GUV'S ECONOMIC TASK FORCE
WANTS TO INCREASE YOUR GE TAX 34%

Despite all the talk of the "$100 million tax savings," independent sources have found that tax savings would actually be less (about $40 million net) and that some people, notably small businesses, would actually be taxed more under the package being touted by The Governor's Economic Revitalization Task Force.

The Tax Foundation of Hawaii, State DBED, the Republican Party and the League of Women Voters all have come up with figures at variance with the rosie estimates of the Task Force. SBH believes there will be no "jumpstart" of the economy, improvement of small business conditions or an invitation for more business to come here based on its analysis of the Task Force tax proposals. Since they first unveiled their plan in October, Task Force members have not released detailed back up data nor have they been able to answer tough questions posed at Island Town Meetings regarding the true impact of increasing taxes while leaving state government untouched.

The Task Force sponsors would have you believe there is no other choice: take the package as is in whole or suffer the consequences. The '98 Legislature will not adopt a package featuring tax increases when all House seats and half the Senate are up for re-election and when small business groups, welfare groups and others all attack the plan.

Most of the recommendations other than taxation are positive and merit support. But they are overshadowed by the tax burden and the zeal of special interest Task Force members in lock step to have you swallow this bitter pill. Rep. Calvin Say, Finance, already said no.

The Economic Revitalization Task Force, with its 27 top "movers and shakers," on December 10 will again hide behind closed doors to reevaluate public reaction to their proposals. If they continue their strident "take it or leave it" attitude, voters will leave it, and many of them.

FINAL SHARE N TELL FORUM WILL PREPARE YOUR BUSINESS FOR 1998

The final SBH Small Business Hawaii Share N' Tell Business ForumĒ of 1997 will provide you with strategies to help you prepare for and do more business during 1998.

The member Forum will be held Wednesday, December 17, at the Kahala Mandarin Oriental Hotel, from 10:00 a.m. to 1:00 p.m.

Share N' Tell Forums combine networking, education and a social atmosphere to encourage you to do more business and help you cut existing business costs.

If you haven't attended lately or are a new SBH member, this is an event you won't want to miss. Bring an employee, friend or client. These forums are a major member benefit.

Members, and their guests, may choose one of eight exciting and educational Table Topics, led by a knowledgeable member-Facilitator, prior to the luncheon program.

Topics and Facilitators include:

* "Recruiting and Selecting the Right Employees, (Or,We've Got to Stop Meeting Like This)" Dorothy Iwamoto, The Office Manager

* "Do's and Don'ts of Desk Top Publishing," Melvin AhChing, MelvinAhChing Productions

* "Ergonomics for a Healthier Workplace," Lynn Murakami-Akatsuka, State Department of Health / U of H School of Public Health

* "Maximizing Business Productivity By Creating a Stress-Free Environment," Dr. Suzanne Gelb, PhD

* "Long Term Care, MSAs, and Other Business Insurance Strategies," Nolan Namba, PSH Insurance, Inc.

* "Cultivating Creativity in Yourself and Your Company," Gail Silva, Business Creations

* "Advertising vs. Marketing," Joyce Torrey, Joyce Torrey Public Relations

* "How to Work Best With Your CPA or Accountant, and Vice Versa," Reg Baker, Reg Baker and Company

The $25 cost of the Share n' Tell Business Forum includes the entire program, luncheon and parking. Advance, paid reservations are required for this special rate and will be accepted as received on a first-come, first-serve basis. The cost is $30 at the door if space is available. Reservation forms are available in the printed issue of Small Business News.

Cayetano, Lingle, Roth, King To Headline 22nd SBH Annual Conference January 14

The 22nd Annual SBH Conference will be held Wednesday, January 14, 1998 in the Ala Moana Hotel, Hibiscus Ballroom, from 8 am to 2 pm, and members, their guests and the public are welcome. You won't want to miss it!

This year's conference theme is, "Small Business '98; Catalyst For Changing And Improving Hawaii's Economy" and is the first major business forum of the New Year.

Gubernatorial hopefuls, Governor Ben Cayetano, and Maui Mayor Linda Lingle, have confirmed, and will address the small business community to share their vision for economic change. Honolulu Mayor Jeremy Harris, a potential candidate, was also invited.

The Conference keynoters, will be UH law professor, author and "Price of Paradise" radio series producer, Randy Roth, and federal Judge Samuel P. King, co-authors of the recent Bishop Estate expose, "Broken Trust."

Leaders of the 19th State Legislature have also been invited to give their views on "Economic Revitalization" during the Session which will open a week later, January 21.

SBH member-business leaders, Beth Terry and Geal Fukumoto, will share their thoughts on what needs to be done in '98.

SBH Success Awards and Annual SBH Business Awards, including "Small Business Person of the Year" will also be presented.

The cost to members and their guests is $30 each if paid in advance. Reservation forms are available in the printed issue of SB News. Call SBH at 396-1724 for a copy or more information.

'98 LEGISLATURE TO FOCUS ON ECONOMY?

The 1998 State Legislature will open its 60-day Session January 21 and already the question is, will the Session focus on the economy? The Governor's Economic Task Force, the Small Business Coalition, Hawaii Small Business Congress and other business groups certainly hope so.

Workers Compensation reform, Privatization and fine tuning the auto insurance changes passed this year, will also be on the agenda. Informational briefings and public hearings have already been held during the past few months.

SBH supports meaningful downsizing of government starting with non-replacement of government employees who quit, retire or die, and the reduction of the size and cost of operating state government. Switching to a unicameral (one-house) legislature, requiring economic impact statements on all appropriations bills and limiting the number of bills introduced are starting points.

Hawaii's record of bill introduction, compared to its western state neighbors is atrocious as shown on the linked table here.

The SBH Annual Conference (January 14) will focus on needed legislative changes. Several key lawmakers have been invited. In addition, the three leading candidates for Governor have also been asked to speak.

Small business has its best chance to make changes next year with the Session, a Constitutional Convention and the fall elections. Want to get involved? Contact SBH today (396-1724) to volunteer to make a difference.

Board Members Re-Elected

Four Directorships, of the current 11, were re-elected by a vote of the membership last month, according to Nominations Chair, Director Bob Sigall.

Directors whose term expires December 31, 2000 are: Jed Gaines, Joyce Edwards, Helen Rapoza and John Yanagihara.

A directorship is a commitment for active involvement and service to the organization, the membership, and the community. No Director, other than Executive Director, receives any compensation for this voluntary service.

"YES" MEMBERS LEARN ABOUT
INSURANCE NEEDS

By Michele E. Harris, President & R.M.E., Blue Moon Builders

Richard Kersten, of Kersten & Associates,was featured speaker at the October 30 SBH Young Entrepreneurs "YES" meeting held at The Wisteria. (He had also been a guest speaker at the "YES" Seminar at KCC a week earlier). Richard spoke to our bright and attentive group about insurance; his profession since 1972. The economy has changed dramatically but business insurance needs are consistent. Although Richard specializes in life and disability insurance and retirement plans, he is involved with and very knowledgeable about all varieties.

Richard explained that we need to know and understand what types of insurance we own, but also why we own it. Legal requirements may be one reason to obtain specific coverage, but there are many other reasons to carry insurance. Understanding the purpose and intent as well as possible applications of different insurance policies is paramount to owning and operating a successful business.

There are many types of insurance to help carry a person or business through a change in leadership or rough times. As prudent business leaders, we need to assess our insurance needs, not just to satisfy legal requirements, but to use as a tool to reach our goals.

* Beth Terry, Pacific Rim Marketing spoke on, "Managing Business Change" November 20, at the Ward Centre Yum Yum Tree.

* There will be no "YES" meeting in December but the Young Entrepreneurs are holding a holiday party on Saturday, January 3 at Murphy's Bar & Grill. For reservations and information, call Helen Rapoza at 739-0400. Everyone, regardless of age, is welcome!

ALERT -
CHANGES IN THE FEDERAL 8A PROGRAM

by Nora Feuerstein, Omega

Every month we receive many calls regarding how to bid on Federal Contracts from small business owners from around the world. Our company is a prime contractor for the Federal government as well, as administrates Federal contracts for smaller companies. There are some changes in the 8a program, that will certainly benefit small business, below are some highlights of the changes.

A controversial change is the relaxation of the 8a program eligibility requirements. The proposed rules provide that eligibility will be based on whether an applicant concern is both small socially and economically disadvantaged. Certain designated groups also qualify if an individual is socially disadvantaged. SBA is planning on categorizing groups other than by "origins from" section, which would allow for many other companies to qualify for the 8a program.

The SBA regulations would be amended to permit joint ventures that otherwise might be precluded from bidding because of combined size. Such joint venturing would now be permitted if each participant is a small business. This would be permitted in high-dollar value procurements where it is unlikely that individual SBs could successfully offer on and perform the requirement. Large businesses would not be permitted to split into two small entities in order to participate in joint ventures for a procurement reserved for SBs. Depending on the type of procurement, a number or proposed refinements and restrictions will apply to these joint ventures. Take heart all these changes mean more business for you, if you are still confused give us a call at 531-6201.

For a full review of the proposed changes please visit: http://frwebgate2.access.gpo.gov/