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State Goverment
Capital Concerns
Nappier Scores Silvester on 2nd Injury Fund
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Business New Haven
6/14/99
By: Tammy Rachau
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State Treasurer Denise L. Nappier has accused her predecessor, Paul J. Silvester, of “a lack of proper fiscal planning” which have led to “severe looming shortfalls” in the state's Second Injury Fund. In a letter mailed June 3 to more than 400 businesses that are assessed charges by the fund, Nappier said that a thorough staff review of the fund had uncovered annual shortfalls “apparently caused by the failure of the previous state treasurer [Silvester] to provide for the repayment of borrowing large sums of money through the bonding process to pay for the settlement of claims through so-called 'stipulated agreements.'”
Repayment of principal and interest on bonds, Nappier charged, was apparently never factored into the administrative costs of running the state-sponsored program for injured workers. Nappier said the problem was exacerbated when Silvester reduced assessment rates (“with no apparent basis”) three times during 1998. The treasurer has called for an independent audit and “blue ribbon” review in an effort to forestall a potential rate increase.
More Workers, More Work
In the first quarter of 1999, Connecticut workers began returning to the labor force. After being flat or down for nearly two years, the state's labor force swelled by 18,100 - about 1.1 percent - over the 12-month period ending March 31, according to the state's Department of Labor. That figure doesn't quite keep pace with the number of new jobs - 26,100 - added over the same period. Services, especially business and health services, contributed more than half of that growth, some 14,700 jobs. The only major sector to lose jobs was manufacturing, which shed 3,400 positions. Also, unemployment in the state fell a whopping 13.4 percent, from 69,000 in the first quarter of 1998 to 59,800 one year later.
Ban on ATM Surcharges Enforced
Attorney General Richard Blumenthal has announced the filing of a state court lawsuit to prevent banks from imposing ATM surcharges on Connecticut consumers. The lawsuit, based solely on state law and filed in Hartford Superior Court, asks the court for a temporary injunction barring the surcharges on non-customers. Named defendants are: Fleet National Bank, First Union National Bank and BankBoston, all of which had levied a surcharge fee on non-customers who used their automatic teller machines. The lawsuit came a week after the federal court ruling that the state's statute banning such fees could be enforced in state court.
States Cited for Trade Mission
The six New England states are the collective recipients of a program excellence award from the National Association of Small Business International Trade Educators (NASBITE) board of governors for their work in organizing an emerging technologies trade mission to Germany. The mission, which took place April 24 through May 1 and included stops in Berlin, Munich, Frankfurt, Stuttgart and other cities where participating companies have the greatest potential to develop business, focused on biotechnology, software and electronic components.
Giving Small Biz the Business
The Connecticut Business & Industry Association (CBIA) has outlined several easy steps start-up and developing businesses can follow to get contract work with the state, by registering the company with a variety of state agencies. A company qualifies as a small-business enterprise, according to the state's Department of Administrative Services (DAS), if it does business or has had its principal place of business in Connecticut for it least one year, with gross revenues for the most recently completed business year not exceeding $10 million. The business must retain 51 percent ownership by a person or persons actively involved in the daily affairs of the business. To be eligible for the state's set-aside program, which earmarks moneys for small-business contracts, a small business must register with the DAS and completely fill out the set-aside certification application form. The advantage of the set-aside program is that all state agencies with a budget of more than $10,000 are required to set aside 25 percent of their budgets for contract work for small businesses that qualify for this program. To take advantage of available contracts, qualifying small-business owners are encouraged to review legal notice listings, contact individual state agencies for bid opportunities and visit the DAS Web site at www.das.state.ct.us/busopp.htm.
If It Sounds Too Good to be True...
The Better Business Bureau system has issued a national alert to warn consumers who are considering investing in an “international program of wealth distribution,” called “Pentigono” or “Future Strategies International.” The plan, which is based in Italy and promoted on the Internet, advertises that consumers can receive up to $116,000 for an initial investment of $120 by purchasing three certificates and selling those to three other people. Tied to the promotion is a discount shopping card, which consumers complain is honored by very few businesses and saves shoppers at most a few dollars. The scheme, which features a large entry fee and focuses more on the recruiting of other participants than on the selling of a legitimate product or service, “has all the hallmarks of a pyramid scheme,” says Paulette Horton, president of the Connecticut BBB.
Deutscheneuemetallwarenfabrik
Gov. John G. Rowland has announced that Leipold Inc., which manufactures precision brass and stainless-steel components, has established its first U.S. manufacturing operation in Windsor and has commenced production, creating 25 new jobs. To assist in this endeavor, the state provided the company with a $600,000 loan for the purchase of machinery and equipment. Leipold Inc. is a wholly owned subsidiary of Carl Leipold Metallwarenfabrik GmbH, of Wolfach, Germany and manufactures components used in the electromechanical and RF connector industries. This is one of Connecticut's first success stories in securing a German relocation to the state, and is consistent with the international goals established by both the Department of Economic & Community Development (DECD) and the Connecticut Development Authority (CDA).
Electric Competition To Commence
The first signs of deregulation in the electric industry in Connecticut will be evident to business owners this summer when their first “unbundled” electric bills arrive in the mail beginning July 1, with actual competition for electric service beginning in 23 Connecticut municipalities next January 1, with the rest of the state following on July 1, 2000. To save money, a business should study the new bills carefully in order to understand their use patterns. When the 23 towns begin electric competition, residents and business owners will have the option of choosing their electric supplier, although the transmission and distribution components will remain the same, through either Connecticut Light & Power or United Illuminating. According to Donald Downs, chairman of the state's Department of Public Utility Control (DPUC), despite the appearance of increased costs by the increased number of line items on the new bills, overall, the bottom-line cost should be about seven percent lower than the current total of all charges.
Mom, I'm Bored....
The Mayor's 1999 Youth Guide to a Summer of Fun, Learning and Adventure is now available free of charge at locations throughout New Haven. The guide features a wide range of programs for children of all ages - from preschool to young adults - including sports camps and tutoring programs, theater, nature, art, swimming and computer programs. Many are low- or no-cost. To receive a copy of the guide, which is available in English and Spanish, people can visit the city's Department of Youth and Family Services on the first floor of City Hall, pick one up at the main library and branches.
No More 'Gray Market' Cigarettes or Tobacco Billboards
Connecticut Tax Commissioner Gene Gavin has proposed legislation that would make it illegal to place Connecticut cigarette tax stamps on cigarettes produced for sale outside the U.S. The purpose of the legislation is to prevent the sale of “gray market” cigarettes, those produced and labeled for export only, which can be priced $5 to $10 less per carton at retail than regular cigarettes. Connecticut cigarette distributors and dealers are currently not prohibited from affixing Connecticut cigarette stamps to packages of cigarettes that are intended for sale outside the United States, a loophole which the proposed legislation would close.
In other tobacco news, Attorney General Richard Blumenthal presided over the destroying of one of Connecticut's last remaining tobacco billboards. The billboard was taken down from the Berlin Turnpike site and replaced with an advertisement that warns of the dangers of smoking. The tobacco industry is currently banned from placing billboard advertising.
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