Hartford Business Journal

HARTFORDBUSINESS.COM | September 12, 2022 13 ON THE RECORD investment in. Q. How much has your administra- tion invested in workforce develop- ment? Are there any initiatives that you're really bullish about having an impact? A. We have about a $100 million initiative in workforce. One of the things I've tried to do is change the nature of credentialing. And sometimes experience is just as good as a credential, especially when I need people in the workforce now. We announced a month or so ago, our certified nursing assistant program because there's a shortage of nurses. Rather than two-and-a-half years, it's a one-year program, and then you go out and you start learning while you're earning. The credentialing courses we've been putting together aren't being put together by us, they are being put together based on what companies say they need and they help us put together the curriculum. Q. Can you point to a significant economic development policy you've launched that's benefited small businesses? A. We've got the $75 million Connecticut Small Business Boost Fund program, a public-private partnership that provides low-in- terest loans to small businesses and nonprofits. I've got the banks all lined up, they are going to match our $75 million. It provides loans of up to $500,000 with a 4.5% interest rate, which is low in this day and age. That gives you the opportunity to grow and expand. For the larger companies I am more focused on investment in workforce development and making sure they have the employees they need to grow. Q. You received some criticism over minimum wage increases and the paid family medical leave law. How would you assess their impact on the business community and climate? A. I think on the minimum wage the progressives wanted me to raise it to $15 overnight. Some conservatives wanted to get rid of the minimum wage. We phased in the $15 minimum wage over five years. I don't think you could hire for $8 or $10 an hour anymore, so I think it was the right thing. I think it gave people some security. It helps me get people back into the workforce. I feel the same way about paid family medical leave, but unlike other states, I don't have small business paying for it. I've got employees paying for it. It's an insurance plan. Again, the big guys already do it. I think we did it right and it allows me to say Connecticut is a family-friendly state. Q. The business community over- whelmingly opposed the captive audience bill that banned manda- tory company meetings on certain issues, including labor issues. Why did you support and sign that bill? A. I don't want an employer prosely- tizing. If you want to talk to me about the job I'm doing, obviously, you could do that and that's appropriate. But don't proselytize on non-business items. I understand that it's an issue that set some people's hair on fire, but I'm okay with it. Q. Pre-COVID you received a lot of criticism for your pursuit of highway tolls. Is that something you would consider in your next four years? Do we have adequate funding for transportation? A. I don't think there will be a need for tolls. The high price of gasoline has solved some of the transportation fund issues to the degree that we were able to suspend the 25-cent-per- gallon excise tax on gasoline (through Nov. 30). We did pass the highway user fee (in 2021, which imposes a new mile- age-based fee on tractor-trailer trucks using Connecticut highways.) That will be good for about $90 million to $100 million a year in new revenue starting in January. A lot of people say you don't need any more money for transportation because you're getting all the free money from President Biden's infra- structure bill. But that's just nonsense. I'm getting more money from the Feds, about $500 million more a year, but I have to match that up 20% to 30% and some of the funds are competitive grants that you have to match. So, I'm going to have to do an extra $100 million to $150 million over and above what we're already spending on transportation. We're trying to balance that out over the next five years and see what our needs are. Right now we have about $500 million in the transportation fund. I know we're in good shape for the next year. I don't think we are going to have to raise more money for the transportation fund. But we're going to invest in rail service and take probably 45 minutes off of a trip from Boston to New York. And we're going to take some of these 100-year-old bridges and repair them. Q. CT enjoyed a $4.3-billion budget surplus in fiscal 2021 and currently has a $3.3-billion rainy day fund, but still has long-term debt and pension issues. How will you ensure CT has fiscal stability moving into the next four years and beyond that? A. Don't let the politicians spend it all away, including the right and the left. Republicans want to use the rainy day fund to pay for transportation. And I said that's not what we said the rainy day fund is for. Having a full rainy day fund has allowed us to pay down over $5 billion in pension obligations. On the other side of the aisle, Democrats, they've got a lot of spending plans, all of which take money away from paying down pensions and other obligations we've got. But I think people have a pretty good idea that I'm the guy who is not going to raise your tax rates. who likes our rainy day fund, because our revenue streams are very volatile. Q. What do you see as the biggest growth opportuni- ties in Connecticut from an industry perspective? A. I think our economy is trans- forming in a big way. I mean our anchor tenants, which is advanced manufacturing, anchored by the defense industry, are strong and getting stronger. And by the way, they're pretty recession proof. New Haven was a little irrelevant, no offense, during the computer science, social media and tech revolution, but they're right at the heart of the future in terms of life sciences and biotech. I'm a big believer in what New London's doing outside of defense, in terms of developing the State Pier and growing wind energy. Stamford and Norwalk's growth is coming from fintech. Q. What about the XL center in Hartford? Construction is underway to add a sports-betting facility, but do you see a big invest- ment to modernize XL Center in your second term? A. Yeah, but not by myself. I want somebody coming in alongside me who knows what they're doing. I'm not just going to be the guy saying 'Here it is. Here's the taxpayer money.' We're talking to some potential partners that actually know how to manage an XL Center, a potential partner that has event venues in other parts of the country and can actually attract acts and events. I think the facility is really important, it brings the region to life. But I'm not going to invest in it alone, I need a partner. (Los Angeles-based Oak View Group recently took over as manager of the XL Center and could be a joint partner/investor in a refurbished XL Center, HBJ previously reported.) Q. How do you think the rollout is going for the recreational cannabis market? A. I think it's going slowly, but I'd rather go slowly and do it right then rush into something. We've got a lot of interest, starting with the cultivators. My deal was, if we're going to do it, we're going to do it right, in a tightly-regulated market. I don't want to surrender cannabis to the underground or black market. I think that's dangerous. Q. There's been some criticism that the state's cannabis program is not going far enough in terms of the social equity component. How do you respond to that criticism? Fifty percent of the licenses are reserved for those who come from underserved communities or commu- nities that were disproportionately impacted by the war on drugs. I gotta get the right balance. I mean, some guys are putting up all the money. You want to make sure you have a partner there that knows what they're doing. That requires some training and some controls. I think we'll get it right. Q. Do you anticipate the market will launch by the end of this year? A. Yeah I do, by late in the year if I have to guess. Gov. Ned Lamont visited HBJ's Allyn Street office in downtown Hartford earlier this month to defend his first fours years in office and make his pitch for a second term. HBJ PHOTO | GREG BORDONARO

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