Ken Dixon's Blog-O-Rama

It reads like a boulevard of broken artistic dreams. Among the items being “zeroed out” of Gov. Dannel P. Malloy’s budget is $378,712 for the Stamford Center for the Arts; $531,525 for the Maritime Center Authority; $1.98 million for the Culture, Tourism and Art Grant; $210,396 for the CT Trust for Historic Preservation; $2.1 million for the Connecticut Humanities Council; $797,287 for the New Haven Festival of Arts and Ideas; $354,350 for Connecticut’s Beardsley Zoo; $620,112 for Mystic Aquarium; $378,712 for the Palace Theater in New Haven; $95,674 for the Stowe/Twain Homes; and $150,000 for the Ivoryton Playhouse.

The grants structure, if approved by the General Assembly, would roll Arts, Culture and Tourism grants into a Statewide Marketing account “for better coordination of program spending,” Malloy’s budget says. Budgeted for $15 million in the current fiscal year, it would rise to $25 million in Malloy’s budget.

 Benjamin Barnes, secretary of the Office of Policy and Management, said that the recommended cuts may not mean the end of state support for landmarks like the zoo. It’s just going to get more competitive.

“We think that while we appreciate the importance of so many cultural instituions, we think they should compete for public funds based on their management and the way they provide the best value to Connecticut taxpayers,” Barnes said in a Wednesday night interview.

UConn Students for Sensible Drug Policy and other marijuana reform candidates had scheduled a demonstration outside the Capitol this morning. But the event was postponed until tomorrow, after news services reported yesterday of today’s plans on the “opening day” of the Legislature. Reporters were walking around the Capitol – the event was scheduled for 8 until 10 – looking for likely stoners, to no avail.

The governor’s budget proposal this afternoon will include $50 million in Educational Cost Sharing money, targeting low-performing schools with $40 million. Here’s his release:

“(HARTFORD, CT) – As part of his proposal to reform education from early childhood through college, Governor Dannel P. Malloy today announced an additional $50 million in Educational Cost Sharing (ECS) funding to schools.  Nearly $40 million will go to newly-established Alliance Districts, made up of the state’s 30 lowest-performing school districts – conditioned upon the districts’ implementation of key education reform strategies.  An additional $4.5 million in competitive funding will be offered to all districts  - with a preference for the 30 Alliance districts, to enable even more ambitious innovations and deeper reforms.

“It is critical that we get to the schools that are really struggling-and do it quickly,” said Governor Malloy. “We can get good teachers into classrooms, and hire the best superintendents and administrators, but we must address the overarching resources issue and fund the programs that will directly reach the kids who are at a disadvantage because their school is underperforming.  We have held towns harmless, no one is losing ECS funding-which sends a clear signal to our children that we will make the investment and deliver on our promise of high-quality education for every student in Connecticut.”

“I strongly believe that every child in our state deserves the opportunity to get a quality education, regardless of where they live. That is why one of our first priorities after taking office was to fully fund the ECS for all towns, and that is why we are making this targeted investment – to give that equal chance to children who happen to attend an under-performing school,” said Lt. Governor Nancy Wyman.

In his December 20, 2011 letter to the leadership of the Connecticut General Assembly, Governor Malloy identified a set of principles and themes to guide the state’s education reform efforts in 2012.  He addressed school funding, proposing to “deliver more resources, targeted to districts with the greatest need – provided that they embrace key reforms that position our students for success”.

ALLIANCE DISTRICTS WILL RECEIVE CONDITIONAL FUNDING
The Governor’s proposal identifies the state’s 30 lowest-performing school districts as participants in a Performance Alliance between these districts and the State, which makes them eligible for significant increases in conditional state funding.  In order to receive its allotted increase, each Alliance District must submit a reform plan that may include elements of reform strategies in the Governor’s proposal.  The State Department of Education will consider these plans for approval.

The list of reform strategies from which Alliance Districts may select include: tiered district interventions for schools based on school-level student performance; additional learning time including extended school day and year programming; the implementation of career ladders for school personnel; a professional development system informed by educator evaluations; plans to ensure K-3 reading mastery; coordination of early childhood education services; the establishment of a community schools approach by establishing wraparound services for students with linkages to health and social service providers; and other strategies as determined by the Education Commissioner.

Alliance Districts will have new funding phased in at the rate of 2.47 percent of the gap between what they currently receive in ECS funding and the new formula amount.  Other districts will receive 1.4 percent of the funding amount gap.

“The Governor’s proposal acknowledges that resource constraints are one obstacle to many of our low-performing districts’ ability to improve their schools – while recognizing that increased funding alone will not improve student achievement,” Education Commissioner Stefan Pryor said. “Rather, it is essential that these districts also embrace reforms rooted in best practices.  The conditional funding model provides added resources and increased accountability.  We look forward to working in alliance with these low-performing districts as they implement their reforms and elevate their achievement levels.”

ECS FUNDING 2013-2014

*    30 school districts – the Alliance Districts – will receive the most substantial increases in state funding, conditioned upon implementation of reform plans.
*   A total of 130 towns will receive more ECS funding than they did in 2011-2012.
*   No town will see funding drop from 2011-2012 levels.
*   There will be a new, more current child poverty measure.   It will also capture child poverty in all parts of the state.
*    Household income data will be streamlined and replaced by annually updated Median Household Income (MHI) data.”

Gov. Dannel Malloy took a few questions that were not education-related this afternoon at Central Connecticut State University, including a requested clarification from the governor’s Monday morning appearance on “Morning Joe,” in which he used the term RomneyCare, to describe the Republican presidential candidate’s healthcare legislation back when he was Massachusetts governor.

Blogster: “So did you coin the phrase RomneyCare?”

Malloy: “Yes. It came to my mind yesterday, if you’re asking. I’ve watched how other people have used naming rights, so I just thought I would return the favor. Last we I also coined the phrase ObamaCar. So, he did save the industry.”

Here’s the release:

Governor Dannel P. Malloy today announced a proposal to eliminate 25 of the state’s 258 boards and commissions to which he can make appointments to reduce overlap and shrink the size of government.

“Over the years when these boards and commissions were first created by statute, most of them served a worthwhile purpose for their time, however many either no longer fit today’s needs, or their functions can be or already are served by another state body that already exists,” Governor Malloy said.  “It’s incumbent upon us from time-to-time to review and reconsider whether these state boards and commissions are still serving their original purpose, are duplicative, or have completed their tasks.”

Governor Malloy continued, “For example, the Quinebaug & Shetucket Rivers National Heritage Corridor Advisory Committee completed its required mission over a decade ago but it’s still in our statute books.  The tasks of the Bi-State Farmington River Watershed Advisory Committee are being performed by the Farmington River Coordinating Committee.  And shorthand reporters are already required to pass a national exam, so there is no longer a need to have a separate overlapping State Board of Examiners of Shorthand Reporters.”

Governor Malloy stressed that the proposal is a first step in reviewing existing state boards and commissions.  His administration will continue to look into ways to streamline government, including eliminating and merging additional boards and commissions in the future.

The list of boards and commissions Governor Malloy proposes to eliminate includes:

• Adult Literacy Leadership Board
• Advisory Committee for the Center of Real Estate and Urban Studies (UConn)
• Advisory Committee for William Benton Museum of Art
• Bi-State Farmington River Watershed Advisory Committee
• Board of Directors of the Lower Fairfield County Conference/Exhibit Authority
• Child Daycare Council
• Commission on Innovation and Productivity
• Computer-Assisted Mass Appraisal Systems Advisory Board
• CT International Trade Council
• CT Israel Exchange Commission
• CT Progress Council
• CT Public Transportation Commission
• CT Risk Assessment Board
• Geospatial Systems Information Council
• HealthFirst Connecticut Authority
• Housing Advisory Committee
• Innovations Review Panel
• Medical Inefficiency Committee
• Nurturing Families Network Advisory Commission
• Quinebaug & Shetucket Rivers National Heritage Corridor Advisory Committee
• Small Business Air Pollution Compliance Advisory Panel
• Southwest Corridor Action
• State Board of Examiners of Shorthand Reporters
• Statewide Community Antenna Television Advisory Council
• Student Financial Aid Information Council

In addition to the 25 eliminations, Governor Malloy is also proposing two mergers, including the Commission on Uniform Legislation into the Connecticut Law Revision Commission, and the Special Contaminated Property Remediation and Insurance Fund Advisory Board into the Brownfield Remediation Liability Workgroup.

The proposal will be included in the legislative package Governor Malloy will introduce for the upcoming 2012 regular session of the General Assembly.

The Blogster just caught Gov. Dannel P. Malloy hard at work in the Governor’s Residence kitchen, concocting a mess o’ Buffalo hot wings for the handful of friends who’ll come over for the big game. It will be a small crowd because of the frantic activities accumulating this week, including the presentation of his budget adjustments Wednesday before a joint session of the state House and Senate.

“I haven’t done my own wings for while,” he said, fondly recalling a visit to The Anchor bar in Buffalo, the cradle of chicken-wings civilization. Yes, he confided, there is hot sauce, butter “a little extra vinegar and a little extra salt.” He’s anticipating a Giants victory over the New England Crafters.

Here’s the release:

Comptroller Kevin Lembo today announced that, due to declining state revenue, the state is currently projected to end Fiscal Year 2012 with a $73.6 million deficit on the basis of Generally Accepted Accounting Principles (GAAP).

This projection is an erosion of $82.3 million from last month’s financial position.

In a letter to Gov. Dannel P. Malloy, Lembo said that he agrees with both the Office of Policy Management (OPM) and the Office of Fiscal Analysis (OFA) in their consensus that state revenues have declined by about $83.1 million for Fiscal Year 2012.

As for state expenditures, General Fund spending is trending about 2.3 percent above last year through December. However, the OPM deficit projection anticipates 5.9 percent growth. Lembo noted that OPM’s spending projections are dependent upon achieving lapses — or forced savings — of $900.7 million, which based on current spending patterns should be attainable.

“In light of state spending trends – and the budget control mechanisms available to OPM – this estimated savings is reasonable,” Lembo said. “I must emphasize that my analysis is based on the total state spending trend for the year, and not on achieving savings in any individual areas within the budget plan. The potential need to shift funds in order to address a savings shortfall is ultimately a matter for the administration and legislature.”

Lembo said the state revenue decline is primarily due to poor collections in estimated income tax payments, while expenditure estimates changed little from last month. Due to the projection that $75 million is required to cover GAAP accruals this fiscal year, we project an overall General Fund deficit of $73.6 million.

            “Despite the projected state shortfall, the economy continues to show slow and erratic growth – overall headed in a positive upward trajectory,” Lembo said.

            Recent economic indicators from the Department of Labor and other sources include:

Employment

• For the twelve months ending in December the state added 9,000 payroll jobs.
• Unemployment has continued to decline, but remains at a historically high level. The December unemployment rate dropped to 8.2 percent.
• The state has recovered approximately 29 percent of the recessionary job loss.
• Connecticut’s recessionary job loss between March 2008 and February 2010: 119,200
• Job gains since the recovery (as of December 2011): 33,500
• Average Per Month: 1,600.
• December job addition: 600
• For the fourth straight month the state’s unemployment rate has been below 9 percent. Connecticut was one of 37 states that posted a drop in the December unemployment rate. The U.S. unemployment rate fell to 8.5 percent.
• Nationally 200,000 jobs were added to payroll in December — the sixth consecutive month with a national employment gain of 100,000 or more.
• 154,525 Connecticut residents are unemployed.

(Courtesy of DOL):

  Jobs by employment Sector

• The trade, transportation, and utilities sector became the fastest growing job sector in December on both a monthly and year-to-year basis.
• The professional and business service sector lost jobs in December but remained a strong job creator over the past year.
• The trade, transportation and utilities sector led all major sector growth in December, adding 2,500 jobs, or 0.9 percent. The retail trade component in this super sector provided the largest job gain (1,900, 1.1 percent) last month, boding well for holiday sales in the state. The transportation segment added personnel (+800, 1.7 percent), perhaps exhibiting positive holiday activity from e-commerce. Meanwhile, the wholesale trade part slightly declined (-200, -0.3 percent) last month. This large super sector has contributed the most sector job growth since last December (+5,700, 2.0 percent).
• The professional and business services sector lost 300 positions (-0.2%) last month but is a strong job contributor over the year (3,300, 1.7%). The monthly loss in this sector was mainly attributed to a 900 (-1.1%) decline in professional, scientific, and technical services. This loss was partially offset by a 600 (0.7%) gain from administrative and support services (which includes employment services).
• The financial activities category finished 2011 lower by 900 (-0.7 percent) jobs. Both finance and insurance (-800, -0.7 percent) and real estate (-100, -0.5 percent) figured in on the job loss. Financial activities industries are the biggest declining major sector over the year (-4,300, -3.2 percent).

Wage and salary income

• For the period ending in November, wage and salary income in Connecticut was up 4.3 percent from last year.
• For individuals with jobs, wage and salary income has performed well growing 4.3 percent from a year ago for the period ending in November.
• Personal income in Connecticut has also resumed its growth pattern with a gain of 5.2 percent from last November.

Business Activity

• The overall business climate in Connecticut has been improving, but like employment has not generated normal post-recession growth.
• Nationally, corporate profits were up 7.9 percent in the third quarter of 2011.
• The Connecticut Manufacturing Production Index has held steady against last year. Connecticut’s export sector continues to perform well.
• Bloomberg reports that corporate profits are expected to grow at their slowest rates in two years for the year ending 2011. Slowing global growth is expected to impair exports. China is expected to post its slowest growth rate in eleven years. It’s likely that when 2011 results are tallied, banks will post their worst revenue growth since 1938.
• Compensation experts predict a 30-percent reduction in Wall Street bonus payments from 2010.

Housing

• Housing permits were down 6.2 percent from November a year ago and off 75 percent from the peak level reached in 2004. This is consistent with the trend experienced in existing home sales.
• Connecticut housing permits, which give an indication of economic activity in the construction sector, financial lending, and durable goods, were down almost 6.2 percent from November of last year.
• Existing home sales in Connecticut were up 7.4 percent in the third quarter of 2011 from a year ago.
• Quarterly sales volume peaked at almost 85,000 units in 2005. The volume in the third quarter of 2011 was 41,000 units.
• Home prices in the state were down 3.5 percent from the third quarter a year ago. Nationally, sales of previously owned homes rose 5 percent in December to a seasonally adjusted annual rate of 4.61 million, the best showing since January 2011 and the third straight monthly increase, according to the National Association of Realtors. The market has been helped by record low mortgage rates.
• Yearly figures though reflect the long road ahead for the sector — sales rose only 1.7 percent to 4.26 million, up from 2010′s dismal 4.19 million — still well below the 6 million that economists say means the housing market is back at healthy levels. 

Exports

• Connecticut’s exports have remained on a positive trend.

Gaming Revenue

• Slot activity at the casinos has been trending down.

  Consumer Spending

• Consumers are beginning to expand credit purchases and total sales figures remain solid.
• Nationally, Advance Retail Sales for December were running 6.5 percent above last year. Total sales for the October-December period were up 7 percent. Non-retail sales were up 10.6 percent.
• The Federal Reserve reported that Consumer Credit had its strongest surge since 2001 in November of 2011. Consumer Credit has been growing over the past three months as the labor market has improved.
• Interest rates remain at historically low levels with no significant upward movement in sight.
• The leading indicators are pointing toward continued growth.