FYI from the Missouri Chamber of Commerce

Big-spending state governments

The U.S. Census Bureau came out with its latest State Government Finances report for fiscal year 2000, according to the Small Business Survival Committee. If you are wondering why state governments have faced budget deficits in recent months, consider the spending binge the states went on during the 1990s.

Spending for all states topped $1 trillion for the first time in 2000. Consider the following state government developments between 1990 and 2000:

-- In real, per capita terms, total state spending grew by 35 percent. Real, per capita state public welfare expenditures skyrocketed by 63 percent.

-- Real, per capita state health expenditures increased by 50 percent.

-- Real, per capita state corrections spending jumped by 45 percent.

-- Real, per capita state police protection spending rose by 35 percent.

-- Real, per capita state education spending increased by 34 percent.

-- Real, per capita state highway spending increased by 20 percent.

-- Real, per capita interest on general debt actually declined by 3 percent.

-- Real, per capita state debt outstanding increased by 23 percent.

State governments, taxpayers and the economy would be in better shape today if spending had been held in check, and taxes had been cut far more substantially than the rather minimal tax reductions that took place during the 1990s.

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Handicapped lawsuits

Is it really possible to be hit with a handicapped access lawsuit from a plaintiff attorney you've never heard of, representing a client who may have never even visited your property? Unfortunately, it does happen and is becoming common practice among plaintiff attorneys.

A lawsuit can actually be filed without even notifying the business of a violation or a handicapped person complaining to the proprietor. The business almost always settles and the attorney pockets thousands in fees.

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Small business facts:

-- Small businesses account for more than 99 percent of all employers.

-- Small business ownership has been accelerating among women and minorities. Minority-owned firms accounted for 6.8 percent of businesses in 1982, and grew to 14.6 percent in 1997. While women made up 22 percent of self-employed individuals in 1967, they grew to 38 percent in 2000.

-- Small business accounted for 96.5 percent of all U.S. exports in 1998.

-- Small business accounted for nearly 98 percent of the growth in the number of U.S. exporters between 1992 and 1998.

-- Small business account for 47 percent of sales in the nation.

-- Small businesses generate 51 percent of all U.S. private-sector outputs

-- Small businesses produce 55 percent of innovations.

-- Small businesses produce twice as many product innovations and significant innovations as large firms and obtain more patents per sales dollar than large business.

-- Small businesses employ 51 percent of private-sector workers. Small businesses create the bulk of new jobs, On average, small businesses account for 75 percent of net job creation each year.

(Sources: U.S. Small Business Administration and www.tpa.gov)

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Workers' comp update

The workers' compensation insurance market has deteriorated significantly, according to the Workers' Compensation Law Bulletin. Companies should get an update from their agent or broker before doing the next budget. If the renewal comes during the current budget cycle, a company may need to alert their accountants that the budget will be inadequate.

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Program helps employers benefit from being drug free.

America's businesses pay a high price for substance abuse. Some costs -- increased absences, accidents and errors -- are obvious. Others, such as low employee morale and high illness rates, are less obvious, but the effects are equally harmful.

The good news is that employers have enormous power to protect their businesses from the negative impact of substance abuse by educating employees about its dangers and encouraging individuals with substance abuse problems to seek help.

To help businesses benefit from being drug free and further its mission to help America's employers maintain safe and healthy workplaces, the Department of Labor established Working Partners for an Alcohol-and Drug-Free Workplace.

Working Partners raises awareness about the impact drugs and alcohol have on the workplace and provides information on how to establish drug-free workplace programs that protect worker safety and health, while respecting worker rights.

The Working Partners Small Business Drug-Free Workplace Kit is available free of charge by calling (202) 693-5918 or emailing webwp@dol.gov. All materials in the kit, along with other tools to help employers develop drug-free workplace programs -- including how to develop a drug-free workplace policy from start to finish and ready-to-use supervisor training and employee education materials -- are also available online at www.dol.gov/dolworkingpartners.htm.