Hartford Business Journal

6 Hartford Business Journal • March 20, 2017 www.HartfordBusiness.com TOP STORY Analysis: GOP Obamacare replacement could cost CT $89M to $539M The House Republican proposal to replace the federal health law could cost the state $89 mil- lion to $539 million in 2020, the year many of the major provisions would take effect, according to an analysis released by Gov. Dannel P. Malloy's ad- ministration. The administration also estimated that 34,000 people who buy health plans through the state's health insurance exchange would not renew their coverage for 2018 if the proposal becomes law. "This proposed law would result in a tremen- dous cost shift to the states once fully implemented, which could cost upwards of $1 billion per year when fully implemented after 2020," said the analy- sis, prepared by the Office of Policy and Manage- ment, Malloy's budget office. The biggest cost, estimated at between $50 mil- lion and $450 million, would come from changing the way Medicaid is funded. In the current open- ended system, the federal government reimburses the state for a percentage of what it spends. Under the American Health Care Act, the GOP proposal, states would instead receive a set amount per Medicaid client from which to pay for coverage. That would take effect in 2020. The amount Connecticut would receive in per-person funding would be based on 2016 spending, adjusted based on a measure of medical inflation. The exact amounts are not clear yet. – By Arielle Levin Becker | CT Mirror ECONOMY & LABOR Blizzard closes CT for business Connecticut closed for business for one day last week as a blizzard dumped more than a foot of snow in parts of the state. The storm forced Gov. Dannel P. Malloy to ban travel on state highways for most of the day March 12. The snow also canceled most flights at Bradley Airport on Tuesday and forced many businesses to either close or allow their employees to work from home. CT's Walmart workers get bonuses amid push for higher wages Amid growing pressure to pay employees higher wages, retail giant Walmart last week announced that its Connecticut workers are sharing in more than $1 million in cash bonuses, like their colleagues across the country. Walmart announced it has awarded employees nationwide a share of $157 million in cash bonuses based on fourth-quarter store performances. A total of just over 5,800 employees in Connecticut — and more than 850,000 across the U.S. — received bonuses in their March 9 paychecks, along with an annual pay raise, the company said. The announcement comes as some Connecticut lawmakers push to increase the state's current $10.10 hourly minimum wage to $15 an hour by 2020. Recently, Connecticut Working Families launched a petition asking Gov. Dan- nel P. Malloy to support a bill that would make large corporations — including Walmart — pay a fee for employing low-wage workers. HOSPITALITY & TOURISM Al Gamble opening new Farmington restaurant A new Farmington restaurant dubbed Butchers & Bakers is opening April 7. The eatery, which will offer butchered meats and freshly baked bread, rolls and pastries, is the product of the Locals 8 Restaurant Group, the hold- ing company of b Restaurants that includes the Plan B Burger Bar, The Half Door and Tisane Euro-Asian Café. Connecticut native and entrepreneur Al Gamble is the owner and partner of b Restaurants (formerly known as Plan B Restaurants). Butchers & Bakers will be located at The Exchange at 270 Farmington Ave. It will feature a double coal-fired oven, two full bars, and one of central Con- necticut's largest outdoor patios. The menu also includes sharing plates, salad, pasta and seafood. Tribal casino slot revenues drop in Feb. Connecticut's two tribal casinos reported declines in slot revenue for the month of February. Foxwoods Resort Casino reported slot revenue of $34.3 million, a decline of 5.4 percent compared to $36.2 million in the year-ago period. Its handle for the month was $443.8 million, up six tenths of a percent from the $441.3 million wagered in the same month in 2016. Mohegan Sun reported a slot-revenue dip of 2.1 percent, to $47.5 million this past February compared to $48.5 million in the year-ago period. Its handle was $574.9 million, 2.2 percent less compared to $587.7 in the year-ago period. Foxwoods' contribution to the Connecticut Special Revenue Fund in February 2017 was $9 million; Mohegan contributed $11.8 million. BIOSCIENCE Alexion to cut 7% of workforce New Haven-based Alexion Pharmaceuticals Inc. is restructuring its work- force, which will impact about 7 percent of its employee base. The restructuring, which was first reported by Reuters, comes following the departure of its top executives and an internal probe into company sales practices. The rare disease drug maker confirmed the company-wide reorganization, but declined to provide further specifics. Alexion had 3,121 employees as of Dec. 31, according to the company's annual report. Corporate Communications Executive Director Kim Diamond said the restruc- turing is necessary to "help position the company for sustainable, long-term growth that will allow us to fulfill our mission. The fundamentals of our business remain strong and Alexion has tremendous growth potential." Alexion will continue to invest its resources in "key growth drivers" like Solir- is, its flagship rare blood-disorder drug. In December, Alexion replaced its CEO and another top executive about a month after it disclosed an internal probe into sales practices, which also led to a class-action lawsuit filed by shareholders against the company. ECONOMIC DEVELOPMENT & CONSTRUCTION Analysis: CT tax burden higher, biz climate less favorable than other states Connecticut ranks second in the nation for state and local tax burdens as a percent- age of state income, according to the latest Tax Foundation "Facts & Figures" report. Using 2014 data, the combined state and local individual income tax collec- tions per capita is $2,162, ranking Connecticut No. 2 in the country behind New York with $2,699 per capita. The Tax Foundation is a conservative think tank. Separately, Connecticut's individual income tax collection comes in at $2,279 per capita, higher than the national average of $967. The corporate income tax collection of $192 per capita also exceeds the national average of $144. Connecticut ranks first for state individual income tax collections per capita, 43rd on the state business climate index and 48th for federal aid as a percent- age of state general revenue. TRANSPORTATION CT ridesharing bill passes committee A bill that would create statewide regulation of ridesharing companies like Lyft and Uber passed the Insurance & Real Estate Committee last week, with no changes. Both Lyft and Uber said they were happy to see the bill make it out of commit- tee and into the state House of Representatives for consideration. If signed into law, the bill would require ridesharing networks to register an- nually starting Jan. 1, 2018, display credentials, provide receipts for services of- fered digitally, and have drivers submit to national and state background checks. The state would also regulate what it calls "dynamic" or on-demand pricing for services, requiring companies to give customers notice of unusually high prices. The state would also cap the highest pricing at no more than 2.5 times the usual price charged for such services at any other time, the bill states. BY THE NUMBERS 13.4% The $30.89 billion state pension fund's net return on investment for fiscal 2016, which ended Jan. 31. $2,162 The combined state and local individual income tax collections per capita in Connecticut, which is second highest in the nation, according to the Tax Foundation. 7% The percentage of workers Alexion Pharmaceuticals is cutting from its 3,121-person workforce, as part of a company restructuring. 22,000 The number of Connecticut homes that were in foreclosure at the peak of the foreclosure crisis in 2012, according to a new CoreLogic analysis. TOP 5 MOST READ on HartfordBusiness.com ■ Analysis: CT tax burden higher, biz climate less favorable than other states ■ Report: Alexion to cut 7% of workforce ■ CT shuts down for business as blizzard begins ■ Analysis: CT's foreclosure crisis among worst in U.S. ■ Al Gamble opening new restaurant in Farmington STAY CONNECTED For breaking and daily Greater Hartford business news go to www.HartfordBusiness.com. 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