You asked us to solicit information from the state's 11 quasi-public agencies on the salaries, bonuses, benefits, and severance agreements for each one's directors and employees. Each agency responded to a seven-question survey (Attachment 1) providing the information that appears in this report. A summary of all agency answers to each question appears below, followed by the responses listed for each.

SUMMARY

Each of the state's quasi-public agencies responded to a questionnaire asking about its personnel policies and practices with respect to bonuses; the agency head's current salary; employee benefits beyond typical health insurance premiums; and severance or separation agreements that included non-disparagement provisions, severance payments, or extended benefits.

The state's quasi-public agencies, as defined in CGS § 1-120, are:

· Capital City Economic Development Authority (CCEDA)

· Connecticut Development Authority (CDA)

· Connecticut Hazardous Waste Management Service (CHWMS)

· Connecticut Health and Educational Facilities Authority (CHEFA)

· Connecticut Higher Education Supplemental Loan Authority (CHESLA)

· Connecticut Housing Finance Authority (CHFA)

· Connecticut Innovations, Inc. (CII)

· Connecticut Lottery Corporation (CLC)

· Connecticut Port Authority

· Connecticut Resources Recovery Authority (CRRA)

· State Housing Authority (SHA)

The top bonuses (over $ 10,000) quasi-public agencies paid over the past three years were to:

· CDA's executive director and chief financial officer, $ 35,000 (three times)

· CHEFA's executive director who received $ 19,710 in 2000 and $ 13,437 in 2001

· CII's Connecticut Clean Energy Fund (CCEF) chief technology director, $ 30,000; managing director for investments $ 20,000 and $ 15,000; managing director for technology, $ 18,000; and associate, $ 15,000

· The Connecticut Lottery Corporation's information systems manager, $ 12,389 and lottery sales manager, $ 10,606

· CRRA's president, $ 40,000 (twice) and $ 19,092; finance division head, $ 20,000; project and customer services division head, $ 11,820 and $ 19,000; executive assistant, $ 18,000; senior counsel, $ 12,000; director of legal services $ 12,000; recycling and environmental education division head, $ 10,200; and director of administration, $ 12,000

All agencies that award bonuses base them at least in part on an employee's individual performance. But generally, agency performance is the primary criterion for high-level managers' bonuses. Six agencies consider both agency and employee performance as the criteria for bonuses. CHFA's Success Sharing Program is linked to the agency's performance alone; but separate, one-time, non-budgeted payments are authorized for CHFA employees for extraordinary individual performance.

Base salaries for currently serving agency heads range from $ 117,600 (CDA) to $ 150,000 (CCEDA). The former president of CRRA was receiving $ 153,000 at the time of his termination; we have no information on what the person who replaces him will make.

Employees of four quasi-public agencies have the use of agency-owned or -leased motor vehicles. They are CDA, CHFA, CLC, and CRRA. Employees must reimburse the agency for personal mileage. In addition, the Connecticut Lottery Corporation provides some of its employees with cell phones, pagers, credit cards, and calling cards.

Only two agencies, CII and CRRA, indicated they have entered severance agreements with former employees that include a non-disparagement provision that prohibits either party from publicly criticizing the other. Another, CHFA, has a standard personnel policy to include such language in any separation agreement with employees who leave. Three agencies (CHEFA, CII, and CRRA) have agreements in effect that provide severance pay and benefits to four former employees.

(1) Has the agency given a bonus to a director or employee this year or in any of the past three years? (2) If yes, to whom and how much?

Table 1 shows the quasi-public agencies that paid bonuses, the total amount paid in each of the past three years, and the average amount. The following quasi-public agencies paid no bonuses in the last three years:

· Connecticut Hazardous Waste Management Service

· Connecticut Port Authority

· State Housing Authority

Table 1: Quasi-Public Agency Bonuses Paid in the Last Three Years

*In addition to bonuses, some CII employees receive gain share distributions (see below).

(3) What are the criteria the agency uses for awarding bonuses? Are bonuses linked to the individual's performance? To the agency's performance or the growth of its assets?

(4) What is the agency head's current salary?

The following list shows the current or latest salary (not including any bonus payments) for each quasi-public agency's head:

Quasi-Public Agency	Salary
Capital City Economic Development Authority	$ 150,000
Ct Development Authority	117,600
Ct Hazardous Waste Management Service	78,000*
Ct Health and Educational Facilities Authority	143,222
Ct Higher Education Supplemental Loan Authority	100,000**
Ct Housing Finance Authority	125,000
Ct Innovations, Inc.	133,903
Ct Lottery Corporation	125,000
Ct Port Authority	*
Ct Resources Recovery Authority	153,000*
State Housing Authority	*

*The Connecticut Hazardous Waste Management Service, Connecticut Port Authority, and State Housing Authority have no employees. The Connecticut Resources Recovery Authority position is currently vacant. The salary given is the amount paid to the last agency head.

**The total amount of a personal services agreement with the Connecticut Conference of Independent Colleges which includes the services of its vice president who acts as CHESLA's executive director and is paid by the CCIC.

(5) Does the agency provide agency-owned or -leased motor vehicles or other benefits to directors or employees? If so, please provide specifics.

(6) Has the agency included as part of a severance package for a former director or employee a requirement that precludes the person from publicly criticizing or speaking against the agency? If so, please identify the former director or employee and describe details of the arrangement.

(7) Describe the severance agreement for any former director or employee that provides benefits beyond those negotiated in that person's employment contract or included in the agency's personnel policy.

CAPITAL CITY ECONOMIC DEVELOPMENT AUTHORITY

Bonuses

The only bonus CCEDA has awarded in the last three fiscal years was $ 10,000 to the assistant director and general counsel in December 2001. The Personnel Committee made the award on the recommendation of the executive director based on the employee's performance, salary history, and professional progress.

Salary

The agency head's current salary is $ 150,000.

Benefits

The agency provides no vehicles or similar benefits to its directors or employees.

Severance Agreement

There are no severance agreements with any former directors or employees.

CONNECTICUT DEVELOPMENT AUTHORITY

Bonuses

The CDA's board of directors approved the agency's bonus policy, which reads as follows:

The CDA may pay bonuses to employees who achieve a satisfactory or better performance rating for the year. This bonus will be calculated based on the CDA meeting its budgeted net income.

Employees with a satisfactory or better performance rating will be paid $ 500 if the CDA meets its budgeted net income and $ 1,000 if the CDA exceeds budgeted net income by 10%.

The Executive Director and President are not eligible for this bonus because they set the budget, which is ultimately approved by the Board of Directors. Any bonuses received by the Executive Director and President must be based on performance and approved individually by the Finance Committee of the Board of Directors.

Table 2 shows the position titles and amounts paid to those who received bonuses in FYs 1999 through 2001.

Table 2: Connecticut Development Authority Bonus Recipients and Amounts

Salary

The agency head's current salary is $ 117,600.

Benefits

The agency president, chairman, and business recruitment officer each have use of a vehicle for business use only, which they report (including daily mileage records) to the agency. Each employee reimburses the agency monthly, in accordance with the Official Memorandum on State-Provided Vehicles, published by the comptroller and approved by the state auditors.

Severance Agreement

The agency has not negotiated any severance agreement that requires a former director or employee to refrain from speaking against the agency or that provides extra benefits.

CONNECTICUT HAZARDOUS WASTE MANAGEMENT SERVICE

The service no longer has employees. It paid its last executive director $ 78,000 and provided no extraordinary benefits to any of its directors or employees. There are no severance agreements in effect.

CONNECTICUT HEALTH AND EDUCATIONAL FACILITIES AUTHORITY

Bonuses

The CHEFA board of directors has adopted an Employee Incentive Plan (Attachment 2) to compensate management and non-management employees for their efforts to achieve the authority's mission. The plan ties bonuses for senior management personnel to achievement of the authority's goals, while middle management and non-management employee's incentives are linked to their individual performance reviews.

Bonuses for CHEFA's executive director and senior managers are paid over three years; while middle managers receive bonus payouts over two years. The total amount paid to all employees over the past three years is $ 127,072. An additional $ 36,072 has been accrued for this and the following fiscal years. The agency's Employee Incentive Plan includes its statement of purpose, compensation increases, and performance measures. Table 3 shows the bonuses paid in FYs 1999 through 2001 and accrued until FY 2003.

Table 3: Connecticut Health and Educational Facilities Authority Bonus Recipients and Amounts

Salary

The authority head's annual salary, not including incentive payments, is $ 143,221. 50.

Benefits

No employee or director currently receives extra benefits. Until September 2001, the authority provided transportation from Fairfield to Hartford to a handicapped member of the board to attend monthly directors' meetings.

Severance Agreement

There are no agreements to refrain from criticizing the authority in effect as part of a severance arrangement. A severance agreement executed in 1996 with a former executive director extended severance payments and certain employee benefits beyond the authority's standard policy, in recognition of the individual's lengthy service to the agency.

CONNECTICUT HIGHER EDUCATION SUPPLEMENTAL LOAN AUTHORITY

Bonuses

CHESLA awarded a $ 1,000 bonus to its associate director once in the past three years, based on the individual's performance.

Salary

CHESLA has a $ 100,000 personal services agreement with the Connecticut Conference of Independent Colleges (CCIC). As part of that agreement, the CCIC's vice president serves as CHESLA's executive director. CCIC pays her salary.

Benefits

The authority provides no extra benefits to its directors or employees.

Severance Agreement

It has no severance agreements in effect with former directors or employees.

CONNECTICUT HOUSING FINANCE AUTHORITY

Bonuses

Since 1997, the authority's board of directors has awarded Success Sharing Program payments to employees based on the agency's performance. Permanent employees (other than the president/executive director and the vice president for finance and administration) who work more than 20 hours a week are eligible to receive between $ 250 and $ 1,000 in a lump sum. The award depends on whether the agency's net operating revenue or total net revenues exceed the year's budget projections by more than 5% or 10%. Award amounts and criteria appear below.

Performance Criteria	Award Amount
Operating revenues and net revenues exceed projections by more than 10%	$ 1,000
Operating revenues or net revenues exceed projections by more than 10% when the other exceeds projections by between 5% and 10%	$ 750
Operating revenues and net revenues exceed projections by 5% to 10%	$ 500
Operating revenues or net revenues exceed projections by 5% to 10%	$ 250

CHFA employees also may receive a payment when the authority's bond rating is increased. In 2001, the board voted to give each employee a $ 750 one-time payment when the authority's bond rating was raised to AAA.

Finally, the president-executive director has the authority to grant non-budgeted, one-time salary payments of up to $ 5,000 to individuals for extraordinary performance.

Table 4 shows the position titles and the amounts paid to those who received bonuses from 2000 through 2002.

Table 4: Connecticut Housing Finance Authority Bonus Recipients and Amounts

Salary

The agency head's current salary is $ 125,000.

Benefits

The president-executive director uses a CHFA-leased 2000 Ford Crown Victoria for business-related travel and commuting between home and work. The benefit of the commuting mileage (at a rate of 34. 5 cents per mile) is reported as taxable income.

Severance Agreement

Though CHEFA has executed no severance agreement in the last three years, its standard policy is to include language in any separation agreement or release that requires an employee to agree to refrain from communicating negative information and from disclosing information that is confidential or business-related after leaving.

There have been no severance agreements that provided benefits beyond those negotiated in an employment contract or included in the agency's personnel policy.

CONNECTICUT INNOVATIONS, INC.

Bonuses

Beginning in fiscal year 1999, CII's board of directors established a nonqualified performance-based gain-sharing plan. Allocation for each eligible participant's award is based on each participant's contribution toward the achievement of CII's statutory objectives. Allocations vest at a rate of 25% per year. Details of the plan are in Attachment 3. Employees assigned to the Connecticut Clean Energy Fund are eligible to receive bonuses based on the employee's contribution to the achievement of the fund's objectives.

Table 5 shows the position titles and the amounts paid to those who received gain share distributions and bonuses in 1999 through 2001.

Table 5: Connecticut Innovations, Inc. Gain Share Distribution and Bonus Recipients and Amounts

¹Payment to employee of current and prior years vested gain share award.

²Payment to employee of interest income earned for the year on the employee's gain share account (both the vested and the non-vested portions).

Bonus Payments
Position Titles	1999	2000	2001
CCEF Managing Dir, Technology			$ 18,000
CCEF Associate			15,000
Investment Analyst	$ 1,000
Managing Director, Investments			5,000
CCEF Managing Dir, Invest		$ 20,000	15,000
CCEF Admin. Assistant		2,000	5,744
VP, Human Resources	1,250	1,250	1,250
CCEF Chief Technology Officer		30,000
Total	$ 2,250	$ 53,250	$ 59,994

Salary

The president and executive director's annual salary is $ 133,903.

Benefits

CII provides no vehicles or similar benefits to any of its directors or employees.

Severance Agreements

An agreement with the chief technology officer for the Connecticut Clean Energy Fund included a statement that the "employee and company agree not to make any oral or written statements or take any actions that could injure, impugn, or disparage the other party's reputation. " It also included up to si