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Connecticut Pumping Millions Into Subsidies to Hold on to Its Businesses

September 20, 2017 By Staff
Connecticut Pumping Millions Into Subsidies to Hold on to Its Businesses

Now even with subsidies major companies are leaving.

Just to keep businesses from fleeing Connecticut, state leaders have been doling out taxpayer subsidies. For example, in 2015 Connecticut’s leaders signed a 14-year deal giving a “$220 million economic incentive package for Lockheed Martin” to retain helicopter production in Connecticut:

The 14-year deal will allow the state to give the defense manufacturer $140 million in grants and $80 million in sales tax offsets. The state will put the $140 million on its credit card, which will cost an additional $30 million in debt service over the life of the bonds.

Now even with subsidies some major companies are leaving, with Alexion Pharmaceuticals recently announcing a move from New Haven to Boston:

It is a big business divorce that is that latest bruising punch to the state of Connecticut after G.E. left last year and Aetna said goodbye in June. As far as the Alexion situation is concerned, the state of Connecticut says it wants its money back.

Now, Gov. Dan Malloy (D-Conn.) is trying to claw $26 million in taxpayer subsidies back from Alexion:

Late in the day, Governor Malloy told News8 he was in discussions with the company for it to repay $26 million in state incentives.

GE has gone to Boston, Aetna is heading to New York, and even companies that are staying like UTC are expanding outside the state rather than in Connecticut.