CT News Junkie

A Connecticut news site that understands the usual media offerings just…aren’t…enough.

Malloy Maintains Optimism Over State Budget

by | Jul 7, 2015 5:30am () Comments | Commenting has expired | Share
Posted to: Business, Economic Development, Jobs, Military Spending, State Budget, Veterans Affairs, Farmington

Christine Stuart photo Gov. Dannel P. Malloy said he didn’t believe the “dust up” over the state budget would impact family-owned jet engine parts manufacturers like Turbine Technologies, but company officials had a different take.

Malloy toured the Farmington company Monday and got a look at four machines the state helped purchase a year ago with a $203,000 Small Business Express grant.

Turbine Technologies, a military veteran-owned company, is a supplier of jet engine parts to GE, Pratt & Whitney, and Rolls-Royce. It also supplies commercial companies with parts for industrial gas turbines that generate electricity and ones that go on oil rigs and power plants.

“Anything regarding the state budget impacts us on a daily basis,” Max McIntyre, vice president of the company, said Monday.

David Marchak, the company’s chief financial officer, said that’s because the state budget “affects our customers.”

Turbine Technologies is an S Corporation so they don’t have to worry about an increase in the corporation tax or unitary reporting, but their customers like GE, Pratt & Whitney, and Rolls-Royce certainly do.

“If they’re going to be leveraging a higher tax for manufacturers, such as your GEs and your Pratts, that’s going to flow down to us,” Marchak said. “So either they are going to be shipping business elsewhere or they’re going to want price concessions.”

The recent state budget debate gives those clients “more of an impetus” to try and push through those price concessions, he said.

GE was one of the most vocal companies during the budget debate. It’s CEO, Jeff Immelt, even sent an email to employees saying it had assembled a team to look at moving out of Connecticut.

“We purchase $14 billion in goods and services from Connecticut companies,” Immelt wrote. “Despite this, we have had a tough past decade in Connecticut. Our taxes have been raised five times since 2011, while support for our strategies has been uneven.”

About 50 percent of Turbine Technologies’ business is building aerospace parts for the military and the 50 percent go to commercial jet engine companies.

Marchak and McIntyre didn’t tell Malloy during a private meeting about how the budget discussions may impact their business. Instead, the message to Malloy on Monday was about how the Department of Economic and Community Development helped their small business grow their workforce from 49 employees to 71 in just two years.

“We’re highlighting the money from the state and how it’s helped us,” Marchak said.

Tyler Burke, the company’s President and CEO, took the company over from his father two years ago. He was away on National Guard training duties in Vermont on Monday.

Since taking over the company its revenues have grown 38 percent and they are on target to grow another 25 percent this year, according to Marchak.

McIntyre said the state’s financial help has “meant the world” to the company, which went into “crisis action mode” a few years ago.

“We all just put our head down and weathered the storm,” McIntyre said. “We made cuts where cuts were needed and we made improvements where improvements were needed.”

He said after they got the company back in shape, the Department of Economic and Community Development and the Department of Labor helped them make it better by augmenting the “battle plan we had already enacted.”

Marchak said there’s a plan in place to grow 10 times its size in 10 years.

Malloy and DECD Commissioner Catherine Smith visited the company Monday as part of their continuing “jobs tour.”

Tags: , , , , , , , ,

Share this story with others.

Share | |

Comments

(8) Archived Comments

posted by: Noteworthy | July 7, 2015  7:31am

The governor is on a jobs tour. Perhaps, it’s because he needs to see what real jobs look like, not just state union jobs with which he is intimately familiar. If you wonder whether he’s disconnected or just disingenuous, look at his comment re: state budget impact on business. How in hell can one make such an assertion? Please. It is better to be honest, acknowledge the negative impact, the downward pressure on pricing and profitability - and apologize for the trouble. This company should have told Malloy the truth - not just celebrate the handout.

posted by: HelpCT | July 7, 2015  8:54am

CT’s middle and upper middle class is running out of money.  What will Malloy and his democratic cronies do?  Go after CT business and destroy what is left of it resulting in fewer jobs for working middle and upper middle class. 
Let’s face it; CT is a state for state employment welfare.  Malloy and his democratic cronies won’t do what is best for the long-term for CT – reduce State government employment and the ridiculous entitlements they receive on the backs of CT middle class.

posted by: Mountain Dogs | July 7, 2015  9:44am

As a former employee it’s obvious they didn’t disclose to the porcupine that they are opening a plant in S. Carolina this fall. Must not have come up. Lol.

posted by: Biff Winnetka | July 7, 2015  12:12pm

HA!

Do you really expect a career public sector guy like Malloy to be able to grasp the 2nd and 3rd order consequences of the state budget on the private sector???

He has no concept.  How could he?  He’s never been on the private sector side of the equation.

posted by: Biff Winnetka | July 7, 2015  1:59pm

@Mountain Dogs…

“As a former employee it’s obvious they didn’t disclose to the porcupine that they are opening a plant in S. Carolina this fall. Must not have come up.”

None of the J-School grads covering the state seem to have the energy to dig too deep either.

posted by: MGKW | July 7, 2015  3:15pm

Indeed,
many colleagues and peers have told me many stories of the state legislature being a tone deaf on business attraction or retention saying that businesses cannot be trusted to tell them the truth….and then when the do move they throw up their hands and say they held us up and we don’t need them…it is a one way ticket to economic death…Malloy does not seem to have the courage to buck the unions for the sake of the state….“whistling past the graveyard”.

posted by: UpsideDown | July 7, 2015  5:20pm

Our knucklehead leader(s) can be optimistic about the budget all they want. The truth is the CT economy stinks because of their poor optimism.  Hallmark Card Co. in Enfield just announced that their 570 jobs will be trashed to move to the midwest. If it isn’t the big companies threatening to move it’s smaller ones.  Are our leaders cognizant and sentient?

posted by: Biff Winnetka | July 8, 2015  9:14am

Here’s a link to the CT summary from the GMU research I posted above.  Yikes!  Not sure what planet Malloy is on when he speaks of “Optimism”.

http://mercatus.org/statefiscalrankings/connecticut

“Connecticut ranks 47th among US states for its fiscal health, based on its fiscal solvency in five separate categories.”

“Connecticut’s fiscal position was poor in FY 2013. The state had barely the cash needed to cover short-term spending. Connecticut was able to meet its fiscal obligations with revenues matched to expenses, but on a long-run basis, Connecticut’s fiscal metrics point to several areas of weakness. Long-term liabilities exceeded total assets by 20 percent. The per capita liability was $8,350 , which is three times the national average. Connecticut’s five pension systems had a total unfunded liability of $76 billion when calculated on a guaranteed-to-be-paid basis. Other post employment benefits (OPEB) liabilities were relatively large at $22.5 billion and they were unfunded, leaving the system on a pay-as-you-go basis. These factors explain Connecticut’s low rank for fiscal solvency.”

Social Networks We Use

Connecticut Network

Categories

Our Partners

Sponsored Messages