Hartford Business Journal

6 Hartford Business Journal • April 24, 2017 www.HartfordBusiness.com TOP STORY Bronin: CT must do more than avert insolvency in Hartford Hartford Mayor Luke Bronin's new $613 million city budget needs at least $49 million in extra state and private-sector aid to stave off ugly choices that could include bankruptcy. And that scenario, the mayor added last week, still wouldn't allow Hart- ford to lower its mammoth-sized 74-mill commercial property tax rate — something Bronin said is a necessity to bring growth and long-term fiscal stability to the Capital City. The mayor's plan for the 2017-18 fiscal year also hinges on another $4 million in worker concessions, deep cuts to community programs and transit services, and continued reduction of the workforce through attrition. But Bronin expressed concerns that state officials don't fully appreciate the un- precedented fiscal threats — of which insolvency is just one — facing Hartford. "It's something we've been shouting from the rooftops all year long: The city of Hartford cannot deal with a $49 million gap on its own," Bronin said. "We have done dramatic things to reduce spending and to change our long- term budgets. But at the end of the day, a city that has a mill rate that's two or three times what surrounding communities have, and a city that's already running a bare bones service budget, … cannot close that gap without doing enormous damage to the city's ability to be a successful city in the long run." – Keith Phaneuf | CT Mirror HEALTH CARE Hartford HealthCare, UnitedHealthcare agree to new deal Hartford HealthCare and UnitedHealthcare agreed to a new two-year network relationship deal ahead of an April 15th deadline, avoiding possible higher out- of-pocket costs for insured customers using Hartford HealthCare facilities. The agreement means there is no disruption in coverage for patients with UnitedHealthcare plans, including Oxford Health Plans, Hartford HealthCare said on its website. Had a new deal not been reached by April 15, Hartford Health- Care's hospitals and ancillary facilities, physicians and medical professionals would have been considered out of UnitedHealthcare's provider network. Both sides had been haggling over rates and other issues and went through a similar showdown two years ago before a deal was reached. ECONOMY & LABOR UTC pledges half its corporate leaders will be women by 2030 Farmington-based United Technologies Corp. said it is committing to gender parity in its corporate leadership by 2030, with the goal of having half of its top roles filled by women. As part of its pledge, UTC is joining the Paradigm for Parity coalition, whose members aim to have 30 percent of corporate leadership positions filled by women, and adopting a five-step plan geared towards achieving gender parity across the organization. UTC said it already has 27 percent of its corporate leadership positions filled by women and is targeting 50 percent by 2030. UTC Chairman and CEO Greg Hayes said the advancement of women in lead- ership positions will help the company attract, develop and retain a diverse workforce that fuels growth and innovation. Analysis: CT firearm industry shrinks, but still powerful The firearm and ammunition industry's economic impact in Connecticut has slowed in recent years, despite the sector experiencing growth throughout the rest of the country, according to an analysis from the National Shooting Sports Foundation. The industry's total economic output in Connecticut was $1.2 billion in 2016, down from $1.6 billion in 2014, the foundation reported. Nonetheless, the state's firearm industry continues to place ninth in the nation for economic output, according to the latest data. The analysis computes economic output based on the number of jobs within the industry, induced by the industry, or with related suppliers and ancillary employers, as well as average wages earned. The state's industry-related jobs decreased to 4,916 from 5,607 in 2014, with av- erage wages and benefits totaling $75,708 in 2016, still well above the national av- erage of $50,423. That average salary has dropped, however, from $81,127 in 2014. Nationwide, the industry's overall economic impact increased to $51.3 billion in 2016 from $42.9 billion in 2014. HOSPITALITY & TOURISM XL Center will host '19 NCAA men's basketball tourney games Hartford's XL Center has been chosen to host first and second round games of the 2019 NCAA men's basketball tournament, the NCAA announced. This represents the first time Hartford will play host to an NCAA men's tour- ney basketball game since 1998. The games are scheduled for March 21 and 23, 2019, according to the NCAA website. Gov. Dannel P. Malloy used the announcement to reinforce his call to spend $250 million on renovations to the XL Center in order to ensure its functioning as a "state of the art, modernized facility well into the future." The legislature is considering whether to authorize the funding. NY digital ad pro buys majority stake in New Britain Bees Anthony Iacovone, founder and CEO of the New York mobile advertising technol- ogy company AdTheorent, has acquired a majority interest in the New Britain Bees. The Bees, part of the Atlantic League of Professional Baseball, is owned by league founder Frank Boulton and partner Michael Pfaff. Both Boulton and Pfaff will remain with the club in ownership and management capacities, said Atlantic League President Rick White. Iacovone in 2011 co-founded and launched AdTheorent, which aims to stim- ulate consumer engagement across digital advertising platforms. In his new role with the Bees, Iacovone said he plans to foster the use of new technology and undertake technology development that can deliver next generation audience engagement experiences to sports. ECONOMIC DEVELOPMENT UConn peddles W. Hfd. campus online UConn is using the internet to stir up potential buyers for its obsolete West Hartford campus amid the town's cloudy purchase commitment. The flagship state university announced last week a new website devoted specifically to marketing the 58-acre campus, near the heart of West Hartford. UConn is leaving the suburban site once its campus officially relocates this September to newly built space in the former Hartford Times Building on Pros- pect Street downtown. The campus property — one of the last large contiguous land tracts in the town — is still under contract to the town of West Hartford, UConn said. However, faced with budget uncertainties stemming from the state's dire fis- cal condition, uncertainty now surrounds the town's right-of-first-refusal offer of $5 million for the property. The town had faced a late March deadline to close the deal. GOVERNMENT Finance panel eyes ending sales tax exemption for nonprofits The legislature's tax-writing panel is considering a measure that would re- peal the sales tax exemption on goods and services sold to nonprofits — a provision that saves these entities more than $200 million per year. Democratic leaders of the Finance, Revenue and Bonding Committee said this proposal, which will go to a public hearing, is part of an ongoing exploration of possible widening of Connecticut's sales tax base. But the top House Republican on the committee and the state's largest non- profit association cautioned it could harm the nonprofit community at a time when Connecticut relies on it the most. The General Assembly and Gov. Dannel P. Malloy are trying to close major projected deficits in the next two-year state budget — a problem driven in part by surging retirement benefit costs tied to more than seven decades of inadequate funding. – Keith Phaneuf | CT Mirror BY THE NUMBERS $1.2B The firearm and ammunition industry's 2016 economic impact, or output, in Connecticut, which is down from $1.6 billion in 2014, according to the National Shooting Sports Foundation. $18.3B The estimated amount of revenues the state could raise by 2040 if lawmakers permitted tolls on Connecticut highways, toll proponents say. 25% The increase in the number of overseas tourism visitors to New England since 2012, according to Discover New England. $39.6M The total extra state funding Mayor Luke Bronin says the city needs to avert insolvency. TOP 5 MOST READ on HartfordBusiness.com ■ Bronin: CT must do more than avert insolvency in Hartford ■ UTC pledges half its corporate leaders will be women by 2030 ■ Lawmakers consider open-bid process for third casino ■ Farmington Bank unveils accounts aimed at 'unbanked' ■ UConn startups attract record $40M in 2016 funding 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 Mayor Luke Bronin discuses the city's financial woes at city hall. P H O T O | C O N T R I B U T E D

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