Hartford Business Journal

12 HARTFORDBUSINESS.COM | FEBRUARY 5, 2024 The state Department of Labor recently announced that Connecticut added 22,700 jobs in 2023, down from 26,800 job gains in 2022. Connecticut's 3.8% unemployment rate is slightly higher than the U.S.' 3.7% jobless rate. Short-term gains, long-term mediocrity Fred Carstensen, director of the Connecticut Center for Economic Anal- ysis and a professor of finance and economics at the UConn School of Business, praised the preparation O'Keefe has put into his new role, and the respect the new commissioner has shown for data. But Carstensen questions just how much enthusiasm there should be for Connecticut's current economic position. While there have been positive trends in the short term, Connecticut has seen essentially no net gain in jobs in 35 years, he said. Gross state domestic product "just inched" past 2008 levels, Carstensen said. A string of blockbuster budget surpluses since 2017 – totaling nearly $11 billion, according to the Connecticut Mirror – allowed the state to pay down billions in unfunded pension liabilities, while also building up a more than $3.3 billion rainy day fund. However, the years of billion-dollar surpluses could be coming to an end. The current fiscal year, ending June 30, will close with a projected $178 million surplus, according to the most recent estimate by State Comptroller Sean Scanlon. O'Keefe cites the shrinking state surplus as the reason Connecticut cannot afford to add big-ticket economic development programs to its current lineup. "We are in a tight and tightening cycle, we are going to do steady as she goes," O'Keefe said. "The approach is going to be the same, we are going to invest alongside part- ners. We are not just going to throw money around." Carstensen said he strongly disagrees with the contention Connecticut can't afford to signifi- cantly ramp up economic develop- ment investments, including more support for local growth companies. "Dan has a whole career of making investments in compa- nies," Carstensen said. "Why isn't Connecticut devoting some of its billions of dollars investing in Connecticut? Connecticut seems to have been unimaginative. We have missed opportunities. We let Massa- chusetts grab life sciences. We let New York develop an enormous lead with nanotech and IT." Chris DiPentima, president and CEO of the Connecticut Business & Industry Association, said O'Keefe "has the DNA" to be a champion for business. DiPentima said he hopes to see the new commissioner advocate for smoother and speedier approval processes within other state agencies. O'Keefe said he will ultimately measure his success by how well he helps Connecticut capitalize on recent momentum. "My north star is 25 years from now, I want to look back and say we took advantage of a moment in our shared history," he said. "What if we look back and realize, after all the global financial crisis, that this is our moment? I just don't want to squander it." In his office, Daniel O'Keefe has photos of himself posing with President Joe Biden, former Presidents Barack Obama and Bill Clinton, as well as former U.S. Sen. and Secretary of State Hillary Clinton. HBJ PHOTO | STEVE LASCHEVER $2,200,000 Financing for the construction of a 1MW solar facility Middlesex County, MA $23,000,000 Financing for the construction of three solar facilities totaling 19MW Tioga County, NY $20,000,000 Financing for the construction of four solar facilities totaling 12MW CT and MA Solar financing made Simple. Xiaolei Hua F I R S T V I C E P R E S I D E N T C O M M E R C I A L B A N K I N G Tom Borek A S S I S TA N T V I C E P R E S I D E N T C O M M E R C I A L B A N K I N G bankatpeoples.com/businessteam Member FDIC Fred Carstensen Continued from page 11 Upward Trajectory

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