May 2008 | Small Business News
Small Business Views
By Sam Slom, President and Executive Director of Small Business Hawaii
$1? The Legislature who takes and spends all your money only wants to give you $1 back next year? Outrageous! Time for a real tax revolt. Meanwhile, the ledge which hopefully adjourns May 1, is still trying to use your money to buy or condemn private property.
The stunning announcement by Molokai Ranch in late March that it would close down all operations by March 31 sent shock waves throughout the state. Some thought it was a bluff. It wasn’t. Molokai Ranch was miffed that community activists blocked plans to develop La’au Point and other properties on the “Friendly Isle.”
Then, days later, 61-year old Aloha Airlines shut down after filing for bankruptcy a second time. Again, people thought it was a bluff. It wasn’t. See related stories this issue.
ATA Airlines followed suit on April 3 by suspending air service from Hawaii to the Mainland — about 10% of all travel.
Unemployment rates—which last year were the lowest in the Nation — climbed to 3.1% in March and will go higher. Nearly 4,000 employees were jobless after the Molokai, Aloha and ATA stoppages. A further ripple effect throughout the economy will dampen Hawaii’s economic outlook this year.
Vacancy rates in Honolulu, at nearly 8%, are the highest in more than a decade and signal pessimism and slowed growth.
Fuel prices surge — over $4 a gallon —while food prices set new records.
So sorry to report the recent deaths of Honolulu transportation trendsetter, Helen Morita of Charley’s Taxi and Pacific Business News founder and small business champion George Mason.
City Mill expanding and diversifying into storage business….
Liliha Bakery was bought by SBH member Peter Kim.
What a busy month for SBH in May! The SBH Awards and Education Foundation banquet on Friday, May 9; The SBH Economic Summit, Tuesday, May 13 and the small business PR/Media & Lobbying workshop (Wednesday May 21). Excellent opportunities for you to meet more people, help your business and get useful information first.
There is now well organized opposition to Mayor Mufi Hannemann’s too costly steel-on-steel $6 billion train to nowhere. Check out StopRailNow.com.
The single worst bill of this Legislature was HB 2974, the “union card check bill.” Described as union organization “streamlining,” it was an attempt to boost compulsory union membership—especially among small businesses—by denying employees the right to vote and a secret ballot. They just had to check off on a union card to organize at the business. Even former first lady, Vicky Cayetano, who owns United Laundry, pleaded with Governor Lingle to veto the bill. Mrs. Cayetano said the former Democrat Governor agreed. Lingle vetoed the bill; now it’s up to the Democrat Legislators to see if they want to override before May 1.
The State Intermediate Court of Appeals decision in mid-April regarding surcharges, taxes and Special Funds, was a clear victory for the Hawaii Insurers’ Council and its members. The HIC first brought suit in 2000 against the Cayetano Administration saying the charge was a tax and not associated with the costs of regulation. After winning in Circuit Court in 2004, the Lingle Administration appealed and lost last month. A positive side effect could be the disallowance of any special funds in the state.
Four Reps. and four Senators — all Democrats — accepted a free trip on Hawaiian Air (the subject of bailout special legislation) to Manila during the crucial conference committee phase of the Session. Ethics Commissioner Dan Mollway ruled there was nothing inappropriate about the free trip.
The Legislature did do something right: the annual Hawaii Medal of Honor ceremony in late March organized by State Rep. K. Mark Takai was a fitting tribute to our fighting men and women.
Robots? It seems many local government officials from the Governor on down flipped for robots and robotics in the public schools. Hawaii schools are doing well in national competition but some believe elected officials should pay more attention to non-robotic working taxpayers and business owners than to mechanical devices going clank.
Jim Levine and his Manini Marketing are putting on a 2-day conference on June 3 and 4. “Go to Grow Marketing Secrets” by Hawaii's Best and Brightest.
Join us Thursday, May 29 (7 – 8:30 am) at Pineapple Room in Ala Moana for our monthly SBH Sunrise featuring economist and investor Mark Skousen.
Check our SBH website at www.smallbusinesshawaii.com for the most updated employer alerts and schedule.
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