Bye Bye 601! Sam Reed Rejects Ballot Measure on I-601 Suspension – Momentum Builds for Legal Challenge
The Washington State Farm Bureau and several other organizations have asked the state Supreme Court to order Secretary of State Sam Reed to accept a voter referendum on the Legislature's gutting of Initiative 601’s voter-approved tax-and-spending limits. Due to an emergency clause in the bill that became law last month, Reed has refused to put the issue on the November ballot. That clause enabled the bill to take effect immediately instead of the regular 90 days after enactment so the Democrat-controlled Legislature could pass a two-year, $26 billion state budget supported by a $500 million package of "sin taxes" and revenue-related bills. This bill also allowed lawmakers to pass the tax package with a simple majority, instead of the two-thirds supermajority mandated by I-601, approved by voters in 1993. Finally, the bill changed the I-601 spending limit to allow the state budget to grow as fast as the state’s 10-year average of growth in average personal income. Contact AWB’s Tom McBride at (360) 943-1600 or TomM@awb.org.

TFPC Meeting May 10 – Legal Challenge to I-601 Suspension to Be Discussed
AWB’s Tax & Fiscal Policy Council will meet at Deloitte & Touche (925 4th Ave, Ste 3300, Seattle), Tuesday, May 10, 9:30 a.m.-12 noon. If you cannot make it in person, please feel free to join by telephone by calling (888) 311-9051, pin 88821. This is an important meeting where we will discuss the Farm Bureau’s legal challenge to the suspension of key provisions of I-601 and its request for AWB’s support in this effort. In addition, DOR’s rulemaking proposals in regard to WAC 458-20-24003 (Tax incentives for high technology businesses) and 458-20-268 (R&D survey rules) will be discussed. For more detail on the rulemaking proposals, a legislative session wrap-up, focusing on tax and fiscal issues, will also be presented. Contact Tom McBride at (360) 943-1600 or TomM@awb.org. Please see http://dor.wa.gov/Docs/Rules/draft/20-24003cr1frm.pdf and http://dor.wa.gov/Docs/Rules/draft/CR101_20_24003.PDF.

Nonunion State Workers Discrimination May Not Save State After All - Could Litigation Be in the Offing?
Delaying pay raises for state employees without union contracts might cost the state just as much money as lawmakers expected to save by putting off the raises. Changing the 30-year old computer system that processes state paychecks to set up two pay scales likely will cost between $8 million and $10 million, said Eva Santos, director of the Department of Personnel. Democrats in the Legislature planned to save $9.6 million by delaying raises for nonunion workers for two months while they funded union contracts that call for a 3.2 percent cost-of-living increase beginning July 1. “I don’t like the policy; I told the legislators that I didn’t like the policy,” Gov. Gregoire told The Olympian. She hasn’t decided how to pay for the changes to the computer system. Rep. Sam Hunt, D-Olympia, who defended the delay as a cost-saving measure and indicated nonunion worker pay was at the “whim of the Legislature,” said he was surprised by the expense of making it happen. “That’s the first I’d heard about it,” he told The Olympian.

Federal Transportation Funding Passed by House – AWB Urges U.S. Senate to Quickly Approve!
AWB has joined NAM and the U.S. Chamber of Commerce in lobbying for Congress to quickly pass TEA-21, a $284 billion transportation funding program. TEA-21 expires May 31. The U.S. Senate to quickly schedule action to prevent any further disruptions in state highway and transit improvement projects. This is federal gas tax money already collected, which needs to be appropriated back to the states. We want Washington state to get the money back in time for this summer’s construction season. Go to www.awb.org and contact Senators Murray and Cantwell to urge them to press for expedited passage of TEA-21. Contact AWB’s Don Brunell at (360) 943-1600 or DonB@awb.org.

Washington Doesn’t Make Airbus’s Short List – Business Costs DO Matter!
On Thursday, Airbus named sites in Alabama, Florida, Mississippi and South Carolina as potential locations for a plant to assemble aerial refueling planes if it beats Boeing for U.S. Air Force contract. According to Reuters, the short-list was drawn from 70 sites. South Carolina also is competing to build a major portion of the new 787 fuselage at the Charleston Airport. It is our understanding that Airbus, if it decided to build the refueler in Washington, would qualify for the 2003 incentives negotiated by former Gov. Locke and the Legislature. Costs of doing business matter today, and even with Washington’s aerospace ready workforce, it missed the list.

Washington is Out Collecting and Spending the Rest
According to Bill Pound, executive director of the National Council of State Legislators (NCSL), which will brings its annual meeting to Seattle this summer, average state revenues across America are rising by 3 percent while average state spending is going up by 4.5 percent. The costs of education and health care are driving budget increases. By contrast Washington state revenues will go up by 7 percent in the next two years while expenditures will jump by 12 percent. Our state’s spending trend is not sustainable.

AWB Joins Coalition Seeking Congressional Action to Preserve Tax Incentives
While in Washington, D.C., AWB President Don Brunell met with manufacturing association executives from across the country regarding the Cuno vs. Damiler decision. In its ruling, the Sixth U.S. Circuit Court struck down an Ohio investment tax credit. While at this point it appears the decision only impacts the Sixth Circuit’s Midwestern jurisdiction, AWB fears it will spread across the country. Part of our strategy includes filing of a friend-of-the-court brief to the U.S. Supreme Court through the Council on State Taxation (COST) and having corrective legislation passed. AWB is supporting the Economic Development Act of 2005, sponsored by Sen. George Voinovich, R-Ohio, which corrects the problem. Contact Tom McBride at (360) 943-1600 or TomM@awb.org.

UI Legislation Calls for Study – Employers Representatives Needed!
The union-backed unemployment insurance bill, EHB 2255, calls for a study and recommendations to the 2006 Legislature. It says organizations like AWB are to submit four employer representatives’ names to the Speaker of the House and President of the Senate. If you are interested being a representative on this panel, please contact AWB’s Mellani Hughes McAleenan at (360) 943-1600 or MellaniM@awb.org.

2005 Legislative Session Reports Now Available
AWB’s Governmental Affairs staff is finalizing its detailed session reports. They are available now for most issue areas. They are excellent. Contact AWB’s Alisha Boggs at (360) 943-1600 or AlishaB@awb.org if you’d like a copy.

Engler & Weeks at Spring Board Meeting – Register Now!
The annual AWB Spring Board Meeting in Spokane is just around the corner on May 24-25. Former Michigan Gov. John Engler is our keynote speaker at dinner on May 24, and we will unveil our border county competitiveness report at breakfast on May 25. Immediately after breakfast, we will have a forum with new L&I Director Gary Weeks. It will be his first week on the job, and he will speak and take questions. Our staff will also present session wrap-ups, talk about what we are doing to prepare for 2006 and answer your questions. Plan to attend. You’ll get your money’s worth. If you haven’t already registered, hurry up and contact the Davenport Hotel at (800) 899-1482. Rooms are filling up fast! Contact AWB’s Amy Johnson at (360) 943-1600 or AmyJ@awb.org.

Do You Know An AWB Member Who Should Be on AWB’s Board? Nominations are Being Taken!
AWB’s annual Spring Board Meeting is coming soon. At the meeting we will be choosing new members of AWB’s Board. If you know of an AWB member you think should be on our board, please send us that person’s name in nomination form. Deadline: May 23. Contact AWB’s Dick Walter at (360) 943-1600 or DickW@awb.org.

GAC Retreat Coming June 28-29 – Mark Your Calendars!
The annual Governmental Affairs Council retreat has been scheduled for June 28–29 at the Alderbrook Resort & Spa located on the Hood Canal. The retreat will begin the evening of Monday, June 27 with an informal gathering, all day and evening on Tuesday, June 28, and Wednesday, June 29 until about 12 noon. Make your room reservations now by calling (800) 622-9370. For registration information, contact AWB’s Alisha Boggs at (360) 943-1600 or AlishaB@awb.org.

Inc. and Forbes Magazine Rate Boise as No. 1 and 2 for Business - See Why at Spring Meeting In Spokane
Forbes magazine independently rated Boise as No. 1 for business while Inc. rated the Idaho capitol No. 2. On Forbes’s list, Portland was 26, Seattle 73, Spokane 114 and Tacoma 123. On the Inc. list, Spokane was 35, Tacoma 54, Seattle 72 and Portland 105. AWB and its partners the Washington Roundtable and Washington Research Council are putting the finals touches on a Border County Competitiveness Study – to be unveiled at our Spring Board Meeting on May 25.

Receive a Refund on Workers’ Comp - Find Out How!
Enroll in AWB CompWise and receive refunds on the premiums you pay to L&I. Hurry! Deadline is May 15. See www.awb.org/programs/workerscompreview.htm. Contact Amy Johnson at (360) 943-1600 or AmyJ@awb.org.

Learn the Legal Aspects of Interviewing, Hiring, Managing and Discharging Employees
AWB will hold an Employment Law Seminar at Sea Tac’s Doubletree Hotel, Wednesday, June 8. This all day seminar will give employers direction on managing the employment relationship from beginning to end. For more information or to make reservations, contact AWB’s Amy Johnson at (360) 943-1600 or AmyJ@awb.org.