Showing posts with label Jackson Laboratory. Show all posts
Showing posts with label Jackson Laboratory. Show all posts

Friday, February 21, 2014

Governor Bling And Connecticut’s Malingering Recession

Governor Dannel Malloy, it would appear from recent news accounts, is frantically attempting to put himself right with unionized teachers.

The Malloy-teacher romance hit a rough spot when a few months ago Mr. Malloy said of teachers who were resisting his pedagogical reforms, “All they have to do is show up.”

Mr. Malloy meant that teacher tenure tended to protect failing teachers from any and all attempts to displace them. The Malloy pedagogical reforms were designed to overleap tenure and displace poor teachers by setting standards against which the effectiveness of teachers in the classroom could be objectively measured. Teachers falling below the set standards would be given the opportunity of taking remedial courses. After a certain point, if the inadequate teachers failed to measure up, they would be dismissed. Whole school systems were put on notice that similar standards would be employed to measure the performance of principals and superintendents.

The usual objection to standardized testing of teachers is that teaching itself is an art, not a science. As an art, its effects on the consumer of the pedagogical product are subtle, too evanescent to be measured with precision. The proposed tests and standards, so the objection goes, are insufficient to gauge quality teaching or, for that matter, quality education.

Mr. Malloy was having none of this. His counter argument was that the educational product can be measured; indeed, teachers measure student performance daily by means of objective tests. The inevitable effects of inadequate teaching -- thousands of uneducated students, many of them locked by circumstances into poor performing urban schools – would no longer be tolerated in a Malloy administration; such was the message Mr. Malloy managed to convey in not a few “town hall” meetings. Here, at last, was an administration prepared to put first things first.

Having settled the problem of poor education, at least theoretically, the fleet-footed Mr. Malloy “moved on,” as politicians sometimes say, to other pressing issues. Were small businesses in the state, overburdened by excessive regulations and taxes that diminished their already slim profit margins, in agony, largely as a result of new taxes imposed on them by Mr. Malloy and the progressive Democrat dominated General Assembly? Very well, Mr. Malloy would establish a program – “First Five,” later expanded to “First Whatever” – that would allow Mr. Malloy to dispense tax money to businesses, some of which were multi-billion dollar corporations in need of moving their operations a few towns away. Subtle signals were being sent to Mr. Malloy that, in the absence of tax handouts, even large businesses might move some operations to other states more welcoming than Connecticut. To these signals, Mr. Malloy responded with tax dollars.

In the crony capitalist state, such a naked attempt at polite bribery is viewed by co-conspiring politicians as a cri de coeur. They are more than happy to oblige multi-million dollar companies with crony capitalist “investments,” because such measures will not permanently deprive the politicians of tax receipts, as would reductions in business taxes. Permanent business tax reductions really would create a “level playing field,” an expression favored and overused by former Attorney General Richard Blumenthal whenever he sued a company that he supposed had gained an unfair advantage by flouting an arcane regulation.

A good part of Mr. Malloy’s strenuous effort to save the state from the logical consequences of his tax increase, the largest in state history, falls into the category of political bling.

If the state of Connecticut – and remember, l'état, c'est Malloy plus the Democrat dominated General Assembly – wanted to rid itself of poor educators and poor education, especially in urban areas, it could establish a voucher system. Under a voucher regime, money spent for education would be attached to education consumers in the form of vouchers that students, in consultation with their parents or parent, might use to purchase quality schooling anywhere in Connecticut. Over time, good schools would flourish and expand as students invested their vouchers in them, and poor schools and inadequate teachers would whither on the vine, a prospect that would nudge poorer schools towards reform.

The polite bribery of public officials by outsized corporations – gimme a tax break and I won’t bolt – could be avoided altogether through reasonable and PERMANENT business tax reductions. And a state that pruned its briar patch of sometimes pointless regulations would make itself an attractive business hub for out of state corporations that might consider moving to Connecticut once our malingering business slow-down ends. The national recession ended four years ago, but not so much here in progressive Connecticut. Additionally, such measures would “even the playing field.” Large corporations awash in lobbyists and small Mom and Pop operations would receive exactly the same business saving benefits.                 

These measures, though effective, are bound to be rejected by tax hungry progressives. A governor poor in tax receipts has little to give away. Bling is not unimportant for politicians who wish to be perceived as important, if not self-important. The thoroughgoing progressive would rather change the world than save it -- inconspicuously. Mr. Malloy feels the pressing need to reinvent Connecticut, and he wants to be seen reinventing it. So he slings the bling around. The UConn Health Center, for years a failing enterprise, was wonderfully changed by Mr. Malloy when he attached to it some bling he had pulled out of his hat, the tax absorbing Jackson Laboratory. A maintenance governor intent on returning the state to normalcy might have invested his tax money in bridge repairs rather than a blingy fast speed bus line from Hartford to New Britain, but there is little political profit in performing expected and routine gubernatorial chores.


Bling’s the thing that keeps politicians, if not the state, “moving forward.”

Friday, January 6, 2012

Malloy’s Gadfly

Even Greece at the height of its powers had a “gadfly.” The Greek term was used by Plato to signify the rather uneasy relationship between Socrates and the political scene in Athens. Plato described Socrates as the goad of Athens, a city he compared to a dimwitted horse. Athens, as we all know, had the last word in its dispute between the city’s most famous gadfly and city fathers who could not abide what Socrates himself called the sting of truth: “If you kill a man like me, you will injure yourselves more than you will injure me.” Socrates considered his role as that of a public critic whose purpose it was “to sting people and whip them into a fury, all in the service of truth." Athens convicted Socrates of corrupting the youth of the city and forced hemlock upon him as a remedy to quiet his fearless outspoken tongue.

Not to put Senator Len Suzio in quite the same category as Socrates or even Jeremiah, the irritating prophet who compared Egypt to “very fair heifer” but noted, ominously, “the gad-fly cometh, it cometh from the north,” even so, Mr. Suzio has managed to cause some perturbation among the Malloyalists who surround Governor Dannel Malloy.

Mr. Suzio bit the heifer a little hard on the question of Mr. Malloy’s financing of the reinvented UConn Health Center, causing Mr. Malloy to explode in mock anger in Connecticut Post reporter Ted Mann’s 18th installment of the life and times of the state’s first Democratic governor since former Governor William O’Neill hit the skids, “’The world is flat! Flat! Flat! Flat!’ Dan Malloy slams his palms flat against the top of his desk, again and again. ‘Flat, I tell you! Flat! Flat! Flat!’”

One gets the impression that anyone in the Malloyalist contingent would be willing to administer the hemlock to Mr. Suzio, provided it could be done discreetly.

The final agreement between Mr. Malloy and Jackson Lab, however, suggests that Mr. Malloy had half an ear turned towards his gadfly critics. The governor evidently altered his initial agreement to accommodate some critics of the UConn-Jackson Lab deal, among them gadfly Suzio.

A new wing on the deal arranged between Mr. Malloy and Jackson Lab includes, according to one news account, “several provisions designed to protect the public's investment, including one that gives the state a slice of the royalties from any lucrative drug therapies born from the research.”

The slice on royalties is a very iffy proposition. In what Mr. Malloy calls “a unique intellectual property-sharing agreement," Connecticut will receive 10 percent of any net royalty proceeds up to $3 million and 50 percent of those royalties over $3 million starting in the 10th year and running for 15 years.

Assuming these best laid plans are not torn asunder, Connecticut will not pull even on the deal until Jackson Labs realizes earnings on it its intellectual property of $600 million. In 2010, the company’s financial report showed revenue of $129 million, excluding donations and government grants, and $170 million in expenses. Government support so far has kept the company above water. In arrangements such as that concluded between the Malloy administration and Jackson Labs, those financing the project – donors, federal taxpayers, and now Connecticut taxpayers – assume risks, while the corporation reaps the lion’s share of profits.

Gadfly Suzio, the Flat-Earther, said he was pleased that the final deal included a provision giving the state a piece of the royalty pie: “One of my explicit criticisms was if we're going to be risking taxpayer money in some sort of venture capital way, why would we not reap the potential benefits?''

The final deal obligates Connecticut to provide a $192 million contingent loan to Jackson Lab that the company will then use to purchase a new 250,000 square-foot building on the site of the University of Connecticut Health Care pink elephant in Farmington. The state also will award Jackson Lab $99 million in research money.

The contingent loan is “forgivable” provided Jackson creates within 10 years 300 direct positions including 90 for senior scientists. Once Jackson Lab creates 600 direct jobs, it may purchase the state-owned land for $1, a win-win prospect for Jackson Labs.

Those who assert positively that the Jackson Labs-Malloy deal is an unqualified win for Connecticut are not Flat-Earthers; it would be uncharitable to label them as such. But they are much in need of gadflies to keep their ungovernable optimism rooted in the real world.

Wednesday, October 26, 2011

Another Pig, Another Poke

Duane Billington, a retired engineering technician and civic activist from Naples, “fought for 18 months against Jackson Laboratory's plan to expand in Florida,” according to a story in the Hartford Courant.”

Ultimately Mr. Billington was successful. Jackson Laboratory pulled up their negotiating stakes in Florida.

Governor Dannel Malloy’s chief of staff, Roy Occhiogrosso, read about the failed attempt to pitch the deal to Florida in a newspaper, evidentially shared the information with his boss, and a contingent from Connecticut was sent to Bar Harbor Maine to negotiate a deal with Jackson Laboratory administrators. The Courant story does not mention the names of members of the Connecticut contingent sent to negotiate with Jackson. The deal apparently was consummated and a letter of intent was signed between the parties.

When two members of the General Assembly, Senator Len Suzio and Senate Republican leader Leonard Fasano, asked to see the memorandum of understanding between the state and Jackson, they were sternly rebuffed. Malloy officials asserted the documents contained trade secrets that could not be disclosed to members of the General Assembly who would be asked to provide funding for the deal. The same claim was made in Florida, an overreach that some say soured the state on the deal.

Suzio has scoffed at the transparent dodge.

“I've got a business guy here who fell off his chair laughing,'' Suzio said of a colleague's reaction about trade secrets. “Why would there be any confidential information in a letter of intent? We're not asking for the disclosure of secret formulas. It's laughable.''

Many of Suzio’s questions were bridges too far; Mr. Malloy’s aggressive administration very early acquired the habit of pushing things through with minor participation on the part of the people’s representatives. Republicans in the General Assembly were simply pushed out of the way during budget negotiations.

It is becoming increasingly apparent that the Malloy administration has to some extent been trying to sell the Democratic dominated General Assembly a pig in a poke. The Malloy-Jackson deal, according to the Courant story, “is scheduled to come to a vote Wednesday in the House of Representatives and the Senate. Malloy is calling for the state to borrow $291 million to construct a new building on 17 acres of state-owned land at the University of Connecticut Health Center campus in Farmington and provide $99 million in research money for Jackson. The nonprofit institute is pledging to create 300 jobs within 10 years and 600 jobs within 20 years, making it slightly larger than the Florida plan in jobs and state subsidies.”

Mr. Billington certainly is not shy of reporters.

"They couldn't find a home here in Collier County or Sarasota because they don't have a product to deliver,'' Mr. Billington told a reporter. “Their business is to produce genetically altered mice for other scientists to study and use in experiments. This thing they're going into is a totally new deal for them. They have no expertise. It's an exercise in venture capitalism. It could work, and it might not.''

Jackson Laboratory has had success in genetically altering mice sold to prospective buyers in other research facilities. The Connecticut operation would break new and untested ground for Jackson, which now is seeking to move into an entirely different field, that of genomic medicine, the study of genes and genetic interactions that, according to a 26-page brochure that was distributed to Connecticut legislators, are "essential to creating new medicines and treatments for some of humankind's worst diseases and conditions.''

Mr. Billington told the Courant reporter, “We're glad to be rid of them. I feel bad for the state of Connecticut if you all have politicians who are swallowing the Jackson line hook, line and sinker.”

This is the second time the Malloy administration has asked the Democratic dominated General Assembly to swallow an unpalatable deal. Asked to vote on a budget the details of which had not been finalized in negotiations between Malloy administration officials and SEBAC, a union coalition authorized to negotiate contracts, Democratic leaders in the General Assembly persuaded their caucus to vote in favor of an unfinished budget. The leaders of the Democratic caucus, President of the Senate Don Williams and Speaker of the House Chris Donovan, apparently like the taste of hooks and lines and sinkers.

Mr. Donovan, SEBAC’s best friend in the legislature, is running for the U .S. Congress in Connecticut’s 5th District.

Since the Malloy administration enjoys an insuperable majority in the General Assembly, it does not need Republican votes to pass measures the details of which have not been adequately ventilated in public. Calls on the part of Republicans to put off the vote Wednesday until the pig in the poke – minus the trade secrets, which always may be redacted in publically disclosed documents – has been put on public view and debated fully by the General Assembly will no doubt be ignored by the Malloy administration. And the deal will go down on Wednesday, possibly with the concurrence of some Republicans in the General Assembly who have acquired a taste for hooks, lines and sinkers.

All the “buts” will not arrive until much later.

Mike Hyde, Jackson’s Vice President and fund raiser, no longer concerns himself with Mr. Billington's criticisms. "I'm delighted to be in Connecticut,” he has said. “It's a great state. I really don't have any hard feelings about what happened in Florida. This is here. This is now.”

Florida rejected Jackson’s best offer because the state is flat on its back and broke, unlike Connecticut. For now, at least, the state is flush in quickly disappearing funds owing mostly to the largest tax increase in its history imposed upon it by its “shared sacrifice” governor. This is here. This is now.

And the future? Let the future eat cake.