Hartford Business Journal

6 Hartford Business Journal • July 24, 2017 www.HartfordBusiness.com TOP STORY State employees ratify concessions deal by wide margin Unionized state employees voted overwhelmingly last week to ratify the concession deal negotiated by the administration of Gov. Dannel P. Malloy, shifting the focus to a closely divided General Assembly, where Republicans say they will attempt to reject an agreement worth an estimated $1.57 bil- lion over two years. The State Employees Bargain Agent Coalition announced that more than 80 percent of the votes cast were in favor of accepting concessions that will freeze wages and increase contributions for health and pensions. Concessions involving health coverage, pensions and other benefits are decided collectively by the 16-union labor coalition, and the changes would affect all of the roughly 46,000 unionized state employees — if the deal is ratified by the legislature. The agreement would double pension contributions for most workers, create a hybrid pension/defined-contribution plan for future employees, in- crease healthcare co-payments and premiums and require active workers to contribute more toward their retirement healthcare benefits. In return, the contract guaranteeing these benefits would be extended for five years, pushing its expiration date from June 30, 2022, to mid-2027. House and Senate Republican leaders have criticized the extension, noting that even with the concessions, state government still would not save enough annually to cover the full cost of all retirement benefits promised to present-day workers — leaving some expenses to be covered by future taxpayers. Wage concessions were expected to provide nearly half of the $701 mil- lion in savings the full concessions plan reportedly was worth this fiscal year, and 42 percent of the $869 million total in 2018-19. – Keith Phaneuf | CT Mirror HEALTH CARE ECHN's interim CEO Collins tagged permanent Michael Collins has been named CEO of Eastern Connecticut Health Network (ECHN) after holding the role on an interim basis since last fall, Prospect Medical Holdings announced. Collins was named interim CEO in October, after California-based Prospect completed its acquisition of ECHN, which includes Manchester Memorial and Rockville General hospitals. He replaced ECHN's former president and CEO Peter Karl, who resigned Sept. 30 for health reasons. Karl had been arrested for DUI earlier in September. Manchester Memorial reported a $16 million loss in fiscal 2016 and Rockville had a deficit of $11.8 million, according to a report from the state Office of Health Care Access. Prospect acquired both in October, after fiscal 2016 ended. Prior to joining ECHN in March 2016 as the integration officer, Collins had served as a CEO, chief financial officer and in other administrative roles for more than 34 years in Massachusetts healthcare networks. Last October, Prospect also acquired Greater Waterbury Health Network, which includes Waterbury Hospital. Report: ACA reduces CT's uninsured rate 45% The Affordable Care Act is responsible for a 45 percent reduction in Connecti- cut's uninsured rate, and new consumer protections for about 1.9 million resi- dents with employer-sponsored coverage and nearly 600,000 with Medicare, according to a new report from the Connecticut Health Foundation. The report is intended to offer context on what could be at stake as federal lawmakers consider changes to the health law, the foundation said. The Senate recently dropped immediate plans to repeal and replace the ACA after too few senators voiced support for such a move. The report is based on an analysis by the Urban Institute's Health Policy Center. BANKING & FINANCE MassMutual sells W. Hfd. financial advisory Springfield life insurer MassMutual has sold its century-old West Hartford advisory New England Financial Group to Boston's Baystate Financial. Financial terms for the deal were not disclosed. Through the merger, Baystate Financial said it will be comprised of more than 350 advisors and 250 support employees involved in building financial plans for individuals and businesses. The firm has 17 offices throughout New England; New England Financial's West Hartford office will remain, officials said. David C. Porter, managing partner of Baystate Financial, described New Eng- land Financial Group as "the ideal partner to help us achieve our vision of be- coming the preeminent wealth management firm in New England." GOVERNMENT & POLITICS Malloy ranked least popular Dem governor in U.S. Gov. Dannel P. Malloy has the third highest disapproval rating for governors in the U.S, and is the country's most unpopular Democratic governor, according to a poll conducted by media and technology firm Morning Consult. Malloy earned a disapproval rating of 64 percent and an approval rating of 29 percent, with 7 percent having no opinion, according to the online ranking. Faring worse than Malloy are Republicans New Jersey Gov. Chris Christie, with a disapproval rating of 69 percent, and Sam Brownback of Kansas, at 66 percent. By comparison, Massachusetts Republican Gov. Charlie Baker earned the highest approval rating of 71 percent, followed by Maryland's Gov. Larry Hogan at 68 percent and Wyoming's Gov. Matt Mead at 67 percent, also Republicans. To determine these rankings, Morning Consult's market research division surveyed 195,704 registered U.S. voters from April 1 through July 10. S&P: CT's debt making it tough to fund transportation improvements Connecticut is one of three states in which debt service expenditures are at high levels, making it a challenge to fund transportation improvements that can lead to economic growth, according to a new report by S&P Global Ratings. New Jersey and Illinois are the other two states struggling to fund trans- portation infrastructure with high debt levels, according to the report's author, Chicago-based primary credit analyst Carol H. Spain. Connecticut's debt exceeded $22.2 billion in fiscal year 2016, or about 3 per- cent of general spending, the report states. Unlike New Jersey, however, since 2012, neither Connecticut nor Illinois have enacted transportation fee increases to counteract limited investment in transportation infrastructure. TECHNOLOGY ReadyDock raises $1.9M West Hartford's ReadyDock, which makes a disinfecting device for cell phones and tablets, disclosed that it's raised $1.9 million in equity. It's the biggest funding round to date for the five-year-old company, which targets its products toward the healthcare, retail and food-service markets. Connecticut Innovations, which invested $350,000 in ReadyDock in 2013, invested another $500,000 in the recent round, according to a spokeswoman. ReadyDock said in a U.S. Securities and Exchange Commission filing that it's aiming to raise $2.4 million from qualified investors in the ongoing round. First Tee names new executive director Cromwell youth development nonprofit First Tee of Connecticut has promoted its programming director Mark Moriarty to executive director. Moriarity, who has been in the programming post since 2011, will work with former President and Executive Director David Polk, who will retain his role as president. Moriarty, of Bristol, is a graduate of Central Connecticut State University and a member of the PGA of America in Connecticut. The First Tee of Connecticut teaches youth the basic skills of golf and re- inforces values like integrity and perseverance through after-school and in- school programs. BY THE NUMBERS $1.57B The amount of money the Malloy administration says will be saved over the next two years from a recently ratified union agreement. 29% Gov. Dannel Malloy's latest approval rating, flat from a year ago, according to a Morning Consult poll. $4B The amount of revenue Foxwoods has sent to the state between 1993 and June 30, 2017. 44 The number of EbLens stores in the Northeast. The Torrington-based retailer was acquired last week by a private equity firm for an undisclosed amount. TOP 5 MOST READ on HartfordBusiness.com ■ Malloy ranked least popular Dem governor in U.S. ■ S&P: CT's debt making it tough to fund transportation improvements ■ ECHN's interim CEO Collins tagged permanent ■ OCC: Electric supplier customers' price spread climbed in May ■ ReadyDock raises $1.9M Series A 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 P H O T O | H B J F I L E State lawmakers still must approve a union concessions deal before its law.

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