Hartford Business Journal

www.HartfordBusiness.com • March 23, 2020 • Hartford Business Journal 17 making it a broad-based program. CBIA and others are concerned about the difficulties employers will face finding the right talent to replace workers on extended leaves, handling additional administrative burdens to comply with the new law, and whether the 0.5% payroll tax will be enough to cover what are viewed as relatively generous benefits and eligibility criteria com- pared to other states. There still has not been an actuar- ial analysis of the program Connecti- cut adopted, but the Institute for Women's Policy Research has mod- eled several different benefit struc- tures, which is how the legislature selected a 0.5% payroll deduction. The ballpark estimate is that the program will raise approximately $400 million from workers each year to pay for benefits and expenses. CBIA said it generally doubts the state's ability to stand up big new entitlement programs that could instead be handled by the private sector. (The paid leave law does set up a process for private insurers to offer their own paid-leave plans to employers so long as the benefit levels are equal to or better than the state's version.) CBIA lobbyist Eric Gjede points to the recent collapse and subsequent reorganization of the state's fledg- ling Retirement Security Authority, which was supposed to offer retire- ment-savings products to Con- necticut workers but faced multiple delays in launching before it ran out of operating funds late last year. "The sheer enormity and complex- ity of this paid-leave program makes it an even more daunting task," Gjede said. Barton Reeves is well aware of CBIA's concerns, and said her board will closely study financial projec- tions when they come in over the next year or so. She reiterated that the law allows the authority to recalibrate benefit levels to ensure solvency. "I understand those concerns, I re- ally do," Barton Reeves said. "But as we sit here today, it's the law of the land, so it's really my responsibility to ex- ecute the law as it's currently written." She said it will be vital to have clear and open communication with employers and workers. Gjede said he is encouraged by Barton Reeves' mix of professional experience. "She is going to be familiar with the struggle that so many of Con- necticut's small businesses deal with on a day-to-day basis," he said. HOLISTIC APPROACH Real confidence comes from knowing how your life and finances connect. every decision with clarity. CTWealthMgmt.com Experience genuine. Democratic lawmaker says no changes needed yet to paid sick leave W hile the Connecticut Business & Industry Association has pressed for tweaks to the state's recently ad- opted paid family medical leave program, Demo- cratic lawmak- ers, who control the House and Senate, aren't entertaining the idea. The Labor and Public Employ- ees Committee, which approved the 2019 paid leave bill that ultimately became law, recently took a pass on introducing any legislation this ses- sion that would amend the program. "We took pains to make sure this was a very comprehensive and solid program," committee co-chair Sen. Julie Kushner (D-Danbury) said of the paid leave law. "I think it would be a mistake, before we even get off the ground, to start changing that program." While the Paid Family Medi- cal Leave Insurance Authority can reduce benefits or tighten eligibility if the program runs out of money, some, like Senate Minority Leader Len Fasano (R- North Haven), have worried that lawmak- ers may opt to pursue alterna- tive funding sources, such as a contribution from employers. Similar programs in at least five other states, including Massachusetts, require partial fund- ing from companies. Kushner wouldn't dismiss the pos- sibility of exploring other funding options down the road, but said it's premature to try to tackle "a prob- lem we don't yet have." "I think that would really depend on the economic climate of the state and businesses' ability to pay it," she said. Sen. Julie Kushner is a key advocate for the state's paid-leave program. PHOTO | CONTRIBUTED

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