Hartford Business Journal

6 Hartford Business Journal • August 10, 2015 www.HartfordBusiness.com TOP STORY MGM suing Malloy over tribal casino development MGM Resorts International, which is set to build a resort casino in Springfield, Mass., sued Con- necticut Gov. Dannel P. Malloy and two other high- ranking state officials last week over a new law that enables the state's two tribal nations to build a third casino to prevent visitors from going to MGM. The lawsuit against Malloy, Secretary of the State Denise Merrill and Department of Consumer Protec- tion Commissioner Jonathan Harris says the law giving the Mohegan Tribe and the Mashantucket Pe- quot Tribal Nation the exclusive rights to develop a casino on private land in northern Connecticut dis- criminates on the basis of race or ethnicity against other potential developers of that casino. The Mohegans and the Mashantucket Pequots op- erate two large casino resorts on their reservations in southeastern Connecticut — Mohegan Sun and Fox- woods Resort Casino — but the new law gives them the ability to jointly operate a third one. The measure that passed the Connecticut Gen- eral Assembly was written with the intent of pre- venting residents and visitors from driving across the border to the three Massachusetts casinos and one slot parlor. INSURANCE Fishman to step down as Travelers CEO Longtime Travelers Cos. CEO Jay S. Fishman said last week that he will resign by the end of this year due to poor health conditions. Fishman, who told staff in a letter that he was dealing with a "variant" of the neuromuscular condition ALS, will step down as CEO Dec. 1, but will remain executive chairman. His replacement will be Alan D. Schnitzer, 49, who is currently CEO of Travelers' business and international insurance, the compa- ny's largest business segment. Previously, Schnitzer headed the company's finan- cial, professional and international insurance segment. In addition to his business line responsibilities, Schnitzer oversees Travelers' field management, corporate com- munications and public policy organizations. Brian MacLean, who will remain president and chief operating officer and report to Schnitzer, will also assume direct responsibility for the business and international insurance segment in addition to all of his current responsibilities. Smith Brothers continues acquisition spree Acquisition happy Smith Brothers Insurance said it has acquired the assets of Windsor Locks insurance broker Carillo & Howland Inc. Carillo & Howland plan to maintain their offices and staff at their Windsor Locks and Somers locations, and will operate as an affiliate and branch of Glastonbury-based Smith Brothers. Smith Brothers, which has made nearly a half-dozen acquisitions in the last few years, is one of the largest independently-operated insurance and financial service organizations in New England, with offices in Connecticut and Massachusetts. HEALTH CARE New Life Star hangar at MidState Medical Center debuts A Life Star critical-care helicopter debuted last week at MidState Medical Center in Meriden. The chopper was formerly stationed at Hartford Hospital, but was repositioned at MidState to allow Life Star, a department of Hartford Hospital, to reach a wider patient geography and bring patients to the most appropriate clinical setting, often Hartford Hospital's level 1 trauma center, according to a news release. There's also a Life Star helicopter stationed at Backus Hospital in Norwich, which is part of Hartford Healthcare as well. Accident victims in Hartford are typically transported by ambulance to Har- ford Hospital's trauma center, not by Life Star, said Rebecca Stewart, Hartford Healthcare spokeswoman. So the idea is to station the chopper closer to ac- cident areas where it's needed to transport patients, she said. "It cuts down on response times," Stewart said. Life Star will have a temporary hangar at MidState until a permanent hangar is built, she said. It's expected to be ready in about a year. ECONOMY & LABOR State Labor Dept. eliminating 95 positions The state Department of Labor said last week it will cut 95 positions due to reduced federal funding. The layoffs, according to DOL and the Office of Policy and Management, will result in recurring savings of over $16 million. The loss of funds is due to a federal formula that reduces funding when over- all and state-by-state unemployment goes down. Connecticut's unemployment rate today is 5.7 percent, down from over 9 percent in 2010 and 2011. At least six other states, including nearby Rhode Island, have laid off staff as a result of drops in federal funding. The Connecticut DOL employs approximately 800 employees, with 700 paid for with federal funds. In total, 95 DOL positions will be eliminated as part of a cost saving and consolidation effort in response to the drop in federal funding. ENERGY & UTILITIES CL&P receives retroactive $18M rate increase The Berlin electric utility formerly known as Connecticut Light & Power has been awarded an $18 million annual increase in its current rate collections from customers, which the company will begin collecting in five months. CL&P — which on Feb. 2 was rebranded as Eversource Energy along with all the other Northeast Utilities subsidiaries — received a $130 million rate increase in December from the state Public Utilities Regulatory Authority. CL&P originally had asked for a $232 million increase, but PURA adjusted it downward by more than $100 million. After finalizing that decision, PURA and CL&P officials saw that the taxes on the customer base had been miscalculated, so regulators awarded the utility an extra $18 million per year to be collected from customer rates. GOVERNMENT, POLITICS & LAW CT budget deficit decreases 39 percent The projected state budget deficit for fiscal year 2015, which ended June 30, decreased from $115.7 million to $70.9 million as budget accruals trickled in throughout July, according to State Comptroller Kevin Lembo. The budget accruals will continue to come in through August, after which any deficit will be eliminated through a transfer from the state budget reserve fund at the end of 2015. The main reason for the deficit: Revenue is expected to fall $144.5 million be- low initial expectations, largely due to the state income tax that came in $110.5 million short of expectations. BY THE NUMBERS 60% Improvement in time-efficiency when Cigna Global Health Benefits' customers use the company's new claim-filing app. $70.9M The projected Connecticut state budget deficit for fiscal 2015, a 39 percent improvement over June's estimate. 8 Connecticut hospitals on the "Most Wired" list for maximizing IT to improve health outcomes, according to College of Healthcare Information Management Executives. $154K Settlement that Georgia firm Pediatric Services of America is paying Connecticut for failing to return Medicaid overpayments. 627,535 Connecticut residents covered by Medicare. TOP 5 MOST READ on HartfordBusiness.com ■ CL&P receives retroactive $18M rate increase ■ MGM suing Malloy over tribal casino development ■ Source: Hartford's Gold Bldg. has a buyer ■ Fishman to step down as Travelers CEO ■ UIL asks again for CT approval of $3B sale STAY CONNECTED For breaking and daily Greater Hartford business news go to www.HartfordBusiness.com. HBJ on Twitter: @HartfordBiz HBJ on Facebook: www.facebook.com/HartfordBiz HBJ on LinkedIn: www.linkedin.com/company/ the-Hartford-Business-Journal Daily e-newsletters: HBJ Today, CT Morning Blend www.HartfordBusiness.com/subscribe Weekly e-newsletters: CT Green Guide Weekly www.HartfordBusiness.com/subscribe WEEK IN REVIEW Jay S. Fishman The Mashantucket Pequots, which operate Foxwoods Casino (shown above), are vying to open a third CT casino. P H O T O | C O N T R I B U T E D

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