Hartford Business Journal

6 Hartford Business Journal • May 30, 2016 www.HartfordBusiness.com TOP STORY St. Francis settles pension suit for $107M St. Francis Hospital and Medical Center has agreed to pay $107 million to settle a lawsuit alleging it underfunded its pension plan. The July 2015 class-action suit alleged that St. Francis underfunded its pension plan by nearly $140 million, or approximately 34 percent, as of 2013. The Catholic health system has contended that its pension plan is a "church plan," making it exempt from certain federal pension rules under the Employee Retirement Income Security Act, or ERISA. Plaintiffs argued that the plan was not a church plan because it wasn't es- tablished or maintained by a church. But St. Francis spokeswoman Fiona Phelan said that the hospital continues to consider the plan a church plan. She said St. Francis "remains committed to ensuring our retirees and their beneficiaries receive their benefits under all of our retirement plans. We have complied with the law, and all applicable requirements related to our retirement plans." The settlement includes a $17 million immediate payment, followed by annual contributions of $10 million over the next nine years, according to court documents. MANUFACTURING State launches manufacturing jobs challenge The state's public community colleges and several manufacturers includ- ing Sikorsky, Pratt & Whitney and Electric Boat have joined together to launch a "300 Jobs, 300 Days" campaign to enroll and graduate a minimum of 300 students beginning in the upcoming fall 2016 semester. The goal is to pair graduates from the Connecticut State Colleges and Uni- versities' Advanced Manufacturing Technology Centers (AMTC) with available in-state jobs identified by the manufacturers. The AMTC offers a one-month- certificate program that trains students for careers in aerospace, defense, bio- technology and other manufacturing careers. Participating community colleges include Asnuntuck in Enfield, Housatonic in Bridgeport, Naugatuck Valley in Waterbury, Quinebaug Valley in Danielson, Man- chester Community College in Manchester, Middlesex in Middletown, and Three Rivers in Norwich. The certificate program is offered both part-time or full-time and costs between $5,000 and $7,000. Many of the programs have internships or apprenticeships available and credits can apply to an associate degree. AIRPORT Bradley says TSA wait times below national average The Connecticut Airport Authority is claiming wait times at Bradley Interna- tional Airport are averaging less than 30 minutes during peak hours. According to a CNNMoney report, earlier this month, Chicago's two airports suggested to passengers that they should arrive at least three hours before a flight this summer in order to clear the TSA security check points. There are concerns those kinds of lines could become more common at airports across the United States. Bradley officials said they have dedicated a team of employees to monitor TSA screening trends at the Windsor Locks airport with the goal of keeping waits to a minimum. Kevin Dillon, executive director of the Connecticut Airport Authority, said over the last month, the wait time from arrival in the line until the beginning of the screening process has been on average less than half an hour during peak travel periods. ECONOMY & LABOR Optimism and pessimism about state's economy Connecticut residents are embroiled in a fiscal dichotomy. On the one hand, they feel good about their personal finances but give low marks to the state government's budget. In the latest InformCT Consumer Confidence Survey, for the first quarter of 2016, the percentage of respondents who believe the Connecticut economy is improving has dropped 10 points from the first quarter of 2015 to the first quarter this year, from just over 34 percent of state residents to just under 24 percent. A year ago, when asked about current business conditions in Connecticut versus six months prior, 29 percent said conditions were better and only 22 percent said they were worse. That breakdown has now flipped, with 22 percent stating "better" and 29 percent saying "worse." A majority of respondents (56 percent) said they intend to make some (41 percent) or significant (15 percent) cuts to their personal budget, as a result of budget cuts at the state level. CT second highest for property taxes Property taxes in Connecticut are second highest only to New York state, ac- cording to a new data survey released today. According to the recent data from LERETA, a national real estate tax and flood service provider, Connecticut's average property tax bill is $6,794. New York, due to its concentration of high-priced Manhattan commercial real estate, has the highest average property tax in the nation at $11,482. California was third with an average of $5,156 and Minnesota was fourth highest at $4,022. According to the data, Alabama had the lowest average at $619 followed by Arkansas at $791. ENVIRONMENT Anti-pollution regs work, public investment lags Anti-pollution regulations in Connecticut are working, according to a state watchdog agency, but conservation efforts that rely solely on public in- vestment lag. And as usual, most of the 900 pollution violations cited in 2015 were at facili- ties that store or distribute gasoline and oil, typically gas stations and convenience stores, the Council on Environmental Quality's annual report states. The agency, which operates independently of the state Department of Energy and Environmental Protection, says that global climate change, rising sea levels, and invasive species from other countries, are also affecting conservation of open space and woodland wildlife. – Journal Inquirer LEGAL Wines being sold with misleading ratings An investigation of 30 liquor stores throughout Connecticut found that nearly 90 percent are misrepresenting the ratings of the wines they sell. Madison-based Truth in Advertising (TINA.org) said most liquor stores selling wine, including independent neighborhood stores and major chains, displayed wine ratings for bottles or vintages other than those for sale. The organization said it found numerous instances where wines were rated lower than what the sign posted near it indicated and many that were not rated at all. In letters to each of the 26 stores where a misrepresentation was found, TINA.org said that the marketing was deceptive and "lures consumers into buy- ing a wine that is different from what they believe they are purchasing." The letters urged owners to correct the problem immediately. HEALTH CARE AG poised to approve $105M ECHN acquisition Attorney General George Jepsen has issued a draft decision greenlighting a California company's acquisition of Eastern Connecticut Health Network. The buyer, Prospect Medical Holdings, is a for-profit company that oper- ates 13 acute care and behavioral hospitals in three states, including two in Rhode Island. The ECHN system includes Manchester Memorial Hospital, Rockville General Hospital and related entities. Jepsen's purview in reviewing the deal include ensuring procedural and fi- nancial fairness and protecting and preserving ECHN's charitable gifts, which as of March totaled more than $23 million. The AG concluded in his proposed decision that ECHN's board of directors exercised due diligence during the process that led to the sale, that the health system is receiving fair market value, and that its charitable assets would be adequately protected. BY THE NUMBERS 2,702 The number of single-family homes sold in Connecticut in April, up 17.8 percent from a year earlier, according to Connecticut Realtors. $6,794 The average property tax bill for Connecticut property owners, giving the state the second highest average property taxes in the nation, according to LERETA, a national real estate tax and flood service provider. 42% The percentage of Connecticut residents who are concerned that either their job, or their spouse's job, is in jeopardy, according to the InformCT Consumer Confidence Survey. 43% The percentage of InformCT Consumer Confidence Survey respondents who say they are likely to move out of Connecticut in the next five years. TOP 5 MOST READ on HartfordBusiness.com ■ Enfield restaurateur nets 1 yr for fraud ■ Wine being sold with misleading ratings ■ Former CEO questions layoffs at bank meeting ■ Cigna, Anthem clash over pending merger ■ CT 2nd highest for property tax 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 St. Francis Hospital and Medical Center's Hartford patient tower (shown above). P H O T O | C O N T R I B U T E D

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