Incumbent Democratic Governor Dan Malloy beat his Republican challenger Tom Foley to win re-election to a 2nd term marking the end of a tough, contentious election campaign.

In winning a second term, Malloy took 51 percent of the vote to Foley’s 48 percent. The 27,348-vote margin was wider than their first clash in 2010, when Malloy won by just 6,400 votes.

Malloy plans a full legislative agenda when the General Assembly returns next January 2015. The Governor has said his policy agenda will include improving the state’s economy and education. “I don’t see any new taxes,” he said when recently asked how he plans to close a projected $2.8 billion deficit over the next two fiscal years. Four years ago, Governor Malloy proposed repealing a number of sales tax exemptions including the one for carwash services. With the large potential deficit facing the Governor and the State Legislature, the sales tax exemption issue will be front and center this coming legislative session.

Democrats swept all statewide races, returning incumbents to the offices of Lieutenant Governor, Treasurer, Secretary of the State, Comptroller and Attorney General.

General Assembly Margins Narrow

The Democrats also retained control of both the State House and Senate, although Republicans narrowed the margins in both chambers.

Republicans picked up one seat in the Senate. East Lyme First Selectman Paul Formica defeated Democrat State Rep. Elizabeth Ritter to win the 20th Senate District seat left vacant by the retirement of Senator Andrea Stillman. With the loss of that Senate seat, Democrats no longer have the 22 votes needed to increase the constitutional spending cap.

The GOP also picked up a net gain of 10 seats in the House for a total of 64, the most the party has held in the chamber since 1994.

Other Notable Results

• House Republicans unseated Democratic incumbents Joe Diminco of Manchester, Tom Vicino of Clinton, Ted Moukawsher of Groton, Timothy Bowles of Preston, Brian Sear of Canterbury, Christopher Wright of Bristol, Paul Davis of Orange, Elissa Wright of Groton and James Maroney of Milford.

• Republicans picked up two seats vacated by Democratic Rep. Sandy Nafis of Newington and Waterford’s Ritter.

• State Rep. Tony Hwang (R-Fairfield) easily defeated State Rep. Kim Fawcett (D-Fairfield) to win the Senate seat vacated by Minority Leader John McKinney.

• Democrat Ted Kennedy Jr. won the seat vacated by Sen. Ed Meyer (D-Guilford).

• All five Democrat incumbents won re-election to the U.S. House of Representatives.

Critical Legislative Session

Many in the business community feel the next legislative session will be a critical one for Connecticut’s future. The state needs to create opportunities for private sector investment – doing so will grow the economy, create more good, well-paying jobs, and help start some growth and expansion.

The carwash industry and others in the business community look forward to working with the Governor and the Legislature to create bipartisan policies to improve Connecticut’s economic competitiveness

It’s very important that lawmakers hear from carwash operators and other small businesses in their district, throughout the year, particularly during the legislative session, to keep the focus on issues that are important to us and that help to grow the economy.

The 2015 legislative session begins Wednesday, January 7.

CT Drops in Business Rankings

Not that we needed reminding, but Forbes‘ latest Best States for Business rankings painfully highlight the challenges facing Connecticut’s economy. Forbes dropped the state three spots to 36th in its annual survey, which just released. The high cost of doing business, regulatory burden, and the state’s sluggish economic recovery all contributed to that fall.

The magazine study analyzes 36 data points across six main areas for its rankings: business costs, labor supply, regulatory environment, economic climate, growth prospects and quality of life.

Connecticut ranked 47th for business costs, which include energy, labor, and taxes, unchanged from last year. Forbes said only New Jersey, Massachusetts, and Hawaii have higher costs. The cost of doing business in Connecticut is 14 percent higher than the national average, Forbes said, due in large part to energy costs, which are 72 percent higher.

CT September ‘Unexpected’ Job Numbers Report

Connecticut’s Department of Labor reported a gain of 11,500 jobs in September, the best month in 20 years, catching many observers by surprise. And the agency also released revised numbers for August, saying 1,200 jobs were lost that month after originally reporting a loss of 3,600. “September employment numbers are very encouraging,” DOL research director Andy Condon said. “Some of this gain was expected, especially in local public education, and in leisure and hospitality where seasonal shifts may have been missed in August.

“Both Connecticut’ s non-farm employment and unemployment rate are back to late 2008 levels. However, monthly sample-based labor statistics can be volatile in either direction and should be looked at in context of longer trends over several months.”

Specific Industry Sectors

Seven of the 10 major industry sectors posted gains in September, led by trade, transportation and utilities, which the DOL said gained 3,200 positions for an increase of 8,300 over the last 12 months. The leisure and hospitality and education and health services sectors both added 3,100 jobs, followed by professional and business services (1,900); government (1,400); construction and mining (500); and information (300).

Financial services led the three losing sectors, shedding 800 positions, followed by manufacturing (-500) and other services (-200). Five of the six labor market areas added jobs last month, led by Hartford, with 2,700 new positions. Norwich-New London and Bridgeport-Stamford-Norwalk both added 1,100 positions, followed by New Haven (600) and Danbury (500).  The Waterbury area lost 300 jobs last month.

SBA Seeks Award Nominations

The Connecticut office of the U.S. Small Business Administration has announced they are now accepting nominations for the 2015 Small Business Week Awards. If you know a Connecticut carwash business or operator that you believe should be recognized here are the categories and how to submit your nomination(s).

Small Business Person of the Year – Any individual who owns and operates or bears principal responsibility for operating a small business may be nominated. Partners who jointly own and operate a small business may be nominated as a “team,” as long as the number of individuals in the team nomination does not exceed four. A nominee for Small Business Person of the Year must own or operate a business defined as “small” under the applicable SBA size standards.

Family Owned Small Business – This award honors a family owned and operated business which has been passed on from one generation to the next. The owners must serve as a majority owner and operator or bear principal responsibility for operating a small business with at least a 15-year track record.

Young Entrepreneur of the Year – To be considered a young entrepreneur, the individual must serve as a majority owner and operate or bear principal responsibility for operating a small business with a three-year track record, and who will not have reached the age of 35 by June 1, 2015.

Entrepreneurial Success – Must be an individual who owns and operates or who bears principal responsibility for operating a business. Partners who jointly own and operate a business may be nominated as a “team,” so long as the number of individuals in the team nomination does not exceed four. A nominee for this award must own or operate a business that initially was defined as “small” under the applicable SBA size standards, developed into a large business and must have received SBA assistance to help the business grow.

To nominate, you may submit your nominations via email at connecticut.ct@sba.gov or you may fax it to 202/481-1723. Questions call 860/240-4654. Mail to: U.S. Small Business Administration, Attn: Small Business Awards Committee, 280 Trumbull Street, 2nd FL, Hartford, CT 06103.

 

 

Obama Expected to Shield Immigrants

As we go to press, it is expected that President Barack Obama will shortly announce his long-promised executive action on immigration reform. Obama’s actions will defer deportations for roughly five million who reside in the United States illegally.

Up to four million undocumented immigrants who have lived in the United States for at least five years can apply for a program that protects them from deportation and allows those with no criminal record to work legally in the country.

An additional one million people will get protection from deportation through other parts of the president’s plan to overhaul the nation’s immigration enforcement system, including the expansion of an existing program for “Dreamers,” young immigrants who came to the United States as children. There will no longer be a limit on the age of the people who qualify.

But farm workers will not receive specific protection from deportation, nor will the Dreamers’ parents. And none of the five million immigrants over all who will be given new legal protections will get government subsidies for health care under the Affordable Care Act.

Obama announced in June that he would take executive action by the end of the summer, saying House Speaker John Boehner informed him the chamber would not take up the comprehensive immigration reform bill passed by the Senate in 2013. To assuage concerns of vulnerable Democrats, Obama decided to delay his action until after the midterm elections.

P.J. Cimini, Esq. is the CCA’s Lobbyist and a partner in Capitol Strategies Group, LLC, in Hartford. You can reach him at 860/293-2581 or  email him.