Connecticut

Economic policy

Connecticut's economic development program are overseen by its Department of Economic and Community Development (DECD). An important task is administering federal grants made through the Community Development Block Grant (CDBG) program operating since 1974. Connecticut was the first state to establish Enterprise Zones (EZs), starting with six EZ's in 1982 and up to 17 in 2003. EZ's are areas with high rates of unemployment, poverty and/or public assistance that are granted stimulus packages of tax reductions and exemptions. In 1994, the state established the Community Economic Development Fund (CEDF) to help revitalize distressed neighborhoods by providing greater access to capital for small business and community development organizations. The CEDF provides loans, grants and technical assistance with the aim of supporting job creation and retention and community planning efforts. The state offers low-interest loans and grants for capital expenditures, machinery, land, building, training, and recruiting. In April 2003, the CEDF awarded its first grant to faith-based organization—a grant to the Philips Metropolitan Church for planning consultants for a proposed new office building. Connecticut offers tax credits and abatements for machinery and equipment. Connecticut Innovations is the state's technology development corporation. The Connecticut Economic Resource Center, Inc., coordinates business-to-business marketing and recruitment on behalf of the state. Business recruitment missions have been sent to Europe and Japan to stimulate the state's export program. In 1998, the Governor's Council on Economic Compositeness and Technology was established composed of a collection of CEO's, industry representatives, educators, labor leaders, state commissioners, and legislators. The Governor's Council adopted an Industry Cluster approach to economic development, and has since identified six clusters for particular attention in Connecticut: Tourism (already a separate office), BioScience (since 1998); Aerospace; Software and Information Technology; and Metals Manufacturing (all identified in 1999); and the Maritime Industry (2001). . In 2002, Connecticut became the first state to establish an Office of BioScience, located within the DECD. Industry Cluster program, administered by the DECD, is regularly monitored by the Governor's Council to assess progress within the clusters. In 2003, Connecticut's Industry Cluster Program was given an award for Excellence in Economic Development by the US Commerce Department because of, particularly, the private/public partnerships at the heart of the approach.