Senate Ways and Means Committee budget outlook — Now a $2.7 billion shortfall
Bad news from the Senate Ways and Means Committee: A new outlook from the committee shows the effects of the June revenue forecast. Unfortunately, the budget hole has deepened to about $2.7 billion. According to Ways and Means staff: “As they have done in past, it is anticipated that the Governor and the Legislature will use available reserves and implement spending reductions and/or revenue changes to balance the 2009-11 budget.” What we’d like to know is what those “spending reductions and/or revenue changes” will be. Stay tuned. Read more at AWB’s Olympia Business Watch blog at www.olympiabusinesswatch.com. Contact AWB’s Amber Carter at (360) 943-1600 or AmberC@awb.org.

Workers’ comp benefits will go up 5 percent on July 1
The Washington State Department of Labor and Industries announced that workers’ comp wage and pension benefits will go up a little more than 5 percent starting July 1 as a result of wage inflation. State law requires the recalculation of benefits each year to reflect the change in the state’s average wage from the previous calendar year. The timing of this announcement underscores the difficulty with Washington’s labor-friendly wage calculation system. Using wage data from the previous calendar year, and including high wages in industries like the tech sector — which have comparatively little workers’ comp claims experience — creates skewed results. At a time when consumers are anxious, the state and national economy is slow, unemployment is rising, and companies must consider trimming payrolls, does a 5-percent increase in benefits seem justified by current economic realities? Washington already has among the highest workers’ comp benefits in the country. And with higher benefits come higher payroll taxes for employers. Read more at AWB’s Olympia Business Watch blog at www.olympiabusinesswatch.com. For more information, please contact AWB’s Kris Tefft at KrisT@awb.org or (360) 943-1600.

New changes in sales tax law start July 1
If you are an employer that makes deliveries subject to retail sales tax, make sure you know about the destination-based sales tax law change that goes into effect tomorrow, July 1. Also called the Streamlined Sales Tax, this change comes from SB 5089, passed in the 2007 legislative session. The new law mandates that retail sales tax be collected at the point of delivery instead of the place they are shipped from. This change allows Washington to participate in a national effort  to create a more uniform sales tax system while protecting brick-and-mortar retailers from online competitors that do not collect sales tax. AWB has worked closely with the Washington State Department of Revenue over the past year to implement the change in the law by meeting with employers, conducting workshops and developing tools to help employers comply with the law. Online tools include tax lookup tools, QuickBooks downloadable tax rate information, source code language for computer programmers, customized maps and more, which are all available at the Department of Revenue’s Web site. Recently, companies that provide sales tax collection and reporting programs are increasing their presence in Washington to provide low-cost solutions for employers. AWB is gathering streamlined sales tax compliance information on our Web site. This includes information on the change in the law and links to private market solutions such as AWB’s newest member, SPEEDTAX. Certified by the Streamlined Sales Tax Governing Board, SPEEDTAX is a certified service provider offering automated state and local sales tax rate calculation, internal auditing, and filing programs. Some employers may be eligible for a tax credit to cover the cost of using a certified service provider to comply with the new change in destination-based sales tax sourcing.

AWB Transportation Committee meeting July 8
The AWB Transportation Committee will meet on July 8 at 10 a.m. at AWB. Keith Cotton from the Washington State Department of Transportation will share current programs underway with the Commute Trip Reduction Board and their legislative proposals for 2009. He we will also discuss their role in addressing the vehicle miles traveled goals established this session. We’ll also get an update from the Freight Investment Study Policy Group. Finally, we will review our legislative policy objectives to prepare for the 2009 legislative session. Please let us know if you have agenda items you would like to include for the next meeting. Contact AWB’s Amber Carter at AmberC@awb.org or (360) 943-1600

Energy expectations don’t match reality
According to Bisconti Research Inc., expanding the America’s energy portfolio will require informing the public about the size of the challenge. Currently, the federal government and the public have dramatically different expectations about how the nation will get their supply of electricity 15 years from now. Nearly three-fourths of the public expect solar energy to be a major source of electricity and 65 percent believe wind will play a significant role in powering America’s electricity grid. However, the U.S. Energy Information Administration projects those sources will provide about 2 percent of our nation’s electricity in 2020 — only slightly more than they provide today. (AWB has long supported development of all energy sources and has supported siting of wind farms which are under appeal in our state). The public placed coal last, with only 14 percent expecting it to be a major source in 15 years. Coal is the fuel which supplies over half of our electricity today and will supply 58 percent in 2030 even if we bring all of the alternatives sources, such as wind and biomass, on line at that time. The disconnect is that 84 percent of Americans strongly support a “carbon-free” mix of options to generate electricity. Expectations and reality are like trains speeding by one another in the darkness of the night. As for nuclear power, which, like hydro, produces no greenhouse gases, three-quarters of Americans associate nuclear energy with clean-air benefits and 63 percent favor nuclear energy to produce electricity.

Puget Sound Partnership Subcommittee meeting July 14
The AWB PSP Subcommittee will meet on July 14 from 10 a.m. to 12 p.m. at the Master Builders of King and Snohomish Counties (335 116th Ave. SE, Bellevue). The committee will review and discuss the Partnership’s newest draft action agenda document. AWB will provide comments and feedback on this document after this meeting. We will also discuss the recent Four Action Agenda Principles adopted by the Leadership Council at its last meeting, as well as the work of the PSP Funding Advisory Group. For more information, please contact AWB’s Chris McCabe at ChrisM@awb.org or (360) 943-1600.

Union organizing legislation in 2009
In the upcoming issue of Washington Business magazine, U.S. Chamber of Commerce General Counsel Steven Law discusses the implications of the Chamber of Commerce v. Brown case in which the U.S. Supreme Court invalidated a California law that would have tilted the labor-management balance in favor of union organizing. Law talks about what’s ahead in 2009. AWB General Counsel Kris Tefft also discusses the how the law affects Washington employers. You can get a preview of Tefft’s article at Olympia Business Watch, AWB’s blog (www.awb.org ). Be sure to look for the July/August issue of Washington Business magazine in your mailbox in a couple of weeks.

AWB supports wind energy project in brief to Washington Supreme Court
AWB, joined by the Northwest and Intermountain Power Producers Council, filed a friend-of-the-court brief in the case of Residents Opposed to Kittitas Turbines v. the Energy Facility Site Evaluation Council. The case involves the effort to site a wind farm in the Kittitas Valley between Cle Elum and Ellensburg in response to Washington’s push toward alternative energy sources. Some neighboring landowners object to the project on what appear to be mostly aesthetic grounds, and have appealed to stop the project. Kittitas County objected to the state siting scheme which would preempt its local zoning and land use ordinances, and appealed to stop the project. AWB vigorously supports the project. Energy developers are already anxiously awaiting the outcome of this case as an indicator of the regulatory climate for future energy investment in Washington. With the clear public policy push toward renewable energy, will the regulatory process to site new facilities be fast, fair, expedited, and efficient, or will it be — like all too many land use processes — slow, cumbersome, and litigious? Read more at AWB’s Olympia Business Watch blog. For more information, please contact Kris Tefft at (360) 943-1600 or KrisT@awb.org.

Ecology releases preliminary draft chemical action plan for lead
Last week, the Washington State Department of Ecology released a preliminary draft lead chemical action plan. AWB and other members of the department’s advisory committee who have been working on the draft chemical action plan have until July 14 to submit comments. The draft chemical action plan outlines a number of policy options and recommendations on how to reduce exposure to lead, including banning lead-containing products for sale in Washington state, mandatory abatement and remediation of lead paint, soil and plumbing in homes and increasing awareness through better education. Contact AWB’s Grant Nelson at (360) 943-1600 or GrantN@awb.org for more information including a copy of the preliminary draft chemical action plan.

Many Washington employers to receive workers’ comp dividend check
The Department of Labor and Industries will begin sending dividend checks to 100,000 Washington employers this week to close the financial books on the partial-rate holiday employers and workers experienced in the second half of last year. To return another $37 million in excess premiums for that period, L&I will send out checks averaging $266 per employer, but the actual amount of the dividend will depend on the employer’s accident fund premiums paid in the second half of last year. Employers with dividends under $10 will have the amount applied to their account as a credit toward next quarter, while employers who owe a debt to L&I or another state agency may see their dividend applied to that debt. Employers participating in a retrospective ratings program (such as AWB’s CompWise) have had their proportionate share of the excess premium reflected in their retro adjustment in lieu of a dividend. Read L&I’s news release here. Contact Kris Tefft at (360) 943-1600 or KrisT@awb.org.

Reminder – Tax and Fiscal Policy Council meeting July 9
The AWB Tax and Fiscal Policy Council will meet on Wednesday, July 9 at 9:30 a.m. in the Deloitte office (925 4th Avenue, Ste. 3300, Seattle). The Puget Sound Regional Council will present a net economic activity tax proposal to eliminate the state property tax and business and occupation tax in favor of a new corporate and payroll tax. Additionally, members of AWB will continue its work on our legislative objectives for 2009 and receive updates on recent discussions with the Department of Revenue. Contact Amber Carter at (360) 943-1600 or AmberC@awb.org.

A chance for Olympia-area employers to “Say Hey”
On Tuesday, July 8, the Washington State Division of Vocational Rehabilitation and Washington State Rehabilitation Council will sponsor a job networking opportunity called “Say Hey Olympia”. The purpose of the event is to help connect the local employer community with individuals with disabilities who are actively seeking employment. The informal networking event will feature remarks from Olympia Mayor Doug Mah and an opportunity to share information between employers, job-seekers, and the division itself. AWB members are encouraged to attend. Contact Kris Tefft at (360) 943-1600 or KrisT@awb.org.

AWB joins disability groups in supporting changes to federal disability act
AWB joined with state disability rights organizations in supporting the U.S. House’s passage of H.R. 3195, an amended, compromise version of the ADA Restoration Act, which amends the 1990 Americans with Disabilities Act. From a joint letter led by AWB and the Governor’s Council on Disability Issues and Employment: “People with disabilities are a large, underutilized source of new workers, and a rapidly growing segment of our consumer market. Social justice and our economy are both served when businesses are supported in their efforts to tap into and develop these potentials.” Passage of the ADA Restoration Act may have little practical effect in Washington state where, in 2007, the Legislature passed SB 5340 containing many similar protections. But passage of the federal compromise, in addition to being the right thing to do, would have the beneficial side effect of bringing Washington law into greater consistency with federal law. Read more at AWB’s Olympia Business Watch blog at www.olympiabusinesswatch.com. Contact Kris Tefft at (360) 943-1600 or KrisT@awb.org.

Healthy Worksite Summit
As direct and indirect health care costs of poor employee health continue to grow, employers must develop strategies and utilize tools to reverse this trend. The 22nd Annual Healthy Worksite Summit will help your organization develop new programs, revitalize an existing program, and share best practices that will motivate and sustain a healthy and productive work environment. The summit is on Oct. 1 and 2 at the Meydenbauer Center in Bellevue; and on Oct. 3 at the Deaconess Health & Education Center in Spokane.
For more information, please see www.awcnet.org/worksitesummit/index.htm.
 
Governmental Affairs Council Retreat - July 15-17
The annual GAC Retreat will be at Alderbrook Resort located at Union on the Hood Canal. The retreat will begin the evening of Tuesday, July 15 with an informal gathering, all day and evening on Wednesday, July 16, and Thursday, July 17 until about 12 noon. Make room reservations by calling Alderbrook Resort directly at (800) 622-9370. Let them know you are reserving a room under AWB for the nights of July 15 and 16. The cost for the rooms is $177 per night. The cost for the retreat is $ 185. Contact AWB’s Connie Grande at (360) 943-1600 or ConnieGr@awb.org.

Be an AWB Policy Summit sponsor
AWB’s Policy Summit will be on Sept. 24-26 at Semiahmoo Resort. As a sponsor, your company receives acknowledgement before, during and following the event in marketing materials, signage and in AWB’s Washington Business magazine. Display opportunities are also available. Contact AWB’s Jennifer Davis at JenniferD@awb.org or click here for more information.

Order your copy of the 2008 Washington Employment Law Deskbook
The 2008 Washington Employment Law Deskbook (17th Edition) is a key reference guide to legal issues facing Washington employers. The reference guide offers sample policies, solutions and easy-to-understand guidelines. Each book comes with a searchable CD-ROM for quick access to specific topics. Contact Jennifer Costello at JenniferC@awb.org or (360) 943-1600, or click here to order online.

Simplify your job with the updated Human Resources File Cabinet Handbook
This comprehensive, plain-English guide is designed to assist Washington employers in preparing, revising and reviewing employee business forms. The Human Resource File Cabinet (Sixth Edition) will help you create and maintain accurate human resources files with minimal time and effort. The handbook includes all the human resources forms you will need from pre-employment to termination with detailed instructions on how to use and maintain each form. Contact Jennifer Costello at Jenniferc@awb.org or (360) 943-1600, or click here to order online.

AWB to hold regional board meetings in September
Don’t miss the chance to let AWB know what we can do for you! The AWB’s annual round of regional board meetings are your chance to participate in the formation of AWB’s 2009 Legislative Agenda. Be sure to mark your region’s meeting on your calendar: Sept. 3 (Spokane), Sept. 4 (Kennewick), Sept. 5 (Moses Lake), Sept. 9 (Vancouver), Sept. 10 (Tacoma), Sept. 16 (Everett), and Sept. 17 (Bellevue). In addition, we’ll conduct legislative candidate interviews following the board meetings. For more information, please contact AWB’s Bonnie Millikan at BonnieM@awb.org or (360) 943-1600.

Ten Things Politicians Can Do To Make America Energy Independent - See this week’s President’s Perspective at www.awb.org