They have a big challenge before them Ñ major problems that must be solved. Most of the programs involve your money. The politicians are a few hundred million dollars short to feed the big government monster.

The good news, as the politicians see it, is that there's plenty of money to feed the beast. The bad news it that its your money, and they want it!

To his credit, Governor Cayetano seems to be facing the reality that state government must be made smaller.

Judging from statements by his party's leadership, however, few agree with him. They seem more interested in maintaining political power and privilege using your money.

Our dilemma today comes from years of irresponsible and incompetent government leadership, excessive spending and taxation, and a terrible attitude toward the business community.

For years, Republicans have opposed spending increases and raising taxes. Unfortunately, their opposition and warnings about the consequences of out-of-control government growth have been ignored.

Business is in the doldrums. Tax revenues down. Special interests control elected officials. Government and its control over our economy and people must be curbed.

Listening to Senator Donna Ikeda's comments several times recently, I got three impressions: First, she and her majority party like the status quo. Second, legislators do little independent thinking and problem solving. Finally, they lack the will, courage and the concern to do what's right for the people of Hawaii.

I'm afraid that's the way it's always going to be as long as the Democrats run the legislature.

From start to finish, the recent Legislative Audit of the Comprehensive School Alienation Program (CSAP) and the Pregnant and Parenting Teen Program (PPTP) of the Department of Education reads like a primer on how not to manage a state program. This particular audit reveals how incompetently the DOE and its Office of Instructional Services have run two programs serving teens who are on the edge of failing high school. The DOE neglected to institute basic accountability and reporting criteria, as well as other methods that should have measured the effectiveness of these programs. As a result, the DOE is unable to show whether at-risk teens have been helped or hindered by CSAP and PPTP, which means that the $10 million spent to run these programs might as well have been tossed into a black hole. That's how much we know about their effectiveness.

But $10 million is only a tip of the iceberg. The following seven phrases appear more than once throughout the Auditor's report: "lack of mission," "unclear goals," "flawed data," "not sufficiently planned," "funding formula creates perverse incentives," "unable to evaluate effectiveness," "faulty, reactive and inefficient." These comments should sound very familiar to anyone who has followed stories on the state prison system, the airports system, the quarantine system, the welfare pay-out system, the child support enforcement system, the JOBS program system; the list goes on and on. In fact, the agencies and programs discussed in this latest audit reveal the normal modus operandi of our state government in a microcosm.

Yet again, the systems and functions of our government departments have run so far afield of what government should do, that bureaucrats can no longer remember exactly what it is they are supposed to accomplish.

We face a dismal 1996 legislative session: with fewer funds than ever, and taxpayers squeezed to the limit. Even in good times, Hawaii's citizens should demand that the Governor and Legislature scrutinize every program, expenditure, and warm body, and justify the existence of each with concrete evidence of success. A key part of budgeting is evaluating programs to see if they are achieving the required goals and results. In bad times, those evaluations become imperative. Without them, we are asking for another black hole to eat up the state's budget.

The facts are ominous:

1. Gambling will not produce significant increases in overall spending for local businesses. Customers, whether tourists or locals, who spend money on gambling, will not spend those dollars on consumer goods or services. Instead of bringing new dollars to the local economy, gambling will siphon away consumer dollars from other local businesses. The only businesses that prosper will be gambling operators, pawn shops, and prostitutes.

2. Net job creation will be flat or decline. Gambling proponents always point to the new jobs that will be created with legalized gambling. But what they fail to mention are the non-gambling jobs that will be lost because of the cannibalization of other businesses. With increased dollars shifting from local businesses to gambling interests, existing businesses will be forced to downsize or close their doors for good. When the dust clears, don't be surprised if the net result is less, not more, jobs.

3. The economy will not benefit from the "multiplier effect" of increased spending. Once again, a balanced perspective is necessary. Although gambling results in increased gambling revenues, other local businesses lose revenues. As tourist and residents shift more of their discretionary dollars to gambling and away from other purchases, a "negative economic multiplier" effect comes into play. Since less consumer time and money is available to be spent at these businesses, their profits decline and sales clerks, restaurant personnel, and others work fewer hours or are laid off. These unemployed and underemployed people now have less money to spend on other local goods and services, which, in turn further reduces the need for workers in yet other local businesses. The negative economic ripple is going to be significant.

It's important for businesses in Hawaii to know that gambling is not an economic development strategy upon whose coattails they can ride to increased sales and prosperity. Quite the opposite. Remember, those who gamble do not roll the dice, lose their money, and go shopping; they roll the dice, lose their money, and go home - it they haven't already hocked their car or plane ticket.

If we are to prevent the legalization of gambling in Hawaii, it's important for each one of us to let our legislators know how we feel. I urge all small business owners and operators to make the legislature aware of your opposition to legalized gambling - running a business is hard enough without bringing in an industry killer like gambling.