Hartford Business Journal

6 Hartford Business Journal • April 18, 2016 www.HartfordBusiness.com TOP STORY Malloy budget revisions would close $922M deficit After legislative committees failed to fully close a projected $922 million deficit for next year, Gov. Dannel P. Malloy last week proposed a mix of cuts and layoffs he said would close the gap without a tax increase. Compared to his original budget proposal in February, Malloy cut an addi- tion $347 million from the general fund appropriation. Many of the cuts were from social services and health care, as well as revenue sharing with municipalities. The $17.8 billion general fund proposal calls for a reduction in the state's municipal revenue sharing account of $101 million, or a cut of 41 percent. The Department of Social Services would see a $77 million cut, much of it in the Medicaid program. The proposal would also eliminate $15 million for tourism and arts fund- ing, which had already been reduced in Malloy's original proposal. ECONOMY & LABOR CT's economic outlook ranked 47th in nation Connecticut's economic outlook is fourth worst in the nation, according to a study released by the American Legislative Exchange Council. Based on the latest moves in state economic growth, Connecticut is ranked 47th in the nation, ahead of just New Jersey, Vermont and New York. The study, called Rich States, Poor States, ranks the 2016 economic outlook of states using 15 equally weighted policy variables, including various tax rates, regulatory burdens and labor policies. Connecticut is ranked 46th for gross domestic product, 42nd for domestic mi- gration, and 43rd for non-farm payroll. Its economic performance ranks 45th. Large employer min. wage fee bill revived in committee A bill levying a fee on large employers that pay workers less than $15 per hour was revived by the General Assembly's Labor and Public Employees Com- mittee last week on a narrow 7-6 vote. The legislation, Senate Bill 391, requires employers with over 500 employees in the state, and franchisors who, combined with their franchisees, collectively employ at least 500 employees in Connecticut, to pay a quarterly fee if they pay workers below $15 per hour. The bill had originally been sent to the Senate floor from the Human Services Committee, but the Senate then referred it to the labor committee. Typically that can be a means to killing legislation during the session. LAW Black Bear Saloon hit with $90K music suit The owners of Black Bear Saloon may wonder if it was worth playing the Fifth Harmony song, "Worth It," now that they are being sued by music-rights owners for playing copyrighted tunes without permission. Right holders to three songs filed a copyright infringement suit against BB Allyn Street LLC, owners of Black Bear Saloon at 187 Allyn St., Hartford, claiming the restau- rant knowingly allowed the public performance of copyrighted songs without payment. The right holders are all members of The American Society of Composers, Authors and Publishers (ASCAP). Eric Sherman, a partner at Black Bear owner BB Allyn Street LLC, declined to comment on the suit. The ASCAP members are seeking up to $90,000 on all three counts. Besides, "Worth It," the other songs named in the suit are "Party Rock Anthem" and, "Sexy and I Know It." Two of the complaints were based on Oct. 2015 perfor- mances, while the third was for a Dec. 2015 performance, the complaint alleges. HEALTH CARE AARP: 83% of CT voters support paid family leave A large majority of registered voters in Connecticut, across the ideological spec- trum, support paid family medical leave and a significant portion would back a can- didate for state elections who worked to implement such a plan, according to a new survey by AARP Research. One small business group questions the program's costs. AARP released the poll results to show support for Senate Bill 221, which would create a statewide system of paid family and medical leave for workers needing time off to care for themselves, an ill loved one or a new baby. The system that's being suggested would be fully funded by employees with no employer contribution. The advocacy group cited research by The Institute for Women's Policy Re- search that said the cost to Connecticut employees would be very low at just about one-half of 1 percent of someone's income. Andrew Markowski, National Federation of Independent Business Connecti- cut state director, said the study failed to address the startup and administrative costs of the state-run program. BANKING & FINANCE Millennials spend 18% of salaries on student loans New research shows college graduates aged 35 and under with student loans now are spending nearly one-fifth of their current salaries on student loan pay- ments and that 60 percent expect to be paying off student loans into their 40s. The research by Citizens Bank, which has locations throughout Connecticut, also found fewer than 50 percent have looked into refinancing options to lower their monthly payments, consolidate their private and federal loans or otherwise improve the terms of their loans, according to the bank's Millennial Graduates in Debt survey. Citizens cited research by The College Board, which said the cost of college has increased 13 percent for public four-year colleges, and 11 percent for pri- vate, nonprofit four-year colleges in the last five years. REAL ESTATE JCJ Architecture relocating to Colt building Hartford's JCJ Architecture will relocate to the Coltsville East Armory Build- ing — the historic former home to Colt Fire Arms. The firm will renovate and occupy an 18,000-square-foot loft in the 1887 structure, becoming one of the most significant tenants at the complex. JCJ's move is scheduled for later this month. The firm is relocating from 38 Prospect St., next to The Hartford Club. UConn bought that property and plans to move its business school there. NONPROFITS Study shows nonprofits with low reserves A recent study of New England nonprofit leadership by Third Sector New England, funded in part by the Hartford Foundation for Public Giving, shows Greater Hartford nonprofit execs are concerned about the financial viability of their organizations. The study found 73 percent of the nonprofits have six months or less cash re- serves. Seven percent reported having none at all. More than 1,200 executive directors and board members from New England re- sponded. Of the surveyed executives, 123 directors and 49 board members were from the Hartford Foundation for Public Giving's service area. For executive directors and board members alike, fundraising is by far the most challenging part of the job. CSCU president pitching unpaid furlough days The president of the Connecticut State Colleges and Universities (CSCU) system is encouraging his employees to volunteer for unpaid leaves of absences through reduced weekly work schedules or furlough days. CSCU president Mark E. Ojakian said the unpaid leaves are just one conceiv- able strategy for decreasing expenditures. He also wants eligible employees to consider sharing their tentative or firm retirement plans to assist with the budget planning process. BY THE NUMBERS 28,000 The approximate number of new Connecticut business formations filed with the Secretary of the State's office in 2015. 36% The percentage of Millennials recently surveyed by Citizens Bank who said they wouldn't have gone to college if they knew how much debt they would accumulate. $15M The amount of arts and tourism funding eliminated by Gov. Dannel P. Malloy in his latest budget proposal. 5.7% The state's jobless rate at the end of March, which was up from February's 5.5 percent unemployment rate. TOP 5 MOST READ on HartfordBusiness.com ■ Black Bear Saloon hit with $90K music suit ■ Malloy budget revisions would close $922M deficit ■ UConn women's NCAA celebration hits $55K goal ■ CT's economic outlook ranked 47th in nation ■ Officials: Raiding carbon funds will increase power costs 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 Gov. Dannel P. Malloy unveiled his latest budget pitch last week. A rendering of JCJ's new lobby in Hartford's Coltsville building. P H O T O | C O N T R I B U T E D R E N D E R I N G | C O N T R I B U T E D

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