By Edward Krudy
NEW YORK (Reuters) - A Connecticut commission has scheduled a vote on Friday on a proposed $22 million grant to Bridgewater Associates, one of the world's largest hedge funds, to help it expand its operations in the state.
The plan has support from some Connecticut officials but has also drawn fire after the state slashed spending, laid off workers and froze pay.
The grant would help Westport-based Bridgewater expand facilities in Westport, Wilton, and Norwalk, according to documents posted on the website of the State Bond Commission, which will discuss the grant on Friday. The hedge fund is required to create 750 new jobs by 2021 on top of the 1,402 it employs in the state.
Funds also include $2 million for employee training and $3 million for alternative energy systems.
The state says the deal is good for taxpayers and will result in Bridgewater investing over $500 million. "The new jobs and capital investment will generate significant direct and indirect economic benefits," said Economic and Community Development Commissioner Catherine Smith.
The State Bond Commission is chaired by Democratic Governor Dannel Malloy. Malloy's office did not respond to a request for comment.
Opposition to the grant is mounting from all sides.
"Connecticut is in financial crisis and people are suffering. The Democrats just passed a budget that cuts from the most vulnerable individuals in society," said Republican Senate Minority Leader Len Fasano in a statement.
Lindsay Farrell, director of the progressive Connecticut Working Families group, said: "It is totally unacceptable to give tax dollars to wealthy corporations, especially when hard working families are facing a loss of services."
Ray Dalio's Bridgewater manages $150 billion, according to its website. Representatives for the firm did not comment.
Bridgewater could also get up to $30 million in tax credits for a total package from the state of $52 million, according to the Department of Economic and Community Development.
Hedge fund investors have complained about poor returns, and some multibillion-dollar public pension funds have said they will stop investing in them.
Connecticut, fighting criticism it is not business friendly, has been trying to court businesses as it struggles with a sluggish recovery after losing thousands of jobs during the financial crisis.
General Electric (NYSE:GE) Co, which had complained about Connecticut business taxes, relocated its headquarters to Boston, Massachusetts.
In May, Connecticut lawmakers passed a $19.7 billion 2016-17 budget, closing a gap of nearly $1 billion. More than 2,500 state workers could lose their jobs and managers have had their pay frozen.