting news, it is making news happen as well. In response to reporting earlier this week about a New Britain resident who is facing foreclosure of his home and possible eviction this week - allegedly due to mortgage aid fraud by a California-based business - U.S. Senator Richard Blumenthal is calling on the Federal Trade Commission to begin an investigation into the company.  Blumenthal’s office will also be contacting Wells Fargo, which held the homeowners’ mortgage, to seek a stay of execution on the eviction notice.

In launching the news site, ctlatinonews.com said its audience focus would be the increasingly growing, under-served Latino market that is English dominant, citing 2010 U.S. Census data that reported among Hispanics living in Connecticut and employed here, there are:

• 127,000 in the IT and financial services sector
• 45,000 in management or professional positions
• 60,000 in service industries

Their audience also includes, apparently, at least one United States Senator.