Gov. Gregoire warns state revenue could be down $6 billion
Gov. Chris Gregoire said state revenues may be $6 billion short by the time the Legislature writes the operating budget next year. That would mean nearly a 20 percent gap between projected revenue and spending at the current rate. State tax collections continue to grow, but at a slower pace than spending. For the 2009-2011 budget period, state revenues are expected to increase by 5 percent. However, an 8 percent rate of increase is needed to cover state expenses under the current spending trajectory, leaving a revenue gap of $5.1 billion. In an effort to address this budget shortfall, Gov. Gregoire is soliciting ideas from everyone on trimming costs. The Washington Alliance for a Competitive Economy (WashACE) has complete coverage of the revenue shortfall. You can also listen to a podcast about the budget with AWB President Don Brunell and WashACE Coordinator Richard S. Davis.


Governor focusing on cuts, considering tolls for transportation projects
With Washington facing the largest revenue shortfall in its history, Gov. Gregoire is expected to cut state jobs and programs without raising taxes. She’s also not willing to cut plans for construction on the Alaskan Way Viaduct or the State Route 520 floating bridge. Those projects, she says, must be funded by tolls. A new cost estimate for the 520 bridge project quoted a total tab of $4.5 billion — $500 million above the previous estimate. Meanwhile, a new estimate for the Alaskan Way Viaduct ranges from $800 million to $3.5 billion. Read more on AWB’s blog, Olympia Business Watch.


Washington Supreme Court agrees with AWB, approves Kittitas Valley wind farm
Last Thursday, the Washington Supreme Court released its eagerly-awaited decision on the viability of the $150 million Kittitas Valley Wind Power Project, the 65-turbine wind farm proposal along U.S. 97 near Ellensburg.The project, developed by AWB Member Horizon Wind Energy, has been held up in a legal dispute between Kittitas County, landowners, the state Energy Facility Site Evaluation Council (EFSEC), and Gov. Gregoire. AWB supported the project and the decision by EFSEC and urged the governor to approve it.Joined by the Northwest & Intermountain Power Producers Coalition,AWB filed a friend-of-the-court brief supporting this outcome in the case. The project will mean clean, renewable power for about 30,000 Washington homes per year. Ellensburg and Kittitas County will also gain significant economic benefits through permanent family-wage jobs, royalty payments to landowners, property taxes, local spending and other investments in the community. For more information, contact AWB’s Chris McCabe or Kris Tefft at (360) 943-1600, or read more about it on Olympia Business Watch.


Democrats, GOP choose House leadership teams
Both the Democrats and Republicans have elected their House leadership teams for the 2009 legislative session. On the Democratic side, Rep. Frank Chopp, D-Seattle, will return as speaker; Rep. Lynn Kessler, D-Hoquiam, is majority leader; Rep. Bill Grant, D-Walla-Walla, is caucus chair; Rep. Sharon Tomiko Santos, D-Seattle, was chosen as whip; Rep. Jeff Morris, D-Mount Vernon, is speaker pro-tem-elect; and Rep. Jim Moeller, D-Vancouver, is deputy speaker pro-tem. On the Republican side, Rep. Richard DeBolt, R-Chehalis, was re-elected House minority leader with Rep. Joel Kretz, R-Wauconda, as deputy minority leader; Rep. Dan Newhouse, R-Sunnyside, is floor leader; Rep. Dan Kristiansen, R-Snohomish, is caucus chair; Rep. Bill Hinkle, R-Cle Elum, was chosen as Republican whip; and Rep. Judy Warnick, R-Moses Lake, and Rep. Charles Ross, R-Naches, were chosen as assistant floor leaders.


Survey suggests jobs trump environmental concerns during tough economic times
Last week on Olympia Business Watch we reported that as economic conditions have worsened throughout 2008, voters have grown more concerned about protecting jobs than protecting the environment.This was borne out by the latest Moore Information Survey. Asked which issue they are more concerned about today, 65 percent of U.S. voters say they are more concerned about protecting jobs, while only 27 percent are more concerned about protecting the environment.This is a notable change from six months ago, when concern about jobs was higher than concern about the environment, but to a lesser degree than today. You can read more about the new “green” economy in the latest issue of Washington Business magazine.


AWB Executive Committee meets on Dec. 3
The Association of Washington Business Executive Committee will meet on Wednesday, Dec. 3 to discuss the state’s revenue shortfall and AWB’s 2009 legislative strategy. The committee will also review the WashACE coordinated work plan for 2009.


Rep. Deb Wallace at AWB’s next Education and Training Committee meeting on Dec. 3
The next meeting of the AWB Education and Training Committee is set for Wednesday, Dec. 3 from 8:30-11:30 a.m.Please note this is an earlier start time, and that the location has been changed from Seattle to Olympia. Rep. Deb Wallace, D-Vancouver, chair of the House Higher Education Committee, will share her thoughts on the upcoming session, its challenges for higher education and where she sees opportunity to advance reform proposals. There will also be discussion on the basic education financing proposals and refining strategy for the 2009 legislative session. For more information, contact AWB’s Amber Carter or Donna Steward at (360) 943-1600.


Employment Law Seminar: Hiring, managing and discharging employees
This one-day seminar on Thursday, Dec. 4 is a powerful tool that will help inform your key personnel on how to avoid legal traps and provide a solid understanding of changing laws and regulations in the employment area. Click here for a full agenda. To register, contact AWB’s Jennifer Costello at (360) 943-1600.


Gregoire administration will unveil climate change legislation on Dec. 11
On Thursday, Dec. 11 from 10:30 a.m.–noon at AWB, the Office of the Governor, Department of Ecology and CTED will present the administration’s climate change related legislation and budget requests, including a draft bill on a cap and trade program that will be proposed next session. Members are encouraged to attend. For more information, contact AWB’s Grant Nelson at (360) 943-1600.


Report on alternatives to Deca-DBDE now available; comments due Dec. 14
The Department of Ecology/Department of Health report on alternatives to Deca-BDE is now available. Members should submit comments and concerns they may have about the findings by noon on Monday, Dec. 14. For more information, contact Grant Nelson at (360) 943-1600.


Managing Leaves of Absence Seminar, SeaTac on Jan. 8
The Family and Medical Leave Act presents more compliance headaches than almost any other law affecting the workplace. It remains an extremely difficult and frustrating law for employers to administer, and it creates several traps that can lead to employer liability. Complying with FMLA just became more complicated: new regulations become effective Jan. 16. Join us for this seminar on Thursday, Jan. 8 as we sort through the confusion and ambiguity, and help you identify what you must do now to manage employee leaves of absence. Click here to register or contact Jennifer Costello at (360) 943-1600 for more information.


Manufacturing briefing set for Jan. 15 in Olympia
Join us Thursday, Jan. 15 at AWB’s Olympia office for a special briefing on the status of manufacturing in Washington. This is your chance to talk with state legislators about the crucial role manufacturing plays in our economy and the importance of retaining the current manufacturing sales and use tax exemption. Registration is $35 for AWB members and includes lunch. Space is limited, so be sure to reserve your spot today by contacting Jennifer Costello or calling (360) 943-1600.


Legislative reception and issues briefing set for Feb. 11
AWB’s legislative reception and annual issues briefing with key legislators is scheduled for Wednesday, Feb. 11 in Olympia. For more information, contact Jennifer Davis.


Kids didn’t go hungry because of a couple guys named Bill — See This Week’s President’s Perspective at www.awb.org