People ask me why I keep coming back to the Legislature. They say things like: "Joe, you had a real close election there." Or "Joe, when you go to Honolulu, everybody gives you a hard time." Or "Joe, the job sure doesn't pay much." Or, my personal favorite, "Joe, aren't you getting a little old for this?"

I do this for the same reasons as you. I want to make a difference. I want to work for a better Hawaii. I find serving the public immensely satisfying and educational.

But along with all the altruistic reasons, I discovered an unexpected side benefit-another reason why I keep coming back. You see every year this job takes me away from Maui for a grueling five months. A grueling five months for me.

But for my wife, it is a wonderful vacation. My time in the Legislature has been the best years of her life.

So with that, let me introduce my wonderful wife of 33 years, Frances.

Also here is my newly-wed daughter, Desiree O'Neal and her husband Dutch O'Neal.

If I may give some public fatherly advice to the new couple for the years ahead, based on your mom's and dad's experience, absence makes the heart grow fonder.

For the past few years, Hawaii has faced enormous challenges:

• Falling state revenues.
• Business closures.
• Lost jobs.
• Increasing crime rate.
• Declining student performance.

• We passed balanced state budgets without raising taxes.
• We passed a comprehensive workers comp reform package that has reduced premiums by 27 percent. Businesses should expect savings of more than 100 million dollars in 1997.
• Our convention center is on schedule for completion in 1998 and already has 17 confirmed bookings. These confirmed bookings will generate close to 500 million dollars in new spending.
• By targeting repeat offenders and imposing mandatory sentences for ice dealers, our crime rate is being reduced. our murder rate has gone down. and so has our auto theft rate.

Before I discuss our action plan for the upcoming session, let us remind ourselves of our fundamental tenet. Our goal is not simply to have a better balance sheet. Nor is it simply to provide a more effective government.

It's for a better Hawaii...a fairer Hawaii...a confident Hawaii. It is for a Hawaii where people have faith in themselves, opportunities within their grasp, and hope for the future.

We can reach this goal by doing the people's business. So just what does doing the people's business mean?

Doing the people's business means reforming our automobile insurance system by giving people real and meaningful savings in their insurance premiums. We will fight the fraud, false claims, and frivolous lawsuits that have made Hawaii one of the most expensive places for auto insurance. We will balance the rights of those who are injured as a result of a car accident to hold the negligent party liable with the need to provide consumers with actuarially sound rate reductions.

Doing the people's business means government pension benefits that are quitable. We will reform the state's High Three retirement law for legislators, including eliminating provisions for early retirement. To ensure parity throughout the overall government pension plan, we will eliminate the use of overtime pay in the calculation of pension benefits, which lends itself to abuse.

Doing the people's business means enabling the Legislature to develop sound economic and fiscal policies based on well-researched information and analysis. We will fund and staff the office of the legislative analyst so that we can have proper oversight over the development and execution of the state budget.

Doing the people's business means accountability in education. Economic development initiatives require a high quality educational system. We will propose that the Board of Education be appointed so that the Governor will have the ultimate responsibility for public education. We also insist on accountable and properly structured management of our schools, and will study the benefits of removing educational officers, such as principals and vice-principals, from collective bargaining.

Doing the people's business means working with Hawaiians to pursue the goal of greater self-sufficiency and self-determination, including clarifying the OHA revenues and claims. Also we will accelerate the payments for the Department of Hawaiian Home Lands.

Doing the people's business means protecting the life and safety of newborn children and their mothers. we will require a minimum of forty eight hours of inpatient care for a mother and her newborn.

Doing the people's business means providing the public with more cost-efficient services. we will continue to streamline government, by reviewing the administration's response to our mandate to consolidate government operations.

Doing the people's business means ensuring an equitable tax structure. we will take a comprehensive look at our taxes, including a review of the recommendations of the Tax Review Commission, by creating a finance subcommittee on taxation. As part of its work, the subcommittee will look for ways to stimulate the economy.

Doing the people's business means recognizing that crime has social and economic costs. we will stop the revolving door at our prisons by increasing prison space using cost-effective, efficient, and innovative means. We'll look at erecting tent-type structures and using inmate labor to build prisons.

And we must facilitate the prosecution of crimes against visitors by assuring that nonresidents may testify via videoconferencing. As hosts of visitors from all over the world, we will not tolerate crimes against them.

As we attempt to increase the efficiency of state government, to eliminate its inequities, and to fix accountability, the state administration has announced the possibility of a one hundred and seventy million dollar shortfall. The biennium budget as submitted may not be balanced, and there is still more information to come. this leaves the Legislature in the position of trying to hit a moving target.

As Speaker of the House, I have in the past made consistent statements about not raising taxes. This year I look at tough issues like a struggling economy and declining federal support, especially in social services. this is no year to impose a tax. I can tell you that every member of this house wants to pass a budget without increasing taxes. And surely that is what the people of this state want.

But the only thing people want less than a new tax are politicians who make promises they can't keep. I am committed to a revenue plan which supports the people's business without increasing taxes but with the administration's recent news of a potential shortfall, I can not absolutely nor responsibly promise "no new taxes."

I ask all members of the legislature and the administration to do everything within our power in these difficult times to balance the budget without a tax increase.

I think I just heard someone say, "Is this joe's retirement speech?" Maybe it's my wife. She's worried that I might be home for twelve months.

Well, if I must return to civilian life, there will be plenty to do. Because doing the people's business also means taking steps to empower people and make them more responsible for their own decisions and actions.

Our first major task is to address the pending issue of same sex marriage. We must take this decision away from the courts.

The House will propose a constitutional amendment to permit the Legislature, rather than the courts to resolve this issue. At the same time, certain benefits and rights will be made available to couples who are legally prohibited from marrying one another.

Furthermore, to empower the people to decide the broader issues of the future, we will also establish the parameters for the election of delegates and the holding of a Constitutional Convention in 1998.

Moving to business, we must take stronger action to reduce the cost of doing business in Hawaii. When we reduce the cost of doing business, we increase the dollars which business can invest in itself. Let's make sure that business can take responsibility for what it does best.

Thus we will further reform our workers' compensation law by strengthening fraud investigations. And, very importantly, we will incorporate coordinated care organizations to better manage workers' comp cases in order to further bring down costs. We expect the medical and business communities to take responsibility for making this approach work.

We will also review the recommendations of the blue ribbon commission on business laws and regulations, especially at they impact small business. Unnecessary regulations must be eliminated.

Regarding tourism, we will continue to provide funds for promotion of our most important industry. We ask the industry itself to leverage the maximum use of these dollars.

It is critical that we all work to rejuvenate our economy and to create economic options, especially for the next generation. compassionate, creative and collaborative private-public partnerships like school-to-work transition are all around us. Helping your people prepare for the new millennium. and much more must be done.

But the fact that times are tough is no excuse for crime. Once young people are old enough to know right from wrong, they must be made responsible for their actions. No longer can they be allowed to hide behind a cloak of secrecy.

Therefore we will propose juvenile waivers allowing the family court to waive to the adult court system juveniles, 14 years of age or older, who commit crimes that would be classified as felonies if committed by an adult. In addition, confidentiality will be waived for juveniles who are at least 12 years old who commit certain crimes. This isn't kid stuff. People have a right to know.

Not only juvenile offenders will be affected. Certain adult offenders will also have to take responsibility for their actions. The public will be notified whenever repeat or violent sexual offenders, including child molesters, are released into a community.

Finally, there is in Hawaii a crime in our forest which is in its own way an insidious as crime in our streets. I'm speaking, of course, about the invasion of alien species. Today I want to thank groups like the Sierra Club who have taken responsibility and joined with the state agencies to educate the public and to help rid hawaii of these pests. To protect our fragile environment further, we will pursue the possibility of establishing agricultural inspection facilities at all airport cargo stations to prevent additional introduction.

I have touched on just a few of the proposals which are contained in the majority package. This is not a legislative laundry list; it is a people's agenda. It is not the last word on these issues, but it is a strong start in doing the people's business. The people's business requires each of us to take responsibility for these islands. For however else we may differ, we are bound by a shared belief in Hawaii and its future. That is our unchanging core.

Today, I challenge each of you to make these priorities a reality.

Despite the changing times and the limited resources, this is still opening day. The big parties may be gone. Yet there is a celebration of democratic spirit. The big budgets, too, may be gone. Yet we make up for it with a surplus of human ingenuity and resourcefulness which is inside us and all around us.

The people's business calls on the best of all of us. Let's go to work. Thank you.