March 2006 | Online Edition @ smallbusinesshawaii.com
Legislative Update | Mayor's Tax Committee | New Directors | Thanks Sponsors
No Tax Relief in Sight at Hawaii State Legislature
The State Legislature is one-half finished — it is scheduled to adjourn May 4 — and so far there is no business or tax relief. No tax reduction, health premium or workers’ comp rate relief, or unemployment compensation tax reductions.. Emphasis has been on spending the nearly $600 million state General Fund surplus, and alternative energy, with little meaningful action on education reform, the gas cap, bottle tax, homeless, or, procurement.
Everyone has an idea of how to spend the cash surplus, but most groups and politicians don’t want to give it back to Hawaii’s over taxed residents, instead finding many ways to spend it for their pet projects. “Education” already consumes $2 billion+ in taxes yearly.
Because of aggressive lobbying by state attorney general Mark Bennett and the state’s law enforcement coalition, there may be some action on crime reform and harsher enforced penalties for violent criminals but even that is not a certainty.
Most alternative energy proposals add more business mandates and penalties, rather than incentives, for energy utilities in Hawaii. One of the biggest scams is state subsidy for ethanol, associated with corn on the mainland but pleaded for here last year to “save sugar.” But the local sugar industry is unable to provide the materials for ethanol; it would be imported from foreign countries.
Everyone talks about the homeless but no practical solutions have advanced this far.
There are various issues involving procurement as well as undesirable actions by the semi-autonomous Hawaii Community Development Authority (HCDA), which seeks to sell (not lease) the last remaining state ocean front in Kaka’ako for high rise, luxury condominiums. Citizen protest calls for the abolition of the HCDA.
Mayor Establishes Tax Policy Committee
Mayor Mufi Hannemann established the Mayor’s Tax Policy Committee in late January to counsel the City administration and the City Council on tax policies and laws.
“We are fortunate to have such a stellar array of private citizens willing to offer their wisdom and expertise as we chart a fiscal course for this City and devise short- and long-term solutions and continue my drive to put us back on a prudent financial track while balancing taxpayer demands for tax relief and, at the same time, more City services,” said Hannemann.
The members of the all-volunteer committee are:
Steven Ai, president and CEO of City Mill.
Paul Brewbaker, Bank of Hawaii senior vice president and chief economist.
Karl Essig, advisory director of the international banking and securities firm Morgan Stanley, where he has worked for more than 25 years. Essig also served last year on the City Asset Management Review Team and recently on the Honolulu Zoo Public-Private Partnership Committee.
John Henry Felix, businessman and a former City Council Budget chairman.
Lowell Kalapa, president of the Tax Foundation of Hawaii.
Denise Konan, University of Hawaii economics professor and interim chancellor of the UH-Manoa campus.
James Mak, chairman of the UH-Manoa Economics Department.
Seiji Naya, former director of the state Department of Business, Economic Development and Tourism Currently distinguished visiting senior fellow at the East-West Center and UH economics professor emeritus.
Marcia Sakai, director of the UH Hilo College of Business and Economics.
“This committee is part of our three-pronged effort to address issues brought to the fore by the rise in assessed valuations of homes across Oahu in recent years,” said Hannemann. “As I’ve said before, we want to give back $40 million in increased property tax revenues this year and start building the City’s fiscal stability reserve fund. We also hope to establish by next year a new homeowner tax classification in order to relieve the property tax burden on homeowners. The Mayor’s Tax Policy Committee will with the Department of Budget and Fiscal Services to help us come up with the best way to implement those short- and medium-range solutions and to take a broader, long-term look at the City’s taxes.”
Mertz, Muccio Join SBH Board of Directors
During the February monthly meeting of the Small Business Hawaii Board of Directors, two new Directors were elected to fill vacancies created in December, 2005 by the retirement of Directors Dale Evans, Dick Rowland and Jim Sharp. Replacing them are newly elected members Andy Mertz and Matt Muccio.
Both will serve a one-year term and be eligible for election to a three-year term next December. All SBH Directors, other than the Executive Director, are unpaid volunteers.
Mertz, owner of Andy’s Pool Service has been an active member of SBH for more than 7 years. He has assisted with numerous SBH projects and events, legislative activities and membership recruitment. In 2003 he was named SBH’s “Small Business Person of the Year.”
Matt Muccio is CEO of Techniques Hawaii, an audio-visual company that has been part of Hawaii’s hospitality industry for twenty years.
Originally from Birmingham, Alabama, Matt has a degree in Corporate Finance.
He moved to Hawaii three years ago after he sold the assets to the wireless company that he started at the age of twenty one to his partner. A few months after arriving in Hawaii Matt started MDM Consulting Services, LLC, which focuses on strategic planning, reorganization and marketing. Techniques Hawaii became a customer of MDM Consulting Services and through the process it was agreed that Matt would serve as CEO when the former Owner/CEO retired.
Matt’s intuitive business expertise and enthusiasm has helped Techniques Hawaii to increase its client list and develop processes to ensure their “Over the Top” service standard sets the Customer Service bar for AV companies. Matt comments, “I love doing business in Hawaii because business here revolves around relationships. People are committed to working together to make things happen. Friendship and loyalty are really important.”
Besides enjoying the “almost perfect” weather here in Hawaii, Matt likes to golf, work out, network and explore and discuss new ideas and solutions.
Mertz founded Andy’s Pool Service in 1988 after working for two other pool companies in Hawaii since 1979, and since has been providing expert residential pool and spa service and repairs to hundreds of clients throughout Oahu.
Mertz, who in January 2003 was named Small Business Hawaii’s 2002 Small Business Person of the Year, the highest award presented by this small business advocacy organization, says he built his clientele by focusing on providing excellent customer service.
He says maintaining a good attitude, friendly smile, personalized service and integrity in his operations are top priorities to him.
Mertz also has been influential in his industry and in the community, going out of his way to help others.
Through industry organizations such as the Swimming Pool Association of Hawaii and the National Swimming Pool Foundation, National Pool and Spa Institute, he’s made a difference in his industry. One example: As a co-founder and active member of the Swimming Pool Association of Hawaii, Mertz and others in the group have pledged to help each other in times of trouble. If one member gets sick or dies, then the others step in and take over the accounts for 90 days until the accounts can be returned or transferred.
Those who know Mertz say he is passionate about his work and dedicated to serving his clients.
A listing of all of our Board of Directors appears on page 2 of the printed issue of Small Business News. Pictures and links to their business websites (when applicable) can be found on our website at http://www.smallbusinesshawaii.com/SBHboard.html.
SBH CONFERENCE WRAP-UP
We'd Like to Thank Our Sponsors Again
Small Business Hawaii would like to thank our sponsors for helping us with the successful 30th Anniversary SBH Conference. The conference was held on January 11 and without sponsors like these, the event would not have been possible.
Gold Sponsor: ALTRES, Inc.
Silver Sponsors: Clear Channel/KSSK Radio; HawaiiReporter; The Systemcenter/One Hot Garage;
Bronze Sponsors: AIG Hawaii; Aloha Petroleum; CARE Hawaii; HMA, Inc./Summerlin Health Insurance; JS Services; Kaiser Foundation Health Plan; Peterson Sign Co.; Techniques Hawaii.
Green Sponsors: Andy’s Pool Service; Century Small Business Solutions; Edward Enterprises; Home Inspections, Inc., Legacy Group Hawaii; Powerhouse Media Associates; Production Hawaii.
For opportunities to sponsor a future major SBH event, including the monthly SUNRISE Networking Breakfasts; SBH MidYear Business Conference (in June) or the SBH 31st Annual Business and Investment Conference (January 10, 2007) please contact Malia Zimmerman at (808) 306-3161.
SBH Conference Wrap-Up
SBH Conference Press Release & Winners List
SBH Conference Photo Album
