Budget Address for Fiscal Years 2010-2011

By Governor M. Jodi Rell


Mr. President, Mr. Speaker, Mr. Williams, Members of the Legislature and Guests:

I stand before you today to unveil my recommended state budget for the next two years – two years that promise to be challenging in so many ways.

But I know, without doubt or hesitation, that Connecticut is up to the challenge. I believe deeply in the strength and courage of the people of Connecticut. And as your Governor, I will lead as we find our way, safely and surely, through these turbulent times.

The harsh winds of economic turmoil have spread across the nation and now buffet nearly every aspect of our lives.

Daily we are reminded of the tolls of our troubles with updates on unemployment rates, newly announced bankruptcies and foreclosures and solemnly declared business failures.

Turbulent times indeed.

But financial statistics do not measure the incredible resolve of our people. They do not reflect the unyielding will of our families to directly confront the headwinds of hardship. They do not reveal the true character of those who live and work in Connecticut and those who are blessed, as we are, to lead it.

We are Connecticut. We will overcome our economic distress and we will emerge the better for it.

Make no mistake, our journey will be a long and painful one. But it will be a shared journey.

We will share the joys and the disappointments. The tears and the sacrifices. The burdens and the blessings.

It is our way. It is who we are as the people of Connecticut.

For nearly 300 years we have sustained during the ebb and flow of the historic tides of trial and challenge. We have stared down many an enemy – war, both from within and without; injustice; intolerance; hatred; and corruption.

We have survived countless recessions and economic slowdowns and one national Depression.

And we will survive this time as well. For we are Connecticut. We will stand arm in arm, sharing our burdens and turning our challenges into opportunities, positioning ourselves so that we may soar when those harsh winds of economic turmoil finally fade.

Our journey begins today with the release of my recommended budget.

It is a budget that took me weeks and months to put together. Weeks and months in which our national and state economies were worsening. And they still are. No one knows when we will hit bottom.

But we’re not waiting.

My budget provides a blueprint which will guide us and which will preserve the prosperity of Connecticut for our children and grandchildren.

There is pain and sacrifice in this budget, but it is shared pain and sacrifice. We are in this struggle together, and we will need to work together, to lead together, in deed as well as in word.

Yes, there is pain, there is sacrifice and there is some long overdue trimming.

Simply put: The bloat of bureaucracy is no longer affordable. Over the years, over the decades, state government often lost sight of what its core mission was and who it was serving.

It has become, in too many ways, what those in government want – for those in government. Layer upon layer of bureaucracy has been built so deeply and set so tightly that original goals have been crushed under the weight of permanency.

It is time to get back to basics. It is time to return to our core mission – to educate our children, protect our people, help those truly in need.

The economic challenges we are facing give us a rare opportunity to realign state government. To stop the exponential annual growth that is no longer affordable.

We must not forsake this opportunity. We must do what every family across our state has been doing – cutting back and doing more with less – and less.

The cuts I am proposing were not easy to make – any of them. They are not inconsequential.

But they represent a return to an affordable government. They give us a budget that goes backward in total spending – backwards so that we may go forward in strength once the economic recovery comes to pass.

My budget for the next fiscal year is actually lower than our budget this fiscal year. I am proud of that – and I am also proud of the fact that my budget contains NO tax increases for the next two fiscal years. None.

People cannot afford their taxes now. We should not add to their burdens.

There are some fee increases, the use of various unspent fund balances and the securitization of clean energy funds. But no tax increases.

I spoke a moment ago of doing more with less. And I do mean less.

My budget contains a number of initiatives to shrink government and I would like to take a few moments to explain them to you myself so you will know the truth of what is in my budget and why.

The soothsayers will undoubtedly provide their own interpretations and tell you, in their own, all-knowing ways, what I really meant. The naysayers will tell you it can’t be done, it shouldn’t be done.

Well, to the soothsayers and naysayers I say: Step aside. We need leaders. Help me as I lead Connecticut to a smaller, more affordable, more responsive government.

It starts with fewer state agencies. My budget eliminates 10 of them. All serve worthy purposes on paper, but all have functions largely duplicated by regular state agencies.

In times of plenty they are helpful. In times such as these they are unaffordable. Families are making do with less – so can we.

My budget also eliminates 10 other agencies through logical consolidations. Stand-alone entities are simply not needed. Families are making due with less – so can we.

More than 300 boards and commissions have been established by executive order or legislative or judicial fiat. Three hundred shadow government agencies, with associated staffing, mileage reimbursement and other expenses.

My budget eliminates 70 of these and merges others. We’re reducing the bloat of bureaucracy and making do with less.

My budget cuts our fleet of state cars by 20 percent. State cars are not an entitlement. If an employee doesn’t really need one, he or she won’t have one. Families are making do with less – so can we.

And we can do with fewer laws on the books. We not only need a leaner government but a less intrusive one as well. We have 14,000 pages of state laws in existence. Surely we can do with fewer. I am proposing that we take 130 unnecessary laws off the books. We should take others off as well. We can certainly make do with less.

I am also proposing that we cancel state bond authorizations of hundreds of projects, mostly earmark projects, totaling almost $400 million. Long-term debt will crush our children. Earmarking is out of control and it’s bankrupting us. We can’t afford not to make do with less.

And for one year we are putting a hold on construction at UConn and our state colleges and universities to save debt costs. Over the last decade we have transformed the physical face of higher education in Connecticut – and we will continue to do so.

I am proposing that we repeal or modify a host of state and municipal mandates. Comprehensive mandate relief is long overdue and will have a lasting impact in reshaping and reducing the cost of government.

First, no costly new mandate should be allowed without a two-thirds vote of the Legislature. Second, we should suspend for two years the so-called “raise-the-age” law and the new in-school suspension law.

Now is not the time to impose new burdens on cities and towns that are also struggling to balance budgets.

And perhaps most significantly, at least in the short-term, I am calling for the suspension of binding arbitration requirements for two years while we confront our economic troubles.

At the end of the two-year suspension, I propose that we limit mandatory subjects of binding arbitration to salaries and benefits only – not scheduling, the size of parking spaces, picnics and parties on state time and the dozens of other subjects currently included.

Tough decisions. Right decisions.

Mandate reform will offer much-needed help to our cities and towns. And I am pleased to announce that so will my budget, in that it flat funds – yes, flat funds – state aid to municipalities for the next 2 years.

No cuts to education aid. No cuts to any state grant program. None.

I had to cut even deeper in our state budget to accomplish this, but cut I did. Because we cannot, in good conscience, balance the state budget on the backs of property taxpayers. They cannot afford higher local taxes any more than they can afford higher state taxes.

And we want to help cities and towns through regionalism, a much discussed concept that must finally be put into action.

Municipalities can and should cut costs by sharing – sharing equipment, facilities, schools, personnel and more.

My budget provides $40 million in new grants for infrastructure and equipment for municipalities that want to join together to provide services like recycling, tax collection and payroll.

And a new $10 million grant will be available to purchase shared equipment – snow plows, dump trucks, garbage trucks.

And two programs – LOCIP and TAR – will be adjusted, at current funding levels, to provide 10 percent bonuses to those towns which join together on regionally beneficial programs.

It’s time regionalism was more than just something we talk about – it’s time for it to be a reality.

It’s also time for reform of our probate court system. Our system is antiquated and broken. I am proposing an overhaul that will reduce the number of courts, improve services and increase the hours of operation. It will also save money.

It’s long since time that bereaved families not add to their anguish by fighting an outdated and sometimes irresponsible probate system.

It’s also time that we made state government more accountable. I know the public is frustrated when they see waste and abuse in government and I don’t blame them.

They’re tired with our reacting to problems after they arise. Why, they ask, can’t we stop reacting and start doing it right in the first place? They’re right to ask, and while mistakes will always happen, we need to do better – far better.

That’s why I am creating an Office of Accountability and asking each state agency to appoint an Accountability Officer.

These accountability officials will be responsible for detecting – up front – fraud and waste by personnel and in the use of state property. They will ensure that resources, including cars, phones and computers, are used for legitimate purposes.

We cannot afford to lose one dollar to waste, inefficiency or abuse, particularly at a time when tax dollars are shrinking and painful cuts are being made.

So many families are struggling right now – and many more are likely to – given the almost daily announcement of more layoffs.

With each job loss the question of “what if” becomes “what now?”

What do we do now to keep the roof over our heads and food on the table?

The heart of what we do, not just as a government, but as friends and neighbors, is the basic part and the best part of our humanity.

That’s why my budget will include an additional $1.7 million in new monies to expand elderly nutrition programs, including home delivery and congregate meals, as well as for stocking food pantries and shelters around the state.

I am also expanding eligibility for federal food assistance so as to help an additional 19,000 people.

We can help people put food on the table but we also need to help get them back to work – temporarily and permanently.

For the short term, I am setting aside $7.5 million in the budget to bring back an old idea – one that dates back to the Depression, one in which my own father participated: the CCC, or Civilian Conservation Corps.

In our case it would be the Connecticut Conservation Corps and we would hire people in need of work, particularly those with dependents, and pay them a decent wage to help with projects such as cleaning beaches and clearing trails at state parks.

Good and honest work on projects we need undertaken in exchange for good and honest wages that some need to support their families.

The program has not yet been finalized but money has been set aside in the budget. I ask your help, as the Legislature, to craft a formal and final plan with me so that we can put it into place by July 1.

I also ask your help in another area. As I have said repeatedly, we need to position Connecticut to soar when our economy recovers. That means making Connecticut the best place to do business and making sure we have the nation’s most well-trained work force.

In short, I want Connecticut at a competitive advantage over all other states, particularly neighboring states.

I believe that we cannot raise taxes on employers at this time. They are struggling, just like our families. Higher taxes could likely be the last financial straw that causes companies to close and employees to lose jobs. If we hold firm and neighboring states raise business taxes, as they are talking about doing, then we will be at a competitive advantage very quickly.

And the advantage will be all ours if we recognize the incredible engines of economic growth that are “green collar jobs.” Engineers, plumbers, chemists, scientists, HVAC technicians and builders all will benefit in a clean and green future.

I want to introduce green principles into education, manufacturing, engineering and other aspects of business and industry. I want to focus on specialized green job training.

And there is another way in which we can “green up” our state and that is by expanding our bottle bill law to include non-carbonated beverages like water. My budget provides for it.

Green is great, but we need to do more. I am proposing a sweeping overhaul of the state’s business agencies – bringing all of our efforts, from start-up financing to business recruitment, the arts, tourism and film programs, under unified leadership at DECD – the Department of Economic and Community Development.

DECD would also take over responsibility for two key state efforts – the Small Business Innovation Research program and the variety of state programs intended to encourage the development and clean-up of brownfields.

I am also proposing we combine our two financing agencies – the Connecticut Development Authority and Connecticut Innovations – into the new Connecticut Economic Innovations Authority.

These consolidations will eliminate duplication of services, ease confusion among business leaders about where to go to for help and untangle the variety of agencies, acronyms and applications that slow the process of job creation.

And I have another new initiative about which I am truly excited.

I am proposing to merge the vo-tech high school and community college systems, together with the state’s Office of Workforce Competitiveness, to create the Middle College System – a system of coordinated academic programs that bridge the gap between high school and higher education, allowing students to earn 60 college credits within five years of starting high school.

Middle College students would have access to state-of-the-art facilities and gain college-level experience tuition free.

My proposal lights a clear path to success for more than 10,000 students now in Connecticut’s vo-tech high school system and will sharply improve the graduation rates and career prospects for our community college students – all while ensuring that a skilled work force will be in place to help us achieve economic success.

We already have a skilled work force in our state employees. To them I say thank you – thank you for your service and for what you have already done to help us in these challenging times.

And thank you to those who have come to the table so that we may discuss, with comity, how we may reduce costs further.

Let me also state unequivocally to all our state employees: You are not the reason, not the cause, of our economic troubles. But you must be a part of the solution – and sooner rather than later.

Solutions. Doing more with less. Making government more affordable. No tax increases. No cuts to state aid. Mandate reform. Probate reform. Green collar jobs. Regionalization. Food and job assistance. A new Middle College system.

Good news at a time when we all need some good news.

Good news tempered by the pain and sacrifice of necessary spending cuts and deferred programs and projects.

This is a time of challenge like no other in our memories. It is a time for us to come together, not rend apart.

To those who would disparage or dismiss the cuts or reforms my budget contains: You have that right. But you also have the obligation to put your specific alternatives on the public table – and to do so soon.

We need to act swiftly in these turbulent times, for the families of Connecticut need our help, need our leadership.

I commend to you the words of Abigail Adams in a letter written to her son 230 years ago – words as relevant today as they were when she put pen to paper:

“It is not in the still calm of life … that great characters are formed. The habits of a vigorous mind are formed in contending with difficulties. Great necessities call out great virtues. When a mind is raised … then those qualities which would otherwise lay dormant, wake into life and form the character of the hero and the statesman.”

Help me contend with difficulties. Be virtuous. Raise your minds.

Our journey begins today but it will not end until the darkest of ocean clouds dissipate and the brightest of blue skies open to a future of endless possibilities for our citizens.

Thank you and God bless the great State of Connecticut.

Walk Lincoln's Life, 2009 is Bicentennial

"Every effect must have its cause. The past is the cause of the present, and the present will be the cause of the future. All these are links in the endless chain stretching from the finite to the infinite."
- Abraham Lincoln

This year celebrates Abraham Lincoln's 200th birthday, a man well worth studying for many reasons, among them his integrity and leadership in time of crisis.

Lincoln Bicentennial year-long events, exhibits and activities include free admission Feb. 12 to the David Wills House, the place where Lincoln spent the night prior to delivering his Gettysburg Address.

"Exhibits and restored rooms highlight Lincoln's visit and the aftermath of the July 1863 battle that left the town dealing with wounded and dead soldiers outnumbering civilians 11 to one. The house is located at 8 Lincoln Square in downtown Gettysburg," according to the Civil War Traveler, a information-rich resource online.

The David Wills House is on the National Register of Historic Places, acquired by the National Park Service in 2004. Project partners are Gettysburg National Military Park, Main Street Gettysburg, and Gettysburg Convention and Visitors Bureau. Overall cost, $6.6 million. Architects, GWWO of Baltimore; exhibit designers, Gallagher & Associates of Washington; and construction, McCoy Brothers, Carlisle, Penn.

To read about Lincoln's visits to Connecticut, see The Lincoln Institute site, which opens with this line "On September 11, 1848, Congressman Abraham Lincoln probably landed at Norwich, Connecticut, after taking a steam ship from New York City . . . "

Business, General Aviation, Face Economy

General aviation is defined as "All civil aviation operations other than scheduled air services and non-scheduled air transport operations for remuneration or hire."

Citing the state of the economy, the National Business Aviation Association (NBAA) cancelled plans to hold an independent Light Business Airplane Conference in San Diego.

Instead, the association will incorporate elements of the conference into its regular annual meeting in Orlando, Florida, later this year, Oct. 20 to 22.

"NBAA is totally committed to serving those who rely on light business airplanes, as well as those who are considering how to fit these aircraft into their business models," said Ed Bolen, CEO and president, NBAA. "But in this economic climate, it is difficult to launch an event that our members and exhibitors expect. Any change in plans has consequences and we regret the inconvenience to all who finalized their itinerary for San Diego. Still, we believe the step we have taken is the right one for both attendees and exhibitors in this very challenging economy."

Founded in 1947 and based in Washington, D.C., the NBAA represents more than 8,000 business aviation member companies of all sizes and located across the country. The NBAA Annual Meeting & Convention is the world's largest civil aviation trade show.

One of the top priorities of Craig Fuller, new president of Aircraft Owners and Pilots Association (AOPA) is an outreach campaign to educate influencers about general aviation (GA).

“The broad issue is that I don’t believe that policy makers and opinion leaders fully understand the value of general aviation today. I say that as somebody who was in government and a private pilot and was always surprised that people in public office, many of whom use GA a lot, didn’t really see it as something that was occurring every day. Thousands and thousands of aircraft and pilots utilizing GA for business or pleasure or medical emergencies. So, I think because we’re not as well understood as we could be, we become more vulnerable to some of the issues like closing of airports and user fees to disproportionably impose a cost on general aviation for air traffic control services.”

The combined total of individuals represented by these constituent member groups of the International AOPA is more than 470,000 pilots, who fly general aviation aircraft for business and personal transportation. Top image courtesy of Pilots N Paws, story preview.

First-Ever Online New England Film Festival

Film makers, your audience awaits.

Entries are sought now for the first-ever Online New England Film Festival, presented by NewEnglandFilm.com.

Planned to be an annual event, filmmakers can choose from the following categories: animation, children/family, comedy, documentary, and drama. Showcase launch of selected films is Sept. 1, 2009 through Oct. 16, 2009.

The films will be selected by NewEnglandFilm.com staff and a festival jury.

In addition, festival organizers partnered with Women in Film Video New England to jury a special category New England Women Above the Line for films under 30 minute produced, directed, or written by a woman, or women based in New England.

During the online festival, viewers will be able to post comments on films, share films with friends, and vote on favorites.
An awards ceremony and screening will take place the weekend of Oct. 17, 2009 in Boston, Mass.

In 2006, Connecticut established a tax credit to bolster the in-state film industry by allowing productions spending at least $50,000 to receive a credit on up to 30% of their costs on all goods, services, and labor. Consult the official Digital Media and Motion Picture Tax Credit Guidelines for a list of eligibility requirements.

Plug In, MIT Feeds Global Brain Power

Humans like to solve problems. The Massachusetts Institute of Technology (MIT) is full of problem-solving people who have created a way to fire up learning across the globe.

The world may tap into the online publication of virtually all MIT course content through OpenCourseWare (OCW).

MIT Sloan offers case studies, teaching videos and other innovative instructional resources to anyone with access to the Internet. The site was developed to provide access to MIT Sloan's most current work and developments at no charge. (That means free.)

Of interest, 15.963 Advanced Strategy uses newly-available case studies in a survey of the roots of long-term competitive advantage in unusually successful firms. Browse courses in IP law, economics, business, energy, physics, applied technology.

OCW averages 1 million visits each month; translations receive 500,000 more. (That's a lot of learning.)

To fuel the access to a computer or to join the ranks of a corporate sponsor such as The Ab Initio Corporation and other business leaders (Google Grants, Position2, Seagate, Inc., United Nations Development Program), see this link.

Keep The Faith, Fenway Getting Spiffed Up

The scent of fresh-mown grass - it's really not that far away.

During the 2009 off season Fenway Park, home of the Boston Red Sox, is undergoing construction work.

And then there is the dawn of something new for members of Red Sox Nation - development of a "mini Fenway Park" - no kidding. Officially, the operator is Kids Replica Ballpark, Inc., a nonprofit and 501 (c)(3) . The mission? Build a pint-size Fenway for youth baseball, softball and tee ball programs, with groundbreaking expected this spring. Progress will be fueled by private funds in the form of sponsorships from corporations and individuals.

(And a dome will eventually rise over the miniature park to ensure year-round use.)

For official report dates for all Major League Baseball teams and the complete details about MLB Spring Training 2009, follow this link for news and developments.

Manufacturers Part of Economic Stimulus, Jan. 30

Would $2 million help Connecticut small manufacturers create and retain jobs? That amount is expected to be approved by the State Bond Commission at its meeting on Jan. 30.

The $2 million is included in the Governor’s $525 million Connecticut Stimulus Package that is part of the Jan. 30 State Bond Commission agenda.

For the way companies outside the state size up potential locations to grow business, see Expansion Management magazine online - state by state the publication lists pros and cons for site selection.

The more than 5,000 manufacturers in Connecticut employ 190,000 people and account for about 12 percent of the gross state product. Manufacturing also accounts for nearly 83 percent of Connecticut exports, one of the strongest and growing economic sectors of the state.

If approved, the stimulus money would fund the Department of Economic and Community Development (DECD) loans and grants of up to $200,000 to manufacturers through the Governor’s Small Manufacturers Competitiveness Fund. Loans can be used for plant expansion, machinery and equipment purchases, relocation, technical support and financial assistance.

World Economic Forum Channels New Media

More and more business people and world leaders are seeing the power of YouTube and blogs for broadcasting ideas.

Now viewers can comment on the video proceedings of the World Economic Forum (WEF) annual meeting in Davos -"Shaping the Post-Crisis World" - Jan. 28 to 1 Feb. 2009. (The WEF YouTube slot had some 83,087 channel views as of Jan. 26.)

The WEF is an independent international organization incorporated as a foundation in 1971, and is based in Geneva, Switzerland. For a list of global corporate business leaders attending the event see this link.

This year two “citizen reporters” from MySpace and YouTube are invited to the annual gathering in Davos following online contests on both sites. Reports will be filed to their respective communities using the MySpace and YouTube platforms.

Rebecca McQuigg from Los Angeles, California, represents the MySpace community; Arianna Huffington, co-founder and editor-in-chief of The Huffington Post; Frank Luntz, communications specialist and political consultant; and Chris DeWolfe, CEO and co-founder of MySpace.

McQuigg receives an all-expense-paid travel to/from Davos and will report by blogging/vlogging on MySpace (http://www.myspace.com/myspacejournal), and on the Wall Street Journal online.

Follow the forum exchange of ideas on Twitter at http://twitter.com/davos or Qik (mobile live video news) or visit the Davos Universe at http://www.netvibes.com/davosconversation.


The WEF is committed to improving the state of the world by "engaging leaders in partnerships to shape global, regional and industry agendas." Its mission is impartial and not-for-profit; and is "tied to no political, partisan or national interests."

Connect to World Economy, Forces of Change

Edward Guay, principal, Wintonbury Risk Management, is the featured speaker of the World Affairs Council of Connecticut, Wednesday, Jan. 28 at The Hartford Club. The program is sponsored by Bank of America.

Registration begins at 11:45 a.m., with a luncheon at noon.


Guay is a frequent speaker on current economic and political issues, demographics and investment topics. He served previously as the chief economist of CIGNA Corporation and as senior managing director of CIGNA Investment Management. As a global macro strategist, he has a long history of accurately predicting major shifts in business, financial, and political conditions. He specializes in the identification of those forces for change that will shape future events.

Guay is a strategist to individuals, corporations and governments, both in the U.S. and abroad. He is a member of the Hartford Society of Financial Analysts, the National Association for Business Economists, and holds a seat on the World Affairs Council of Connecticut board of directors.

General admission is $50, space is limited; call (860) 241-6118 or this link. The Hartford Club is located at 56 Prospect St., Hartford.

The World Affairs Council of Connecticut is a nonprofit, nonpartisan organization promoting greater understanding of global ideas and issues.

Corporate Counsel Meet; Aetna Pro Bono Award

The American Bar Association (ABA) Section of Litigation will hold its 28th annual Committee on Corporate Counsel Continuing Legal Education Seminar Feb. 12 to Feb. 15 at the Walt Disney Swan Resort, Lake Buena Vista, Fla.

The seminar is designed for corporate counsel and provides ample opportunity to learn and network with other professionals. Sessions will cover critical issues in corporate law, including the meltdown of the financial markets, white collar crime, use of outside counsel, business litigation in a world economy, practical tips, ethics and regulation. The agenda also includes sessions on litigation management, mega cases, and a general counsel forum.

The Law and Regulatory Affairs Department of Aetna, Inc. is the recipient of the committee’s 11th annual pro bono award which will be presented during the seminar at a luncheon on Feb. 13.

The award recognizes a company whose legal department demonstrates "exceptional commitment to providing free legal services" - and puts the spotlight on those who do pro bono work from an in-house law department to inspire others. Aetna’s law department is being honored for its efforts on behalf of the elderly, children and non-profits. The firm was one of the first corporate law departments to adopt a pro bono program more than 25 years ago, and it continues to foster a culture of volunteerism that encourages lawyer and paralegals to use their professional skills on behalf of those less fortunate in the community.

In 2008, the department was a key participant in the development of a model pro bono project in three Connecticut clinics to serve Holocaust victims eligible for reparations announced by Germany in 2007. The work was done in collaboration with Bet Tzedek, a Los Angeles-based non-profit legal services organization.

Robert Simpson, committee co-chair, will present the award to William Casazza, Aetna senior vice president and general counsel.

For the full program listing all sessions and speakers follow this link.

With more than 70,000 members, the ABA Section of Litigation includes trial lawyers, judges and others involved in all aspects of litigation and the dispute resolution process. Its mission is to "promote justice both domestically and internationally, as well as enhance public understanding of and respect for the legal profession."

With more than 400,000 members, the ABA is the largest voluntary professional membership organization in the world.

Wallace to Serve, CDA Board Member

Carol Wallace of Wallingford has been selected by Governor Rell to the board of the Connecticut Development Authority (CDA).

CDA provides debt financing and investment capital to help businesses grow in Connecticut by business investment and financing companies and projects that contribute to the state economy, technology base, intellectual capital, urban infrastructure and tax revenues.

The board of directors provides direction and oversight to ensure that CDA's mission is executed in the most effective and productive manner. Wallace will serve for a term that will end at the conclusion of Rell's term or until a successor has been appointed and has qualified, whichever is longer.

Wallace is president and chief executive officer of Middlefield-based Cooper-Atkins Corporation, a manufacturer of temperature, time and humidity instruments. She is the president of the Connecticut Technical High School System Foundation Board, serves as a director and audit committee chairwoman on the board of directors of Connecticut Water Company, and serves as a director on the board of directors of Zygo Corporation.

Zygo Changes Direction for ESI Plans

Zygo Corporation has withdrawn its recommendation for a takeover by Electro Scientific Industries (ESI) Inc.

Zygo, based in Middlefield, said the merger agreement will remain in effect unless terminated in accordance with its terms. This gives Electro Scientific, a global corporation which makes high-technology manufacturing equipment, the right to end the deal.

Zygo said it notified ESI of the board's decision following a reevaluation of the deal due to changes in conditions since the deal was announced on October 15, 2008.

Under the deal, Zygo shareholders would get 1.0233 shares of ESI stock for each share of Zygo stock.

Zygo Corporation is a worldwide supplier of optical metrology instruments, precision optics, and electro-optical design and manufacturing services, serving customers in the semiconductor capital equipment and industrial markets.

ESI is one of the world's leading suppliers of photonic systems for microengineering production applications, aligned with three market segments: semiconductors, interconnect/micromachining, and passive components.

President Deploys Technology To Communicate

Follow President Barack Obama through the day via Twitter using Tumblr. (Tumblr is a conversational-style real-time platform, sort of a scrapbook for the historic day.)

From the Official Presidential Inaugural Committee Twitter log, "We're using Tumblr to create a dedicated feed of Obama-Biden Inaugural content for the blog today http://bit.ly/2ob5EQ"

See http://twitter.com/obamainaugural for other real-time communications called "tweets" and see how the potential of communication technology is deployed by the incoming staff and President.

Merski to Head Zurich's Federal Affairs

Zurich Financial Services Group has appointed Rich Merski, who most recently managed AIG's Washington government affairs activities, to lead the firm's federal government affairs in the U.S.

As senior-vice president and head of federal affairs in the U.S, Merski will be responsible for overall strategy and legislative affairs for Zurich's U.S. Farmers federal legislative and political affairs activities.

Zurich is the fourth-largest European insurer, and has a growing presence in the United States through Farmers Group Inc.'s insurance units.

The firm's U.S. companies include Zurich North America Commercial and Zurich Global Corporate, North America.

The Ocean's Pulse, Science Technology

Dr. Malcolm Spaulding is founder and principal of Applied Science Associates (ASA), a global company headquartered in Narragansett, Rhode Island, and with offices in Seattle, Brazil, and Australia. The company uses applied science and advanced research to watch the ocean's health and its clients span the globe.

Spaulding, professor of ocean engineering and director of the Center of Excellence in Undersea Technology at the University of Rhode Island URI), is now elected the first president of the Northeast Regional Association for Coastal Ocean Observing Systems (NERACOOS).

NERACOOS was established to network and expand the existing observation and prediction capacities of multiple institutions and agencies throughout New England and maritime Canada.

It is one of 11 regional associations developed to support the U.S. Integrated Ocean Observing System, developed to support the National Oceanic and Atmospheric Administration (NOAA) Integrated Ocean Observing System to observe the nation's coastal waters.

Imaging collection, NOAA.

The region includes the waters that lap the coasts of Maine, New Hampshire, Massachusetts, Rhode Island, and Connecticut.

Spaulding has already proposed a major regional and national initiative to provide meteorological and oceanographic data in support of offshore renewable energy development from tidal currents, waves, and offshore winds.

“Spaulding was nominated to the 18-member board of NERACOOS by the Northeast Regional Ocean Council and represents the state of Rhode Island. The council is a state and federal partnership with a goal of engaging in regional protection and balanced use of ocean and coastal resources.

He also serves as the senior advisor to the members of Rhode Island Ocean Special Area Management Plan, which was initiated in August 2008 to assist in the siting of offshore renewable energy facilities.

Training Grants to Green Connecticut Brownfields

A "brownfield" is a property where the expansion, redevelopment, or reuse of which may be complicated by the presence or potential presence of a hazardous substance, pollutant, or contaminant, according to the U.S. Environmental Protection Agency (EPA).

It is estimated that there are more than 450,000 brownfields in the U.S., and because of its industrial past and present, Connecticut has its share, even in rural communities.

Grants have been awarded in 12 states including Connecticut, to share $2.6 million in job training grants to clean up contaminated properties and turn them into productive community assets. The recipients are Northwest Regional Workforce Investment Board, Waterbury, and The Workplace, Inc., Southwestern Connecticut Regional Workforce, Bridgeport. For details, see this EPA link.

The EPA Brownfields Program, earmarked grants of $200,000 each to non-profit organizations, workforce investment boards, and state and local governments.

The grant money will "teach environmental assessment and cleanup job skills to individuals living in areas near brownfields sites" in Arkansas, California, Connecticut, Illinois, Indiana, Maryland, Massachusetts, Michigan, New Jersey, Oregon, Tennessee, and Wisconsin.

Change Constant in Business

Winds of change are blowing in one town center in Connecticut. Two vacancies in a village along the Connecticut River may create opportunity for another business . . . or two. And a long-time business stands out as a community resource. See full story, here.

Priceless By Association

Burgundy-colored velvet cover, a bit crumpled in spots, but a Bible in very good condition.

The 1853 Oxford Bible with no historical associations would "get $30 or $40 today. But by association, it becomes priceless."

Pictured here is the same tome that Abraham Lincoln placed his hand upon and swore "I do solemnly swear that I will faithfully execute the office of President of the United States, and will to the best of my ability, preserve, protect, and defend the Constitution of the United States." (U.S. Constitution, Article II, Section 1.)

Then he spoke to the gathered crowd and wrapped up with "the mystic chords of memory . . . will yet swell the chorus of the Union, when again touched, as surely they will be, by the better angels of our nature." (He had won the office just months after Southern states had seceded from the Union to form the Confederate States of America.)

This is the first time an incoming president will swear in upon Lincoln’s Bible, part of the Library of Congress collection. (It is not required to use a Bible during the oath of office ceremony.)

Photo credits: "Washington, D.C., 1861." [Lincoln Inauguration.] Copyprint deposit, 1861. American Treasures of the Library of Congress exhibition.

To watch a CBS video about the book and how it came into the collection, see this link.

For an interview with Clark Evans of Library of Congress reference services, rare books, and special collections division, see full story here.

GM Pensions, Investments Change

General Motors Asset Management (GMAM) has appointed Tony Kao as CIO, P&I reports. Previously, he was senior managing director of global public markets for GMAM.

GMAM manages the $110 billion in defined benefit and defined contribution plan assets of General Motors.

Land Use, Aerial View, Applications

Iowa is the third state in the U.S. to compile aerial photos into a digital format database, joining Connecticut and Delaware.

Aerial photos can be used by anyone with access to a computer and the Internet. Once a time-consuming process, information in multi-layered detail can be found at a keystroke.

Images have regulatory and resource management uses, such as for planning land use and brownfields programs.

What Makes Mites Tick; Why That Matters

The U.S. National Tick Collection is on permanent loan to Georgia Southern University (GSU) and is located in the same building as the Institute of Arthropodology and Parasitology. Owned by the Smithsonian, it is the largest collection in the world. For why that matters for human health, read full story, here.

Largest Publicly-traded Wholesale Distributer?

United Natural Foods Inc. (UNFI) is the largest publicly-traded wholesale distributor to the natural and organic products industry.

Corporate headquarters? Dayville, Connecticut.

Steve Spinner is president and CEO.

Recent UNFI operating results:

"Total sales grew 17.4% to $864.2 million. Net of our specialty business, which is not included in our 2008 results, sales grew 10.1% to $811.1 million. Our sales growth was driven primarily by our sales to independent retailers and conventional supermarket channels which grew by 11.5% and 56.2% respectively.

"Net of specialty, conventional supermarkets grew at 7.6%. As a percentage of our business in the quarter, super naturals were 31.9%, supermarkets 19.8%, independents 42.9%, and food service 2.8%."

No small potatoes.

Distribution operations are divided into five units: UNFI, Eastern Region; UNFI, Western Region; Albert’s Organics; Select Nutrition; and UNFI Specialty Distribution Services. In addition to distribution operations, divisions include Blue Marble Brands, the Natural Retail Group and Hershey Import Company.

The company distributes throughout the United States and to more than 40 other countries. With more than 60,000 products, the company supplies some 17,000-plus customers nationwide, including natural foods chainstores, independent natural products retailers, and conventional supermarkets.

Keeping ahead of the pack in energy and green building, UNFI has installed solar electric sytems on the rooftops of Dayville and California distribution centers.

"The 1.19 megawatt solar panel array at our Rocklin (CA) facility generates more than 1.5 million kilowatt hours of clean energy annually. The 550 kilowatt solar panel array on the roof of our Dayville (CT) distribution center generates more than 600,000 kilowatt hours of clean energy annually."

UNFI will in Palm Beach at the convention center for the UNFI Southeast Regional Tabletop Trade Show Jan. 21 and 22. For the story behind the company's germination and growth, see this link.

Photo of UNFI truck picking up goods is from Paul's Grains, "chemical-free cereal and flour."

International Shipping CEO, CMA Commodore

Capt. Wei Jiafu, president and CEO of China Ocean Shipping (Group) Company (COSCO) has been named as the Connecticut Maritime Association (CMA) Commodore for 2009.

The award will be presented to Capt. Wei on March 25, at the annual CMA conference and trade exposition in Stamford.

The CMA mission is to provide a platform for the "development and growth of the international maritime and trade industries." The annual conference, held each March in Stamford, is the premier shipping gathering in North America.

Former CMA Commodores include Ole Skaarup, Jacob Stolt-Nielsen, George Livanos, Phil Loree, Thomas Moran, Gregory Hadjieleftheriadis, Helmut Sohmen, Gerhard Kurz, William O’Neil, Richard du Moulin, Per Heidenreich, Mark Saverys, Frank Tsao, Stelios Haji-Ioannou, Peter Georgiopoulos, C. Sean Day, Torben Jensen, Morten Arntzen and John Fredriksen.

COSCO was founded in 1961 as the pioneer of international shipping in China; together with the re-construction of national transportation resources on February 16, 1993, China Ocean Shipping (Group) Company (COSCO) has grown into a $17 billion corporation. COSCO Group now owns and operates more than 800 modern merchant ships.

Some Manufacturers Fold, Others Grow

This is a Xebra owner registration card, from ZAP electric vehicle company (ZAP stands for zero air pollution). The California company makes advanced technology vehicles, delivering more than 100,000 of them in more than 75 countries.

Integrity Automotive, LLC, is partnering with ZAP (OTCBB: ZAAP) in a new venture to manufacture all-electric vehicles.

Integrity has completed an application for a $200 million loan from the U.S. Department of Energy (DOE) Advanced Technology Vehicles Manufacturing Loan Program.

"These are major steps forward in our effort to make Kentucky the first state in the nation to manufacture all-electric vehicles," said Randall Waldman, Integrity CEO.



Kentucky state government last year approved economic development incentives for Integrity Automotive, and issued a new regulation making ZAP electric vehicles legal for use on limited access Kentucky highways. Franklin and Simpson County, (Kentucky) officials reached an agreement with Integrity last year to locate the automaker's Kentucky manufacturing facility at a 270-acre site there.

Integrity Automotive, LLC, is a privately-held company headquartered in Shepherdsville. It will solely own and operate its future electric-vehicle manufacturing facility in Franklin. The company has an exclusive worldwide manufacturing agreement with ZAP to build fuel-efficient transportation products at the new facility, subject to certain terms and conditions.

The Franklin plant is projected to produce more than 100,000 vehicles annually and employ up to 4,000 people.

Convergence Partners Working On It

Yahoo Inc. has rolled out a list of partners to help the company bring the Internet and television together.

At the Consumer Electronics Show in Las Vegas, Yahoo said it has forged deals with Samsung Electronics Co. Ltd., LG Electronics Inc., Sony Corp., Vizio, and others.

Applications will deploy for a wide array of Web activities, such as watching videos on Google Inc.'s YouTube.com, social networking on News Corp.'s MySpace.com, tracking stocks and sports teams, buying and selling on eBay, messaging friends using Twitter, or using e-mail or other Yahoo's applications.

Yahoo, which has lagged behind larger rival Google in the Web search market, plans to finesse the technology to also sell advertising, according to a report from Reuters.

Twitter, Tweet, Hard to Beat

Heard of Twitter?

A networking tool in real-time, the way people use this new form of communication is still developing.

To sample the conversations and applications, see http://search.twitter.com/search and enter a search word. Look for jobs, people, or just "listen" to the back-and-forth talk blips, called "tweets."

See It? Mobile Phone Internet Market Frontier

"Mobile phone usages surpasses personal computer ownership (80 percent) - but just 15.6 subscribers actively use mobile Internet services."

What a market opportunity for device technology, content generators . . . and advertising.

The pithy and insightful information continues from the recent J. P. Morgan Global Equity Research report:

"Not only have mobile phones been proven to be a vehicle of scale, they also have a broad reach across various demographic segments. Surprisingly, Nielsen data suggests that mobile Internet usage is prevalent across age groups.

"As of May 2008, the U.S. mobile Internet audience was about evenly split between those over the age of 35 (48%) and those under the age of 35 (52%).

"Reach is also found across genders and income levels. Nielsen data shows that 56% of mobile Internet users are male and 44% are female. And, while 24% of mobile Internet users have household incomes of $100,000 or more, 26% have a household
income of less than $50,000. We think this reach will broaden the medium’s appeal to advertisers."

"Although usage is less frequent than on personal computers, mobile Internet visits span a variety of verticals. According to Nielsen Mobile data, 40% of mobile Internet users find sites through search engines, 22% through direct navigation, 18% through their favorite links, and 17% from their carrier’s portal.

"Yahoo! Mail has the largest unique audience with 14 million unique monthly users in May, with Google Search and The Weather Channel coming in next with 9 million unique monthly users.

" . . . Probably the most recognizable of phones, the iPhone, increased awareness of mobile Internet capabilities. With a handset geared toward improving mobile Internet use, users significantly increased their use of mobile Internet services. Nielsen Mobile data shows that 82% of iPhone users access the mobile Internet, making them 5 times as likely to do so as the average mobile user.

Top Devices Amongst Mobile Internet Users
(% of mobile Internet users with device)

Motorola RAZR/RAZR2 10%
Apple iPhone 4%
RIM BlackBerry 8100 series (Pearl) 2%
RIM BlackBerry 8800 series 2%
Motorola Q Series 2%

Source: Nielsen Mobile data

Information Wealth, Targeted Growth

Inside the new J.P. Morgan Global Equity Research report Nothing But Net: Outlook for Global Internet Stocks is the prediction that the mostly performance-based U.S. search ad market will rise "10 percent in 2009 to nearly $16 billion. In contrast, display ads, which includes both performance and branded advertising, will grow only 6.3 percent to $8.4 billion this year."

"Yahoo! is particularly well positioned to provide targeted advertising to a network, in our view. As one of the top-ranked websites by unique visitors (according to comScore), Yahoo! has a wealth of information about visitor habits and preferences.

"We also think it will take time for generalized non-targeted inventory to catch up to the monetization of targeted premium inventory."

Online video ad growth is on the brink of healthy gains in 2009. But, unlike television, which still can count on advertisers to respond to CPMs (advertising bought on the basis of impressions), online video can't guarantee viewership for any specific video the way TV does. (Holding up growth are factors such as uneven quality and copyright issues.)

One model to watch is Google experiments with how to monetize YouTube videos. A viewer searches, then watches a favorite tune video, then can click on a link to buy that song or related product from Amazon or iTunes or others, with a percentage going to YouTube.

Transfer of Wealth? Or Innovative Economy

Projected oil use cost and importation over the next 10 years is $10 trillion. That's the greatest transfer of wealth in the history of mankind.

American ingenuity applied to any problem usually serves up net results. During war, innovations are forced into reality due to necessity. Humans working literally under the gun, means improvisation with a real deadline.

According to a 1995 study by the Organization for Economic Cooperation and Development, periods of high productivity run right beside periods of high job growth throughout the last half of the 20th century.

"An organization's ability to learn, and translate that learning into action rapidly, is the ultimate competitive advantage."

- Jack Welch
former CEO, General Electric

“Innovation leads to job growth directly and clearly,” said Robert Atkinson, president, Information Technology and Innovation Foundation (ITIF), a non-partisan "think tank".

In a new ITIF report UC Davis scholars Fred Block and Mathew Keller analyzed a sample of innovations recognized by R&D Magazine as being among the top 100 innovations of the year over the last four decades. (See full report.)

The ITIF was launched in 2006 and is co-chaired by Jennifer Dunn and Calvin Dooley, former members of Congress.

The mission is to "formulate and promote public policies to advance technological innovation and productivity internationally, in Washington, and in the United States. Recognizing the vital role of technology in ensuring American prosperity, ITIF focuses on innovation, productivity, and digital economy issues."

Development, Greening of Brownfields

Five brownfield sites across Connecticut will receive a total of $2.25 million to assist in redevelopment efforts under a pilot program funded through the state Bond Commission.

The Brownfield Municipal Pilot Program was created in 2006 and expanded through legislation in 2007. Under the program, the Department of Economic and Community Development (DECD) designates five pilot projects in a variety of communities where untreated brownfields are hindering economic development. Two projects must be in cities with populations more than 100,000; one must be in a city with a population between 50,000 and 100,000; and one must be selected from a municipality with a population of less than 50,000. The fifth project is selected at the discretion of the DECD commissioner.

The projects include:

Stamford, $450,000 for the Harbor Point Partnership Project, an 80-acre former industrial site that is being redeveloped for office, housing, hotel and mixed-use development. Pilot funds will be used for remediation at the location of a new 3.25-acre public park.

Waterbury, $650,000 for the clean-up of the Cherry Street Industrial Project. The pilot funds will be used for abatement, demolition and remediation of two vacant industrial buildings. A new, 63,000-square-foot building will be built on the site to accommodate the expansion of Bender Plumbing Supply.

Community between 50,000 and 100,000 in population

Norwalk, $300,000 for remediation of the three-acre South Norwalk train station site, which is targeted for transit-oriented redevelopment.

Community with less than 50,000 in population

The Georgetown Redevelopment Project, Redding, $425,000 for remediation and removal of contaminated soil at the site of the 51-acre former Gilbert & Bennet Wire Mill. On completion, this multi-phase project will include housing, retail, community facilities and a new train platform.

Discretionary community

Shelton, $425,000, remediation of a one-acre site that will be offered for private sale and redevelopment. Adjacent to the Housatonic River, this site was the location of chemical manufacturer Axton Cross. The site is a key component of the redevelopment of downtown Shelton known as Enterprise and Commerce Park.

In related news, Gov. M. Jodi Rell has named the president of Virginia Industries of Rocky Hill, Laura Grondin, to become the new chairwoman of the Connecticut Development Authority (CDA).

Grondin, who lives in Haddam, has led the Rocky Hill manufacturer since 1999 and has been a member of the CDA board of directors since November 2007.

Formerly president of the Hartford Bearing Co., a division of Virginia Industries, Grondin has served on many public and private boards, agencies, and associations. These include: the Connecticut Business & Industry Association; the Children’s Law Center of Connecticut; the Connecticut Women’s Council, and the Greater Hartford Chamber of Commerce, Arts Council and Jaycees. She also served as a member of state government’s Brownfields Task Force. She received her bachelor’s degree from Yale University.

The General Assembly established CDA as a quasi-public agency in 1988 to provide debt financing and investment capital to help Connecticut businesses grow.

Grondin succeeds L. Scott Franz, who was elected in November to become the new state senator for the 36th District. Frantz also had chaired Bradley International Airport’s board of directors, from which he resigned recently.

Parker Brothers Shotguns, Meriden, Connecticut

Legends were born in Meriden, Connecticut. One such story is Parker Brothers Shotguns, known and avidly collected around the world.

Recently the "Czar Parker gun" sold for $287,500 at James Julia Auction in Maine.

Related advertisements, catalogues, and related memorabilia are being sought by a corporate business. For details, e-mail the editor.

Ted Turner: Go "Clean, Renewable Energy"

"I'd put my money on the sun and solar energy. What a source of power! I hope we don't have to wait 'til oil and coal run out before we tackle that."
- Thomas Edison (1847–1931)

The new "plastics" is clean, renewable energy, according to Ted Turner, entrepreneur, who invented CNN, among a host of other enterprises.

Turner, in a conversational interview at the University of Southern California Center on Communication Leadership, pointed out that in the movie The Graduate, the secret was whispered that "plastics" were the new frontier in business.

That was then, this is now. He strongly advised audience members (including many budding journalists and broadcast students) to shift focus to renewable energy industries. (He himself has invested millions in Dome-Tech Solar of Branchburg, New Jersey, to create DT Solar. And is thinking of harnessing wind on the vast stretchs of land he owns.)

"What tax breaks and incentives there are should go for the new renewable, locally produced energy that creates jobs here in the United States. That keeps the money in our own economy, because we're just bankrupting ourselves, as Boone Pickens says, by spending three-quarters of a trillion dollars a year importing foreign oil."

Turner deflected a query on where the future was for media, saying that he was no longer paid by the industry to give his opinion (their loss).

Instead, he said, he truly wants to save the world and is working on many fronts, including women's rights, the UN, malaria prevention (by simple means such as vaccinations and netting) and humanitarian venues.

Impassioned, he talked about the destruction of the environment and the folly of propping up (by bail-out) the automotive industry still making huge vehicles (he owns the first Prius).

Then he spoke clearly about the madness of having "hair-trigger nuclear weapons" in both Russia and the United States that were "impossible to recall once fired." He passionately expounded on his efforts to get this leftovers from the Cold War dismantled and disabled. "If Russia fired one at the U.S. and Bush called Putin to say, we unconditionally agree to your terms' - Russia would say 'sorry, you have 15 minutes.' There is no way to call them back or even destroy them in the air."

Talk about food for thought.

"Renewable energy also creates more jobs than other sources of energy - most of these will be created in the struggling manufacturing sector, which will pioneer the new energy future by investment that allows manufacturers to retool and adopt new technologies and methods."

- Jay Inslee, Congressional leader on the New Apollo Energy Project, an effort to make America the world leader in clean energy technologies.

Regarding renewable energy development, the University of Connecticut has hired six top alternative energy researchers associated with the state’s 21st Century Jobs Act – including Prabhakar Singh, a researcher with the Pacific Northwest National Laboratory in Richland, Wash., who is now the new director of UConn’s Global Fuel Cell Center.

Some $4 million in state funding has been provided to create a public-private partnership called the Eminent Faculty program, which has enabled UConn to hire national experts in alternative energy technology.

As part of the partnership, UTC Power of South Windsor, the Northeast Utilities Foundation and FuelCell Energy of Danbury, contributed a combined $2 million as an industry match. Other participants at the center include Distributed Energy Systems, CT Clean Energy Fund and national funding agencies such as the U.S. Department of Energy, National Science Foundation, DARPA, ONR.

The initiative is also expected to help meet the state’s goal of reducing fossil fuel consumption by 20% and replacing it with clean or renewable energy sources by 2020.