TOP STORIES
End of the 'Great Recession' is in sight
Dr. Arun Raha, the state’s chief economist and executive director of the Washington State Revenue and Forecast Council, said Thursday the economy would likely bottom out lower than he predicted in March, but the end of the recession is in sight. "We are finally approaching the end of this 'Great Recession,'" said Raha, predicting a potentially strong fourth quarter for consumer spending, noting that consumers who have been saving at historically unprecedented levels may unleash pent-up demand.” Unfortunately, the good news was tempered with plenty of bad, including a $185 million drop in the state's general fund forecast from the March report, and a $297 million decline in expected revenue for the 2009-11 budget. Read more on AWB’s blog, Olympia Business Watch.


Washington's unemployment rate rises to 9.4 percent, matching rest of country
The state unemployment rate rose four-tenths of a percent in May to 9.4 percent, tying the national rate, the Washington State Employment Security Department announced last week. The increase came after a one-month reprieve in rising unemployment. In April, the state unemployment rate declined slightly to 9 percent, according to revised data. State officials initially reported that the unemployment level was flat in April at 9.1 percent. Employers shed 18,200 total jobs in May. Seasonally adjusted, the total nonfarm employment loss was 6,700 for the month, according to officials. The job losses occurred in almost all sectors. The only categories that saw increased employment were leisure and hospitality, up 1,600 jobs, and education and health services, up 700 jobs. The largest monthly declines were in construction, down 3,100 jobs; information, down 1,300 jobs;financial activities, down 1,100; and government, down 1,200 jobs. The full report from the Employment Security Department is available here. Last week, Al Ralston, president of the Washington Research Council, told AWB’s Government Affairs Council that unlike the last recession, today's economic pain is equally shared whether you are in Seattle or Spokane.


Portland-Vancouver area jobless climbs to 12.3 percent; 137,600 unemployed
From the Columbian: The unemployment rate for the Portland-Vancouver metropolitan area climbed in May to 12.3 percent, up from 11.9 percent in April and 5.2 percent in May 2008, according to the Oregon Employment Department. An estimated 137,600 area residents including about 30,000 in Clark County are unemployed and looking for work. That's 81,000 more than a year ago.


Need for special session debated as revenue drops, demand for services rises
Victor Moore, Gov. Chris Gregoire’s budget director, told AWB's Governmental Affairs Council Wednesday that he was preparing for a state revenue shortfall of at least $500 million. He was close: The total shortfall announced on Thursday was $482 through the end of 2011. Moore believes the expected decline in revenue combined with a large rise in demand for social services could require the Legislature to hold a special session later this year. Reps. Gary Alexander, R-Olympia, and Kelli Linville, D-Bellingham, also addressed members at the GAC retreat and insisted that a special session is not necessary. Other lawmakers said Thursday they want to take some time to decide.


AWB small business members weigh in on health care reform
“Government-managed state reform plans like those tried in Washington, Oregon, Tennessee, Hawaii, Massachusetts, and Maine have provided a clear indication of reforms that do not work.” Those are the words of AWB small business members Judy Coovert, owner of Printcom in Burien and Don Conant, general manager of Valley Nut and Bolt in Olympia. “These programs used price controls, penalties for employer nonparticipation, mandates, and business and sin taxes among other things in an effort to centralize control of health care costs and availability. In every case the effects of these reforms were devastating.” Read their entire opinion piece in today’s Olympian. Conant also appeared as a guest on KUOW’s Weekday program today alongside two other Seattle-area small business owners, plus Congressman Jim McDermott and Sen. Maria Cantwell. Is anybody listening to the folks who will foot the bill?


Senate Minority Leader Hewitt to receive AWB’s Matson Award
Sen. Mike Hewitt, R-Walla Walla, will be the recipient of the 2009 AWB Matson Award, as voted on by members of the AWB Governmental Affairs Council last Thursday. The award was established in honor of the late Sen. Jim Matson, R-Selah, to recognize legislators who over the years have consistently supported the private sector and issues important to Washington’s employers and the state’s competitiveness in the Washington State Legislature. The Matson Award is the highest award a legislator can receive from AWB. Hewitt was selected based on his ongoing support for large and small businesses and his consistent advocacy for sustainable budgets. The award will be presented at the 2009 AWB Policy Summit at Suncadia Resort later this September.


High school WASL scores, new testing system details released
Ninety-three percent of all 12^th-grade students in the class of 2009 passed the WASL in reading and writing this year according to State School Superintendent Randy Dorn. On Friday, Dorn released preliminary high school data, which showed a one-percent increase over last year’s graduating class. While he applauded the achievements of the students who did pass the exams, he cautioned that Washington state, as a whole, still has work to do on improving its overall on-time graduation rate, which has averaged about 72 percent over the last four years. “I applaud the hard work of the students who stayed in school and passed the state reading and writing tests,” Dorn said. “But we have to increase our focus on those students who don’t make it that far.”

Two weeks ago, Dorn also released preliminary details regarding replacement of the WASL, as well as the move toward online testing. Online testing will begin in spring 2010 in grades 6-8 in reading and math. The rest of the grades and content areas will be phased in over the next few years, he said. The WASL will be replaced next school year with the Measurements of Student Progress in grades 3-8 and the High School Proficiency Exam for 10^th-graders. Beginning in spring 2010, the new state tests (both online and paper-and-pencil) will be shorter and the time it takes to administer them will be cut in half, Dorn said. About 25 percent of students statewide in grades 6-8 are expected to participate next spring in voluntary online testing. By 2012, the majority of grades and content areas will be online. The WASL will be administered for the last time this August, when high school students can take reading, math or writing tests for the first time or as a makeup. For more information, contact AWB’s Donna Steward.


U.S. House may vote on climate change bill this week
House Resolution 2454, a bill to drastically reduce carbon dioxide blamed for global warming, could be voted on by the U.S. House of Representatives as early as this week. The outlook for the climate bill, which aims to reduce carbon emissions 17 percent by 2020 and 83 percent by 2050 through a cap and trade program, is less certain in the Senate, which is awaiting House passage of a measure before advancing its own legislation. Read more on Reuters.


Should American businesses bear the burden of paying for health care?
The Wall Street Journal reports that a repeal of foreign tax breaks for U.S. companies, raising $2 billion, is under consideration by House Democrats to help pay for health care reform. The PACE Coalition is working nationally and in Washington state to advocate against this proposal. For more information, contact Mary Schuneman at 206.227.2033.


KEY HEARINGS, MEETINGS
Ecology Director Manning at next Climate Change Subcommittee meeting, July 7
AWB’s Climate Change Subcommittee will meet Tuesday, July 7, from 9–11 a.m., at AWB. Ecology Director Jay Manning will give details on the Department of Ecology plans to implement Gov. Chris Gregoire’s executive order on climate change. The executive order signed last month contains many of the same elements as a failed bill from last legislative session — SB 5735, sponsored by Sen. Phil Rockefeller, D-Bainbridge Island. The order directs state agencies to continue participating in the Western Climate Initiative, develop emission reduction strategies and benchmarks aimed at meeting the state’s 2020 emission reduction targets and establish an agreed order that will require TransAlta’s Centralia coal-fired power plant to meet the state’s emissions performance standard by 2025. For more information, contact AWB’s Grant Nelson.


Draft industrial stormwater permit now available for review, comments
The Department of Ecology’s revised draft Industrial Stormwater General Permit is now available for review and public comment until Wednesday, July 15. Ecology intends to issue the final permit on Oct. 21. The draft permit, fact sheet, workshop schedule and other information is available online. The proposed draft permit will be especially onerous and costly for small businesses. For more information, contact AWB’s Grant Nelson.


OTHER NEWS
Former State Sen. Wanda Hansen dies
Former State Sen. Wanda Hansen passed away on June 12 in Pasco. The Moses Lake Democrat was appointed to serve in the Washington State Senate when her husband, Sen. Frank “Tub” Hansen, passed away in 1991. AWB’s vice president of government affairs, Gary Chandler, served in the House of Representatives with Hansen at the time and remembered her as a “gracious person,” who was always good at helping move legislation through the Senate. Read more about Hansen’s political life in the Columbia Basin Herald.


Order your copy of Washington – The Nature of Innovation
AWB is pleased to offer a beautiful new custom book, Washington – The Nature of Innovation, promoting the economic strengths that make Washington unique. Written by Pulitzer Prize–nominee Bob Condor, the book offers an insightful look at Washington’s storied arts and cultural scene, its universities and colleges, its recreation opportunities and professional sports, and the other lifestyle offerings that contribute to the state’s unbeatable quality of life. The book also discusses Washington’s diverse and robust industries and their impact on the state’s economy and features profiles of companies and organizations that have contributed to Washington’s economic development and success. The book is available for $49.50 for AWB members ($59.50 for non-members) and can be purchased online or by contacting Jennifer Costello or calling 800.521.9325.


Follow us on Twitter, Facebook
AWB recently launched a communications channel through Twitter, which allows us to post brief (140 characters) updates about AWB events, ask members quick questions, share breaking news and link to resources. Twitter is the third most popular social networking application on the Internet, right behind MySpace and Facebook. Learn more about the site and start following AWB on Twitter today. AWB also created its own fan page on Facebook, which provides updates on AWB events and posts on numerous issues. Show your support for AWB by becoming a fan today!


Don’t miss AWB’s new Member Spotlight
Be sure to check out the new AWB Member Spotlight, our online profile of the awards and achievements of AWB members. We’ve recently published stories on Battelle Memorial Institute, AWB members who won 2009 Seattle Wine Awards, Sterling Savings Bank and Blumenthal Uniform Company. If you have a good news story about your company, send it to AWB’s Paul Schlienz.


Federal recovery funds available for industrial energy efficiency improvements
The U.S. Department of Energy recently announced the availability of $156 million in federal recovery funding for energy efficiency improvements in the industrial sector. There is a very quick turnaround on these funds, and proposals are due Tuesday, July 14. DOE is looking for shovel-ready projects that will help create or preserve jobs while reducing industrial energy use. More information here and by contacting AWB’s Grant Nelson.


AWB EVENTS & RESOURCES
AWB’s 20^th Annual Policy Summit Sept. 22-24 at Suncadia Resort in Cle Elum
The 2009 AWB Policy Summit is designed to help reduce the uncertainty of today’s tumultuous economic times. We've assembled a team of national and local experts to chart a course through the turbulence, including pollster John Zogby and former presidential adviser David Gergen. Make plans now to be there. View additional information here. To register, contact AWB’s Jennifer Costello at 1.800.521.9325.


AWB members save up to 26 percent on UPS shipping!
AWB and UPS have partnered on a new program to help save members time and money. With discounts on UPS Next Day Air^®, UPS Worldwide Express^SM and UPS 2nd Day Air A.M^®, you can save up to 26 percent on shipping costs! Find out how to take advantage of these savings today by calling 800.325.7000. Be sure to identify yourself as an AWB member.


Online HR training at your fingertips — special pricing for AWB members
In view of the explosion of employment claims in recent years, employers of all sizes are vulnerable to employment disputes. New and proposed legislation continues to expand employers' exposure to claims. In fact, overall employment discrimination claims are up by 15 percent. In addition, state and federal harassment training mandates are quickly evolving; 2009 is a mandated training year for many organizations with multi-state operations. To help your company avoid problems and stay in compliance, AWB is offering a new member benefit giving you 20 percent off one of the best Online HR Compliance Training programs on the market. View a two-minute course preview movie here. To receive your AWB member discount code, contact AWB’s Jennifer Davis.


THEY SAID IT
"Today's revenue forecast reveals that our state is again on pace to spend more than it will have coming in for tax collections. To address this gap, I encourage the governor to make reductions in her cabinet agencies. This would be a good first step. The best way to balance our state finances in a sustainable way is to prioritize state government and reform our budget process.” – Rep. Barbara Bailey, R-Oak Harbor


This Week's President's Perspective: When you dig deeper, ‘Buy America’ doesn’t sound as good