Hartford Business Journal

6 Hartford Business Journal • June 20, 2016 www.HartfordBusiness.com TOP STORY Judicial branch shutters courthouses The judicial branch announced last week that it's closing three juvenile courts and one judicial district courthouse by December in response to a $77 million reduction in its budget for 2016-2017. Chief Court Administrator Patrick L. Carroll III last week announced what he termed the first round of courthouse closings that will occur. The courts that will be closed are: juvenile matters at Danbury, juvenile matters at Torrington, juvenile matters at Stamford, and the Judicial District Courthouse in Willimantic. Carroll said in a statement, "I want to stress that the closure of court- houses is not driven by savings generated by closing the facilities. Rather, these closings are required because of the loss of staff, through attrition, a strict hiring freeze and layoffs that have already been announced." BANKING & FINANCE Landmark Partners sells majority stake to London firm Simsbury private equity and real estate company Landmark Partners said it has agreed to sell a majority stake in itself to a London asset manager for $240 million. OM Asset Management (OMAM) is paying cash to acquire a 60 percent inter- est in Landmark, whose management team will retain a 40 percent stake. There is potential for OMAM to make an additional payment to Landmark based on the growth of the business through 2018, the company said in a statement. The deal is expected to close by Aug. 31. Francisco L. Borges, chairman and CEO at Landmark Partners, said OMAM provides strategic and operational benefits to Landmark, including global dis- tribution capability and new product development. OMAM is a global, multi- boutique asset management company with $218 billion of assets under man- agement as of March 31, 2016. ADVERTISING, MEDIA & MARKETING HBJ wins four national biz-pub awards The Hartford Business Journal's editorial staff has won four Editorial Excel- lence awards from the Alliance of Area Business Publishers, an industry asso- ciation that represents 57 business publications from around the country. HBJ received two first-place gold awards for medium-sized tabloids: Best explanatory journalism for a year-long series on Connecticut's aging workforce called "CT's Silver Tsunami," written and edited by Gregory Seay, Matt Pilon, Brad Kane, John Stearns and Greg Bordonaro; Best scoop for "Key CT biz lead- ers on hook for Back9 bets," written by Greg Bordonaro. HBJ also received two second-place silver awards for medium-sized tab- loids: Best recurring feature for our biweekly "Executive Profiles" written by John Stearns; Best editorial for "Transatlantic flight subsidy misguided," written by Greg Bordonaro. EDUCATION CT is 5th highest in per-pupil spending Connecticut has the fifth highest per-pupil spending in the country when it comes to K-12 education, according to a report released by the U.S. Census Bureau. The state spent $17,745 per student in grades kindergarten through high school during fiscal 2014. There were over 511,000 students enrolled in Connecticut schools in 2014, down from over 517,000 in 2013, Census Bureau data shows. Per-pupil spending for the nation was $11,009 in fiscal 2014, a 2.7 percent increase from 2013. Among the 50 states and the District of Columbia, New York spent the highest per pupil, at $20,610, while Utah came in the lowest at $6,500. ECONOMY & LABOR CT loses 1,400 jobs in May The state lost 1,400 jobs in May, while the unemployment rate remained stable, according to a report released by the Connecticut Department of Labor (DOL). The DOL said this is the first estimated monthly job loss in the state in 2016. The seasonally-adjusted unemployment rate for Connecticut in May was esti- mated at 5.7 percent, unchanged for the third consecutive month. In May 2015, the unemployment rate was 5.6 percent. The DOL also revised downward April's jobs growth from 3,500 new jobs to 3,200 new jobs. Over the past year, Connecticut added 13,900 new jobs. "Connecticut's decline of 1,400 jobs in May follows a very slow month for job growth across the country," said Andy Condon, director of the Office of Research. "Our labor force saw small but equal percentage declines in both residents employed and unemployed, resulting in an unchanged unemployment rate [from April]." CT's GDP growth lags behind U.S. Connecticut's 2015 gross domestic product increase lagged well behind the national and regional averages, according to stats released by the Bureau of Economic Analysis. Connecticut's GDP increased 0.6 percent in 2015. In 2014, the state's GDP had grown at a rate of 1.2 percent. The national GDP increase was 2.4 percent, while New England as a region saw growth of 1.3 percent. Vermont had the lowest growth at 0.2 percent fol- lowed by Maine at 0.4 percent. Connecticut was buoyed by a fourth quarter that experienced growth of 1.7 percent, equal to the national growth rate and 23rd best in the country. New England has highest U.S. employee costs New England has the highest employer costs for employee compensation nationally, according to new statistics released by the New England Information Office of the U.S. Bureau of Labor Statistics. Total compensation costs among private-industry employers in the six New England states averaged $39.26 per hour in March 2016, highest across all Census divisions. Wages and salaries accounted for 70.8 percent of total com- pensation costs (or $27.81 per hour), while benefits accounted for 29.2 percent of costs (or $11.45 per hour). In the United States, compensation costs among private-industry employers averaged $32.06 per hour worked in March 2016. ENERGY & UTILITIES STR Holdings gets $8.3M IRS refund Enfield solar-encapsulant maker STR Holdings said it has received a much needed financial boost in the form of an $8.3 million tax refund from the IRS. The refund was the result of a previously disclosed audit with respect to the company's 2014 federal net operating loss carryback. STR's Chairman, President and CEO Robert S. Yorgensen said the tax refund is material to the company, bringing its cash balance to $15 million as of June 13. "Having these funds available," said Yorgensen, "is an important develop- ment for the company and significantly bolsters our liquidity." In October, after its stock was suspended from the New York Stock Exchange, STR shifted its stock to the highest tier of the OTC Markets Group. It also sold some receivables to Eurofactor Hispania S.A.U. GOVERNMENT, POLITICS & LAW Governor signs payroll card bill A new law has been signed that will allow employers to pay their employees with debit cards instead of paychecks or direct deposit. The legislation, signed into law by Gov. Dannel P. Malloy, sets guidelines for how employers can use the cards. Employees, though, can't be forced to accept them. Employees have to expressly authorize, in writing or electronically, that he or she wishes to be paid with a card. INSURANCE NY clears Phoenix-Nassau combo Hartford insurer The Phoenix Cos. Inc. and Nassau Reinsurance Group Hold- ings say they have cleared the last regulatory hurdle to closing their $217.2 million merger June 20. The New York state Department of Insurance approved the pair's merger last week, paving way for the merger to close — pending satisfaction of all remain- ing closing matters — this week. New York's greenlight follows the previously rendered merger OK from Con- necticut's insurance department. BY THE NUMBERS $16.7B The total defense spending recently approved by Congress for Connecticut aerospace and submarine producers in fiscal 2017. 1.7 percent The percentage of Connecticut homes with a mortgage that were in foreclosure at the end of April, according to CoreLogic. $17,745 The amount of money Connecticut spent per pupil in grades K-12 in 2014, according to the U.S. Census Bureau. 15 The approximate number of hours U.S. Sen. Chris Murphy filibustered on the Senate floor, to urge a vote on tougher gun controls following the Orlando massacre that killed 49 people. TOP 5 MOST READ on HartfordBusiness.com ■ Landmark partners sell majority stake to London firm ■ Governor signs payroll card bill ■ Judicial branch shutters courthouses ■ Tips for keeping your summer workplace wardrobe cool and compliant ■ Dunkin' Donuts rolls out on the go ordering 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 Chief Court Administrator Patrick L. Carroll III says more judicial cuts are looming. P H O T O | C O N T R I B U T E D

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