Millionaires? Connecticut Ranks #3 in the Nation

If you’re looking for millionaires, you’re in the right neighborhood.  More than 6 million households in the United States have liquid assets worth more than $1 million, according to newly released estimates.  And the greatest concentration of wealth in the United States is along the Interstate 95 corridor – including in Connecticut, which ranked #3 in the nation.

The state of Maryland has the highest percentage of millionaires in the U.S., the report by Phoenix Marketing International Global Wealth Monitor found, while New Jersey and Connecticut come in second and third.  In all three states, more than 7 percent of households have a net worth in excess of seven figures.  In Connecticut, 7.32 percent of households hold more than $1 million in assets, just behind 7.70 percent in Maryland 7.49 percent in New Jersey.

Connecticut moved up one slot, ranking fourth in last year’s survey.

Massachusetts, Virginia, New Hampshire, Delaware and the District of Columbia all landed in the top 10. Hawaii, where 7.18 percent of households hold more than $1 million in assets, and Alaska, with 6.75 percent of households, are the only two states outside the Northeast to reach the top 10.

Those high-worth households control almost three-quarters of the liquid wealth in the United States, David Thompson, who runs the Phoenix Global Wealth Monitor, told the Washington Post.

States in the South make up the bulk of the bottom of the list. Fewer than 4 percent of households in Tennessee, Kentucky, West Virginia, Arkansas and Mississippi are worth $1 million or more. Just 3.76 percent of households in Idaho held more than $1 million in assets.

California ranked #11 and New York was #12.  Among the other New England states, Rhode Island was #17, Vermont #18, and Maine #25,  Maine had the second biggest jump among the states, moving up 11 places from a year ago.  North Dakota moved up 14 positions to #29.

The Global Wealth Monitor estimates the number of millionaires based on the Survey of Consumer Finance and Nielsen-Claritas data.

Museum Retailers Headed to Hartford for National Conference

What do Houston, Los Angeles, New Orleans, Chicago and Hartford have in common?  Each has been selected to serve as host for the Museum Store Association’s annual Retail Conference & Expo.  Hartford will have the honors in 2015, having just been selected by the association’s site selection committee for their 60th Annual event.

The four-day conference, to be held at the Connecticut Convention Center April 17-20, 2015,  is expected to bring in 900 participants downtown, representing over 500 museums, other cultural institutions, and companies with products and services of interest to the museum store industry. Officials anticipate 1,130 room nights and 360 peak nights will be booked by attendees next spring.

It is the only conference and expo specifically created for retailers at museums, historic sites, botanic gardens, aquariums, zoos, libraries and more. The annual show provides a valuable opportunity for members of the association to network, learn and source vendors and products to complement their institutional collections.

Among the 11 institutions and nine vendors that are Hartford-area members of the association are the Wadsworth Atheneum Museum of Art, Connecticut Historical Society Museum & Library, Harriet Beecher Stowe House, New Britain Museum of American Art and Friends of Dinosaur State Park and Arboretum.

The Museum Store Association (MSA) is bringing its annual conference to the Northeast for the first time in more than a decade.  They met in Philadelphia in 2003.  Given the number of members and vendor affiliates on the East Coast - and especially in the northeast - the organization’s  leadership determined it was time to head east. Within an 11-state region in the Northeast, there are more than 200 institutions and 100 industry vendors that are members of MSA.

Stacey Stachow, President of the Board of Directors of MSA and Manager of the Wadsworth Atheneum Museum Shop, was especially pleased with the choice. “Connecticut has so much to offer with its rich cultural history, so many museums and things to do that relate to our members.”

It is expected that a Hartford-based committee will help plan activities that will involve the local members of MSA. Those plans will likely include educational sessions, networking events, tours to local museums, historical sites and other institutions of interest, and the organiation’s membership meeting and silent auction.

In selecting Hartford, MSA officials cited the convenience of travel, affordability, cultural institutions in and close to the city, and Hartford’s “pedestrian-friendly” layout as factors in the selection process.  Having a 4-star hotel interconnected with a modern Convention Center was also a plus.

MSA is a nonprofit, international association organized to advance the success of museum retail professionals. By encouraging high standards of professionalism, MSA helps cultural commerce professionals better serve their organizations. MSA also is focused on helping increase awareness about museum stores as unique shopping destinations for tourists and cultural travelers. The event features hundreds of booths showcasing the unique items for museum store and MSA-represented institutional buyers.

Jama Rice, MBA, CAE, Executive Director/CEO at MSA, reflected about the site-selection for the 2015 program: “I’d attended a conference in Hartford years back, and found it to be both charming and intimate.” Ms. Rice, who joined MSA in 2013, continued, “The area offers so many advantages from a rich museum culture to close proximity to both New York and Boston, a convenience for that concentration of institutional members and vendor affiliates across the Northeast. It’s also easily accessible to those traveling from across the country or coming in from overseas.” 

“We are excited to host the Museum Store Association for their 60th Annual Retail Conference & Expo next April,” stated Michael Costelli, General Manager for the Connecticut Convention Center. “The program will utilize much of the meeting and exhibit space at the Center and we are confident attendees will appreciate the countless cultural attractions located right here in Hartford.”

Although this year’s conference in Houston is still months away, the MSA has already begun to promote next year’s event, highlighting Hartford on the organization’s website: “As the fourth-largest city in Connecticut, Hartford is not only home to the state’s capital, but it is the birthplace of the Boys & Girls Club, the first FM station to begin broadcasting in the world and President Theodore Roosevelt’s first automobile ride. An 18-square-mile city, Hartford is home to 125,000 residents, world-class dining, international cultural attractions and award-winning entertainment venues.”

One Month, Many Causes: Health & Wellness Lead the Way in November

If supporting a cause – whether with time, energy or resources - is on your to-do list, November is a great month to start if you’d like to focus on health and wellness efforts.

November is American Diabetes Month (American Diabetes Association), Diabetic Eye Disease Month (Prevent Blindness America), National Alzheimer’s Disease Awareness Month (Alzheimer’s Disease and Related Disorders Association) and National Epilepsy Awareness Month (Epilepsy Foundation of America).  In addition, it is National Child Mental Health Month, National Family Caregivers Month (National Family Caregivers Association), and National Healthy Skin Month (American Academy of Dermatology).

November is also National Home Care Month (National Association for Home Care & Hospice) and National Hospice Month (National Hospice and Palliative Care Organization), as well as Great American Smokeout Month.  November 21 is designated by the American Cancer Society as the Great American Smokeout Day.

The week before Thanksgiving, November 17-23, is American Education Week, as designated by the National Education Association.

The previous week features World Kindness Day on November 13, World Diabetes Day on November 14, and National Philanthropy Day (Association of Fundraising Professionals) and America Recycles Day (National Recycling Coalition), both on November 15.  November 22 is National Family Health History Day, set by the U.S. Department of Health and Human Services, and November 23 is International Survivors of Suicide Day (American Foundation for Suicide Prevention).

Mothers Against Drunk Driving will highlight their Tie One On For Safety Campaign, between November 21 and January 1, coinciding with the holiday season.

Connecticut Innovation Summit to Highlight Emerging Entrepreneurial Businesses

Hundreds of people who from across the spectrum of Connecticut’s innovation ecosystem — from C-level executives to emerging entrepreneurs, investors to entrepreneurial support organizations, service providers to students, will gather to share ideas and promote and celebrate innovation at the Connecticut Innovation Summit, convening for the seventh year on November 7.

The expanded Summit agenda includes:

Mentor Meetings where 75 entrepreneurs will get the unprecedented opportunity to meet one-on-one with three tech experts of their choosing — executives, investors, and serial entrepreneurs who built and sold companies — to share their experiences, knowledge and expertise.

The Funding Fair where funders and entrepreneurial resources including angels, VCs, corporate VCs, investment bankers, lenders, family offices, government programs, private investors, incubators and co-working spaces will be on-hand to offer individual guidance and advice.

The Pitch Fest where each of the 75 companies deliver a three-minute pitch to a panel of judges. The top ten pitchers will compete at the Pitch-Off where the audience, by way of electronic voting, determines the best of the best.

Poster Expo enabling deal makers and movers and shakers face-to-face time with each of the 75 Tech Companies to Watch.

Described as “Connecticut's Largest Networking Event for Innovative, Emerging and Start-up Companies,” the expanded agenda also recognizes Tech Companies to Watch - 75 tech start-ups representing cutting edge, early stage and emerging growth companies.  Companies that reflect innovation, and have the potential to grow quickly and do not exceed $3M in revenue, are urged to apply to be a Tech Company to Watch.

Five of the 75 companies will receive awards in categories including green tech, internet / new media, life sciences, software and technology product / service. The Connecticut Innovation Summit is presented by Angel Investor Forum, Connecticut Technology Council, Crossroads Venture Group, CTNext, and CURE. Registration is now available.

Student Debt Nationwide Shows Geographic, Income, Racial Divisions; CT in Debt-High Northeast

Across the country, an average 16.2 percent of consumers owe some amount of student debt. But if you look at the state level, the country appears split along the Mason–Dixon line, with a higher percentage of the population owing money in northern states than southern states, according to numbers published by the College Financing Group, citing data from the Federal Reserve Bank of New York.

Overall, Hawaii has the lowest share of consumers with student debt, just 12 percent. That’s less than half the rate in Washington, D.C., where 25 percent of the population in Washington, D.C. owes student loan money, according to data compiled through 2012. Connecticut’s rate hovers in the middle, within range of the national average. 

According to the Federal Reserve Bank of New York, student loan debt is the only form of consumer debt that has grown since the peak of consumer debt in 2008. Balances of student loans have eclipsed both auto loans and credit cards, making student loan debt the largest form of consumer debt outside of mortgages.

The full report also shows that 11.9% of all borrowers are 90 days or more past due on their loans, and the average student debt per borrower stands at $24,810. Interestingly, despite Washington D.C.’s high percentage of people with student loans, it has a lower-than-average delinquency rate of only 7.3%.

In its most recently updated 2013 quarterly report, the Federal Reserve Bank of New York noted that outstanding student loan balances increased to $994 billion nationwide as of June 30, 2013, a $8 billion increase from the first quarter this year.  Other estimates have placed outstanding student debt in excess of $1 trillion.

Life on Hold, Especially Among Lower Income Families

According to a 2012 online web survey conducted by American Consumer Credit Counseling, over 35 percent of respondents reported that they have had to delay saving for retirement because of their student debt, while 27 percent also reported that their ability to buy a car has been impacted, and 29 percent said it has affected their ability to buy a house. Nine percent of respondents said student loan debt has even impacted their ability to get married.

A report this year from Demos, “At What Cost:  How Student Debt Reduces Lifetime  Wealth,” stated that “though a college education remains the surest path to a middle-class life, evidence has begun to mount that student debt may be far more detrimental to financial futures than once thought, particularly for those with the highest levels of debt: students of color and students from low-income families.”  The data used was of 2008 bachelor’s degree recipients.

The Consumer Financial Protection Bureau has reported that the share of young consumers among first-time homebuyers is falling. According to the National Association of Realtors, Americans between the ages of 25 and 34 made up 27 percent of all homebuyers in 2011, the lowest share in the past decade. That percentage represents a 25 percent decline year-over-year from 2010.

Young borrowers with student debt are less likely to own a home than those with no debt. According to recent analysis by the Federal Reserve Bank of New York, young borrowers with student debt - historically an indicator of a college education and an accompanying boost in wages - demonstrate a lower rate of homeownership than their peers with no student debt, breaking a decade-long trend.

The demos report found that family income has a large impact on the debt levels of college graduates. Seventy-five percent of bachelor’s degree recipients from families with incomes of less than $60,000 graduated with some student loan debt in 2008, compared to just 48% of students whose families earned $100,000 or more. Students from poorer families were also much more likely to graduate with large amounts of debt: 14% of graduates from lower-income families had more than $30,500 in debt, compared to just 9% of students from families who earned $100,000 or more.

A report by the Project on Student Debt in October 2012, an initiative of the Institute for College Access & Success, indicated that Connecticut students graduating in the class of 2011 had the fifth highest average student loan debt in the nation, at $28,783.  That report also indicated that “high debt states are mainly in the Northeast and Midwest, with low debt states mainly in the West and South.”  The report found that 64 percent of graduating students in 2011 had student debt, which ranked Connecticut 15^th in the nation that year.

Earlier this year, the Consumer Financial Protection Bureau indicated that 1 in 5 U.S. households have student loans, and the number of student loan borrowers increased 31 percent between 2007 and 2012.  Demos predicting that the “impact on the lifetime assets of indebted households will be nearly four times the amount borrowed.”

Benefit Corporations Find a Home in Delaware, Connecticut to Try Again Next Year

During the summer, progress was made on efforts to advance social benefit corporations – businesses that aim to impact their communities in addition to making a profit – but that progress did not come in Connecticut.

Delaware became the 19th state (plus the District of Columbia) to enact benefit corporation legislation in July.  Similar legislation did not make it through the Connecticut legislature in 2013, despite widespread support and no known opposition.

Delaware, as corporate home venture-backed businesses, 50 percent of all publicly-traded companies, and 64 percent of the Fortune 500, is considered by advocates to be among the most important states for businesses that seek access to venture capital, private equity, and public capital markets.

The goal of the legislation is to create in state law a new type of corporation—the benefit corporation—that best meets the needs of entrepreneurs and investors seeking to use business to solve social and environmental problems.  Benefit corporations operate the same as traditional corporations but with higher standards of corporate purpose, accountability, and transparency, advocates say.  The new designation provides business leaders with legal protection to pursue a higher purpose than profit, and they offer investors and the public greater transparency to protect against pretenders, supporters point out.

In Connecticut, despite being introduced earlier this year with the backing of Governor Dannel Malloy, overwhelming support in the state House where it passed by a lopsided 128-12 on May 20, and co-sponsorship by the legislature’s four top leaders, legislation establishing the “benefit corporation” as a new type of corporate entity never came up for a vote in the State Senate, and thus it died when the session ended in June.

Among the leading advocates of the proposal in Connecticut, the reSET Social Enterprise Trust has vowed to renew the effort next year, a commitment echoed by a broad coalition of supporters in the private sector and in government economic development circles. “In the next legislative session, reSET will re-double its efforts to secure passage of this much-needed legislation,” the organization emphasizes, pointing out that the bill “drafted in cooperation with the Connecticut Bar Association and BLab, is the most comprehensive of its type proposed in the United States.”

In recognition of the milestone achievement in Delaware, more than 600 businesses around the country signed an Open Letter inviting their peers to join the movement to redefine success in business.

The letter stated, in part, “we see this as a big market opportunity, because a large and increasing number of people want to support a better way to do business -- better for our workers, better for our communities, better for our environment.  Until recently, corporate law has not recognized the legitimacy of any corporate purpose other than maximizing profits. That old conception of the role of business in society is at best limiting, and at worst destructive. By serving a higher purpose and by meeting higher standards of transparency and accountability, we build our most important asset -- trust. This trust enables us to attract the best talent and turn customers into evangelists, helping us make money and make a difference.

Delaware Governor Jack Markell, writing in the Huffington Post, said “These new Delaware public benefit corporations will harness the power of private enterprise to create public benefit. In the short term, they will create high quality jobs and improve the quality of life in our communities. In the long term, as many enter the public capital markets, they will help combat the plague of short termism that we have seen over the last five years can undermine a shared and durable prosperity.”

Markell noted that the new public benefit corporations will “have three unique features that make them potential game changers” – “concern corporate purpose, accountability, and transparency.”  Prior to serving in government, Markell, now in his second term as Governor, was senior Vice President for Corporate Development for Nextel, having been one of the first fifteen people hired by the company.

Among those advocating for benefit corporation legislation across the country – including Connecticut - is the nonprofit organization behind the Certified B Corporation designation.  B Lab is a 501(c)3 nonprofit that serves a global movement of entrepreneurs using the power of business to solve social and environmental problems. B Lab serves these entrepreneurs through three interrelated initiatives that provide them the legal infrastructure and help them attract the customers, talent, and capital to scale.

Benefit Corporations and Certified B Corporations are distinct terms. They share much in common and have a few important differences. Certified B Corporation is a certification conferred by the nonprofit B Lab. Benefit corporation is a legal status administered by a state government, such as the case this summer in Delaware (and almost in Connecticut).  Benefit corporations do NOT need to be certified.

Certified B Corporations have been certified as having met a high standard of overall social and environmental performance, and as a result have access to a portfolio of services and support from B Lab that benefit corporations do not.  The B Lab website indicates more than 800 companies in 27 countries and 60 industries have earned the designation.

CT Companies Among World’s Most Innovative, Forbes List Shows

Google was #47.  Apple was #79.  Ranked at #43, Danbury headquartered Praxair surpassed both, one of two Connecticut-based companies in the top 50 on the latest Forbes® World's Most Innovative Companies list. 

The highest-ranked company located in Connecticut, placing at #2 globally, was New Haven based Alexion, in the midst of a much-heralded move back to the city where it was founded.   It is the second consecutive year that Alexion was ranked at #2.

Alexion Pharmaceuticals, Inc. is a biopharmaceutical company focused on serving patients with severe and ultra-rare disorders through the development and commercialization of life-transforming therapeutic products. Its marketed product Soliris is the first and only therapeutic approved for patients with two ultra-rare and severe disorders.

A specialized chemicals company with more than 26,000 employees worldwide, Praxair improved its “innovative” position on the Forbes list, up from #46 in 2012. Praxair, Inc. products are oxygen, hydrogen, nitrogen, argon, carbon dioxide, helium, electronic gases and a range of specialty gases. Praxair Surface Technologies supplies coatings, which protect metal parts from wear, corrosion and heat. 

Ranked at #73 among the world’s 100 most innovative companies according to Forbes was Amphenol Corporation, with world headquarters in Wallingford.  Amphenol is a designer, manufacturer and marketer of electrical, electronic and fiber optic connectors, interconnect systems and coaxial and high-speed specialty cable. Amphenol systems are used primarily to conduct electrical and optical signals for a range of electronic applications.

Assa Abloy, at #78, is a Sweden-based company engaged in the secure door opening solutions. With operations in New Haven, the company's operations are divided into five divisions, including the supply of electronics security solutions worldwide. Assa Abloy provides secure identity solutions, contactless identification technology solutions, electronic lock systems and safes for hotels and cruise ships.

Based in Ireland, but with a strong presence in North Haven, Covidien Public Limited Company ranked at #67.  Covidien is engaged in the development, manufacture and sale of healthcare products for use in clinical and home settings. It operates its businesses through three segments: Medical Devices, Pharmaceuticals, and Medical Supplies.

The San Francisco Bay Area had three of the top 10 spots and six spots overall on the list of 100 companies.  Companies headquartered in Connecticut, or with a strong presence in the state, had a strong presence among the world’s most innovative. 

For the third year in a row, San Francisco-based Salesforce.com topped the Forbes’ list.  After Alexion, the remainder of the top five were U.S. companies VMware at #3, followed by Regeneron Pharmaceuticals and ARM Holdings. Amazon was # 7; Starbucks was #19. The complete ranking is featured in the September 2 issue of Forbes magazine.

In compiling the list, Forbes utilizes a detailed methodology.  Companies are ranked by their innovation premium: the difference between their market capitalization and a net present value of cash flows from existing businesses (based on a proprietary formula from HOLT/Credit Suisse), the magazine reported.  To be included, firms need seven years of public financial data and $10 billion in market capitalization.

“Hometown” Banks Continue to Locate Away From Home

Apparently hometown pride and banking are mutually exclusive – or at least travel well.  The volume of banks bearing a community’s name that are opening branches far, far away from home continues to grow, which suggests that banks have clear and convincing evidence that the distant moniker just isn’t an issue for consumers.

The latest: Vernon-based Rockville Bank is asking state approval to open a Hamden branch, its first retail incursion into New Haven County, the Hartford Business Journal has reported.  The bank is planning to establish a 2,000-square-foot, full-service retail branch near the commercial- and residential-loan production office the bank opened in July 2011.  Earlier this year Rockville Bank crossed the Connecticut River to open a high profile branch in thriving West Hartford Center.

Connecticut by the Numbers has previously reported on the increasing number of banks with the name of a Connecticut town within the bank’s name that have opened branches – and many of them – in other towns.  An increasing number are opening in towns far afield, and last month, Massachusetts-based Westfield Bank opened a branch in Granby, CT.

Already, the list of town names doing double-duty as bank names is lengthy, with the institutions numbering two dozen:  Fairfield, New Canaan, Groton, Darien, Essex, Farmington, Greenwich, Suffield, Guilford, Jewett City, Litchfield, Milford, Naugatuck, Putnam, Rockville, Salisbury, Danbury, Simsbury, Stafford, Thomaston, Torrington, Wilton and Windsor.  And those are only the Connecticut towns, of course.

Among the town-line-jumping trendsetters:  Farmington Bank in South Windsor, Essex Savings Bank in Madison,  Jewett City Savings Bank (“your hometown bank”) in Brooklyn, Simsbury Bank in Bloomfield, and the Savings Bank of Danbury in Waterbury.  There are many more.

Although there are 25 out-of-state banks with a presence in Connecticut, only Rhode Island-based Newport Federal Savings Bank, with an office in Stonington, included the name of a town – until the arrival of Westfield Bank.  Other well-known names, evoking out-of-state regions, include Bank of New York, Berkshire Bank (which is now in the process of purchasing 20 Bank of America branches in New York State), First Niagra Bank, and Hudson Valley Bank.

To look back at the CT by the Numbers hometown bank story, click here:

http://ctbythenumbers.info/2013/04/17/hometown-names-go-beyond-hometown-for-connecticut-banks/

To review the list of banking institutions in Connecticut, see the state Department of Banking list:

http://www.ct.gov/dob/cwp/view.asp?a=2228&q=296954

For High School Stand-outs, Major League Baseball Draft Brings Tough Decision

When Masuk High School baseball standout Thomas Milone of Monroe was selected by the Tampa Bay Rays in the third round, 97th overall, in this week’s Major League Baseball draft, it instantly became decision time. His choice: sign with the Rays by July 12, or go to UConn, where he has signed a letter of intent.

His decision, yet to be announced, may impact UConn’s prospects to build on this year’s successful post-season, but will certainly affect the course of his own career, in baseball and beyond.

For Matt Harvey, now a standout pitcher on the New York Mets, a similar dichotomy awaited him after being drafted #118 overall by the Minnesota Twins in 2007 out of Fitch High School in Groton.   Harvey decided to head to college at North Carolina, went back in the baseball player draft after his junior year, and became the #7 pick overall when the NY Mets selected him.  He signed with the Mets, and his career trajectory has been upward ever since.

Among the top ten picks this year, 17 year old Phil Bickford of California will be deciding whether to sign with the Toronto Blue Jays or follow through on his commitment to Cal State Fullerton to begin college and a collegiate baseball career.  High school pitcher Kohl Stewart, selected at #4 by the Minnesota Twins, has said he will likely sign with the team and walk away from a football scholarship to Texas A&M.  In the seventh round, Avon Old Farms student Neil Kozikowski, a pitcher from Burlington, was selected by the Pittsburgh Pirates, the 239th player selected.

For two other Connecticut players were drafted this week, it was a stellar college career that contributed to their position in the draft:

• John Murphy, a former Seymour High and Sacred Heart University shortstop, was the sixth-round selection with the 194th pick for the New York Yankees.  He is the highest selection in SHU history and the 14th player from the school ever to be drafted, according to the Connecticut Post.
• University of Connecticut infielder L.J. Mazzilli, son of former major leaguer Lee Mazzilli, was drafted by the Mets in the fourth round -- 40 years after his dad was a first-round pick of the club.  L.J. Mazzilli helped lead the Huskies to the Big East tournament title and an automatic berth to the NCAA tournament this year.  He had been drafted by the Minnesota Twins a year ago, but opted to stay at UConn for his senior year.

Play college ball, or turn pro?  For Joseph Matthews, first vice president and senior investment management consultant with the Global Wealth Management Division of Morgan Stanley Wealth Management in Fairfield, the answer is in the numbers.

Matthews, writing in the Connecticut Post, notes that Georgetown University’s Center on Education and the Workforce has found that “people who hold a bachelor's degree have an 85 percent higher lifetime earning capacity than people with only a high school education.  With an undergraduate college degree, a person will average lifetime -- that is, from age 25 to 64 years -- earnings of $2.8 million. With a high school degree, that average plummets to $1.5 million.”  Here’s how Matthews breaks it down:

• Right now, there are 750 players on 30 major league teams. Additionally, there are 4,000 players on 160 teams in the minors.
• Less than three in 50, or only about 5.6 percent, of high school senior boys in interscholastic baseball programs will go on to play men's baseball at an NCAA member institution.
• Of those, fewer than 11 in 100 senior players in NCAA will be drafted into professional baseball. In all, only one in 200 (about 0.5 percent) high school seniors playing interscholastic baseball will eventually be drafted by an MLB team.

By way of comparison, data indicates that in basketball .03% of high school athletes are drafted by NBA teams; in football the percentage is .09% reacingh the NFL, in hockey it is 4% who achieve the NHL level.

The economics – for those who don’t make it to the major leagues – are stark.  “For the minor leagues, roughly 1,500 players are drafted per year, yet only 1,000 will actually get to play. These lower-level athletes are only paid a fraction of what their major league counterparts are paid: a first contract season pays only $850/month, maximum. Taking into account rent, food, utilities, transportation, entertainment and all the other expenses of independent living, it would be exceedingly difficult on a minor league salary to grow a nest egg for future use,” Matthews suggests.

Those whose careers don’t rise above the minors will be “cast out into the labor force, often with a wife and children, and no marketable skills to speak of,” Matthews says.  He concludes that “donning a cap and gown and stepping up to a podium -- to accept a college diploma -- is a far more realistic way to achieve their dreams.”

That is an opinion that Milone, and other freshly minted high school graduates drafted by a major league franchise this week, may well be pondering.

Overwhelming Support Spells Defeat for Creation of Social Benefit Businesses in CT

Despite being introduced with the backing of Governor Malloy, overwhelming support in the House of Representatives where it passed by a lopsided 128-12 on May 20, and co-sponsorship by the legislature’s four top leaders, legislation establishing the “benefit corporation” as a new type of corporate entity never came up for a vote in the State Senate.  And thus it died when the legislative session ended on Wednesday.

“Despite a great deal of effort, we lost. It is a sad day for Connecticut that we couldn't get something so unequivocally positive done. I personally find it hard not to be disheartened by the whole process, but I guess that's politics,” said Kate Emery, founder and CEO of reSET, the Social Enterprise Trust.

Similar legislation has already been passed and signed into law in California, Hawaii, Illinois, Louisiana, Massachusetts, Maryland, New Jersey, Pennsylvania, South Carolina, Vermont, and Virginia. It is pending in nine other states.

The bill (HB 6356) would have allowed businesses to legally incorporate as benefit corporations in Connecticut and was described as the most comprehensive piece of social enterprise legislation ever proposed in the United States.  It was designed to help social entrepreneurs protect their organization’s social mission, and provide a transparent, accessible, and simple mechanism for defining their business’s social goals.  Supporters said the legislation would also help drive job creation and increase the number of community-based partners committed to solving some of Connecticut’s most pressing social issues without requiring additional state funding.

Here’s how Hartford Courant business editor Dan Haar described the bill in a column the day prior to legislative adjournment:  “The bill has few if any opponents, it would make it easier for private firms to do some good in the world and it wouldn’t cost the state any money (okay $62,000, once, to reprogram the computers).

Firms organized this way, known as type-B corporations, would have a stated social goal beyond profits for the owners — public health, perhaps, or promoting the arts or restoring the environment or creating economic opportunity for disadvantaged people. It’s the kind of stuff nonprofits tend to do, but allowing for-profit companies to set up with a social purpose simply adds an avenue.”

The bill not only required benefit corporations to publicly state their social mission within the business’s articles of incorporation, but it also would have created a culture of accountability within Connecticut’s social enterprise community by requiring that those businesses publish an annual benefit report detailing the public benefit that they have actually created, and make that information publicly available on their website.

It also would have given owners of social enterprises the option of locking in their commitment to the social mission that their business is designed to serve by electing to adopt its legacy preservation clause after a waiting period of two years. This would allow shareholders to ensure that their commitment to the creation of public good is maintained, even if ownership of that company changes over time.  But it was not to be.

“We did everything we could possibly do and we had a lot of great people working very hard to make it happen,” Emery said in an email to supporters of reSET across the state.  “It was a well fought battle and sooner or later we'll get it passed but for now we will have to take heart in knowing we did all we could.”

The broad coalition of supporters – all of whom submitted testimony during a public hearing on the bill -  included AARP, the Connecticut Association of Nonprofits, the Connecticut Conference of Independent Colleges and AT&T.  As Haar noted this week, Connecticut Innovations, the state’s technology investment arm, and the state Department of Economic and Community Development both supported it actively.  The Connecticut Bar Association, which opposed a similar bill last year, also supported this year’s revised version.

Benefit Corporations are a new class of corporation that 1) creates a material positive impact on society and the environment; 2) expands fiduciary duty to require consideration of non-financial interests when making decisions; and 3) reports on its overall social and environmental performance using recognized third party standards.

In her public hearing testimony, state Economic and Community Development Commissioner Catherine Smith said Connecticut “is poised to realize many benefits” from passage of the bill, which would “leave a lasting social and financial impact on our state for years to come.”