By Keith M. Phaneuf

www.ctmirror.org

New data shows Connecticut’s economy was damaged more severely than most economists originally thought in the last recession, according to a provocative new report released today by the University of Connecticut’s economic think-tank.

The latest analysis from the Connecticut Center for Economic Analysis warned the state “has an even steeper hill to climb” and could see little or no net job growth over the next 18 months, a grim prospect as Gov. Dannel P. Malloy looks ahead to a re-election campaign in 2014.

And the study suggested that the state technically might still be in a recession.

The center also hit again on one of its favorite themes, urging the Malloy administration to mobilize unused research and development and other related business tax credits to underwrite major capital projects to grow jobs.

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By Keith M. Phaneuf

www.ctmirror.org

When measured against its sluggish economy, Connecticut’s huge bonded and pension debt ranks worst among all states, a leading Wall Street publication asserted this week.

But while Barron’s, a financial weekly published by Dow Jones & Co., wrote that growing debt in most states is changing how some investors look at the municipal bonds, it also concluded that Connecticut’s fiscal problems aren’t heavily reflected in the market.

Municipal bonds are popular in many companies’ portfolios because they often are exempt from federal and state income taxes. But because municipal finances are so dependent on state budget decisions, market analysts look closely at the fiscal health of states when deciding which municipal bonds to recommend for investment.

“It shows a legitimate cause for concern,” economist Don Klepper-Smith of Datacore Partners in New Haven said of the article, “State of the States.” “It shows there’s considerably more risk (in municipal bonds) than is currently believed, certainly more than many people are aware of.”

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By Keith M. Phaneuf

www.ctmirror.org

Under fire for two prolonged blackouts last year, Connecticut’s largest electric utility today named William P. Herdegen III, a 35-year industry veteran with a focus on transmission and distribution operations, as its top executive.

William P. Herdegen III: 35-year industry veteran. Contributed photo

Herdegen, who served most recently as a vice president of Kansas City Power & Light, succeeds Jeffrey Butler as president and chief operating officer for Connecticut Light & Power Co. (C&P).

The announcement was made on the eve of the first anniversary of Tropical Storm Irene, the first of two storms that caused nearly 1.6 million outages in August and October 2011, subjecting CL&P to a scathing assessment of its performance and eventually costing Butler his job.

“With a focus on operational excellence, customer service, emergency response and employee safety, Bill helped to drive significant improvements for Kansas City Power & Light’s customers,” said Tom May, the president and CEO of Northeast Utilities, the parent of CL&P. “We know Bill will bring that same level of commitment to Connecticut to ensure the continued delivery of reliable, safe electric service to our customers every day, especially during storms and other emergencies.”

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By Keith M. Phaneuf

www.ctmirror.org

Just as Gov. Dannel P. Malloy’s plan to bolster the state’s cash-starved employee pension fund kicks in, a leading Wall Street credit-rating agency is posing a new way to test the pension system’s fiscal health.

Moody’s Investors Service has proposed a new methodology that would offer a much grimmer assessment of public employee pension plans in Connecticut, many other states, and most municipalities.

But officials here, who have until Sept. 30 to comment on Moody’s proposal, expressed confidence in the direction state pensions are heading.

And the head of Connecticut’s chief municipal lobby said cities and towns long have been aware of the challenges they face to maintain their pension programs, adding their fate will hinge on how well state officials preserve municipal aid and help control property taxes.

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Workers today were putting final touches on the paint at Westport’s Bridge Square where Embody Fitness Gourmet plans to open next week. Gillen Bryan, Stamford resident and owner of the 720-foot square foot healthy food business, said the quick service health café will offer juice blends, low carb sandwiches, and specialty salads. (CLICK TO ENLARGE) Bob Eckman for WestportNow.com