CONNECTICUT DEVELOPMENT AUTHORITY (CDA) BOARD (CGS § 32-11a (c)).

• An 11-member board of directors governs this quasi-public agency, which provides low-cost financing for businesses relocating or expanding in Connecticut. The governor appoints four members and the chairperson. (Legislative leaders appoint four members, and three members are state officials serving ex- officio. )

• The board: (1) adopts written procedures for operating the authority, (2) appoints CDA's executive director, (3) creates its subsidiaries, (4) acquires property and contracts for services, (5) issues and retires bonds, and (6) approves loans and other requests for financial assistance.

QUESTIONS

1. A recent Businessweek article heralded that interest rates were down worldwide and would remain low for years, but warned that brand-new risks were on the horizon. How has this trend affected the demand for CDA financing? What kinds of risks does the low-rate world pose for Connecticut lenders and borrowers? How could they affect CDA's programs?

2. Last session, the legislature eliminated the property tax on manufacturing machinery and equipment. Has this change stimulated demand for CDA financing for machinery and equipment? Has the elimination of the tax made it easier for CDA to underwrite loans for machinery and equipment?

3. How much business does CDA do with defense subcontractors and homeland security businesses?

4. Describe how CDA helps businesses clean up and redevelop contaminated property. How many contaminated properties have been remediated and redeveloped with CDA financing?

5. What is the status of CDA's Job Training Fund? How many businesses received training grants in 2006? How many in 2005? What type of training did they fund?

6. How does CDA encourage export trade? Does it provide the type of financing needed to export goods and services?

7. How has CDA's role in overseeing the Hartford Civic Center affected its lending duties? For example, has it reduced the number of staff devoted to underwriting and approving business loans?

8. Look back over the last six years and tell us what the economy would look like if CDA didn't exist.

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