Malloy Touts 400 New Jobs in State; Loan to Company Worth Nearly $15K Per JobApril 5, 2018
The governor continues to have to spend taxpayer money, even if it's a loan the state could some day earn back, just to entice job creators to come to Connecticut.
Gov. Dan Malloy (D-Conn.) proudly announced on Thursday morning that around 400 new jobs are coming to the state of Connecticut.
“We are thrilled that Sema4 has chosen to significantly expand its operations in Connecticut, bringing their total workforce [from 145] to over 550,” Governor Malloy said. “It’s no surprise that this cutting-edge, health information company has decided to grow here, thanks to our first-class talent pipeline and exceptional educational institutions. Today’s announcement isn’t just about economic development, it’s about a vision we began years ago to turn Connecticut into a hub for bioscience and tech growth. Thanks to our targeted investments, that vision is coming to life.”
But similar to his Infosys deal from March, Malloy seems to only be bringing job creators to Connecticut with the carrot of taxpayer-funded loans and incentives.
The Department of Economic and Community Development (DECD) will provide a $6 million loan that will be utilized for the purchase of machinery and equipment, capital improvements, and the creation of 408 jobs in Connecticut. The company is eligible for partial loan forgiveness if certain milestones are met. In December 2015, DECD provided the company a $9.5 million loan to create 145 jobs in the state.
Do the math on the new loan – some of which may be forgiven – and it’s $14,705 in taxpayer-funded loans per job created. Add in the math from the first loan to Sema4, and it’s worse for taxpayers: $28,028 in taxpayer-funded loans per job created.
The state may be earning all or some of the money back, but is it a good sign for Connecticut that the governor has to wave taxpayer dollars at companies in order to bring them here? Republican officials have argued that easing the state’s tax and regulatory burdens can do just that, without spending taxpayer dollars.
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