Job Providers Get a Boost from Bi-Partisan Special Session

Connecticut’s job providers got a boost on Oct. 26 from bipartisan legislation that will provide millions for employee training, loans to help keep small businesses open and direct grants for job expansion in an effort that lawmakers hope will spur growth for Connecticut’s stagnant employment numbers.

The job creation plans approved in a special legislative session will streamline the state’s cumbersome regulatory process, bolster manufacturing through enhanced high-tech training and pump at least $50 million into accelerated bridge and road repair programs.

“Through small business forums, town halls I’ve attended, and from what I’ve heard from small businesses in our area, one of the things companies consistently complain about is how difficult it is to work with the state government,” said Candelora. "The confusing and burdensome paperwork, fees, and the extremely slow pace of processing are particularly mentioned as obstacles to growth. We took these to heart and this legislation seeks to address the difficult and slow bureaucratic permitting process we have here in the state. This legislation was long overdue."

Candelora said these issues should have been settled in the regular legislative session this past spring, but the legislature was unable to because the Governor was too consumed by the state employee union agreements that took months to resolve.

Candelora and House Republicans met with more than 50 small business owners earlier this month who shared the needs and concerns. Those ideas were incorporated into the bill passed today:

• Training Programs: $10 million for training programs;
• Small Business Revolving Loan Fund: $10 million revolving loan fund for struggling small businesses;
• Job Creation Matching Grant Program: $20 million in grant funds for businesses looking to expand;
• Job Creation Tax Credits: $500 monthly tax credits for any new hires and a $900 credit for all unemployed, disabled or veteran hirings;
• Business Entity Tax: the $125 the annual Business Entity tax will be made biennial, essentially cutting it in half;
• Workforce Development: $40 million set aside to establish and expand manufacturing technology training at six schools in the community college and vocational technical systems;
• Innovation Investment: reducing the “angel” investment threshold from $100,000 to $25,000 while maintaining the existing $6 million cap.

Business owners blasted the state’s regulatory and permitting process as confusing, burdensome and difficult to work with. Republicans responded:

• State Traffic Commission proposals not acted upon with 60 days will be deemed approved;
• Brownfield reclamation will be enhanced through a $20 million fund used to clean up properties and sell them privately;
• An enhanced and improved informational technology portal will make it faster and easier for developers and businesses to work through the state bureaucracy;

In a separate action, the legislature approved $291 million grants to Jackson Laboratories by taking out state loans, for the construction of a genetic testing and research center in Farmington. Candelora and many Republicans opposed the measure because of the massive risk Connecticut taxpayers would assume and the refusal by the Malloy administration to compromise on the deal and retain ownership of the research center.

“The state is embarking on a risky venture with tax dollars by constructing a research center for Jackson Labs and subsidizing their operations for several years to the tune of $100 million. The state cost forecasts by the Malloy administration do not include the millions in debt service payments that taxpayers will pay for out of pocket over an above the projected base cost. There is no guarantee that after the first ten year period, when the state has paid for the project and funded research for the first decade that Jackson Labs will then not seek out another out-of-state location once state funding has dried up,” said Candelora.

Jackson officials said they were willing to compromise on the terms of ownership of the building at the UConn Medical Center and changes in job creation timelines but Gov. Malloy was not. “It is unfortunate this administration is unwilling to negotiate the terms of the deal with Jackson Labs when Jackson Labs is willing to negotiate better terms. While I am glad to have Jackson Labs and other biotech research companies in Connecticut, the particular terms of this deal put all the risk on Connecticut taxpayers and that is something I cannot support,’’ Candelora said. 

Candelora represents East Haven, North Branford and Wallingford in the Connecticut General Assembly.