Hartford Business Journal

6 Hartford Business Journal • February 15, 2016 www.HartfordBusiness.com TOP STORY Nine biz groups call on Malloy to use their expertise for gov't reforms Nine Connecticut business groups are urging Gov. Dannel P. Malloy to use their expertise to improve the state's economy and government services. In a letter sent last week to the governor, the business groups said re- placing the historical and often rigid approaches to economic growth and the delivery of public services with innovative strategies and processes will save money, increase meaningful employment opportunities and enhance residents' quality of life. The group includes the Central Connecticut Chambers of Commerce, MetroHartford Alliance, Middlesex Chamber and Connecticut Business and Industry Association, which is headed by Joe Brennan. They said their member's collective expertise can be used to reform Med- icaid funding and secure changes in work rules, pension calculations, and other key components of state-employee labor agreements. The group also supports the governor's call for a transportation fund lock- box amendment to the state constitution and a meaningful cap on spend- ing. They also want a biannual planning meeting on Connecticut's economic and employment strategy and objectives modeled after similar programs in Michigan and Minnesota. The business coalition says the state must ultimately achieve four key objectives to sustain Connecticut's long-term growth: retain and recruit young talent across all sectors; strengthen the livability and competitive- ness of urban centers; ensure a best-in-class transportation system through operational improvements and infrastructure investments; and re-establish historical 4 percent annual increases in per-capita income. EDUCATION Herbst says UConn's mission hurt by budget cuts UConn President Susan Herbst traveled to the legislative office building last week to plead for more funding for her institution. Budget cuts proposed by Gov. Dannel P. Malloy, she said, would threaten its mission. Herbst told legislators Malloy's proposed spending plan is nearly the same as it was in the 2009 fiscal year. "In that time, costs have risen by 36 percent," she said. The 2016 fiscal year appropriation for the university is $243.1 million. The overall university budget is $1.3 billion with about half of its revenue coming from student tuition and fees. Malloy has proposed a combined $31.2 million funding cut for UConn and its regional campuses and the University of Connecticut Health Center in Farmington. Herbst said the cuts "wouldn't make or break" UConn, but years of rescis- sions and fund sweeps are digging deeply into the school's fiscal health and threatening its ability to carry out its mission most effectively. ECONOMY & LABOR CT population shows slight decline For the second straight year, Connecticut saw a drop in its population in 2015, according to U.S. Census bureau estimates. The state lost a net 5,791 residents from July 2014 to July 2015, for a population of 3.59 million. The number of residents moving out of state over that period is estimated at 28,000. That includes residents moving to states like New York, Massachusetts and Florida. Immigration from other countries helped keep Connecticut's popu- lation decline somewhat in check. Overall, the state's population has grown since April 2010 by 0.5 percent, from 3.57 million to 3.59 million. Moving company Atlas Van Lines said last month the outward migration of Connecticut residents continued for the fifth straight year in 2015, meaning more than 55 percent of moves were going out of the state. The study said Con- necticut was one of 18 outbound states. Bankruptcy filings down in CT, nationally Bankruptcy filings in Connecticut federal courts dropped in 2015, following similar trends nationally. Connecticut courts saw 6,294 bankruptcy filings in 2015, down from 6,968 filings in 2014. New Haven County saw the most bankruptcy filings with 1,858. Hartford County (1,468 filings) squeaked by Fairfield County (1,457 filings). There were 844,495 bankruptcy cases filed across the country in 2015, down from the 936,795 cases filed in calendar year 2014 — a 9.9 percent decline in filings. That's the lowest number of bankruptcy filings for any 12-month period since 2007, and the fifth consecutive calendar year that filings have fallen, according to a statement from the administrative office of the U.S. courts. GOVERNMENT, POLITICS & LAW Malloy eyes new law to speed DMV services Gov. Dannel P. Malloy is proposing legislation that would speed up service at the state Department of Motor Vehicles but it's already running into opposition. The most significant aspect of the proposal would waive the ban on register- ing vehicles that have delinquent property taxes and parking tickets. A statement from Malloy's office said this will address a substantial portion of the wait times by customers, many of which are attributable to multiple visits by those who are denied a registration until local taxes or parking tickets are paid. Cities and towns have supported the ban in the past because it is an effec- tive means of collecting revenue due to them. Kevin Maloney, spokesman for the CT Conference of Municipalities said, "CCM finds the proposal to be very problematic. It would diminish both property tax revenues and ticket revenues for towns — revenues that the town's depend on to pay for essential services." The governor also wants to allow private organizations like the American Au- tomobile Association (AAA) to provide vehicle-registration services. AAA already handles Connecticut drivers' license renewals. Malloy's legislation would also postpone the issuance of vessel titles until Dec. 31, 2018. It's believed doing so would reduce visits to DMV and free up staff to address other backlogs. Duff revives Tesla direct-to-consumer sales bill As expected, electric-vehicle manufacturer Tesla is getting another shot to convince the legislature to allow it to bypass dealerships and sell cars directly to consumers. Senate Majority Leader Bob Duff (D-Norwalk) introduced the bill last week. A similar bill passed the House last year, following a compromise with auto dealers that Tesla be limited to three sales locations, but the legislation died in the Senate. Tesla said in November that it intended to try again. Duff's bill, An Act Concerning the Licensing of New and Used Car Dealers, also calls for a limit of three retail locations. The bill was referred to the Joint Committee on Transportation on Feb. 3. HEALTH CARE Cigna-Novartis ink value-based contract for heart drug Bloomfield insurer Cigna has entered into an outcomes-based contract with the pharmaceutical company Novartis for the drug Entresto, which was approved by the U.S. Food and Drug Administration to treat heart failure with reduced ejection fraction. Reduced ejection fraction, also referred to as systolic heart failure, is when the heart muscle does not contract effectively and less oxygen-rich blood is pumped out to the body, according to the American Heart Association website. The pay-for-performance agreement with Novartis ties the financial terms to how well the drug improves the relative health of Cigna's customers, the insurer said. The primary metric is reduction in the proportion of customers with heart- failure hospitalizations. The agreement is for Cigna's commercial business. HOSPITALITY & TOURISM Bear's Smokehouse BBQ coming to Dunkin' Donuts Park Bear's Smokehouse Barbecue is coming to Dunkin' Donuts Park. The Hartford BBQ restaurant will be the sponsor of the left field barbecue deck and have many of its authentic Kansas City style BBQ available to Yard Goats fans. Bear's Smokehouse Barbecue was rated excellent by the New York Times and voted Best Ribs, Best New Restaurant and Best BBQ by CTNOW, Hartford Magazine and Connecticut Magazine. It was also named the Best Casual Res- taurant by the Connecticut Restaurant Association. There are currently two Bear's Smokehouse Barbecue locations, 89 Arch St. in Hartford and 2152 Poquonock Ave. in Windsor, and a third set to open in South Windsor. BY THE NUMBERS 116,019 The number of Connecticut residents that signed up for private insurance through the state's health insurance exchange, Access Health CT, during this year's open enrollment period. 3,665 The number of foreclosures that were completed in Connecticut in 2015, down 25.8 percent from a year earlier, according to property- data vendor CoreLogic. $17,211 The average cost to throw a wedding in Connecticut, which is 41 percent higher than the U.S. average and the highest average cost in the nation. 89.5% The percent of Connecticut adults who have earned at least a high school diploma, according to U.S. Census Bureau estimates. TOP 5 MOST READ on HartfordBusiness.com ■ Former Sikorsky president dies in crash ■ Nine biz groups call on Malloy to use their expertise ■ Malloy eyes new law to speed DMV service ■ CT most expensive state to say, 'I do' ■ Why doesn't 4.9% unemployment feel great? 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, CT Health Care Weekly www.HartfordBusiness.com/subscribe WEEK IN REVIEW P H O T O | H B J F I L E Joe Brennan is CEO of the Connecticut Business and Industry Association.

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