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 Friday
Facts - Archives -
Month
of June 2003
Current
Week
June 27, 2003
Legislature facing deadline of June 30th to pass budget. Governor veto’s bill that CRMA opposed. Plans for CRMA’s annual meeting underway. Retail news and notes. Washington update.
· Governor Rowland and state legislative leaders have been meeting off and on all week to try and hammer out a deal to avoid ending the state fiscal year without adopting a state budget. The fiscal year ends on June 30th.
· As we go to print with this weeks Friday Facts none of the meetings have lead to an agreement, although our sense is they are moving closer to one.
· The week was filled with mixed messages, mostly gloomy, that a deal could be made. In fact after yesterday’s meeting House Majority Leader Jim Amann (D-Milford) said, “At best, it would take a miracle”.
· Others are more optimistic. “We’re close,” Sen. Bill Aniskovich R-Branford said after a three hour meeting on Thursday. Sen. President Kevin Sullivan, D-West Hartford, added that the political rhetoric has exaggerated the difference between the sides.
· “We are within $200 million of at least having balanced proposals,” Sullivan said. “That doesn’t mean the ingredients in them are as yet resolved.”
· Our prediction is that the Legislature would make one more run at getting a budget passed before the fiscal year ends on July 1st. What is in it is still anybody’s guess.
Retail Issues Front and Center During Budget Debate.
· Given that we think the legislature will make at least one more attempt to pass a state budget, we have to be alert to the budget issues that effect retailers. Below is a listing of the key issues facing retailers during this budget:
· Sales tax increase: Both Governor Rowland and Sen. Sullivan have stated publicly that they oppose any increase in the state sales tax currently proposed to increase by ¼ of a percentage point. That is the good news. The bad news is that it has been in both budgets that have been vetoed by the governor.
· Elimination of the sales tax holiday. It is on everyone’s list to be eliminated.
· However, we have had conversations with key legislators who have indicated that there is a good chance the holiday will not be eliminated.
· Raiding the Connecticut Clean Energy Fund. Again, this fund is on everyone’s list to be eliminated, although there are some strong legislators who oppose the raid. There are also some other ideas that are being floated to find ways to keep the fund from being raided.
· Corporate surcharge. There have been various proposals floated, but none are good for CT companies. Surcharges from 10% - 20% for 2 years to 3 years have all been offered. This will be a major battle. Both the governor and the Democrats seem to like this idea.
· Gift cards and Gift certificates. This proposal comes from the Treasure’s offices. It would include gift cards as abandoned property forcing retailers to escheat balance to the state.
· All of these issues will certainly take our attention if and when the legislature takes up the budget. We will be there fighting for retailers and will keep you up to date on the budget battles.
Governor Veto’s Bill
· Much to our delight, Governor Rowland on Thursday of this week vetoed Senate Bill 1111, Public Act 03 – 172, “An Act Concerning the Sale of Electric, Gas and Oil Fired Heating Units”
· We had opposed this bill.
· Among other things, the bill would have forced retailers to act as the enforcement agent for the state by checking customers to make sure they obtain proper building permits before they purchased an electric, gas, or/and oil – fired heating unit.
· We believed the bill was not well thought out and would have untended consequences that would adversely effected retailers and consumers.
· Fortunately Governor Rowland agreed with our position and vetoed the bill.
CRMA Annual Meeting:
· Plans are underway for our annual meeting and luncheon.
· Within the next week we will be sending notices to members with the date, time and location. Also, we will once again this year be naming our retailer of the year.
· If you have suggestions for who the retailer of the year should be, please feel free to call us at 860 – 527 – 1044 or email us through our website www.crmaonline.com
Retail News and Notes and Washington Update:
· This week there were two interesting articles about retail in the New York Times
(www.nytimes.com).
· Sunday’s Times had a front-page story about the gloomy weather and shopping.
· The Times business section in the June 19th issue had an interesting story about the rising cost of workers compensation insurance.
· Speaking of workers compensation insurance. Are you seeing a raise in your rates? If so, we would like to hear from you. Please drop us a line or email if your rates have gone up.
Class Action Reform Update:
· Under the terms of class action reform legislation making its way through Congress, most class action cases will be heard in Federal Court.
· An amendment to Senate Judiciary Chairman Hatch’s by Sen.
Feinstein, which was adopted by the House during last weeks floor vote, uses a two-part calculus to determine whether a case remains in state court or moves to federal court.
· The bill (The Class Action Fairness Act of 2003 S.274) has been reported by the Senate Judiciary Committee and is awaiting action by the full body.
June 13, 2003
2nd CRMA golf classic tremendous success. State budget dilemma goes on. Washington updates. Retail news and notes.
· On Tuesday of this week, CRMA hosted our 2nd annual golf classic at Blacklegdge Country Club in Hebron, CT.
· Under perfect weather conditions, the course was full of all types of golfers who took time out of their busy schedules to help make this day a success. We thank them all for their time and support!
· Thanks to the hard work of CRMA Golf Committee, led by Golf Committee Chairman Tom
Wholley, Better Bedding and CRMA Board Chair Jim McGinn, Filene’s, over 70 golfers enjoyed a great day on the course while helping raise important revenue for
CRMA.
· We also want to thank other members of the Golf Committee whose participation and assistance in putting together this event is greatly appreciated. They were John Leone, Bristol Chamber of Commerce, Pat Madden, Westfield Shoppingtown and Marc Green from Lux Bond and Green.
· We also want to thank the over 40 companies that purchased tee signs and full-page ads for our booklet. Your contributions and were critical to us meeting our goals for the event.
· A special thank you to all those companies that donated raffle prizes for the event. The raffle was a great way to end the day, and we appreciate all the great prizes that you donated.
· After a brief time off, the golf committee will begin making plans for next year’s event. If you could not play this year but are interested in making sure you are on the list for next year, please feel free to email us through our website at www.crmaonline.com or call our office at 860 – 527 – 1044.
State budget update:
· As we reported in last weeks Friday Facts, the Connecticut General Assembly adjourned without adopting a state budget. For retailers that left a number of important issues still pending.
· Those issues include: potential increase in the sales tax, elimination of the sales tax holiday and changes in the eschating requirements of gift certificates/gift cards.
· This week was suppose to be the week in which serious negotiation of a budget settlement was to take place. The negotiations have taken place, but our sources tell us that not a lot of progress has been made.
· The House and Senate leadership have told their members to be prepared to come to Hartford next week for some votes, but unless something happens over the weekend, which still possible, it appears little will get done.
· Our sources tell us that the discussions so far have only been on the spending side of the budget, with little or no talk on the tax or revenue side.
· Talks are scheduled to continue today and into the weekend with all sides hoping that an agreement can come soon. Stay tuned for more information.
Washington update:
· Update of Asbestos Litigation legislation.
· Senate Judiciary Chairman Orrin Hatch is working on his legislation aimed at reforming the asbestos litigation system, saying a markup planned for next week will come off even if concerns over the controversial bill are not worked out.
· Sen. Ben Nelson of Nebraska, the measure’s Democratic co- sponsor, said he was working on three possible solutions to one of the biggest Democratic complaints about the bill – that it does not include a mechanism to ensure that the trust fund will not run dry.
· Hatch had previously opposed the use of a federally funded “backstop” but Nelson indicated that using public funds was not completely off the table.
· Hatch today said he would work with Senate colleagues to address their concerns ahead of the markup. “We’re coming close to be able to satisfy [concerns] or at least get the parties together,” Hatch said.
· Class Action Reform:
· Another issue at the nation’s capitol that we are following is class action reform legislation.
· The House of Representatives Thursday approved moving virtually all-national class-action lawsuits from state court into federal court; a move supporter’s hope will curb frivolous lawsuits.
· The bill passed on a 253 – 170 vote. The White House supports the legislation. “The bill will remove significant burdens on class-action litigants and provide greater protections for the victims whom the class-action device originally was designed to benefit,” the Bush administration said.
Retail News and notes:
· A recent NRF survey shows that more money will be spent this year on Fathers Day than Mothers Day. For more information go to
www.nrf.com
· On Thursday of this week the Boston Globe (www.boston.com) ran a story showing that dollar stores are one of the fastest growing retailers in the industry.
· The Wall Street Journal (subscription required) (www.WSJ.com) has a great story on how music retailers are stepping up efforts to compete against online stores.
June 6,
2003
Legislature wraps up work for the “regular session” with no budget adopted. Special session to deal with budget set to begin in second week of June. CRMA golf tournament ready for Tuesday June 10. Workforce Development Update.
· At midnight on Wednesday of this week the State legislature concluded its business for the regular session without completing the most important job they have, adopting a state budget.
· Because of this failure, the legislature must go into special session (does this sound familiar) to adopt a budget that the governor will agree to.
· The legislature actually did adopt a budget but the governor swiftly vetoed it.
· First some background information on how we got to this point.
· As the republican minority has pretty much decided that they will not even talk to the Democrats on the budget if it includes any tax increases, Democratic legislative leaders had been working behind the scenes for weeks to put together a package that would be acceptable to the governor.
· Things were sort of plodding along, with most capitol insiders believing that there was no way a budget deal would be completed by the end of the regular session.
· Things began to change, after the federal budget/tax package was completed and there was word that the state would become eligible for federal funds of up to $250 million.
· That announcement put new life into the budget talks. Democrats began to privately negotiate with the labor unions for concession, and all of a sudden there was a real live chance of a budget deal.
· By the end of last week there was talk that the Democrats would attempt to pass a budget by Monday or Tuesday of adjournment week. Details started to emerge and there were even rumors that the Governor would sign the deal.
· So on Tuesday afternoon, the House Democrats attempted to pull the necessary votes together, without any Republican support. By 4:30am Wednesday they passed a budget.
· By 7:30 am Wednesday the state senate also passed the budget and sent it to the governor. By early afternoon Wednesday he announce he would veto it.
· The budget that the governor vetoed included a number of the things that would not have helped retailers. Among them were:
· Increase in the sales tax from 6% to 6.25%
· Elimination of the sales tax free week
· Changes in way retailers escheat gift certificates/gift cards
· Corporate surcharge on profits of 20%, in 2004 and 15% in calendar year 2005.
· Increase in the income tax to 5.5 percent for all income over $500,000
· What’s next in the budget debate?
· With the Governor’s veto, work will begin immediately on ways to find common ground to pass a budget.
· Our information tells us that negotiations will begin today with a scheduled vote some time the week of June 16, 2003.
· Our sources tell us that if the Democrats can get the Governor and the Republicans to agree to increases in the income tax for higher earners, they would be willing to lower the current property tax exemption from its current level of $500.00.
· Democratic leaders hope that with this type of compromise, as well as some additional spending cuts, they will be able to keep the sales tax at 6% which would allow them to gather enough votes to pass the budget.
· What happens with the sales tax free week remains to be seen. We have made our pitch to key legislators and will continue to work hard to keep that important week from the chopping block.
· We will keep you up to date on budget discussion through our Friday Facts, but should you have any questions or comments please feel free to contact us in the office at 860 – 527 – 1044 or through our website, www.crmaonline.com
CRMA golf tournament update
· The 2nd annual CRMA golf tournament will be held on Tuesday June 10th at Blackledge CC in Hebron, CT.
· We still have some space available, so if you are interested please let us know ASAP.
· Also, you can register online at www.crmaonline.com. Once there, double click “Golf classic” in the upper left-hand column.
Workforce Development Update
· 17 students at Capital Community College in Hartford are attending OCSS training and will be looking for employment soon.
· OCSS training topics include teamwork, feedback, customer service, sales, problem solving, self assessment, employer expectations, professionalism, risk taking.
· These students will have the opportunity to apply for jobs with participating retailers. Most are looking for full time positions.
· If you would like to receive applications from these students, please contact Michele Mesek at 860-527-1044 x11 or
michele@crmaonline.com
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