STATE TRAINING FUND TAX MORATORIUM -
DLIR SEEKS END RUN
The insidious State Employment and Training Fund Tax (EFT), adopted five years ago after six years of opposition by EVERY business organization, was to sunset December 31, 1996. Instead, the State Labor Department conspired to get the EFT extended.

During the '97 Session an 18-month moratorium on the tax was enacted (Act 194, HRS Sec. 383-129). Effective July 1, 1997 through December 31, 1998, employers are temporarily "relieved" from paying the 0.05% tax assessment on taxable wages paid during this period. Beginning January 1, 1999, the tax will be resumed UNLESS the '98 Legislature or voters take action next year.

But the State DLIR isn't waiting. They have been busy heavily recruiting small business organizations and contractor-trainers to grab some "free" money for their own training programs. Several months ago there was a reported $8 million in the Fund, but now $3 million is supposedly available. Many millions have been paid to union and big business training fund programs; subsidized involuntarily by small business employers.

Want a scenario here? Like food stamps decades ago, when very few signed up initially until bureaucrats went out and recruited new users. Then the government complained: (1) they were overworked and understaffed by the new "demand" and needed more employees to administer the stamps, and (2) they needed more taxes to pay for the increased "demand."

SBH believes this money should remain in individual businesses who should have the right to choose where to spend it. Seventy separate training programs already exist. The tax should be repealed. What do you think?

ECONOMIC DREAM TEAM A REAL NIGHTMARE

The Governor's "Dream Team" Economic Revitalization Task Force, is a nightmare for small business--and taxpayers. This summit--one of four including the State House, Senate, and Honolulu Advertiser--is 1995's "Thumbs Up," with another finger. This "Thumbit" includes the same cast of characters: CEOs of the state's largest banks--avowed Democratic Party supporters who hold state deposits--the heads of the most powerful unions, and biggest government-regulated businesses. Chances of real change and reform from this makeup are nil. They are the status quo. Their "power" has not been used for change. Meetings and discussion are behind closed doors; off limits to the media. There's no meaningful small or independent representation on the 27-member team. Small biz was offered a subservient role after the public's negative response. This is a blatant, political ploy for the '98 election. Committed efforts at revitalization, from the Small Business Congress and Coalition, continue year 'round. This "team" will go to the locker room after completing its political mission.

CONSTITUTIONAL ELECTION NOVEMBER 29?

As reported last month, Federal District Judge David Ezra ruled July 10 that the State had violated the civil rights of Hawaii voters by voiding the 1997 Constitutional Convention (ConCon) election results and saying blank ballots must be counted as "no" votes.

Ezra ordered a new election held within 60-days. The State appealed the decision and pressed for a stay of the order. State Senator and SBH president Sam Slom and State Rep. David Pendleton filed "friend of the court" (amicus curiae) briefs in favor of the judge's decision and against a stay.

On July 25, Ezra ruled the election must be held no later than December 2. (The date has now been pushed back to Saturday, December 6 to accomodate the use of public schools as polling places.) The State still sought a stay but the Elections Officer tentatively set Saturday, November 29 for the election. If voters approve the ConCon call, the 1998 State Legislature would set up the parameters for the election of delegates to the actual convention, to be held in mid-1998.

Hawaii's Constitution allows a Con-Con by vote every 10 years. The last ConCon was held in 1978.

Hawaii's unions, Democratic Party and special interests oppose a Con-Con. SBH continues to support a Con-Con to reform such issues as the 1970 Collective Bargaining Act, which transferred tremendous powers to public employees unions, privatization, governmental and educational downsizing, tax limitation, initiative, referendum, and recall.

SMALL BUSINESS "STONED" BY STATE

Governor Ben Cayetano sprung to action and moved all obstacles--real and imagined--so that the Rolling Stones could perform here January 17,1998. The State Administration's prompt action in saving a rock concert is yet another message showing resident, taxpaying, risk-taking small business women and men don't account for anything with this State Government. Business people have been rocked and rolled by this and similar government lessons.

SBH recognizes the potential economic benefit to Hawaii by adding events such as the Stones concert prior to the NFL Pro Bowl. But what kind of a message is this to the struggling 24,000 small business owners in this State who have turned to the Governor and Legislature for relief--from burdensome taxes, mandates and regulation--only to be turned away year after year and told nothing can be done, or, to be patient and stop complaining?

Granted, small businesses are not as glamorous as rock stars; all we get is stonewalling. Foreign investors get a welcome, a handshake and "facilitation, not regulation." Don't Hawaii's small business deserve at least equal treatment? Apparently not.

As in the case with the rock promoter's initial proposal, the state's first reaction -- all too typical -- it couldn't be done, won't be done. Then, after days of media blitz and political nose-counting, the Governor told us, "he heard the people," (in responding to an organized PR campaign to call, beg, or threaten him), then acted. What does it take to hear -- and act upon -- final desperate pleas of those losing their businesses and livelihoods because the State says it can't, or won't, change its hostile business policies? Maybe small businesses have to grow long hair, scream, and get stoned to get attention; or maybe, we just have to learn to vote smarter next year.

YOUNG ENTREPRENEURS
SEMINAR NEXT MONTH

SBH's Young Entrepreneurs ("YES") in cooperation with the U.S. Small Business Administration and Hawaii's leading corporate and educational institutions will present, "Education for Entrepreneurship '97," an all-day seminar Saturday, October 25, 7:30 am to 2:30 pm, at Kapiolani Community College. Learn how to start and grow a business profitably. Guest speakers and panelists will discuss several issues including, business formation, business plans, tax strategies, franchising, business technology and more. A complete program and registration form will be included in October's SB News. You may also contact the business department of your university or community college, or KCC directly.

SMALL BUSINESS HAWAII
SUNRISE DEBUTS OCT. 16

SBH listens and looks to our loyal members who are, most importantly, our customers - on how we can continuously improve Small Business Hawaii. In response to those requests, SBH has acted. On Thursday, October 16, at 7:00 am, Small Business Hawaii will hold its kick-off of a regular new event, "SBH Sunrise" at the Pacific Club.

Join with us for an hour-and-a-half of get-acquainted activities, a great Pacific Club buffet breakfast, super networking opportunities, short talks by well-known community leaders and business men and women, lively discussions of "hot" community issues, tips from successful entrepreneurs, fabulous door prizes, and more-for just $10 to members. To familiarize you with our active Board, each Director will take turns hosting "SBH Sunrise" and leading members and their guests through an exciting morning.

As this will be our inaugural "SBH Sunrise," we will be asking all participants to critique our program, so come prepared to have a fun and useful early morning get-together and to give us your ideas on how we can make it even better. And, if you're a successful entrepreneur who wants to share some of your ideas with other members or someone who wants to donate a door prize for the program, give Hyun a call at 396-1724. Please reserve Thursday, October 16 on your calendar for "SBH Sunrise" and look for the reservation form in next month's Small Business News.

"FINANCING YOUR DREAMS" WORKSHOP
SLATED BY WOMEN IN BIZ, SEP. 26

SBA's Women in Business Committee will present a major conference for women entrepreneurs on Friday, September 26, at the Ala Moana Hotel from 12 noon to 5:30 pm.

"Financing your Dreams: A Woman's Guide to Financial Success" will include information and tips on starting and growing a profitable business in today's tough business environment. The conference's speakers are women business owners and experts whose insights, intelligence, and innovation have driven their success. Breakout sessions will help sharpen critical business skills.

WIBC's featured luncheon speaker will be Vicki Cayetano, owner of United Services Laundry and Hawaii's first lady. The Lender's Trade Show offers the spotlight to financing and business services for small businesses from traditional banking as well as other sources. Capping the conference is "Business After Hours" for networking and refreshments.

For more information or to register, call Doreen Ezuka at the Honolulu District Office of the US SBA, at 541-2971.