City & State Government

• H.R. 7010 Paycheck Protection Program  – To amend the Small Business Act and the CARES Act to modify certain provisions related to the forgiveness of loans under the paycheck protection program, to allow recipients of loan forgiveness under the paycheck protection program to defer payroll taxes, and for other purposes.
  Became public law 116-142 on June 5, 2020
  Congressional Record Vol. 166, 2020
  May 28 considered and passed House
  June 3, considered and passed Senate
  June 5, Presidential Statement
  Public Law 116-142
  [PDF Download]
• COVID-19: Potential Economic Effects – (Congressional Research Service) This Insight discusses the potential effects of the coronavirus (COVIC-19) on the U.S. economy. [PDF Download]
• Herd Immunity for COVID-19 – (U.S. Government Accountability Office) A population can establish herd immunity to an infectious disease once a large enough portion of the population develops immunity. Reaching this “herd immunity threshold” limits the likelihood that a non-immune person will be infected. In general immunity develops through either infection or vaccination. Herd immunity helps protect people not immune to a disease by reducing their chances of interacting with an infected individual. This process slows or stops the spread of disease. [PDF Download]
• Disrupted Federal Elections: Policy Issues for Congress – (Congressional Research Service) The coronavirus disease 2019 (COVID-19) outbreak has renewed interest in how election administrators and political campaigns prepare for emergencies and natural disasters. Several bills introduced in the 116th Congress could be relevant for disrupted elections, such as COVID-19 response.
  Depending on circumstances, disrupted elections could foster public doubt about the legitimacy of election procedures or results. Domestic or foreign sources also could seek to disrupt elections by publicizing inaccurate information. State and local election jurisdictions are the most authoritative sources of information about voter eligibility, polling place and hours, etc.
  Federal agencies such as the EAC (U.S. Election Assistance Commission), (eac.gov), and EAC’s testing and certification program is the critical first step in the process of maintaining reliability and security of the voting systems used. As well, the FVAP (Federal Voting Assistance Program), provides regulatory action and amends current policy and assignments of responsibility. UOCVA (uniformed and overseas citizens absentee voting act) and the Justice Department also provide voting information. [PDF Download]
• The National Debt: Who Bears Its Burden? – (Congressional Research Service) The current consensus view among economists is that the source of the burden associated with a national debt is the government budget deficit that gives rise to the debt. In a fully employed economy, the deficit “crowds out” private sector spending, especially spending on capital goods. Thus, a smaller private capital stock and a lower level of output are passed along to future generations and it is this lower level of output that is the ultimate burden of the national debt is borne by future generations.
  Should the debt be sold abroad, there is still a burden since a portion of the output from the unchanged size of the private capital stock will accrue to foreigners.
  When the national debt is retired through budget surpluses, the effect on the economy is the reverse of debt increases. Future generations acquire a larger capital stock (or a larger American owned capital stock) and a higher level of output (or increased material well-being. [PDF Download]
• A New Approach for an Era of US-China Competition – (U.S. Senate, Committee on Foreign Relations) After 20 years of helping China prosper economically and hoping they would emerge as a responsible partner on the world stage, it is time for the U.S. policymakers to acknowledge this path was not the right path.
  Today, China steals our intellectual property and uses it to put our people out of work. It intimidates its neighbors, including U.S. allies, while increasing its military capabilities in the South and East China Seas. China exports corruption and its authoritarian model across the globe. It uses cheap financing as a debt trap and has built a police state that the Chinese Communist Party uses to limit free expression that contradicts the party line.
  It is clear the Chinese Communist Party does not share the same values that the United States and our partners have. To them, life, liberty, and the pursuit of happiness are not aspirations to deliver to their people but values the Communist should fear and control.
  The relationship must be rebalanced in order to avoid future conflict and provide a sustainable way forward for both countries. [PDF Download]
• Democracy and Human Rights: The Case for U.S. Leadership – (Hearing before the Committee on Foreign Relations, United States Senate) A cursory glance around the globe reveals disturbing trends of an authoritarian resurgence threatening human rights and democracy. From Russia to China, from North Korea to Venezuela, authoritarianism is on the rise. Human freedom is under assault, and restrictive new NGO laws are being used to crush civil society. Press freedom is being challenged. There is indeed a strong convincing case to be made for strong, principled U.S. leadership in the promotion and support of democracy and human rights globally on this moral imperative alone. [PDF Download]

• H.R. 7952 (116th Congress) Great American Outdoors Act – The following is an extract from the Congressional Record:

Where I wanted to start off with my comments tonight, is really the coast-to-coast nature of this legislation, the Great American Outdoors Act, because so many people have put in not just a couple of years of work but decades of work on the legislation that we have before us.
The Great American Outdoors Act combines two pieces of legislation: the crown jewel of our conservation programs across the Nation, the Land and Water Conservation Fund, and the Restore Our Parks Act. The Restore Our Parks Act focuses on the catching up with the maintenance backlog in our national park systems.
About 70 percent of the funding, $1.9 billion a year, will go towards our national parks. Additional dollars will go towards the Bureau of Land Management, the Bureau of Land Management now headquartered in the great State of Colorado. A portion will go to the U.S. Forest Service. A portion will go to the U.S. Fish and Wildlife Service, and a portion will go to the Bureau of Indian Education.
The Land and Water Conservation Fund goes towards the efforts to protect some of the greatest spaces in our nation. All 50 States across the country have already benefited from these programs. The Land and Water Conservation Fund isn’t just about the coast. It is not just about the interior. It is about all our States. Half the money goes to the East; half the money goes to the West. It has the privilege and responsibility of stewarding some of America’s most scenic landscapes and cultural treasures.
There are jobs associated with this too. It is estimated that the Great American Outdoors Act will create over 100,000 jobs across the country. As we get back on our feet from the health pandemic, COVID-19 emergency, we have a chance to create new jobs.

• HEAL vs. HEROES Acts
  The Democrats in the House and the Republicans in the Senate, are battling over the next legislation to relieve hardships caused by the Coronavirus. One plan is for $3 trillion, the other for $1 trillion. A comparison of the two bills follows at the end.
  • S. 4135 (116th Congress) HEAL Act – This bill establishes eligibility and provides funding for Small Business Administration (SBA) disaster loans and advance grants for eligible small businesses.
    Eligible small businesses are those that (1) are located in an area in which the SBA declared a disaster due to civil unrest occurring between May 26, 2020, and July 1, 2020; (2) incurred damage due to such civil unrest; and (3) have average annual gross receipts of $2 million or less.
    Such small businesses shall be eligible to receive forgivable loans and advance grants under the SBA’s disaster loan program. Such loans shall be equal to 100% of the amount required to repair, rehabilitate, or replace property that was damaged or destroyed due to civil unrest and that was not compensated for by insurance, state or local government grants, or any other means. An applicant may also request an advance of up to $10,000 on such loan.
    Further, a recipient shall be eligible for forgiveness of 75% of such loan if they are still in operation on December 31, 2021, and have submitted specified documentation related to sales and taxes paid.
    Additionally, the SBA shall waive certain loan requirements such as (1) personal guarantees, (2) inability to obtain credit elsewhere, and (3) provision of collateral.
  • H.R. 6800 (116th Congress) Health and Economic Recovery Omnibus Emergency Solutions Act (HEROES Act) – This bill responds to the COVID-19 (i.e., coronavirus disease 2019) outbreak and its impact on the economy, public health, state and local governments, individuals, and businesses.
    Among other things, the bill
    • provides FY2020 emergency supplemental appropriations to federal agencies;
    • provides payments and other assistance to state, local, tribal, and territorial governments;
    • provides additional direct payments of up to $1,200 per individual;
    • expands paid sick days, family and medical leave, unemployment compensation, nutrition and food assistance programs, housing assistance, and payments to farmers;
    • modifies and expands the Paycheck Protection Program, which provides loans and grants to small businesses and nonprofit organizations;
    • establishes a fund to award grants for employers to provide pandemic premium pay for essential workers;
    • expands several tax credits and deductions;
    • provides funding and establishes requirements for COVID-19 testing and contact tracing;
    • eliminates cost-sharing for COVID-19 treatments;
    • extends and expands the moratorium on certain evictions and foreclosures; and
    • requires employers to develop and implement infectious disease exposure control plans.
    • The bill also modifies or expands a wide range of other programs and policies, including those regarding
      • Medicare and Medicaid,
      • health insurance,
      • broadband service,
      • medical product supplies,
      • immigration,
      • student loans and financial aid,
      • the federal workforce,
      • prisons,
      • veterans’ benefits,
      • consumer protection requirements,
      • the U.S. Postal Service,
      • federal elections,
      • aviation and railroad workers, and
      • pension and retirement plans.
  • Just to make things easy, here is a summary of the differences in the two bills as outlined by CNBC: How the HEAL Act compares to the HEROES Act

The Connecticut Economic Digest is a joint publication of the Connecticut Department of Labor and the Department of Economic and Community Development. Its purpose is to regularly provide users with a comprehensive source for the most current, up-to-date data available on the workforce and economy of the state, within perspectives of the region and nation. A brief monthly summary will constitute the major monthly topic of this newsletter.

Original Source [PDF Download]

According to the most recent data published by the Quarterly Census of Employment and Wages program, the number of jobs in Connecticut decreased by 0.2 percent. Total government employment held steady year-over-year.

Average annual wages for all Connecticut jobs increased by 3.0 percent, to $69,787, nearly double the improvement on the increase in 2018.

Looking at the sectors with notable gains in 2019, several industries continued to improve from their 2018 levels. The transportation and warehousing, health care and social assistance, and manufacturing sectors all showed solid increases. Transportation and warehousing was the largest gainer last year.

For sectors that declined in 2019, retail trade dropped the most. The finance and insurance and wholesale trade sectors continued their declines as well. Government employment experienced almost no change.

2019 was a solid year for wages in general, as all sectors experienced some wage growth, an improvement over prior years. Connecticut continues to maintain comparable annual wages to nearby states in the Northeast, coming third behind only Massachusetts and New York. Average wages in Connecticut are 17.9 percent above the U.S. average, declining slightly from last year’s 18.3% premium.