The next SBH monthly "Sunrise Networking" breakfast will be Thursday, February 22, 7 - 8:30 am in the Pineapple Room, Liberty House, Ala Moana Center. Easy access and plenty of free parking are located on the 4th floor. The popular SBH networking Forums are scheduled the last Thursday of each month through October, 2001.

The February 22 speaker will be Donna Estomago, of the outstanding Lanikai Elementary Charter School. Estomago was recognized at the recent SBH Annual Conference as the first "Jean Fukuda Education Leader Awardee - 2000." Since everyone is talking about education, come learn what Estomago and her community has done about really improving education in Hawaii.

Emphasis at Sunrise is networking, but there are also surprise guests, and current business information. Sunrise Networking is just $15 for SBH members and their guests who pay in advance (refunds until February 20); $20 for non-members and at the door, provided space is available. Join us! You'll get to network, meet new people, do more business, and enjoy a full course breakfast buffet.

Taxes, Union Pay, Minimum Wage, Workers' Comp,
Civil Service Reform, All Hot Legislative Issues

The 21st State Legislaure which convened January 17, will continue its 60-working days through the beginning of May. With many new faces, and new leadership, lawmakers will grapple with some old issues. While media polls indicate the public is skeptical that anything meaningfull will be accomplished, new Senate president Robert Bunda (D-Waialua), House Minority Leader Rep. Galen Fox (R-Waikiki) and Senate Minority Leader Sam Slom (R-Hawaii Kai), pledged in opening day speeches to make a difference and to conduct business not as usual this year. There is a promise of renewed bipartisanship. House Republicans now control 19 of 51 seats-the greatest number since Statehood in 1959. There are 3 Republicans (up from 2 last year) in the 25-member Senate. Time of course will tell. All say the determining factor will be the public and business community: if people stay away, nothing is likely to happen but if the public holds lawmakers' feet to the fire-with a major election looming in 2002-anything is possible.

Taxes-newly proposed taxes as well as elimination of the 4% gross income tax on food, all medicine and rents that has been a GOP benchmark for decades-will be on the front burner. Many Democrats buoyed by their constituents and a new wave of independence, support the concept. (Governor Cayetano threatened a veto). Taxes are sought by those to pay for better education and educational infrastructure. Unions want taxes to fund more hefty pay raises "won" by arbitration.

Gambling is again being floated as a source of "new" money for education-or union raises.

Governor Cayetano has proposed a budget nearly 13% higher than the past biennium-counting on an improved economy. However, union and other spending demands greatly exceed the state's ability to pay.

The Governor, and unions, will again propose increases in the minimum wage, a costly issue for small business. Business wants to improve wage earners' income by lowering their costs and taxes.

In 1997, seeking to pass same sex marriage, lawmakers were rebuffed by voters on the issue. They fell back on "reciprocal beneficiaries," requiring government and business (later exempted after a court challenge) to provide many similar benefits as conferred by marriage. There will be an attempt to expand "civil union" benefits this year.

Workers' compensation will again boil over as an issue. Forced reduction in medical fee schedules 3 years ago resulted in some premium reductions but providers can't provide WC services at those fees.

Prepaid Health Care costs-Hawaii remains the only state with such a mandate after 26 years-are zooming for employers as lawmakers rush to add more benefits for workers at employer cost. Federal action is required.

Education continues tro get the most lip service but little else. The teachers' union, HSTA, said flatly, it wants more money for teachers instead of money for kids' computers and textbooks. The continuing Felix v. Cayetano consent decree (the State is in default) that guarantees all "special" education students (disabled, mentally challenged) "equal benefits" is a costly problem unresolved. A recent Auditor's report chided the state for its energy to get out of the decree instead of helping students as required by law. The GOP suggests vouchers.

Successful Small Business Conference First
SBH Event for the New Millennium

Awardee List | 2001 SBH Conference Photos | A Day With Steve Forbes

Small Business Hawaii was founded in 1975 and incorporated in 1976 by tire merchant and entrepreneur, Lex Brodie. On Wednesday, January 10, 2001, SBH celebrated its Silver Anniversary in grand style with hoopla, awards, memorable words and a get together of who's who in the Hawaii small business community-more than 300 of them. Brodie was there with successor Sam Slom, George Mason, Lowell Kalapa, elected officials and hundreds of small business owners.

Making this a very special event was a very special keynote speaker, Steve Forbes of Forbes, Inc. in New York City. The gracious author, pundit, television celebrity and twice presidential candidate, flew to Hawaii on Tuesday afternoon, attended the conference, spoke at noon, posed for dozens of photos with admirers, visited the State Capitol and Pearl Harbor and got back into the air Wednesday evening. He enchanted all who heard or spoke with him.

The theme of the conference-the first major business and economic event of 2001-was upbeat: "Strategies to Return Prosperity of Hawaii's Business Climate." While problems were discussed, focus was on future solutions and a desire to improve Hawaii's economy for everyone here as well as former residents and new entrepreneurs.

The Annual Conference was held 7:30 am to 2:30 pm in the Hibiscus Ballroom and Garden Lanai of the Ala Moana Hotel. Conference evaluations were unanimous that this was SBH's finest event. There was also more business participation than before.

AIG Hawaii's Robin Campaniano made a stellar opening speech citing, "Opportunities for Successs for Hawaii's Small Businesses."

Attendees were treated to three powerful presentations by SBH's "Small Business Success Stories of 2000" featuring, Dana Gray of Oils of Aloha, Randy Lee of Chock's TV & Appliance, and a historical audio-visual presentation by Carol Ai May (with some help from her brother!) of City Mill. The stories were interesting and inspiring.

The legislative panel featuring House and Senate Democrat and Republican leaders was the most informative-and candid-ever.

The Tax Foundation's Lowell Kalapa discussed options for Hawaii's fiscal future.

The luncheon consisted of awards and the keynote speech by Steve Forbes.

SELECT THIS LINK TO SEE MORE THAN 30 COLOR CONFERENCE PHOTOS

Junior Achievement Announces
Hall of Fame Awardees

The 2001 Hawaii Junior Achievement Business Hall of Fame Laureates are: Edward T. Fukuda, President of Kandiis Drive Inn, Inc.; Edward J. Hogan, Chairman and Chief Executive Officer of Pleasant Holidays, L.L.C.; Francis S. Oda, ArchD, AIA, AICP, Chairman and Chief Executive Officer of Group 70 International, and Legacy Laureate, the late Chinn Ho, founder of Capital Investment Company, Inc. They join thirty-nine distinguished individuals who have been selected for the Hawaii Hall of Fame since its inception in 1990.

The Hawaii Business Hall of Fame recognizes business leaders who, through their entrepreneurial and civic activities, have made enduring contributions to the products, processes, and people of Hawaii.

The 2000 Laureates group included James Campbell, SBH's Jean Fukuda, George J. Fukunaga, Ralph C. Hook Jr., and Ethel B. Murphy. The new Laureates will be honored in a public ceremony and at an awards dinner on Thursday, February 15 at the Sheraton Waikiki Hotel.

Call Junior Achievement for reservations and details at (808) 486-8806 ext. 15 .

Aiea-Pearl City Business Association News

by Anita Lois Slayter, APCBApresident

APBCA had no keynote speaker at our December luncheon, but we did swap gifts, some laughs and our board President.

We were graced with the presents of our retired counsel member Mufi Hanneman. We were disappointed about our local elections with the voter turn out in Hawaii being one of the lowest in the nation, having only 40% of voters at the polls. Most people I've spoken to admitting voting blindly, having little or no information on each candidate.

So now, we will have a Mayor who in this past year alone has gotten us in debt an additional billion dollars, borrowing from the federal government, funding special interest project, that do not help the masses, (this loan, cost the tax payer approximately 14 million dollars a year in interest alone). And we get a terrific new bus transportation system costing another billion. What we want to know is how the Mayor will get people out of their cars to ride the already empty busses, and where will the cars on the already crowded streets of Honolulu go once a lane in each direction is taken away for the city bus?

Our Mayor will run for Governor, we better do our homework folks, remember the Governor has full power with our money, making budgets behind closed doors. We need to be sure the person who is voted in as Governor will not be squandering our hard earned money. As business owners we know what it feels like to be squeezed for taxes in our beautiful state of Hawaii, which is not user friendly to small businesses.

Hawaii is a very special place to live, work and play. We need a good leader to build a stronger economy, not just funnel (squander) our tax dollars away from hard working people and families in Hawaii.

A follow up on last month's issue in the zoning changes at Harbor Center in Aiea. Although it was a hard fought victory, the most difficult thing to understand was the lack of participation of any other business owners in the complex. How can we make an individual understand that everyone counts and can make a difference and WE ALL NEED TO GET INVOLVED, in our communities, our place of work and politically. Everyone says "oh, 'they' will do it, let 'them' take care of it". Wake up folks, who are "they" and "them"? We are!

On a lighter note:

Now that the season is over, does anybody remember the reason for the season? Getting out the credit card for that perfect gift...is that what it was all about? Truly giving is not buying the perfect gift, because I will tell you, 90% of those gifts you gave people they didn't want in the first place. True giving is giving of one's self, all year round. To those of you who are married: Husbands, are you still "dating" you wife? Flowers are only $3.50 a bunch in China Town and they go a long way to saying "I Love You" and "appreciate you." And wives, do you edify your husbands and tell him, he is a wonderful lover, (even if he is not)? It is truly amazing how so little can go so far; it helps keep the love in our relationships, and helps keep us happy and focused at work!

Our monthly meetings are at the Pearl Country Club, the third Tuesday of each month, beginning at 11:45 am to mix and network, 12 Noon to 1 pm for lunch, and our guest speaker in March will be Maggie Ulm, founder of Adopt-A-Teacher. Come and find our how business can become directly involved in helping educate our most precious and valuable resource, Hawaii's children. Reservations are encouraged. Contact Lois Parker at 487-2460 or fax 488-2041. Or visit our web site at www.apcba.org Cost for lunch is $13.00.

Alfred's Restaurant Closes at Century Center

SBH member Chef Alfred Vollenweider, the proprietor of the Alfred's at Century Center restaurant, announced the closure of his 23-year old establishment at the end of January.

The chef cited unsuccessful lease negotiations as the reason for his decision to cease Alfred's at Century Center's operations on the third floor of the building at the corner of Kapiolani Boulevard and Kalakaua Avenue.

Vollenweider, who first opened his restaurant on Ala Moana Boulevard in 1978, cited an inability to reach a lease agreement with the Century Center Condominium Board as the reason for shutting his restaurant's doors.

"Basically, we couldn't commit to the open-ended lease agreement proposed by our lessor, especially for the guest parking situation," explained the Swiss-born restauranteur.

Vollenweider expressed his thanks to his restaurant's loyal clientele, many of whom were his friends and neighbors, for their staunch support throughout the decades.

"We've made so many friends over the years," said Vollenweider "that we can't help but feel a bit somber at the passing of yet another fine Honolulu restaurant."

As for Alfred Vollenweider himself, an American citizen, he plans to take a short rest, and then jump back into Honolulu's restaurant scene again...this time with a new concept and a more realistic lease situation. Stay tuned - SB News will let you know where to go!

Jonathan Gullible Progress Report 2001

by Ken Schoolland

Nobel laureate Milton Friedman has endorsed "The Adventures of Jonathan Gullible: A Free Market Odyssey " (JG) saying, "It certainly presents basic economic principles in a very simple and intelligible form. It is an imaginative and very useful piece of work."

This educational project of Small Business Hawaii is now published in 22 languages-six new editions in just the past twelve months-with an additional 13 translations in progress. Jonathan Gullible (JG) has been dramatized and broadcast on four radio stations in two states, has a CD and website, and has people working on animation and a screenplay. Most importantly, it has been very effective in teaching free market principles to young people in classrooms, contests, and theatrical presentations all around the world.

EASTERN EUROPE

Perhaps the impact of this little book is best expressed by the winner of the Summer 2000 essay contest in Belgrade, Serbia:

"My notions of education previously consisted of threadbare textbooks, stern and cold teachers, of sweatingä I have realized that this book is the best textbook I have ever come across. Having read it at a stretch-in a few hours-I have learnt more about free market, private property, free flow of ideas, people and goods, than during the whole of my studies, both at high school and now at the university."

- Valerija Dasic, Serbia

JG has been published in 17 languages within Europe. Six of these languages (Serbian, Croatian, Macedonian, Slovenian, Albanian, and Romany) have been arranged in the Balkans by Tomislav Krsmanovic. Despite severe personal harassment by Serbian officials, who beat him or his family members and tore apart his apartment on several occasions, sixty-four-year-old Tomislav considers this his primary activity for the promotion of human rights.

To help people become aware of this free market book, Tomislav has arranged for critical reviews in Belgrade newspapers, radio, and television. Since many students in the region have difficulty purchasing books, where wages are less than $50 per month, we instituted an essay contest to attract readers to the numerous copies that Tomislav has placed in schools and libraries. He is now making arrangements for further publication of JG in Bulgaria, Bosnia, Montenegro, Turkey, Slovakia, and the Ukraine.

In addition to other publications in Eastern Europe (Russian, Romanian, Latvian, Lithuanian, Polish, Hungarian, and Czech), Jonathan Gullible has also been used for the past three years at a summer camp of Club Nuomone and the Lithuanian Free Market Foundation. The book is used as the basis for the simultaneous teaching of both English and principles of the free market. Said a young Polish woman who directed theatrical presentations of JG chapters at the camp this summer:

"I'm simply amazed by your book: The Adventures of Jonathan Gullible. To tell you the truth I'm also a bit scared of your accuracy and sharpnessäMaybe you'll find it a bit silly but first thing I told Stephen after reading JG was: 'How long has Ken actually been in Eastern Europe?'äI couldn't help but thinking how long you'd been in Poland! It's just unbelievable-when I was reading the book I thought-this is just like going back in time, before 1989äI'm also going to prepare little stage versions of some of the chapters so wish me luck."

- Monika Lukasiewicz, Poland

JAPAN

Serialization of JG in Chinese by the Hong Kong Economic Journal, just after the turnover to China, inspired an agreement that has just been reached for a similar serialization in Japanese by the Economic Seminar magazine of Nippon Hyoron Sha Co., Ltd. in Tokyo. Said Toshio Murata, the former President of Yokohama College of Commerce and head of the translation team, "When more and more of the younger generation are attracted to comic books, animation, and illustrated books, your approach is one of the best means to propagate our philosophy."