Hartford Business Journal

20 Hartford Business Journal • December 9, 2019 • www.HartfordBusiness.com OPINION & COMMENTARY EDITOR'S TAKE Lamont administration's new incentives strategy on the mark T he Lamont administration has had a shaky first year on multiple issues ranging from tolls to the prepared-meals tax. But one area where Gov. Ned Lamont is poised to score some points is on his team's new economic-incen- tives policies. In this week's issue, HBJ details the state's new economic-incen- tives playbook, which will focus on four key pro- grams, including two new concepts. It includes a modified Small Busi- ness Express program that will no longer offer state loans or grants, but instead morph into a loan-guar- antee program run by private banks, and the Grow CT Rebate, which will be provided to companies in certain major industries after they create at least 25 well-paying jobs. There will also be a greater focus on two existing incentive pro- grams: the Urban and Industrial Site Reinvestment Tax Credit and the Sales & Use Tax Relief Program. The overall goal is to move toward a performance-based, "earn-as-you- go" system, meaning employers won't reap state incentives until they create a certain number of jobs or make a certain level of investment. That will prevent the cash- strapped state from having to clawback funds from companies that fail to live up to their deals. It also reverses a policy direction set decades ago and put into over- drive by the Malloy administration, which aggressively ramped up corporate incentives that compa- nies benefited from up front, before they invested a single dime or hired a single worker. The new strategy will not require the state to borrow money to incen- tivize job growth, although the pro- grams' annual costs, or what caps might be instituted, haven't been fully fleshed out. The state's new economic- incentives policy, shep- herded along by Department of Economic and Community De- velopment Com- missioner David Lehman and parts of which will need legisla- tive approval, is a step in the right direction. And I couldn't agree more with Lehman's analysis on several fronts, including his belief that Connecticut shouldn't have "the best or most aggressive job- creation incentives." He also rightfully says taxpay- ers shouldn't be paying private companies that simply retain jobs in the state. That type of policy puts Connecticut in a position to be held hostage by companies that threaten to leave unless they get rewarded with a tax break, low- interest loan or grant. The truth is, economic incentives don't determine where companies locate. If a Hartford manufacturer uproots and moves to another state or country, it's because it's look- ing for a lower- cost environ- ment, or to be closer to custom- ers or suppliers. No amount of incentives can make Connecti- cut cost compet- itive with states like Texas or South Carolina. Not to men- tion that at least 75 percent of the time, in- centive-backed jobs would have been created without government support, according to research by Tim Bartik, a senior economist for the BIZ BOOKS Success strategies from women who broke the mold By Jim Pawlak "disrupters — Success Strategies from Women Who Broke the Mold" by Patti Fletcher (Entrepreneur Press, $21.99). Fletcher's research found that, while successful women have many things in common, one thing stands out: Not one of them thinks they are "victims" because they're not members of "the boys' club." They're disrupt- ers who realize that "business" needs to be played like a game where they make up their rules — which consider conscious and unconscious bias. When they're making their rules, they look inward to define what success looks like based upon their self-defined purpose. They also don't "man up" by try- ing to mimic male counterparts. Nor do they "do what they're sup- posed to do" or use "I'll show them" as motivation. Disrupters make themselves shine by demonstrating that gender has nothing to do with talent, skill and creativity. Example: My friend Erin Lind- sey has a Ph.D. in biochemistry. She began her career teaching at a university. She quickly decided that she wanted to "do what she was teaching." She took a biochem- ist job in the corporate world; her self-determined path led into developing cardiac surgery devices. Her 130-plus patents showed that she outperformed her colleagues; she became the chief technology of- ficer of a medical-device subsidiary of 3M. Semi-retired now, Lindsey consults with med-tech firms and university research teams. The chapters tell the stories of many can-do women like my friend. Disrupters seek work-life flexibil- ity not work-life balance. Fletcher makes personal and professional Greg Bordonaro, Editor Jim Pawlak The truth is, economic incentives don't determine where companies locate. If a Hartford manufacturer moves to another state, it's because it's looking for a lower-cost environment, or to be closer to customers.

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