Small Business News Online | World Wide Web Edition | June 1996 | Page 2

Why would anyone in business run for office In Hawaii? (Anyone in their right mind?) Because somebody has to provide the leadership and fiscal sanity so lacking in our deadbeat Capitol. The 20 and 30-year incumbents must be challenged. Voters must have a clear choice to one-party rule. Politicians who don't listen; those that value the "High 3" more than alleviating the struggles of their constitutents, must be fired. Business people don't like politics, don't participate in business organizations and don't get involved, and then wonder why we are the favorite whipping boys and girls by the Legislature. This has got to stop. Business people know how to prioritize and how to make the tough decisions. It is time we start doing it in political office. It may be true that politics is offensive to many business people; so is cleaning your toilet (with apologies to our fine plumber members!)The mess has to be cleaned up. We have enough lawyers, union puppets and insurance reps in the Legislature. Let the call go out to business men and women, individuals who know how to meet a payroll, who live within their means and accept responsibility for their actions,'96 offers a small window of opportunity for real CHANGE. We're the only ones who can try to do it-not as single lone voices, but as a coalition of committed, experienced, viable and determined candidates, regardless of political affiliation. If not as candidates, then as strong, vocal supporters of business candidates. Interested? Need encouragement? Contact SBH's political action affiliate, PAYCHECKS HAWAII.

CHANGE IS COMING. Several lawmakers already announced they will not be back ; others are expected to follow. Still others hopefully will be replaced by the voters. Among those already saying their goodbyes to the State House were: Virginia Isbell, who will run for Mayor of Hawaii County; Mary-Jane McMurdo, who will retire, and Suzanne Chun-Oakland who is challenging Milton Holt for his Senate seat. All are Democrats. Norman Sakamoto of the BIA and Hawaii Small Business Congress, a Democrat, will challenge Senator Rey Graulty, also a Democrat. State Senator Robert Bunda, Democrat, will challenge Democrat Patsy Mink for the U.S. House.

Richard Port, Chairman of the Hawaii Democratic Party, is an honorable man and very outspoken. His criticism of his own party members for their actions-and inaction-during the '96 Session was unprecedented. Keep telling it like it is Richard!

Where are the other parties? Republicans? Libertarians? Greens? Let's not lose another opportunity for lack of candidates. (Republicans Orson Swindle and Tom Pico, Jr., are running for Congress). Time to act.

The Bank of America-Hawaii/Chamber of Commerce "Small Biz on the Move" Expo on May 8 at the newly renovated Neal Blaisdell Center was a tremendous success-the first major small business trade show in 3 years. Congrats to the Chamber, sponsors, exhibitors and Mike Rossell of Production Hawaii for a wonderful event and job well done!

Gas prices seem to be rising by the hour but for the first time ever, are CHEAPER than in California! Politicians of both parties, give us more gas on this issue. Get the politicians out of it-let the market work (as it is doing). However, a tax DECREASE, even 4-5 cents, would be a welcome change in government direction and should be supported. But tax decreases, should not be tied to a minimum wage INCREASE or anything else. Cut taxes.

Hawaii has had some more dubious low economic rankings recently: (1) Hawaii ranks #1 in the U.S. with 441.9 full-time state employees per 10,000 residents (as of October, 1993-you know how slow the government data gathering is!) according to the "latest" U.S. Census Bureau data. Alaska was 2nd at 364.4 employees per 10,000 (2) We rank #48 in Personal Income, with only a 2.9 % growth rate-one of the slowest in the U.S., as compiled by the U.S. Commerce Department; (3) Hawaii ranks 48th (1994) in cost effectiveness of highway expenditures, according to a study by the University of North Carolina, where Hawaii spends $283,000 per mile, compared to the national average of $37,772 per mile (and Hawaii had .77 employees per mile compared to the U.S. average of .32 employees) and (4) Hawaii had the nation's highest cost per vote for Governor during '94.

SBH, columnist-civil libertarian Robert Rees and political cartoonist John Pritchett, will give birth to a new book, Thumbs Up, Hawaii: The Rees-Pritchett Unauthorized Political History of Hawaii, in late August. Watch for it! It will make the elections more palatable.

Surprise: the State has failed to collect on nearly $2 million in past salary overpayments. Sam Callejo, Comptroller, reports state efforts have netted about 10%. The Legislature passed a phased-in two week payroll lag to stop this from happening in the future-and to give the state a $47 million one-time windfall.

The State agreed to pay a $1.5 million settlement to Hawaii Meat Company for the illegal condemnation of the former feedlot at Campbell Industrial Park-so the state could make a race course for rookie driver and former Guv, John "Blow Smoke Up Your Exhaust" Waihee. The State agreed to make 3- annual payment. So far this year, the State (you and me) paid nearly $8 million to settle lawsuits. IF lawmakers had to pay themselves, we probably would have fewer illegalities and fewer settlements. And better government.

LETTERS TO THE EDITOR

DOCTORS EARN LESS HERE; NO BENEFIT FROM AUTO INSURANCE

This is a follow-up on our conversation of April 30, 1996 in which I pointed out to you that auto insurance did not benefit medical providers. As you recall, last year the legislature passed a bill saying that industrial accidents' and auto accidents' fee schedule would be Medicare plus 15%. Medicare pays about 60% of what it costs to provide the service, so this puts the fee schedule in the partial charity, joining Medicaid, Quest and, the grandfather of them all Medicare. People say that you can make it up on your private patients. I have news for you. HMSA used to pay at the 50th percentile, but now they have it down to the 19th percentile. Remember, we are living at the 100th percentile.

The net result of this has been, according to Dr. Theresa Smith of Hilo, that in the last four years, 50 young doctors have packed up and left Hilo because they cannot make ends meet with their earnings in Hawaii. Apparently they are earning around $50,000 a year, which seems pretty good until you remember that they spent 10 to 12 years in training after high school, during which time they accumulated about a $150,000 non-tax-exempt debt. They have to pay this debt and the interest, and they just cannot take care of their families and service this debt in Hawaii. The net result is that the number of doctors on the Big Island is now marginal. The only reason it is not too few doctors is that a number of people on the Big Island come to Honolulu for their medical care.

It has been said that medical fees in Hawaii are a bargain, and it is true with HMSA controlling the situation. I know I found myself earning 35% of what the average doctor in the continental United States is alleged to earn, and this is not unique with me. Fortunately, my mortgage is paid off, and my children have long since flown out of the nest and are self-supporting.
Aloha,
Raymond M. deHay,
M.D., F.A.C.P.

SBH MEMBERSHIP A NECESSITY!

Once again it is difficult to afford our membership dues. It is even moredifficult, however, to imagine not supporting the only group that fights for the rights of small business. Keep it up!

Stephanie Doughty
ERA of Hawaii, Inc.

Comments about anything you read in Small Business News can be addressed to:

Small Business Hawaii
Hawaii Kai Corporate Plaza
6600 Kalanianaole Hwy., Suite 212
Honolulu, Hawaii 96825
Telephone: 396-1724 / Fax: 396-1726

SBH also accepts articles relating to small business issues about its members and Hawaii. Submit your articles to SBH by the 10th of the month for publication into the next month's issue.

E-Mail: macpro@lava.net
E-mail forwarded to SBH via local fax.

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