Best Small Cities to Start A Business? CT Has Only One - Danbury - Among Top 700 in USA

Only one Connecticut community is ranked in the top 700 “best small cities to start a business” in a new survey of 1,260 cities across the nation.  Danbury, ranked at number 170, was the sole Connecticut city to earn a slot among the nation’s business-friendly small cities.  The next Connecticut municipalities on the list were Torrington, ranked at number 749, and East Hartford, at number 775. To determine the best small cities in which to start a business, the financial website WalletHub’s analysts compared across three key dimensions: 1) business environment, 2) access to resources and 3) business costs. Included were cities with a population of between 25,000 and 100,000 residents.

Among Connecticut municipalities, also reaching the top 1,000 nationwide were East Hartford (775), Bristol (836), Westport (861), West Hartford (876), and Shelton (919).

The Danbury city website highlights that “assets and resources include a pro-business climate, a creative, educated and talented workforce, an excellent education system, transportation advantages, a superior quality of life and much more.”  The website highlights a Danbury business each week.

"We analyzed 21 Connecticut cities and out of these, Danbury ranked the highest at 170," said WalletHub analyst Jill Gonzalez. "Although it offers a strong business environment, the city has high business costs overall. Most of the cities (14 of them) ranked below the 1,000 rank because these fail to offer a thriving business environment, with little access to the resources needed to start a business as well as restrictive labor costs."

The analysis evaluated each of the three key dimensions using 16 relevant metrics. Each metric was graded on a 100-point scale, with a score of 100 representing the most favorable conditions for launching a business. “ A city with a smaller population can offer a greater chance of success, depending on an entrepreneur’s type of business and personal preferences,” WalletHub points out.

The business environment category (50 points) includes average length of work week, average growth in number of small businesses, number of startups per capita, average revenue per business, average growth of business revenues and industry variety.  The access to resources category (25 points) includes financing accessibility, human resource availability, higher education assets, working age population growth and workforce educational attainment.  The business costs category includes office space affordability, labor costs, corporate taxes, and cost of living.

Also earning a slot on the “Best Small Cities to Start a Business” list were East Haven (1,004), Norwich (1,014), New London (1,015), New Britain (1,022), West Haven (1,026), Wethersfield (1,028), Newington (1,032), Milford (1,053), Stratford (1,060), Norwalk (1,063), Meriden (1,079), Middletown (1,117), Naugatuck (1,185) and Trumbull (1,239).

Data used to create the ranking were collected from the U.S. Census Bureau, Bureau of Labor Statistics, Federal Deposit Insurance Corporation, AreaVibes, Yelp, Indeed, U.S. News & World Report, Tax Foundation and LoopNet, according to WalletHub.

The top small cities for business in the U.S., according to the analysis, were Holland, MI; Carbondale, IL; Springville, UT; East Chicago, IN; Jefferson City, MO; Wilson, NC; Enid, OK, Rio Rancho, NM; Clearfield, UT and Cheyenne, WY.  The top ranked city in New England was East Providence, RI, ranked at number 38.

Accent on Exports in Connecticut; State Supports Business Outreach Overseas

If Connecticut were a country, it would be the sixth-most productive in the world, according to the state’s annual report by the department of Economic and Community Development. A critical building block for economic productivity is exports, and a look at the data reveals some surprisingly positive statistics. The backdrop is offered by more than 700 global companies that have subsidiaries here, employing more than 100,000 people, the Organization for International Investment points out.  The state’s convenient access to a variety of transportation options all provides access; there were 4.6 million tons of cargo carried on Connecticut rails in 2015, for example, and 11.4 million tons of freight shipped through Connecticut ports in 2013.

The U.S. Commercial Service and the Connecticut District Export Council have teamed up to create a series of events throughout Connecticut marking the annual Connecticut Export Week. These events will take place during  April 24-28. Connecticut Export Week 2017 will educate businesses on initiating and or expanding their global market. Officials describe Connecticut  Export Week 2017 as the only free event of it’s kind in the nation.  A series of free events and webinars will be offered at locations around the state.  Topics include exporting to China, expanding to new markets, initial market research, how to develop and maintain an export network, and export logistics.

“The ease of global travel and freight movement by rail and highway makes Connecticut a prime location for domestic and international trade,” the report points out.  Leading exports include: Aerospace/Transportation Equipment, Non-Electrical Machinery, Computers and Electronics, Chemicals, Electrical Equipment, Fabricated Metals Production, and Primary Metal Manufacturing.

The top three trading partners for the state are Germany (10.8% of state exports), Canada (10.7%), France 12.7%, United Arab Emirates (10.4%) and Mexico (8.7%).

The Connecticut Department of Economic and Community Development (DECD) recently called on companies to apply for grants of up to $7,000 for a wide range of export-related activities. Funding is from the Small Business Administration (SBA), which awarded Connecticut a $244,000 grant to help increase state exports and the number of small businesses that export. The Department has provided more than 350 grant awards allowing Connecticut companies to participate in Medica, the leading international medical device trade show in Dusseldorf, Germany; Hannover Messe, the world’s largest industrial technology trade show in Hannover, Germany; and the international air shows in Farnborough, U.K. and Paris. Additionally, companies can request reimbursement for trade shows, trade missions and other export activities specific to their industry.

“These investments are helping Connecticut’s small businesses compete in the global economy,” said DECD commissioner Catherine Smith. “For example, grants have been provided to companies to help offset the costs of attending the Farnborough Air Show, one of the most important air shows in the world. Without these grants many of the suppliers and component manufacturers in Connecticut’s supply chain could not attend, missing a key opportunity to establish important contacts and build relationships with the leading aerospace contractors across the globe.”

PERSPECTIVE: People, Not Cars, Should Be Union Station Priority

by Krysia Solheim The New Haven community has consistently voiced opposition to the State's plan to build a new $50 million parking garage for Union Station in New Haven, and the State has failed to adequately respond to our concerns, requests, and comments on the design and the environmental impact assessment.

The New Haven community wants new infrastructure and development to prioritize people, not cars. Currently, 30 percent of New Haven residents, including myself, do not own a car.[1] We want a city with better mass transit and better cycling and pedestrian infrastructure and connectivity. We do not want more parking garages or more public space allocated to cars.

We also want development to support healthy lifestyles and enable a vital New Haven.

New Haven residents suffer from the highest rates of asthma hospitalization in the state - the neighborhood surrounding Union Station is an asthma hot spot.[2] Air quality will continue to worsen if the garage is built because more people will drive to Union Station instead of using more sustainable modes of transportation to get there.

The State has committed to reducing greenhouse gas emissions by 80 percent below 2001 levels by 2050 and the City of New Haven is in the process of committing to the same target. Transportation emissions account for 36 percent (2013 inventory)[3] of Connecticut's greenhouse gas emissions. They account for about 26 percent of US greenhouse gas emissions. It is astounding then, that the State wants to spend $50 million on a garage that will only induce more people to drive instead of investing funds to induce more people to walk, bike, and take transit.

Greenhouse gas emissions are a regional and global issue and the State should be seriously considering environmental impacts and how to protect people, especially low-income environmental justice communities who have long borne the brunt of pollution and are the most vulnerable to climate change impacts.

The City of New Haven and the New Haven Parking Authority understand what the community wants and should be allowed to continue to manage Union Station. They have invested in multimodal connectivity to the station, including a free downtown shuttle with GPS and bike parking infrastructure, and have plans for further transportation oriented development in line with this area’s needs.

I have lived most of my life abroad and have seen wonderful examples of cities that have invested in their train stations and multimodal connectivity to ensure that their communities have reliable access to jobs, that they have clean air, and that they do not have to spend a burdensome portion of their income on transportation or subsidizing the increasing costs of maintaining infrastructure for cars.

I strongly believe that the City of New Haven and the New Haven Parking Authority are best equipped to bring similar forward thinking planning and infrastructure to Union Station and the Greater New Haven region.

_____________________________________

Krysia Solheim is the owner and founder of Viosimo, an environmental sustainability consulting firm. She holds a Bachelor of Science with Honors in Environmental Science from the University of Arizona with minors in Spanish, Arabic, and Chinese; and a Masters in Environmental Management from the Yale School of Forestry & Environmental Studies. Born in Arizona, Krysia grew up in Nicaragua, Costa Rica, Thailand, Cyprus, Venezuela, and Qatar.  She speaks English, Spanish, and Greek fluently and intermediate Chinese and Arabic, has dual American and Greek citizenship, and is a resident of New Haven.

[1]www.governing.com/gov-data/car-ownership-numbers-of-vehicles-by-city-map.html

[2] http://www.ct.gov/dph/lib/dph/hems/asthma/pdf/asthmadatabrief_2013.pdf

[3]www.ct.gov/deep/lib/deep/climatechange/2012_ghg_inventory_2015/ct_2013_ghg_inventory.pdf

Hartford Baseball Being Broadcast in Spanish, English

The Hartford Yard Goats minor league baseball team has played the first of 70 home games at Dunkin' Donuts Park. The broadcasts, like the season, have begun with new homes. All 140 games will be broadcast on the Yard Goats Radio Network, which can also be heard on-line at yardgoats.com and on smart phone devices through the iheartradio app.  The Yard Goats will also have all home games broadcast in Spanish through a partnership with iHeartMedia and WPRX 1120AM. At part of the team’s outreach to the region’s Spanish-speaking population, pocket schedules in Spanish that will be distributed throughout the Greater Hartford area.  According to the 200 U.S. Census, 43 percent of Hartford's population is Hispanic.  

Jeff Dooley is set to begin his first season as the "Voice of the Yard Goats" after calling New Britain Rock Cats broadcasts for the past 18 years. He is the lead play-by-play announcer for all games on radio and television and hosts complete coverage of the Pre-game and Post Game shows for all games, home and road. His broadcasts can be heard on i-Heart Media Hartford affiliate, News Radio 1410 AM (WPOP), AM 1150 (WMRD), AM 1420 (WLIS). Home games are streamed on MiLB.TV.

Dan Lovallo also returns to the Yard Goats broadcast booth. He broadcast the team’s games on radio from 2000 through 2008 and worked on select broadcasts the last two seasons. He has an extensive background in broadcasting professional baseball and sports in general.  In 1983, Lovallo began broadcasting games for the Kinston, NC Blue Jays, then affiliated with the Toronto Blue Jays. Lovallo moved on to the Richmond, VA Braves in 1985, then the top farm club of the Atlanta Braves.

Dooley was behind the microphone for some of the most memorable moments in Rock Cats history, including three Eastern League Playoff Series, a major league exhibition game with the Minnesota Twins, and the only two no-hitters in franchise history. He was the television play-by-play broadcaster for the 2013 Eastern League All-Star Game and called the 2003 EL All-Star game on radio. Additionally, Dooley was the master of ceremonies at the All-Star Luncheon at the ESPN headquarters in Bristol. Additionally, Dooley is the play-by-play voice of the University of Hartford Men's Basketball Team.

In 1990, Lovallo returned to his home state of Connecticut and eventually joined WDRC radio in Hartford to become news and sports director. He now joins Brad Davis on mornings on the Talk of Connecticut network. His assignments included broadcasting women's and men's professional basketball, college basketball for the University of Hartford.  In addition to Yard Goats broadcasts, Lovallo continues to serve as radio "Voice of the Manchester Road Race," and broadcasts high school football games on WAPJ radio. He is also the publisher and editor of two baseball-related websites, Your Baseball Buzz and Baseball on the Fly.

The team’s 70 home games broadcast in Spanish on 1120-AM WPRX in Hartford, will have the father-son duo of Danny and Derek Rodriguez at the microphone.

"We are extremely excited to partner with WPRX and bring Yard Goats Baseball to a new radio audience," said Yard Goats owner Josh Solomon.  "It is really important to our organization to have our broadcasts also available in Spanish, knowing how much the Hispanic community loves baseball, and we feel this is a wonderful way to reach the Latino community."

WPRX AM 1120 is a community based radio station with local programming such as news, traffic, and weather.  WPRX, which transmits 24 hours a day, 7 days a week, has live on air talent from its studio and also is very involved with local community events making it a natural fit with the Yard Goats.

"We are thrilled to be to partnering with the Hartford Yard Goats and having their home games broadcast in Spanish on our radio station," said WPRX owner Oscar Nieves.  "So many of our loyal listeners love the game of baseball and are excited about the new Yard Goats brand.  We know that this is going to be a home run."

Stamford Ranks #7 Among Small Cities of the Future in the Americas

Stamford is a "City of the Future," ranking seventh among small cities in the America’s for economic growth, according to a new report.  The city ranks behind Sunnyvale, Irvine and Fremont, CA; Bellevue, WA; Ann Arbor, MI, and Fort Lauderdale. Also ranking in the top 10 are Cary, NC; Plano, TX; and Guelph, Ontario.  It was one of three top-ten showings for Connecticut's third largest city. In addition to its overall position among just over 200 cities with populations between 100,000 and 350,000, Stamford placed second among small cities for connectivity, just behind Jersey (New Jersey) and ahead of Newark, Yonkers, Paterson, Elizabeth, and Sunnyvale, Hayward, Fremont and Vallejo in California.

The city also placed ninth for economic potential in the analysis and report released this week by a division of the Financial Times.  The top cities in that category included Sunnyvale, Bellevue, Fremont, Irvine, Cary, Ann Arbor, Waterloo (Ontario), Plano and Chattanooga.

The 2017-18 rankings for the American Cities of the Future were developed by the Financial Times’ FDI unit, which studies foreign direct investment.  In total, 421 locations were analyzed for the study. Data was then collected under five categories: Economic Potential, Business Friendliness, Human Capital and Lifestyle, Cost Effectiveness and Connectivity. ‘Small’ locations (209 locations) had immediate city populations of between 100,000 and 350,000, according to the study’s methodology.

“This is really good news for Stamford,” Joe McGee, vice president of public policy for The Business Council of Fairfield County, told the Stamford Advocate. “This index is closely watched by people who look at the hot places to invest, and clearly Stamford is one of those places. That connection to New York is really advantageous to Stamford.”

Among larger cities, the top 10 in the Americas are New York, San Francisco, Houston, Toronto, Montreal, Vancouver, Boston, Atlanta, and Sao Paulo.

A year ago, Stamford  launched the City’s new business portal,  Stamfordbusinessportal.org, created "to eliminate red tape and streamline the process for planning and starting a small business in Stamford," according to officials.  The multilingual website was designed and created by six interns during the summer of 2015, including four from the Mayor’s Youth Employment Program. The website includes links for permitting and licensing, starting a business and business incentives.

Stamford was the only Connecticut city to earn a spot on the lists.

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.

New Facilities at Southern, UConn Stress Science Education, Careers

In the fall of 2015, Connecticut’s efforts to encourage science careers among students attending state colleges ramped up with the opening of a new Science and Laboratory Building on the campus of Southern Connecticut State University in New Haven, and the groundbreaking for a Science and Engineering Building at the University of Connecticut in Storrs. Both projects are back in the news.

Southern’s Academic Science & Laboratory Building has been certified LEED® Gold, placing it among the top one-third most sustainably designed certified buildings in the state.  The building saves the university 34 percent on its energy consumption and reduces water use by 20 percent.

Designed by Centerbrook Architects & Planners, the nearly 104,000-square-foot building exceeded expectations with its sustainable features. Originally targeted for LEED® Silver, the Academic Science & Laboratory Building scored 63 points on the LEED® scale to earn BD+C (Building Design + Construction) Gold.  The $49 million project was created entirely through state bonding, and predominantly features interactive laboratory spaces, with only two traditional lecture halls.

In Storrs, UConn’s new Engineering and Science Building is now 75 percent complete, and will be operational this fall.  It is expected to provide room for some of the university’s fastest growing research fields – systems genomics, biomedical sciences, robotics, cyber-physical systems (think drones) and virtual reality technology.

The five-story building will see researchers will move in to the new space this summer, beginning in July. It will be the first structure on the Storrs campus to utilize an “open lab” concept for research. The shared research space and open floor plan is intended to make it easier for scientists from different disciplines to collaborate, fostering innovation, according to UConn Today. The new structure will also give scientists access to a high-speed broadband network can process large amounts of data quickly – a necessity in many research fields today.

The building’s first floor is to include a Robotics and Controls Lab, Computational design Lab, Adaptive systems, Intelligence, and Mechatronics Lab and Manufacturing Systems Laboratory.  The second and third floors will feature the Institute for Systems Genomics, Center for Genome Innovation, Computational Biology Core and Microbial Analysis.  The top two floors will include labs focusing on Cellular Mechanics, Neuroengineering and Pain research, Interdisciplinary Mechanics, Membrane Separations, Advanced Solar Cells and Computational Atmospheric Chemistry.

Southern's Academic Science and Laboratory Building features Connecticut’s only center for nanotechnology and training labs for high performance computing, astronomy, cancer research, and molecular biology. It is also home to the Werth Center for Coastal and Marine Studies. Stressing the connection between education and employment, Southern notes that the Greater New Haven area is home to the second-largest cluster of biotechnology companies in New England.

https://youtu.be/0GLnUUlsQ7g

https://youtu.be/kSkgezEqcJs

PERSPECTIVE: Don't Overlook Your Foreign Assets

by Sharon K. Brune Are you subject to IRS penalties of $10,000 or more -- and don’t even know it?

Do you have a foreign bank account or other foreign asset? If you neglected to properly report such accounts or investments, you may be liable for civil and criminal penalties that start at $10,000 – even if you don’t owe any taxes on that foreign money!

There is a laundry list of forms the IRS may require from people who hold foreign bank accounts or other assets.  Chief among them is the FinCEN Form 114, colloquially known as the FBAR (Report of Foreign Bank and Financial Accounts).  It has a fairly low threshold for reporting, and requires not only direct account holders to report, but also requires reporting by those with signature authority over foreign accounts and majority owners of business entities with foreign accounts, among others.  In short, you might think your account is too small or your connection to a foreign asset is too minimal to require reporting, but you may well be wrong.

Frequently taxpayers are surprised to learn they were required to file forms related to foreign assets.  Commonly heard laments include these and countless other variations:

• I’ve only got two accounts of $5,000 each.
• I only have $10,000 in a single account that I haven’t touched in years.
• It’s not my account – I only have signature authority over an account in case something happens to my parents who live in another country.
• I’m a citizen of another country but living in the US – I don’t need to report my foreign assets, do I?
• My accounts are in Canada. That’s not foreign, is it?
• I own a corporation or partnership that does business abroad. We have foreign bank accounts for these branches.  They’re not mine.
• My grandfather, who lives in a foreign country, created a trust for my benefit. I didn’t receive any money this year.

In each of the above scenarios, there is a strong likelihood that a reporting requirement exists – even if you don’t owe taxes on the accounts.

Bank accounts aren’t the only assets that need to be reported.  Various other forms address reporting investments in foreign businesses, receipt of bequests from foreign persons, ownership of foreign rental property, loans to a foreign party, to name but a few.

Individuals aren’t the only ones required to file these reports.  Some forms require business entities, trusts, or estates to file as well, if there are involvements with foreign assets.

New for forms filed in 2017 is a change in the due date.  Formerly required to be received by the Department of the Treasury by June 30, the revised receipt date is now April 15 with an automatic extension allowed to October 15.

Hopefully no one will be shocked to learn that income from all sources, including foreign, is required to be reported on a tax return filed by a US person or entity.

If you have overlooked filing any foreign reporting informational forms, getting “right” with the IRS will be less complicated if any income associated with foreign holdings was properly reported.  The IRS is trying to encourage compliance, knowing that in many cases people were truly unaware of the requirements.  There are disclosure programs and approaches that can allow you to get caught up, and may mitigate some of the possible penalties associated with non-filing.

Note that there is no statute of limitations when it comes to forms that were not filed – the IRS can come looking for you well beyond the typical three years’ statute of limitations normally associated with a routine Form 1040.

Burying your head in the sand and procrastinating will not make this problem go away. Better to get professional advice and take all necessary steps to comply with IRS requirements.

_______________________________

Sharon K. Brune, CPA, is a partner in the New Haven office of Beers, Hamerman, Cohen & Burger, P.C. She can be reached at 203.787.6527 x109 or sbrune@bhcbcpa.com

Insurance Department Recovers $7.5 Million for Policyholders, Taxpayers in 2016; Highest Total in 4 Years

Connecticut’s Insurance Department recovered $7.5 million for policyholders and taxpayers in 2016, helping individuals, families and employers with their claims and complaints.  That is the highest amount in four years and an increase from the $6 million that the department saved taxpayers and policyholders the previous year. “Connecticut consumers turn to us every year to help them with claims and coverage issues or to just answer questions about their insurance,” said Insurance Commissioner Katharine L. Wade. “Our intervention in 2016 helped thousands of policyholders get much-needed answers, resolution and the benefits to which they are entitled.”

Consumer recoveries and industry fines totaled approximately $6.3 million in 2014, $7.3 million in 2013 and approximately $8.7 million for policyholders and state taxpayers in 2012, the high water mark in recent years.

Commissioner Wade said among the many cases the Department worked on during 2016 was a dispute that involved nearly $170,000 in hospital bills for a victim of a car accident. The patient had health care coverage under two plans – through his employer and as a dependent on his parent’s health insurance. When a dispute arose over which plan was the primary payer, the Department stepped in and determined it was the employer’s plan, which then covered the claims.  Another case involved a motorist whose car was totaled in an accident. When motorist’s insurer initially denied her claim, the Department required that the insurer review the case further. The insurer subsequently paid 100 percent of the motorist’s claims.

The Department’s Consumer Affairs Unit (CAU) fielded more than 5,800 complaints and inquiries and helped policyholders recoup nearly $6 million from January 1 to December 31, 2016, according to officials. Also in 2016, the Department’s Market Conduct division levied approximately $1.6 million in fines against carriers and returned that money to the state’s General Fund. The fines resulted from a variety of violations and settlements ranging from untimely claim payments to improper licensing, the department said.

The majority of the funds recovered for policyholders stemmed from complaints over health, accident, homeowners and life and annuities policies. The  breakdown of funds recovered in 2016:

• Accident, Health - $3.63 million
• Auto - $432,000
• General Liability - $33,710
• Homeowners and Commercial Property - $874,250
• Life, Annuities - $820,000
• Miscellaneous - $160,000

The department announced this month that licensing renewal notices for casualty adjusters and motor vehicle property damage appraisers will now be handled online, with an anticipated savings of nearly $40,000 in processing and mailing costs.The renewals also are now processed online through the National Insurance Producer Registry (NIPR). The licenses expire on June 30, 2017 and are good for two years. The casualty adjuster renewals are expect to generate approximately $6 million for the General Fund.

“The Department is now emailing renewal notices to the 73,000 casualty adjusters and motor vehicle property damage appraisers in Connecticut improving efficiency by saving time and shedding thousands of dollars in mailing and postage costs,” Wade said.

The Department calculates its consumer recoveries based on what the policyholder received as a result of the Department’s intervention. The inquiries and complaints also help the Department identify industry trends that may adversely affect consumers and trigger investigation by the Market Conduct division.  Complaint data also help determine topics for consumer education and serve as tools to help the Department monitor the industry.  The Market Conduct enforcement actions are posted on the Department’s Web site at www.ct.gov/cid

Strong Defense: Where CT's Jobs Will Be

“As a convergence of technological advancements, changing military demand and shifting workforce demographics force a major period of transformation across the (defense) industry, Connecticut must adjust its approach to workforce development and retention, or risk losing its competitive edge to other regions.” That’s the conclusion of a 23-page policy brief issued by CT21 which analyzed the pitfalls and potential of the aerospace and defense industries - a “significant pillar of Connecticut’s economy” - and the state’s workforce, on the brink of what the report describes as “an inflection point” for the state.

“With a workforce that is aging into retirement faster than the current pipeline of workers can fill the gap, existing training programs are being strained to both produce higher numbers of qualified graduates and keep their programs current with the skills industry needs,” the report indicated.

To solve this multi-faceted challenge, CT21 calls on state officials to:

• Expand existing training programs and launch new ones
• Increase industry input into training program development
• Expand the workforce applicant pool
• Incentivize the retention of retiring industry expertise

“The full ecosystem around the defense industry in the state must come together to address these overlapping trends – and many of these collaborative initiatives are already producing significant results – but state government still has a unique role to play in bringing the right ideas to the table,” the report explains.

The report notes that the 2016 Aerospace and Defense Workforce Study conducted by Aviation Week and Space Technology found over a quarter of the nation’s A&D workforce is over the age of 55. To highlight the local impact, 35% of Electric Boat’s workforce is within ten years of retirement. Over 7,800 workers have 20 or more years of service, and nearly 950 have 40 or more.

By way of illustration, the report devoted attention to United Technologies’ Pratt and Whitney.

“Based on projections for deliveries of military and commercial engines, Pratt expects to double production by 2020 and again by 2027. As of last September, the company expected to hire nearly 8,000 new workers in Connecticut over the next decade, including 1,000 engineers and 1,000 manufacturers in the next year. Pratt operates a business model that also relies heavily on the supply chain, with 85% of its engine parts being manufactured elsewhere.”

The report calls on state government to take a range of actions, including:

1. Expand existing training programs and launch new ones
2. Increase industry input into training program development
3. Expand the workforce applicant pool
4. Incentivize the retention of retiring industry expertise
5. Create additional professional growth opportunities
6. Take steps to improve the quality of life – both real and perceived
7. Expand existing training programs and launch new ones
8. Increase industry input into training program development
9. Expand the workforce applicant pool
10. Incentivize the retention of retiring industry expertise

Among the challenges the report cites are increasing competition from other industries and variable quality of life across the state. To respond, CT21 urges that state to create additional professional growth opportunities and improve quality of life statewide. CT21 stresses that the state must “leverage the opportunity before us to truly put Connecticut on a path towards a prosperous future.”

The Connecticut Institute for the 21st Century provides continuing opportunities for its members and other organizations to understand and discuss economic activity in the state and obstacles to its success. For more information, visit www.CT21.org