Stemming Connecticut’s Brain-Drain: House Bill Includes First-Time Home Buyers’ Program for Connecticut Graduates

In recent years, Connecticut has been losing more people between the ages of 18 and 34 than almost any other state.  This means that we are spending time, money, and effort on educating a workforce for other parts of the country.  Last week, the state House of Representatives unanimously approved a program designed to stem the exodus of Connecticut’s young people by helping them save money to buy a home in the state.  The next step is a vote by the state Senate.

HB 6525, a comprehensive economic development bill, included a provision enabling the implementation of the “Learn Here, Live Here” program.  The program would allow recent graduates of Connecticut’s public institutions of higher education and vocational-technical schools to set aside a portion of their state income tax liability for a future down payment on their first home.

Program participants can have the state segregate a portion of their taxes for up to 10 years following graduation, at a maximum of $2,500 per year for each individual.  There is a payback schedule for participants who move out of state within five years after graduating.  Graduates who receive their degrees on or after January 1, 2014 will be the first to be eligible for the program, which will be established and promoted by the state’s Department of Economic and Community Development.

The Learn Here, Live Here program directly or indirectly addresses several issues:  hardships faced by first-time wage-earners in buying homes; the loss of Connecticut’s young people to other states; urban revitalization; difficulties families have staying together due to economic conditions; and the preservation of Connecticut’s educated workforce.  It also gives students an incentive to finish their studies at a time when college is increasingly expensive and it can take longer than four years to finish a degree in the state system.

I’ve been a strong supporter of the program, because my experience teaching UConn undergraduates gave me a real appreciation for how hard it is for them to find homes in Connecticut they can afford.  I co-sponsored two of the precursor bills to the legislation that passed, and testified before the Commerce Committee in support of one of them, HB 6456.

Providing an economically competitive environment for our graduates is vital for our state’s future.  It’s time we started making Connecticut a more attractive place for our bright young people to start their careers, make a home, raise a family, and stay.  The Learn Here, Live Here program is a positive step in that direction.

Click here to read my testimony before the Commerce Committee.