BLUMENTHAL REQUEST INVESTIGATION

Attorney General Richard Blumenthal has asked the Federal Communications Commission (FCC) to investigate an agreement giving Cablevision exclusive rights to MSNBC within areas served by its cable television systems.

The agreement means that potential Cablevision competitors, such as AT&T’s U-verse, may not carry MSNBC in Cablevision service areas.

In a letter today to FCC Chairman Julius Genachowski, Blumenthal called the agreement anticompetitive and said it may violate federal law.

“I urge that the commission investigate this arrangement,” Blumenthal said in the letter. “Pursuant to this exclusive carriage agreement, MSNBC may not make its programming available to competitive multichannel video providers within Cablevision’s franchised service territory.

“As a result of this exclusive carriage agreement, AT&T Connecticut, which provides competitive U-Verse cable services throughout Connecticut, is unable to offer MSNBC to its customers within Cablevision’s service territory. This exclusive carriage agreement unfairly limits these customers diversity of programming and significantly harms the development of competition in Connecticut’s cable markets.

“The purpose of cable competition is to provide consumers with the broadest range of video service products at reasonable prices. Exclusive carriage agreements allow companies like Cablevision to exercise their powers of incumbency to monopolize prime programming choices, restrict access of their competitors and provide strong disincentives for some customers to switch their cable providers. As a result, these agreements harm the public interest because they limit the diversity of programming options and suppress capital investment in new competitive cable technologies.”

Blumenthal said the MSNBC-Cablevision agreement may violate a federal law mandating FCC regulations that prohibit cable companies from coercing program providers into exclusivity agreements or retaliating against them for refusing to do so.

Cablevision operates cable systems serving the Norwalk, Bridgeport and Torrington areas.

WYMAN SAYS DEFICIT HAS IMPROVED

State Comptroller Nancy Wyman said that the 2009 budget deficit has improved slightly to $911 million, due to action by the General Assembly that offset a continued drop in tax revenue.

While overall tax revenues declined by about $15 million since last month, the recent passage of a “deficiency bill” to cover state agency fiscal shortfalls by reducing other appropriations resulted in a net $3 million improvement in the deficit projection.

The biggest drop in revenue was a $10 million dip in the payroll-withholding portion of the income tax. The state has lost more than 63,000 jobs since May 2008.

“Connecticut’s job picture has been in steady decline for more than a year and the income tax has bottomed out right along with it,” Wyman said.

Overall collections of the income tax, including capital gains payments, are down 15 percent from last year. The tax was expected to bring in about $7.6 billion, but will likely fall about $1.3 billion short of that estimate.

The sales tax, expected to produce about $3.7 billion, will bring in about $420 million less than projected. Taxes that corporations pay on profits are expected to fall about $200 million under the original estimate of about $790 million.

Wyman’s deficit projection includes about $550 million of deficit-mitigation steps and state employee labor concessions approved by the legislature.

Although the 2009 fiscal year ended June 30, the state continues to collect certain tax accruals through July 31. A final deficit figure will be issued in September.

STATE TO GET $34 MILLION IN FUNDS

The Connecticut Congressional delegation has announced that the Connecticut Housing Finance Authority (CHFA) will receive $34 million from the U.S. Treasury Department from the American Recovery and Reinvestment Act (ARRA) to spur the development of affordable housing across the state. In Connecticut, fewer houses are under construction, which means job losses in the building trades and related industries. And as more people are out of a job, affordable housing is in increasing demand.

“The recession has left our state sorely in need of more jobs and more affordable housing,” said Senator Chris Dodd (D-CT). “These funds will put Connecticut residents to work building affordable homes for Connecticut families.”

“During these difficult economic times, Connecticut will benefit from these funds to construct and rehabilitate homes for the citizens of our state,” Senator Joe Lieberman (ID-CT) said. “These funds will both help create housing options for our state’s low income citizens and provide more jobs.”

“Given the economic recession, there is greater need for quality, affordable housing options for moderate- and low-income families. Unfortunately, the recession has also sidelined many housing construction projects. With this funding we will spur construction and development, while creating jobs, of much-needed affordable, quality housing,” said Congresswoman Rosa L. DeLauro (CT-03).

Congressman John B. Larson (CT-01), Chairman of the House Democratic Caucus, said, “Recovery Act funds have provided our state with an unprecedented opportunity to invest in critical priorities that will create jobs and boost our economy. Funding like the $34,000,000 we are announcing today provides short-term help and long-term solutions to our economic problems. We are helping those hit hardest by the economic downturn with low-income housing and unemployment extensions. At the same time, we are creating the jobs and infrastructure that will grow our economy for years to come. It is critical that the state government accelerate its projects and put these critical funds to work.”

“The housing market is at the very base of our recovery. Without a rebound in housing construction, focused on creating homes that people can afford to live in, our communities will suffer. This funding will help Connecticut get back on track,” said Congressman Chris Murphy (CT-05).

“Developing affordable housing will provide a real shot in the economic arm for high-cost of living states like Connecticut that struggle to keep young families and individuals from leaving, and will create meaningful new jobs for the building trades that have suffered from the downturn in the housing market. In Connecticut, building permits are down 47 percent in 2009 as compared to the same period in 2008, which means that this investment is welcomed news and could not have come at a better time,” said Congressman Joe Courtney (CT-02).

“Nothing is more damaging to our communities than people losing their homes,” said Congressman Jim Himes (CT-04). “Housing was at the heart of this crisis, and I’m gratified we’re taking tangible steps toward making affordable housing available while creating jobs.”

 

the Connecticut Congressional delegation announced that the Connecticut Housing Finance Authority (CHFA) will receive $34 million from the U.S. Treasury Department from the American Recovery and Reinvestment Act (ARRA) to spur the development of affordable housing across the state. In Connecticut, fewer houses are under construction, which means job losses in the building trades and related industries. And as more people are out of a job, affordable housing is in increasing demand.

“The recession has left our state sorely in need of more jobs and more affordable housing,” said Senator Chris Dodd (D-CT). “These funds will put Connecticut residents to work building affordable homes for Connecticut families.”

“During these difficult economic times, Connecticut will benefit from these funds to construct and rehabilitate homes for the citizens of our state,” Senator Joe Lieberman (ID-CT) said. “These funds will both help create housing options for our state’s low income citizens and provide more jobs.”

“Given the economic recession, there is greater need for quality, affordable housing options for moderate- and low-income families. Unfortunately, the recession has also sidelined many housing construction projects. With this funding we will spur construction and development, while creating jobs, of much-needed affordable, quality housing,” said Congresswoman Rosa L. DeLauro (CT-03).

Congressman John B. Larson (CT-01), Chairman of the House Democratic Caucus, said, “Recovery Act funds have provided our state with an unprecedented opportunity to invest in critical priorities that will create jobs and boost our economy. Funding like the $34,000,000 we are announcing today provides short-term help and long-term solutions to our economic problems. We are helping those hit hardest by the economic downturn with low-income housing and unemployment extensions. At the same time, we are creating the jobs and infrastructure that will grow our economy for years to come. It is critical that the state government accelerate its projects and put these critical funds to work.”

“The housing market is at the very base of our recovery. Without a rebound in housing construction, focused on creating homes that people can afford to live in, our communities will suffer. This funding will help Connecticut get back on track,” said Congressman Chris Murphy (CT-05).

“Developing affordable housing will provide a real shot in the economic arm for high-cost of living states like Connecticut that struggle to keep young families and individuals from leaving, and will create meaningful new jobs for the building trades that have suffered from the downturn in the housing market. In Connecticut, building permits are down 47 percent in 2009 as compared to the same period in 2008, which means that this investment is welcomed news and could not have come at a better time,” said Congressman Joe Courtney (CT-02).

“Nothing is more damaging to our communities than people losing their homes,” said Congressman Jim Himes (CT-04). “Housing was at the heart of this crisis, and I’m gratified we’re taking tangible steps toward making affordable housing available while creating jobs.”

WESTPORT MIL RATE STAYS THE SAME

While numerous other municipalities, large and small are forced to raise taxes in these tough economic times, Westport has actually been able to prevent a tax increase. For the first time since the Clinton Administration (1997) Westport will have no tax increase in 2009. The Board of Finance voted unanimously to set the mill rate at 14.41. Even though tough decisions were made, Westport unlike other municipalities has a very high tax collection rate. This coupled with the favorable economic indicators over the last few months showing the economy strengthening was the basis for holing the line on taxes this year.

REP. RYAN MOVES PAID SICK DAYS BILL THROUGH HOUSE

State Representative Kevin Ryan (D-Montville), the House Chair of the legislature’s Labor and Public Employees Committee, announced that paid sick leave legislation passed the Connecticut House of Representatives this evening by a vote of 88 to 58. House Bill 6187, An Act Mandating Employers Provide Paid Sick Leave to Employees, establishes paid sick leave for employees at organizations with 50 or more employees.

“Paid sick days make it easier for working families to survive and protect the public health at the same time,” said Rep. Ryan. “When sick people go to work or send children to school sick, they risk transmitting a disease to co-workers or students.”

Many workers in industries that require constant contact with the public lack paid sick days — 78 percent of food-service workers, 57 percent of workers in the retail industry and 29 percent of health care and social assistance workers do not have any paid sick days according to the Institute for Women’s Policy Research.

“With the recent outbreak of swine flu, folks were encouraged by everyone including Governor Rell and President Obama to stay home if they were feeling ill,” said Rep. Ryan. “Unfortunately that is not an option for many Connecticut workers, because people can’t risk losing their jobs or a few days pay because they have an illness. About 40% of Connecticut workers don’t get a single paid sick day all year long.“

According to the National Foundation for Infectious Diseases, 18% of office employees will catch the flu from a sick coworker.
Rep. Ryan added “This bill also helps Connecticut’s businesses. Employers will save money in the long run by offering paid sick days through reduced turnover.”

House Bill 6187 would allow covered employees to accrue up to 5 days of paid sick time per year. The bill will now go to the state senate for consideration.

Kevin Ryan represents the towns of Bozrah, Franklin, Lebanon and Montville in the 139th Assembly District.

WYMAN SAYS DEFICIT DROPS BELOW $1 BILLION

According to State Comptroller Nancy Wyman,  a rise in income tax collections combined with concessions by state employees and a deficit-mitigation plan enacted by the General Assembly have reduced the projected 2009 budget deficit to $914 million.

It is the first time since February that the estimated deficit dipped below $1 billion.

“While it is encouraging that the deficit is moving in the right direction, there is much work to be done to put Connecticut back on the road to fiscal stability,” Wyman said.

Receipts of the income tax rose 1 percent in April, after declining an average of 8 percent in the first three months of the calendar year. The increase came despite the loss of nearly 12,000 jobs in April, bringing total job losses for the fiscal year to 65,000.

Wyman said the income tax improvement in April may be at least partly due to a quirk in the timing of some income tax payments when comparing this fiscal year to last.

Also cutting into the deficit since last month is:

• $75 million in concessions made by state employees – mainly by deferring the state’s required contributions into the funds that pay for retirees’ pensions and medical benefits.

• $153.8 million in deficit-mitigation steps taken by the General Assembly.

Wyman’s deficit estimate is $100 million higher than that of the governor’s budget office, due to the Comptroller’s less-optimistic forecast of income tax and sales tax receipts.

PERILLO BILL GOES TO GOVERNOR

Representative Jason Perillo who represents Shelton’s 113th State House District  has sponsored a successful measure to prevent School fires. A bill that would help prevent fires and enhance safety at public schools in Shelton and elsewhere in Connecticut received final legislative approval by the state House of Representatives today. The measure, Senate Bill 850, was sent to Governor M. Jodi Rell to be signed into law. The legislation, which requires local fire marshals to submit reports on their inspections of school buildings to local boards of education, passed the state Senate May 27th, said Representative Perillo, who cosponsored the bill. Perillo drafted the legislation based upon concepts developed in consultation with the State Fire Marshal’s Association and the state Department of Public Safety since January. Perillo introduced the bill following the December fire at Shelton High School in the hope it will ensure safer schools in Shelton and throughout the state. The bill now awaits the Governor’s signature. Perillo said that because the bill closes a major gap in state law, he is “confident Governor Rell will sign it.”

DELAURO ANNOUNCES FUNDS TO COMBAT VIOLENCE

Congresswoman Rosa L. DeLauro (Conn. -3), who represents the Valley and metro New Haven,  announced that the State of Connecticut will receive $1.82 million through the American Recovery and Reinvestment Act to aid efforts to prevent violence against women. These funds will allow the state to hire and retain criminal justice and victim services personnel who respond to violent crimes against women, as well as support other strategies that create and preserve jobs and promote economic growth while improving responses to domestic violence, dating violence, sexual assault and stalking.

EDITORIAL: RELL’S VETO OF NUTRITION BILL MISGUIDED

Governor Rell has vetoed a bill designed to tackle obesity. Senate Bill 1080, An Act Concerning Access to Health and Nutritional Information in Restaurants: This bill would have required chain restaurants in Connecticut to disclose on their printed menus or menu boards total calorie counts for standard menu items. The state Department of Public Health would have been charged with enforcing the measure.

Although Governor Rell noted the cost such a bill would impose on restaurateurs and on the Department of Public Health,  by stating “This is hardly the economic climate in which to further burden our businesses and state agencies”, she failed to not that the bill had a clause at 4 (g) which states: (g) The provisions of this section shall not be construed to preclude any chain restaurant from voluntarily providing nutritional information that is supplemental to the requirements of this section. In other words the bill would have allowed restaurants covered by bill to act voluntarily. No statement from the Governor on the cost of such voluntary actions or proof that such actions would and do negatively impact the bottom line of Restaurants. The bill would also have repealed Section 19a-36a of the general statutes and added the requirement that the Department of Public Health monitor compliance. This was also cited by the Governor as costly to restaurants. However a detailed reading of the bill revels that it only required “reasonable” actions to comply. The use of this word provided a means for restaurants to comply and not face economic hardship, yet the Governor did not mention this provision which states: (11) “Reasonable means” means any reasonable means recognized by the federal Food and Drug Administration in determining nutritional information and calorie total information for a standard menu item, as such item is usually prepared and offered for sale, including, but not limited to, use of nutrient databases and laboratory analyses.

Obesity is associated with many diseases, particularly heart disease, type 2 diabetes, breathing difficulties during sleep, certain types of cancer, and osteoarthritis. This disease was the target of the bill not the economic well being of restaurants. We urge the Legislature to over ride the Governors veto.

HIMES ANNOUNCES TAX CREDIT

Congressman Jim Himes (CT-4) has announced an $85 million tax credit for GE Capital through the New Market Tax Credit (NMTC) Program.  The credits will allow the Norwalk-based company to invest and attract capital to make loans to businesses within distressed communities. The company plans to focus their efforts in the areas of sustainable forest products and renewable energy projects across the country.

With resources made possible through the Recovery Act, the NMTC Program injects private-sector capital investment into communities to create jobs, stimulate economic growth, and jumpstart the lending necessary for financial stability.

“Making credit available to businesses throughout the country is a critical piece of getting our economy moving again,” said Congressman Himes. “This tax credit will help GE keep and create financial services jobs in Norwalk while doing important work to help businesses throughout the country thrive.”

The NMTC Program permits individual and corporate taxpayers to receive a credit against federal income taxes for making qualified equity investments in investment vehicles known as Community Development Entities (CDEs). A majority of the taxpayer’s investment must, in turn, be used by the CDE to make qualified investments in low-income communities.

“We’re very pleased to be chosen to participate in this program,” said Tom Quindlen, CEO, GE Capital, Corporate Finance.  “These tax credits are a key enabler for financing businesses in economically depressed, rural areas that will add jobs and provide other support to the local community.”

To date, close to $12 billion of private-sector capital has been invested through the NMTC Program into urban and rural communities throughout the country. Data reported through 2007 shows that $9 billion dollars of NMTC capital has been invested into approximately 2,000 businesses and real estate developments – helping to develop or rehabilitate over 68 million square feet of real estate, create 210,000 construction jobs, and create or maintain 45,000 full time equivalent jobs at businesses in low-income communities.

Additional information on the NMTC Program can be found on the CDFI Fund’s web site at: www.cdfifund.gov.