As if your tax burden wasn't heavy enough: The State increased your taxes (such as the daily car rental tax) and fees during the 1999 Legislative Session and now, real property and other tax hikes have been announced by the Counties of Maui, Kauai and the City & County of Honolulu. In fairness to the counties, financial manipulation by the state, and appropriation of revenues generated in the counties‹such as the transient accommodations (hotel room) tax and fines‹have made the counties come beg before the state every year.

However, in the case of Democrat Mayor Jeremy Harris and the majority councilmembers (5 of 9) of the City & County of Honolulu, they have done manipulation of their own in order to retain their public employees (while the private sector is forced to cut back) and to pay for retroactive union pay raises. The Honolulu budget process, which wavers daily from deficit to "found" money, like magic. The Council supported the Mayor's call for a real property tax increase in June by a 5-4 vote (Duke Bainum, John DeSoto, Steve Holmes, Rene Mansho and Jon Yoshimura, "Yes;" John Henry Felix, Mufi Hannemann, Donna Mercado Kim and Andy Mirikitani, "No." at a time when most people have seen their real estate values decline by 30% or more. The justification is for police and government protective services, but the police have not been the beneficiaries of the increases.

Fiscal forecasts for Hawaii look more desperate. As middle class tax-paying, individuals and families continue to leave, the prospect of even larger tax burdens looms. The one-party monopoly continues their "vision" of tax and spend. The real solution is simple: REDUCE GOVERNMENT and prioritize. If politicians are unwilling or unable to do that, taxpayers must change them in the 2000 elections.

SPECIAL LEGISLATIVE SESSION THIS MONTH?

The 20th State Legislative Session, which began on January 20, ended its 60 working day session on May 4. Several defective bills were passed, (judicial salaries, hotel renovation tax credit) or failed to pass (reimbursement to the Federal Government for employee health premium refunds); "it seems to have fallen through the cracks,' said Senator Carol Fukunaga, Senate Co-Chair of the Ways & Means Committee) and may result in a $200,000 - $300,000 fine from the feds if not paid. Meanwhile, Governor Ben Cayetano was vetoing other measures at a record clip; some for very good reasons, some it seemed, to get back at the Senate. He had until June 24 to notify the Legislature of his intention to veto.

At press time, still unsigned was the two-year $12-billion operating budget (which already is the subject of a Republican constitutional challenge before the Attorney General) and several other key measures. The Governor was using his line-item veto power on the budget. Lawmakers were shocked at several of the vetoed bills, including unanimously supported (House, Senate, County Prosecutors and former AG Bronster) anti-crime bills.

House Speaker Calvin Say and Senate Republicans publicly called for the convening of a Special Session to fix the errors and possibly override several vetoes, but Senate President Norman Mizuguchi expressed reluctance and wanted to wait until the veto deadline. If there is a Special Session, it could last for 2 - 3 days and be limited to a few specific items ‹or could be opened up for any measure resulting in a longer, protracted session.

SBH ANNUAL 'THE TRADESHOW'
COMING IN NOVEMBER

Mike Rossell's Production Hawaii, Inc. staff is working hard for SBH members in preparation for the Second Annual Small Business Hawaii The Tradeshow '99, a unique two-day small business expo at the Blaisdell Center in Honolulu.

The Tradeshow '99 will be held Tuesday, November 16 (a hospitality reception and networking event by business invitation only) from 5 - 8 pm, followed by an all-day event, Wednesday, November 17, open to the business public from 10 am to 7 pm (hospitality 6 - 7 pm).

SBH members will have first choice of ALL locations (other than those of our sponsors) at Hawaii's most affordable major league small business expo ‹ but members must act no later than July 31. SBH members can choose the best spots in the exhibit area and enjoy the lowest prices. Until July 31, (no extension) SBH members can choose a standard (10' x 10') booth for only $299! A $50 deposit holds your booth if you reserve now.

This business show will attract business owners and managers interested in products and services that will help them operate more efficiently and profitably. And, it will help you do more business.

Last year's inaugural event was well received. Several thousand guests visited the more than 150 booths featuring an immense variety of goods and services available from businesses to other businesses in our Hawaii marketplace. This year's event will be bigger and better. All 238 booth spaces are expected to sell out early.

Pacific Business News will be The Tradeshow '99 media partner. This is your show and your chance to exhibit to an enthusiastic business crowd. There will be many special features, guest speakers and hands-on interactive exhibits.

For information and reservations, contact Barbara Garofano or Darla Hochhalter at Production Hawaii, Inc., 532-7300.

Click here for 1998 Tradeshow Pictures

FUKUMOTO, SCHNEIDER JOIN SBH BOARD

As a continuing followup to the SBH Advance Planning Session held in March of this year, the Board of Directors of SBH continue to implement member-suggested changes. One primary suggestion was to expand the current 11-member volunteer Board.

At its regular monthly meeting held June 22, the Board formally expanded the number of Directors to 13 and exercised the option of appointing two new members on an interim (one-year) basis. All Directors must be voted on by the membership for regular three-year terms. (Four current members are up for election later this year).

Appointed are: Geal Fukumoto, proprietor of Edward Jones in Kaneohe, president of the Kaneohe Business Group and president-elect of Kaneohe Rotary, and Jack Schneider, founder and president of JS Services and Employers Simplified Payroll (ESP), president-elect of the Downtown Exchange Club of Honolulu and Corporate Secretary of the Honolulu Executives Association. Both have been very active in SBH business, community and legislative functions for the past several years.

STATE LABOR DEPARTMENT ACTS ON
SBH APPEAL -- EIGHT YEARS LATER

In 1990, Small Business Hawaii intervened in a labor dispute involving paying union strikers unemployment compensation benefits. Board member and attorney, Michael Marsh represented SBH before the State Department of Labor & Industrial Relations. Despite numerous communications, nothing happened ‹ until last month.

Presented here is an exchange of letters from the State and Marsh on the matter. It clearly points out why the State of Hawaii is in the condition it is and the one-sided approach by the Labor Department:

(letter dated June 3, 1999 to Michael Marsh)

"Case No. 9000736.

The Appeals Office has pending 1990 Labor Dispute appeals. The appeals are from the claimants who were members of Local 5 and the Hilton Hawaiian Village. The labor dispute was over a six-week period beginning March 3, 1990, and ending April 7, 1990.

Please advise by June 15, 1999, whether you are representing the party/intervenor in the appeal hearing. Shortly, the Appeals Office will schedule for a pre-hearing conference. In addition, the Appeals Office will schedule a hearing and take testimony from the Small Business Hawaii's (sic) on their motion to intervene as the representative of affected employers.

If you have any questions, please write me."

Very truly yours, Ernest Hanaumi
Appeals Officer, State Department of Labor and
Industrial Relations

(Mr. Marsh's reply June 9, 1999)

Dear Mr. Hanaumi:

We are in receipt of your letter dated June 3, 1999, informing us that the Appeals Office intends to "shortly" schedule a hearing and take testimony from Small Business Hawaii on its Motion to Intervene in the above-referenced appeal which relates to payment of unemployment compensation benefits to employees of Hilton Hawaiian Village while they were on strike from March 3, 1990 through April 7, 1990.

Review of your file should confirm that a hearing on the Motion to Intervene was conducted on Monday, January 14, 1991. It appears from my time records that the hearing commenced at 9:30 a.m. and continued until nearly 1:00 p.m. The hearing was concluded at the time and Small Business Hawaii has been waiting for more than eight (8) years for the Appeals Office to rule on its Motion.

We suggest that you review your files and issue the long-overdue ruling on Small Business Hawaii's Motion to Intervene.

Sincerely, Michael R. Marsh

1999 SBH MEMBER REFERRAL
DIRECTORY DISTRIBUTED

Members and public agencies last month received complimentary copies of the 1999 Small Business Hawaii member Referral Directory. SBH has an active referral program and only does business and refers member firms.

The 48-page Directory lists current, paid SBH members alphabetically by firm name and also by primary business category. The Directory does not contain the list of all members‹only those who wish to be referred.

The Directory also contains helpful benefit information, legislative listings, telephone and fax hotlines and other pertinent business information.

If you did not receive your copy, need to correct your listing or phone/fax (there is a form in the Directory) or want another copy, please contact the SBH office at 396-1724.

SBA SEEKS R&D NOMINEES
FOR TIBBETTS TECHNOLOGY AWARD

The U.S. Small Business Administration (SBA) is now accepting nominations for the Tibbetts Award, the agency's highest national technology recognition, which is presented annually. The award goes to individuals, small businesses and organizations involved with federal research and development through the SBA's Small Business Innovation Research (SBIR) Program.

"In the past, awards have gone to firms like Aiea based Hawaii Biotechnology," said Hawaii District Director Andy Poepoe. "Through the SBIR program, this one company has delivered 4 new technological products to the marketplace. Dr. Tom Humphreys and his colleagues represent the kind of targeted industry the State wants to attract and grow. With the federal SBIR funding, we can not only create jobs, but make 21st century solutions available today."

The SBIR program accounts for more than $1 billion per year in federal R&D funds and is coordinated by the SBA in cooperation with 10 other federal agencies. Details on the program and the award nomination process are available on the SBA's home page at www.sba.gov/sbir. Nomination packages are due in the SBA by July 15.

The SBA's award, named for Roland Tibbetts who spearheaded creation of the SBIR program, last year went to companies and individuals from every state in the nation. This year's presentation will take place in Washington, DC in October.

ANNUAL LIBRARY BOOK SALE
STARTS JULY 10

A reminder that the Friends of the Library of Hawaii will hold their 52nd Annual Book Sale July 10 - 17th at McKinley High School Cafeteria. The Friends of the Library of Hawaii help to recycle books to readers of all ages in an effort to promote the joys of reading and life long learning.

In 1999 the group is celebrating 120 years of service to the people of Hawaii. Originally founded in 1879, Hawaii's is one of the oldest and most active Friends of Library groups in the country. The annual used book sale is the largest of it's kind in the United States.

The Friends of the Library of Hawaii is a tax exempt, nonprofit organization whose purpose is to promote and support public libraries. All proceeds of the sale go to support public libraries.