Hartford Business Journal

6 Hartford Business Journal • November 23, 2015 www.HartfordBusiness.com TOP STORY DOT study: $5.3B Hartford viaduct replacement worth the cost The economic benefits would outweigh the $5.3 billion price tag to re- place the I-84 viaduct in Hartford, according to an economic analysis re- leased last week. The report, which calls the replacement "expensive, but essential," comes as a decision about the future of the aging viaduct looms. Among the alternatives the state is facing for rebuilding the viaduct: Building a tunnel or building a lower section of highway. The study was conducted by the state Department of Transportation's Bureau of Policy & Planning along with consulting firm CDM Smith. It looks at the issue in two ways. Using a cost-benefit analysis, the report concluded that replacing the via- duct would result in more than $9 billion in benefits, like reduced travel time, fewer accidents and congestion, and lower vehicle operating costs. Using a second method, called economic impact assessment, the report concludes that replacement would yield $10.2 billion in business sales and output over three decades. GOVERNMENT, POLITICS & LAW Bronin names transition team Hartford mayor-elect Luke Bronin has announced the parameters of his tran- sition process and has established personnel, financial review and audit com- mittees, as well as five policy working groups. In addition, Bronin will hold two town hall meetings before his inauguration. Hartford residents and others can offer ideas and feedback to Mayor-Elect Bro- nin through the email account transition@lukebronin.com. This email account will also collect resumes and cover letters from those interested in working for the administration or serving on city boards or commissions. Bronin will chair the personnel committee, which will review applications for em- ployment in the administration and manage searches for individuals to fill appointed positions. The financial review and audit committee will be chaired by Bonnie Malley, chief financial officer of The Phoenix Cos. The five policy working groups, chaired by prominent members of the Hartford community, will share their expertise with Bronin, providing him with recommendations for action upon taking office. State Dems propose $350M in budget cuts State Democratic legislative leaders proposed $350 million in budget cuts last week. Their plan includes a cap on unitary combined reporting and other pro-business initiatives. One thing the plan does not do — in line with Gov. Dannel Malloy's proposed budget cuts — is offer an early retirement package. Highlights of the Democratic plan include restoring an additional $34 million for hospitals, maintaining property and car tax relief, eliminating public cam- paign financing in 2016, extending the apprenticeship tax credit, eliminating the propane tax on electric generation, and establishing an urban job creation property tax credit. Senate Republicans seek firm constitutional spending cap Senate Republicans want to enact an enforceable state spending cap in the up- coming legislative session in the wake of a ruling by Attorney General George Jepsen that Connecticut's current constitutional spending cap "has no legal effect" in its cur- rent form because lawmakers never adopted definitions to solidify the law in statute. Senate Republicans asked the Attorney General for the opinion to clarify the state spending cap. Republican leaders say the constitutional cap was proposed as part of the state's income-tax compromise in 1991. It was meant to assure people that the state would not engage in runaway spending after increasing taxes by over $1 billion with the passage of the income tax. ECONOMY & LABOR Report: CT ranks 44th in biz tax climate An annual ranking of state business tax burdens released by the conservative-lean- ing Tax Foundation ranked Connecticut in the bottom tier of business-friendly states. The State Business Tax Climate Index ranked Connecticut No. 44 out of 50 states. Connecticut's ranking was dragged down by its high property taxes, which ranked second worst in the nation behind New Jersey. Wyoming earned the top spot for the sixth year in a row. The index rewards states that do not levy one or more of the following taxes — sales, corporate, and individual income. Wyoming does not have the latter two taxes, the report said. The foundation ranked Connecticut 42nd two years ago and 44th last year. The Tax Foundation report is among the many that now rank state's business friendliness. State officials, including Department of Revenue Services Com- missioner Kevin Sullivan, have criticized the foundation's methodology in the past, calling it erroneous. Millennials don't want to work in economy driving fields When it comes to key industries driving the U.S. economy, most Millennials aren't interested. They would rather work in the arts, technology or education. According to new research released by The Hartford, key industries driving the U.S. economy, including retail, construction and manufacturing, are failing to attract a giant generation of leaders – the 80 million Millennials (ages 18-34) in the United States. The Hartford says 80 percent of Millennials consider themselves as leaders today and 69 percent want to be leaders in the next five years. Arts and entertainment topped the Millennials' work wish list, with 40 percent of Gen Y survey participants saying they want to work in this industry. Second on the list was education at 36 percent, and technology at 36 percent. Only 7 percent of young leaders in the survey said they are interested in working in construction, retail or manufacturing. Other industries that rated low on the Gen Y work wish list are insurance, which 4 percent of Millennials said they're drawn to, and wholesaling and utilities at 3 percent each. ENERGY & UTILITIES Eversource promising winter price reduction Eversource Energy said last week that electricity prices are going to be 24 percent lower than last winter. The company's standard service supply rate of 9.56 cents per kilowatt-hour will go into effect Jan. 1. The state's Public Utilities Regulatory Authority approved the new rates. Eversource said it will pass the lower rate directly to consumers for the price of generating power. There's a cautious note from Eversource about the rate reduction. It said in an announcement that there are still "significant constraints" on natural gas supplies that affect the price of electricity. "New England continues to experience higher energy prices compared to most other areas of the country," said Penni Conner, senior vice president at Eversource Energy. "Until new energy infrastructure is in place to relieve con- straints and to lessen the region's reliance on natural gas, we can expect to experience these price swings." In July, the standard service supply charge dropped to 8.23 cents per kilo- watt-hour from 12.63 cents last winter, due to the fact that demand for natural gas is not as high during summer and fall months as it is in the colder months, Eversource said. HEALTH CARE Meriden company's influenza vaccine approved in Mexico Meriden-based Protein Sciences Corp. said last week that its eggless flu vac- cine has received regulatory approval to be sold in Mexico to adults 18 and older. The vaccine will be sold by Laboratorios Liomont S.A. de C.V., a Mexican manu- facturer that is licensed to sell Flublok in Mexico. Flublok will become the first recombinant influenza vaccine to be available in Mexico, Protein Sciences said. The Mexican authorities approved a one-year shelf life for the vaccine and the use of the Flublok trade name. Hospitals, health care top $37.2M lobbying effort in 2014 Statistics released by the Office of State Ethics show in 2014 the most lobbying money was spent on hospitals and related healthcare issues. More than $37.2 million was spent lobbying legislators and state officials by a small army of lobbyists. The top five issues lobbied were: health and hospitals, government, business, human services and environment. In 2014, there were 1,090 registered client lobbyists. In addition, there were what the Office of State Ethics categorizes as 757 in-house communicators and 217 individual communicators. A lobbyist is defined as someone who expends or agrees to expend more than $2,000 in a calendar year for lobbying. BY THE NUMBERS $1.72B The projected budget deficit that awaits Connecticut in fiscal year 2018, according to the Office of Fiscal Analysis. 20% Uber's planned fare reduction for Connecticut customers. 44th Connecticut's spot in the Tax Foundation's latest annual ranking of state tax climates, flat from 2014. $2M The amount of a recent increase in state funding for electric- vehicle rebates for consumers and incentives for municipal governments. TOP 5 MOST READ on HartfordBusiness.com ■ DOT study: $5.3B Hartford viaduct replacement worth the cost ■ State Dems propose $350M in budget cuts ■ Hartford mayor-elect names transition team ■ Lembo pitches alternative pension-funding fix ■ Report: CT ranks 44th in biz tax climate 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 P H O T O | C O N T R I B U T E D It will cost $5.3 billion to replace the aging I-84 Hartford viaduct.

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