Small Business News
May 2005 | Online Edition
SMILE! No, Wally Amos is not our SBH Sunrise Speaker. He already spoke in March. The SBH Sunrise Speaker for the month of May will be Malia Zimmerman of HawaiiReporter.com. SBH Sunrise will be at the Ala Moana Macy's Pineapple Room on Thursday, May 26. Meanwhile, Amos is readying to open his new cookie store in Kailua on June 5.
Legislature Fails Business
The 2005 Legislative Session which began in mid-January, is expected to adjourn on time, Thursday, May 5, 2005. No extension or special sessions are anticipated.
Next month’s SB News will carry a detailed analysis of bills that passed the session and will publish individual business ratings given each of the 76 lawmakers by PAYCHECKS HAWAII, SBH’s nonpartisan, independent, political action affiliate.
This year’s legislature was combative with newly energized Democrats pushing tax increases and additional union powers while stripping away powers from the executive branch, now headed —for the first time in 40 years — by a Republican Governor. After the 2004 elections, House Democrats outnumbered Republicans 41-10 and the Senate 20-5.
Proposed tax increases included the state General Excise (not a sales) Tax; Conveyance Tax; county Fuel Taxes and a new motor vehicle ad valorem tax on top of existing weight taxes. Additional increased fees and user costs were added to the mix. At the start of the Session, both the Legislature and Governor spoke of tax decreases—specifically standard deduction rates for the low income, unemployment compensation and reductions in workers’ compensation, but that is all that emerged; talk.
Affordable housing was a major issue but it is unlikely that anything concrete will emerge to help the majority of Hawaii’s struggling homeless. A single family home in Hawaii has now topped $600,000 and demand outstrips supply.
Budget discussions and funding more than $100 million in arbitrated HGEA union awards (10% over the next 2 years), increases for the HSTA (teachers) and UPW (blue collar) unions, dominated the 60-day working session. Lawmakers had their salaries increased in January, then added hikes of their own for their travel and office allowances.
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