Hartford Business Journal

6 Hartford Business Journal • September 26, 2016 www.HartfordBusiness.com TOP STORY CT pledges $220M to lock up Sikorsky The state's chief executive and defense giant Lockheed Martin reached a pact to keep building Sikorsky helicopters in Connecticut through 2032, while expanding Sikorskys' in-state payroll. The state has pledged $220 million in financial incentives to the parent. Gov. Dannel P. Malloy and Lockheed Martin announced their agreement last week. It requires approval from state lawmakers via special session. Lockheed Martin bought 85-year-old Sikorsky Aircraft, based in Stratford, from United Technologies Corp. in Farmington last November. Under the deal, Sikorsky will build nearly 200 CH-53K King Stallion heavy-lift helicopters in Connecticut for the U.S. Navy through at least 2032. Lockheed Martin said it had other sites in mind for CH-53K production. In exchange for $220 million in grants and tax exemptions, Malloy said, Lockheed Martin will: • Keep the Sikorsky headquarters in the state and maintain Connecticut as a primary production facility for its government-based helicopter business; • Retain and grow its full-time employment in Connecticut to more than 8,000 by the end of year 14; • Nearly double its spending of $350 million per year with local Connecti- cut suppliers throughout the state; • Increase its capital spending for machinery and equipment by 22 percent. EDUCATION CCSU names finalists for president's post Three finalists have been named in the nationwide, months-long search for a new president of Central Connecticut State University (CCSU) in New Britain. The finalists include Terry L. Allison, chancellor and professor of English at Indiana University in South Bend; Christopher M. Fiorentino, interim president at West Chester University in West Chester, Pa.; and Zulma R. Toro, executive vice chancellor and provost and professor of engineering at the University of Arkansas at Little Rock. CCSU is one of the 17 institutions of the Connecticut State Colleges and Uni- versities (CSCU). Selection of a top candidate is expected this fall with ratification anticipated to go before the full board of regents on Oct. 20 at CCSU. ECONOMY & LABOR CT's Aug. jobless rate dips to 5.6% Connecticut's unemployment picture brightened more a bit in August, with the addition of 300 jobs, but the downward revision of the previous month's count was more validation of this state's stubborn job recovery, the state's fresh labor survey shows. The preliminary estimate of Connecticut's total nonfarm employment from the business survey administered by the federal Bureau of Labor Statistics (BLS) show the state in August had seasonally adjusted employment of 1,690,800, according to the state Department of Labor. From Aug. 2015 through last month, the state has grown by approximately 18,600 positions (1.1 percent, or 1,550 jobs per month), the agency said. Connecticut's jobless rate fell for the second straight month, to 5.6 percent in August, but was above the 5.3 percent jobless rate posted the same month last year. July's statewide unemployment rate was 5.7 percent. U.S. unemployment stood at 4.9 percent in August. Hartford metro GDP rises 3 percent in 2015 Metro Hartford's real gross domestic product (GDP) increased by about 3 percent in 2015, one of 292 metropolitan areas across the country to do so, according to data released by the federal government. The Hartford metro area GDP rose to $86.1 billion in 2015 compared with $83.5 billion in 2014, the U.S. Department of Commerce's Bureau of Economic Analysis reports. That makes the Hartford region the 40th largest metro area in the country, statistics show. Collectively, real GDP for U. S. metropolitan areas increased 2.5 percent in 2015 after increasing 2.3 percent in 2014. HEALTH CARE Study: CT Obamacare premiums cheaper than employer-sponsored plans Average unsubsidized premiums for health insurance purchased on the Af- fordable Care Act exchange in Connecticut this year were 1 percent cheaper than average premiums for employer-sponsored insurance in the state, accord- ing to a study by the Urban Institute's Health Policy Center. That's less of a difference than seen nationally, where unsubsidized non- group premiums in the exchanges averaged 10 percent less than average em- ployer-sponsored insurance. The study, which notes recent news reports about rising marketplace costs including in Connecticut, adjusted for differences in actuarial value, including effects on healthcare utilization and age distribution to create an "apples-to-apples" comparison. The average employer-sponsored premium in the U.S. was $516 per month and the unsubsidized marketplace premium was $464. In Connecticut, the employer plans averaged $561 per month and the unsubsidized marketplace premium averaged $556. GOVERNMENT & POLITICS Morning Consult: Malloy remains 2nd least popular governor Democratic Gov. Dannel P. Malloy remains the country's second least popular governor, outranked only by Kansas Gov. Sam Brownback, a Republican, ac- cording to online polling and market research analyst Morning Consult. The three least popular governors — Brownback, Malloy, and New Jersey Republican Gov. Chris Christie — have disapproval ratings of 71 percent, 70 percent and 68 percent respectively, Morning Consult found. The analysts surveyed 71,900 registered voters in all 50 states from early May 2016 through early Sept. 2016. Survey respondents were asked whether they approved or disapproved of their governor's job performance. Malloy's disapproval ranking has not shifted substantially since the previous survey, analysts said. CBIA endorses majority GOP candidates The Connecticut Business & Industry Association last week endorsed 102 candidates for the state legislature, backing a majority of Republicans in the upcoming Nov. 8 election. Overall, the CBIA backed 18 GOP candidates for the state Senate compared to four Democrats. In House races, CBIA backed 61 Republicans vs. 19 Democrats. The endorsements come weeks after the CBIA disclosed a plan to spend more than $400,000 to endorse General Assembly candidates through direct mail and radio and online advertising, as first reported by the Connecticut Mirror. CBIA President and CEO Joe Brennan said voters must elect candidates who understand the urgency facing Connecticut about growing the economy and creating jobs. TRANSPORTATION Report: CT ranks 44th in U.S. on highway performance, value Connecticut ranks 44th in the nation in highway performance and cost-effec- tiveness, according to the 22nd Annual Highway Report published by the Reason Foundation. The Libertarian nonprofit think tank ranks every state's highway system for pave- ment condition, traffic congestion, bridge deficiencies, traffic fatalities and spending per mile. The state ranks ninth in fatality rate, 46th in deficient bridges, 24th in rural Inter- state pavement condition, 26th in urban Interstate pavement condition, and 31st in urbanized area congestion. On spending, Connecticut ranks 47th in total disbursements per mile and 50th in administrative disbursements per mile. Connecticut's state-controlled highway mileage makes it the 44th largest system. The report is based on spending and performance data that state highway agen - cies submit to the federal government. BY THE NUMBERS $86.1B The metro Hartford region's gross domestic product in 2015, up 3 percent from a year earlier, according to the U.S. Department of Commerce's Bureau of Economic Analysis. 300 The number of jobs Connecticut added in August, which helped lower the state's unemployment rate to 5.6 percent. 9.1% The percentage increase in Connecticut home sales during the month of August, as 3,753 single- family homes traded hands, according to the Connecticut Realtors. 39,000 The number of high-school-aged youth found to be disengaged or disconnected from their schools in Connecticut, either because of weak attendance, or academic or behavioral challenges. TOP 5 MOST READ on HartfordBusiness.com ■ CT CPA guilty in Ponzi scheme ■ CCSU names finalists for president's post ■ Lazowski tapped to chair national parking group ■ CT pledges $220M to lock up Sikorsky ■ Morning Consult: Malloy remains 2nd least popular governor 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 The Sikorsky CH-53 King Stallion lifts a 27,000 pound external load. P H O T O | C O N T R I B U T E D

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